Study On The Influential Relationship Between Strategic Orientation, Dynamic Capabilities, And New Product Development Performance

In the21st century the international and domestic environment which Chinese enterprises arefacing still undergoes profound changes. Enterprises need to build and utilize dynamiccapabilities to respond to the complex and variable environment so as to obtain sustainablecompetitive advantage and superior business performance. The dynamic capabilities theory isanother important theoretical system of strategic management field following resource-basedview. However, the existing literature obviously lacks the relevant research results about theantecedents and effects of dynamic capabilities. The research contents and theoretical logic arealso relatively scattered, so the fundamental and systematic theory framework for analysis hasnot been established. This restricts the further development of dynamic capabilities theory andthe widely application of dynamic capabilities theory in the management practice.Under current Chinese economic situation in the transition, dynamic capabilities become thekey factors for enterprises to response to environmental changes as well as to gain thecompetitive advantage and superior performance.“how to build dynamic capabilities” and“what effects dynamic capabilities will bring” are the core problems that the research ondynamic capabilities should explain. Based on the resource–capability–performance effectpath as the theoretical analysis framework, this study proposes that market orientation andentrepreneurial orientation as two widely used strategic orientations, have a very importanteffect on the building of dynamic capabilities. And dynamic capabilities will impact on newproduct development performance after they have been established and applied. Dynamiccapabilities play a mediation role in the relationship between strategic orientation and newproduct development performance. In addition, in the study the moderating effects ofenvironmental turbulence on the relationship between strategic orientation and dynamiccapabilities have been tested. The main conclusions are as following several aspects:1. The effect of strategic orientation on dynamic capabilities. Market orientation hassignificantly positive effects on dynamic capabilities and its three dimensions (opportunitysensing capability, resource integrating capability and reconfiguration capability).Entrepreneurial orientation has significantly positive effects on dynamic capabilities and theopportunity sensing capability. 2. The effect of dynamic capabilities on new product development performance. Dynamiccapabilities, opportunity sensing capability and reconfiguration capability have significantlypositive effects on new product development performance.3. the mediating effect of dynamic capabilities. Dynamic capabilities play full mediation andpartial mediation roles significantly in the relationship between strategic orientation and newproduct development performance.4. The moderating effect of environmental turbulence. Environmental turbulence has asignificant moderating effect on the relationship between market orientation and dynamiccapabilities, while the moderating effect on the relationship between entrepreneurial orientationand dynamic capabilities is not significant.This study enriches the theoretical research findings in related fields and provides newinsights for the empirical research in the antecedents and effects of dynamic capabilities. At thesame time, the study also expands the scope of environmental factors under the economicsituation in the transition. Moreover, the study makes enterprises reinforce their cognition of theimportance and effective methods for building dynamic capabilities, and understand the effectof strategic orientation on dynamic capabilities as well as the important impact of dynamiccapabilities on new product development performance more clearly.