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

Abstract

Purpose: The 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/approach: Variance-based structural equation modeling algorithm and correlation analysis were applied to survey data obtained from (n = 482) a top manager from 3PL companies. Findings: Results 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/implications: This 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 implications: Organizations 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/value: Depending 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. © 2021, Emerald Publishing Limited.