The Relationship Between Dynamic Capabilities And Performance Of Manufacturing Enterprises Based On Strategic Fit

With the global integration, manufacturing industry is facing the unprecedented competition. Based on the continuously compressed product margins and more diversified customer needs, the manufacturing enterprises perceive that the original core competence becomes the core rigidity as well as hinders the further development. These challenges force manufacturers to seek the dynamic source of competitive advantage and further to focus on how to fit their own resources and capabilities in turbulent environment. Under this circumstance, dynamic capabilities have become an effective choice for manufacturing enterprises.In two decades, on the basis of dynamic capability theory, while both the theories and enterprises have given enough attention to the relationship between the dynamic capabilities and enterprise performance, the results are varied. Merely manufacturing enterprises show the solid construct of dynamic capabilities, where the process of implementation faces a big challenge and is in risk of failure. The findings from the enterprises practice indicate that dynamic capabilities do not necessarily mean the improvement of enterprise performance. Few studies clearly reveal the profit process of dynamic capabilities w hich manufacturing enterprises implemented. Theoretically, dynamic capabilities enable manufacturing enterprises facing the fluctuations of competitive environment to maintain stability and high profits. Practically, the implementation of dynamic capabilities needs the investment and enhances the transformative development for internal and external resources of enterprises, which triggers the relationship between dynamic capabilities and enterprise performance become complex. An accumulating of research tends to explore the inconformity of effectiveness about dynamic capabilities, being induced to the competitive environment, internal capabilities transformation and competitive strategies. Based on a single perspective,these studies are lack of empirical support. Therefore, it is nessccesary to investigate the relationship between dynamic capabilities and enterprise performance with a more comprehensive perspective. It is note worthy that dynamic capabilities improve performance in manufacturing enterprises theoretically and practicaly.First of all, we analysed the theoretical basis and literature. Further to define the concept of dynamic capability and its dimensions, reflecting dynamic capabilities through the external resources coordination capability and internal resources integration capability. Second, in order to solving the defects of the dynamic capabilities for manufacturing enterprise in the existing research paradigm, we introduced the concept of ―stategic fit‖, and constructed three models:(1) the model of relationship between dynamic capabilities and enterprise performance based on the environmental dynamism;(2) the model of relationship between dynamic capabilities and enterprise performance based on manufacturing capabilities;(3) the model of relationship between dynamic capabilities and enterprise performance based on strategic choice. From the perspective of stategic fit, we examined the relationship between dynamic capabilities and enterprise performance.In order to investigate the relationship between dynamic capabilities and enterprise performance in manufacturing enterprises with the perspective of stategic fit, we used the data of International Manufacturing Strategy Survey(IMSS) in 2013 in this empirical study. It includes three main results:(1) Based on the perspective of external stategic fit, the environmental dynamism significantly moderates the relationship between dynamic capabilities and enterprise performance in manufacturing enterprises. A nonlinear, inverse U-shaped moderation indicates that the relationship between dynamic capabilities and enterprise performance is the strongest when dynamism is in the intermediate levels but comparatively weaker when dynamism is low or high.(2) Based on the perspective of internal stategic fit, the manufacturing capabilities have the mediating effect on the relationship between the dynamic capabilities and enterprise performance in manufacturing enterprises. External resources coordination capability promotes quality, cost, flexibility, del ivery and innovation. External resources coordination capability improves enterprise performance in sales through flexible, delivery and innovation. Internal resources integration capability promotes quality, cost, flexibility, delivery and innovation. Internal resources integration capability improves enterprise performance in sales and ROS through flexible, delivery and innovation.(3) Based on the perspective of stategic fit, the relationship between dynamic capabilities and enterprise performance is different when the manufacturing enterprises apply different strategies. Depending on the type s of strategic choice, manufacturing enterprises can be divided into regional dispersible enterprises, regional integrated enterprises, global autonomous enterprises, and global coordinated enterprises. For regional dispersible enterprises, internal resources integration capability promotes overall enterprise performance; external resources coordination capability has no significant effect on enterprise performance. For regional integrated enterprises,external resources coordination capability promotes overall enterprise performance, internal resources integration capability promotes partial enterprise performance. For global autonomous enterprises, internal resources integration capability promotes overall enterprise performance; external resources coordination capability will promote partial enterprise performance. For global coordinated enterprises, external resources coordination capability and internal resources integration capability both promote overall enterprise performance. The relationships between dynamic capabilities and enterprise performance in various types of manufacturing enterprises show significant difference.All in all, this study further refines the conception of dynamic capability and its dimensions. The new paradigm of relationship between dynamic capabilities and enterprise performance is proposed in stategic fit view. The boundary condition of dynamic capabilities impacting enterprise performance is expanded based on environmental dynamism. We also explore the mechanism of dynamic capabilities to enterprise performance by revealing the changing rule of relationship between dynamic capabilities and enterprise performance under different strategic choices. This study further enrich es the theory of dynamic capabilities and provides a theoretical and practical guidance to manufacturing enterprises.