Document Type : original-application paper


1 Department of Business Administration, Faculty of Management, Kharazmi University, Tehran, Iran.

2 Department of Business Administration, Faculty of Humanities, Maku Branch, Islamic Azad University, Maku, Iran.


Purpose: The purpose of the present study is to investigate the impact of dynamic capabilities on firm performance through the mediating role of business model innovation and sustainable competitive advantage and the role of moderating environmental dynamics.
Methodology: This research is a descriptive survey in data collection. The statistical population of the study is companies located in Tehran province. The sample size was determined with G-Power 3 software, 222 people, and the random method was used for sampling. Two hundred eighteen questionnaires were obtained through an online survey. The research model was also analyzed based on the structural equation modelling approach with Smart PLS 3.
Findings: Dynamic capabilities positively and significantly affect firms' performance, and business model innovation mediated this relationship. Perceived environmental dynamics moderated only the relationship between dynamic capabilities and business model innovation, sustainable competitive advantage, and firm performance.
Originality/Value: The role of dynamic capabilities is an essential and strategic necessity for guiding, supporting, and managing resources to create a sustainable competitive advantage and achieve superior performance. The study provides critical insight for managers to abandon traditional approaches, focus on core competencies, and strengthen their position in the market. 


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