Narratives of environmental munificence of 3PL firms on the relationship between dynamic capabilities, strategic management and organizational performance

Abstract

PurposeThe purpose of this paper is to examine how the mediating effect of strategic management impacts the relationship between dynamic capabilities and firm performance concerning environmental munificence in 3rd party logistics (3PL) firms operating in Turkey.Design/methodology/approachVariance-based structural equation modeling algorithm and correlation analysis were applied to survey data obtained from (n = 482) a top manager from 3PL companies.FindingsResults revealed that dynamic capabilities were a strong predictor for organizational performance, environmental munificence also emerges as a key predictor for dynamic capabilities and strategic management, and strategic management fully mediates the link between dynamic capabilities and organizational performance, suggesting that they function as substitutes in affecting performance outcomes.Research limitations/implicationsThis paper provides empirical evidence of the relationship between the dynamic capability adaptation, strategic management, environment and performance of 3PL firms. As a limitation, the results are based on survey research with a limited sample size.Practical implicationsOrganizations should manage not only dynamism but also the scarcity of environmental resources found to be significant on both dynamic capabilities and strategic management. Additionally, in the logistics sector, managers should focus on the big picture while they empower and lead capable followers to transform this strategic view into operational-level changes.Originality/valueDepending on the relationships between constructs, studying environmental munificence is a different topic than the dynamic environment concept in the effectiveness of dynamic capabilities of 3PL firms. As well as dynamic capabilities at the level of individual and strategic management relationship on organization performance are confirmed.

Strategy Under Uncertainty: A Sectoral Analysis of Strategic Posture and Performance in the Turkish Logistics Sector

“…Researchers have shown that strategies can affect the performance of companies (Chi, 2015;Desarbo et al, 2005;Morgan & Strong, 2003;Tan, 2002;Tan & Tan, 2005;Talke, 2007;Zajac et al, 2000). As a result, in line with the literature (George et al 2019;Gnizy, 2016;Arun & Yıldırım Özmutlu, 2021), effective strategy can increase organizational performance. Therefore, the third hypothesis is: H 3 .…”

“…In summary, the effectiveness of strategy and environmental situations have been associated with performance (Hambrick, 1983). Researchers have shown that strategies can affect the EC-performance-strategy relationship (Bae, 2017;McArthur & Nystrom, 1991;Miles et al, 2000;Priem et al, 1995;Sabherwal et al, 2019;Yayla & Hu, 2012;Yu et al, 2016;Arun & Yıldırım Özmutlu, 2021). Especially in the logistics sector, some researchers have found a lack of evidence on the effects of environmental conditions on strategic choices to improve firm performance (Zimmermann et al, 2020).…”

Lessons For Enhancing Competitive Advantage: Dynamic Capabilities Framework

“…According to the study of Wang et al (2015), DC and its dimensions including absorptive and transformative capabilities are fundamental to the understanding of differential NPD performance. The previous empirical studies found that DC is positively related to organisational performance and this relationship is mediated by variables such as high level of technological dynamism, competitive advantage (cost leadership and product differentiation) and strategic management (Fainshmidt et al, 2016;Correia et al, 2021;Arun & Yildirim, 2022). An enhanced NPD performance requires strong DC to sense, seize, and transform in conjunction with a good strategy (Teece, 2007;Teece, 2009;Teece, 2014).…”

Investigation of the Mediating Effect of Strategic Posture on the Relationship between Environmental Conditions and Firm Performance on the Logistics Sector

“…Therefore, organizations should be able to improve their strategic flexibility to take advantage of opportunities in changing environments (Mason-Jones et al, 2000). As a result, parallel to the literature (Adner et al, 2014;Xie et al, 2018;Arun and Yıldırım Özmutlu, 2021), effective strategy can increase overall organizational performance. In our research, the firm performance is handled in the form of three components : financial and market, logistic and operational performances.…”