Employee’s dynamic capabilities and organizational performance: A review on the mediating role of innovation and entrepreneurial Orientation

Abstract

The purpose of this systematical literature review is to address the linkage between dynamic capability and organizational performance through the mediating effect of innovation and entrepreneurial orientations. With this regards, the systematic review has tried to address the relationship that exist between and among different variables like dynamic capability (independent Variable) and organizational performance (dependent Variable), dynamic capability and organizational performance through innovation (mediator variable 1) and through entrepreneurial orientation (mediator variable 2). To address the stated objectives and to test the stated hypothesis, the researcher has tried to screen 1000 well known articles and identified 200 which have direct relationship with the concept. However, due to their limitations related to addressing the dependent and independent variables with the mediators, the study has focused only on 50 selected articles. The reviewed articles doesn’t indicate that both innovation and entrepreneurial orientation can serve as a mediator between the two dependent and independent variables. The findings of the selected articles has indicated that there is a positive relationship between employee’s dynamic capability and organizational performance. In addition, the result has indicated that innovation and entrepreneurial orientation alone can mediate the relationship between the two variables (employee’s dynamic capability and organizational performance). By considering the existing results, this systematic literature review has developed a model by indicating the mediating effect of innovation and entrepreneurial orientations. Therefore, future researchers can conduct a study to measure the mediating effect of innovation and entrepreneurial orientation together in the relationship between employee’s dynamic capability and organizational performance.