Cooperative goals and dynamic capability: the mediating role of strategic flexibility and the moderating role of human resource flexibility

Abstract

Purpose The dynamic capabilities theory indicates that uncertain environments necessitate firms’ dynamic capability. This study aims to examine how dynamic capability can be shaped based on cooperative goal interdependence with supply chain partners by focusing on the mediating role of strategic flexibility and the moderating role of human resource flexibility. Design/methodology/approach Questionnaire surveys were administered to firm presidents, chief executive officers, chief human resources officers (CHOs) and other senior managers at 300 firms located in China. The data collection process was carried out in one wave with multiple sources. Of the firms contacted, the sample in this study consisted of 233 matched “CHO-other top manager” dyads. Structural equation modeling and the bias-corrected bootstrap method were used to test the proposed causal relationships, moderation model, mediation model and moderated mediation model. Findings Cooperative goal interdependence with both upstream companies and downstream companies was positively related to dynamic capability and strategic flexibility mediated these main effects. Moreover, human resource flexibility moderated the positive direct relationship between strategic flexibility and dynamic capability and the indirect relationships among cooperative goals, strategic flexibility and dynamic capability such that these relationships in companies with high human resource flexibility were stronger than these relationships in companies with low human resource flexibility. Originality/value The findings contribute to the literature on dynamic capability by providing empirical evidence regarding the relationships among cooperative goals, strategic flexibility, human resource flexibility and dynamic capability, which enriches the theory of cooperation and competition and suggests a new path to promote dynamic capability.