Effect of dynamic managerial capability on performance during technological turbulence: the mediating role of innovation

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This research discusses how technological turbulence affects Small and Medium-sized Enterprises (smes) and their performance and highlights the importance of dynamic managerial capability in sustaining and improving performance in turbulent business environments based on the model developed from the concepts of the Resource Base View (RBV) and Dynamic Capability (DC) theories. The study tests a model that examines the roles of technological turbulence and innovation as a moderator and a mediator in the relationship between dynamic managerial capability and firm performance and tests the model against 300 smes in Ghana. Partial Least Squares-Structural Equation Model (PLS-SEM) algorithm and bootstrap techniques justified the model. The results support the hypothesized direct and indirect effects of the three variables on the performance of smes and reveal that dynamic managerial capability is the most important variable, followed by technological turbulence and innovation. The findings suggest that dynamic managerial capabilities enhance and help maintain stable performance during turbulent business environments. Keywords: smes, Dynamic Managerial Capability, Technological turbulence, Performance, Innovation, PLS-SEM.
A thesis submitted to the school of graduate studies, Kwame Nkrumah university of science and technology, Kumasi, in partial fulfilment of the requirements for the degree of master of business administration in strategic management and consulting