Impact of Dynamic Capabilities on Performance in Dairy Sheep Farms in Spain

María Teresa Bastanchury-López, Carmen De-Pablos-Heredero, Jose Luis Montes-Botella, Santiago Martín-Romo-Romero and Antón García
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María Teresa Bastanchury-López: Department of Business Economics (Administration, Management and Organization), Applied Economics II and Fundamentals of Economic Analysis, Rey Juan Carlos University, Paseo de los Artilleros s/n, 28032 Madrid, Spain
Carmen De-Pablos-Heredero: ESIC Business & Marketing School, Department of Business Economics (Administration, Management and Organization), Applied Economics II and Fundamentals of Economic Analysis, Rey Juan Carlos University, Paseo de los Artilleros s/n, 28032 Madrid, Spain
Jose Luis Montes-Botella: Department of Applied Economy I, Rey Juan Carlos University, Paseo de los Artilleros s/n, 28032 Madrid, Spain
Santiago Martín-Romo-Romero: Department of Business Economics (Administration, Management and Organization), Applied Economics II and Fundamentals of Economic Analysis, Rey Juan Carlos University, Paseo de los Artilleros s/n, 28032 Madrid, Spain
Antón García: Animal Production Department, University of Cordoba, Rabanales University Campus, 14071 Cordoba, Spain

Sustainability, 2020, vol. 12, issue 8, 1-13

Abstract: This study links the dynamic capabilities (DCs) theory with performance in dairy sheep farms in Castilla La Mancha (central Spain). The approach is novel as it seeks to understand how best results can be achieved by deploying DCs in farms. The proposal is that dynamic capabilities are interrelated to each other and present a positive impact on the farm’s economic sustainability. A mixed methods approach (a combination of qualitative and quantitative methods of research) was utilized. First, 30 indicators of dynamic capabilities (8 of absorption, 11 of integration, 9 of innovation, and 2 of profits) were selected by applying Delphi’s methodology. Second, a structural equation model (SEM) was applied over a random sample of 157 dairy sheep farms to measure the relationship between DCs and the impact of each capability on farms’ final performance. The existence of positive relationships amongst absorption, integration, and innovation capabilities was evidenced. Absorption and integration capabilities exhibited positive influences on a farm’s final performance. The knowledge of the relationships amongst dynamic capabilities is a new orientation to increase farms’ viability. These findings reveal that the application of the dynamic capabilities theory can explain best farms’ economic sustainability.

Keywords: farm entrepreneurship; dynamic capabilities; viability; sustainability; technological innovation; new value creation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:8:p:3368-:d:348258

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