Southeast Asian Business Review
Vol. 4 No. 1 (2026): Southeast Asian Business Review - Vol. 4 No. 1 (2026)

The Influence of Dynamic Capabilities on Business Performance with Innovation as a Mediating Variable

Melanie, Gandhisa Septry (Unknown)



Article Info

Publish Date
18 Mar 2026

Abstract

This explanatory quantitative study aims to analyze the influence of dynamic capabilities on business performance in culinary MSMEs in Malang City, with innovation as a mediating variable. The study involved 120 decision-makers from those enterprises, selected using a non-probability sampling method with purposive sampling technique. The data were collected through questionnaires and analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) in SmartPLS 4.0. This study finds that dynamic capabilities significantly affect innovation, dynamic capabilities have a direct effect on business performance, innovation significantly affects business performance, and innovation partially mediates the relationship between dynamic capabilities and business performance. These findings highlight the importance for culinary MSME actors to strengthen their adaptive, absorptive, and innovative capabilities to drive the development of superior products and processes, thereby enhancing competitiveness and business sustainability.

Copyrights © 2026






Journal Info

Abbrev

SABR

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

The SABR is committed to publishing the high quality articles from business and management perspectives in regards to within and between the Southeast Asian region. The covered domains but not limited to, such as: Marketing management, Finance, and management accounting, Strategic management, ...