Dynamic Capabilities and Their Impact on Risk Management: Evidence from Jordan

Abstract

The study aimed to identify the impact of dynamic capabilities by its dimensions (sensing capability, learning capability, integration capability, coordination capability, and reconfiguration capability) on risk management by its combined dimensions (risk identification, risk assessment, risk response, and risk monitoring) at Jordan Food and Drug Administration (JFDA). A survey was used for the study population which consisted of (163) employees in supervisory positions at all administrative levels in JFDA. The electronic questionnaire was adopted as a tool for collecting data, and (146) valid questionnaires for statistical analysis were retrieved. This study found a significant impact of dynamic capabilities by their dimensions on risk management at JFDA, and also it found a significant impact of dynamic capabilities on each dimension of risk management. The results also indicated that the level of dynamic capabilities was high. On the other hand, integration and coordination capabilities had a medium level while risk management became at high levels. This study recommended enhancing benchmarking with international and regional institutions, encouraging knowledge exchange, and leveraging external experiences in risk management. It also emphasized the need for increased attention to integration and coordination capabilities, suggesting ongoing efforts to enhance them by providing support and resources. Furthermore, the study advocated for a collaborative work environment, with clear mechanisms for coordination and integration among different directorates, aiming to prevent task duplication through the establishment of coordination committees.