Quotation Frank, Hermann, Güttel, Wolfgang, Keßler, Alexander. 2017. Environmental dynamism, hostility, and dynamic capabilities in medium-sized enterprises. International Journal of Entrepreneurship and Innovation 18 (3), 185-194.




Global crises, disruptive technologies, or business models, as well as increasing cost pressure constantly require firm responses to sustain competitive advantage. The dynamic capabilities (DC) approach addresses the firm’s ability to innovate and to reconfigure in order to cope with a dynamic environment. In our study, we investigate the impact of environmental dynamics and hostility on DC in 120 Austrian medium-sized enterprises. Our quantitative analysis indicates a significant relation between environmental dynamism and DC of medium-sized enterprises: The higher environmental dynamism in the firm’s environment is, the more prevailing and important are DC. We further reveal, in detail, that different DC in medium-sized enterprises are important when environmental dynamism and/or environmental hostility increase. In particular, searching, learning, and flexibility rise as a result of an increase in environmental dynamism. However, hostility in the firm’s environment only has an impact on searching opportunities and threats. DC for process efficiency are important both in high velocity and in moderately dynamic markets. Finally, firms in high-velocity environments perform in an ambidextrous mode combining DC for exploration and exploitation concurrently.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal International Journal of Entrepreneurship and Innovation
WU-Journal-Rating new STRAT-C
Language English
Title Environmental dynamism, hostility, and dynamic capabilities in medium-sized enterprises
Volume 18
Number 3
Year 2017
Page from 185
Page to 194
DOI http://dx.doi.org/10.1177/1465750317723219


Frank, Hermann (Details)
Keßler, Alexander (Details)
Güttel, Wolfgang (Johannes Kepler University Linz, Austria, Austria)
Department of Global Business and Trade DP (Details)
Research Institute for Family Business FI (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5307 Business and management economics (Details)
5314 Trade Research (Details)
5333 Business management (Details)
5405 Empirical social research (Details)
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