Journal of Public Administration Studies
Vol. 8 No. 1 (2023)

The Effect of Dynamic Capability On New Established Company’s Performance: Mediating Role of Entrepreneurial Creativity

Eduard Alfian Syamsya Sijabat (Institut of Transportation and Logistic Trisakti, Jakarta)
Arik Prasetya (Faculty of Administrative Sciences, Brawijaya University Malang, Malang, Indonesia)



Article Info

Publish Date
28 Jun 2023

Abstract

A firm performance resulting from dynamic capability empowerment maintains the survival of newly established companies and established companies   amid intense competition and environmental changes. This study aimed to examine the effect of dynamic capability empowerment in newly established companies on a firm performance mediated by entrepreneurial creativity. Online survey data were collected from 143 newly established shipping agency companies in 22 Indonesian provinces as member of Indonesia shipping agency association. The data were analyzed using WarpPLS 7.0, and analysis unit was  organization represented by managing director. The results showed that dynamic capability empowerment in newly established               companies that emphasize learning capability affect a firm performance with a low significance. Furthermore, dynamic capability empowerment inicreases the firm performance when mediated by entrepreneurial creativity. This  results indicate  that               newly established companies will achieve higher performance by empowering their dynamic capabilities that emphasize learning capability  if it is followed an entrepreneurial creativity breakthrough. The increased performance helps the firm respon to tough competition and unpredictable dynamic environmental changes. The theoretical implication of this study is enriched empirical evidence in examining the relationship between dynamic capability and firm performance. The practical implication of this study is that when a newly established company that limited resources and limited access external resources improves its performance by empowering dynamic capability if it is followed an entrepreneurial creativity breakthrough. This study contributed a new empirical finding to the theory of dynamic capability in newly established companies as the previous studies with this focus are hard to find.

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Journal Info

Abbrev

jpas

Publisher

Subject

Arts Humanities Law, Crime, Criminology & Criminal Justice Library & Information Science Social Sciences Other

Description

Journal of Public Administration Studies (JPAS), with registered ISSN number 2548-902X (print) and 2541-6979 (online) is a scientific journal dedicated to dissiminate the development of theory and practices of public administration globally. JPAS published two times a year in February and November. ...