Managerial perceptions of the competitive environment and dynamic capabilities generation

Purpose - The aim of this paper is to study empirically the influence of managerial perceptions of the environment on dynamic capabilities (DC) generation. It seeks to identify three dimensions of competitive environment (dynamism, complexity, and munificence) and then use the theoretical model developed by Zollo and Winter to explain DC creation. Design/methodology/approach - The authors use data collected from 200 Spanish firms through a questionnaire to perform multiple and simple regression analyses that examine the relationship between managerial perceptions and DC generation. Findings - It is found that managerial perception of munificence in the environment is related positively and significantly to the processes of DC creation; only when managers perceive the environment as highly dynamic and complex do they promote processes for developing DC. Practical implications - The findings suggest that managerial cognition plays an important role in DC processes. Thus, managers should evaluate their mental models and value systems to determine whether they provide an accurate understanding of the environment. Originality/value - The understanding of DC must be developed though empirical papers, as unresolved theoretical inconsistencies create many challenges in this area. The proliferation of theoretical papers has produced a disconnected body of research.