Dynamic managerial capabilities and sustainable market competencies: role of organisational climate

Managerial capabilities are one of the primary resources in every organisation that have peculiar strategic objectives to fulfil. The purpose of this paper is an effort to dig out how managerial cognition, human capital and social capital as underpinnings of dynamic managerial capabilities (both separate and composite) affect sustainable strategic market creation (SMC) in nascent industries. Moreover, this study unfolds the role of dynamic managerial capabilities (sensing, seizing and reconfiguring) as a key mechanism through which these underpinnings lead to SMC.

For this purpose, a sample of 497 respondents was collected from top and middle-level managers of insurance companies in Pakistan. Structural equation modelling was used to test a set of direct, indirect and moderation hypotheses.

Findings revealed that DMC underpinnings have a direct positive impact on marketing and research and development competence dimensions of SMC. Results also confirmed significant mediation paths and substantial moderation of aforementioned organisational climate factors between dynamic managerial capabilities (DMC) and its underpinnings.

It offers a first examination of the possible moderation impact of innovation, flexibility and outward focus between DMC and its underpinnings as essential organisational climate factors.