The Impact of Dynamic Capability on Business Sustainability of Organizations

Abstract

A firm’s dynamic capability is its ability to sense, seize and reconfigure its internal competencies to address any external changes to the business environment. Social customer relationship management (SCRM) is an organization’s marketing capability to use social media services and technologies to connect more closely with their customers and meet customers’ needs. Few studies have examined the influence of organization’s dynamic capability on its business sustainability. There is also no study which investigated the moderating role of SCRM on the relationship between an organization’s dynamic capability and its business sustainability, although there is a growing interest among researchers, academicians and practitioners to understand this relationship. Therefore, the aim of this study is to examine the impact of dynamic capability on an organization’s business sustainability, with SCRM as the moderator. With the help of dynamic capability view theory and the literature, a model has been developed conceptually. Later, the model is validated with the structural equation modelling technique by considering 302 respondents from different types of Indian organizations. The study finds that an organization’s dynamic capability has considerable impact on business sustainability. Also, the study confirms that SCRM has a significant moderating role in the relationship between organizations’ dynamic capability and business sustainability.