The role of knowledge integration capability, reconfiguring capability, and innovation orientation in sustainable performance.

Abstract

Purpose: This study aims to build upon dynamic capabilities (DC) and triple bottom line (TBL) theories and investigates the influence of knowledge integration capability (KIC), reconfiguring capability (RC) and innovation orientation (IO) on sustainable performance (SP), and the impact of IO on KIC and RC. Methodology: This study employs SEM-PLS methodology on a sample of 156 employees of Egyptian SMEs that operate in the food manufacturing industry. Findings: The findings indicate significant positive effects of KIC, RC, and IO on SP which is consistent with DC theory principles. Furthermore, the statistical analysis emphasizes the significant impact of IO on KIC and RC. Originality: First, this study reconceptualizes KIC, IO, and RC within the sensing, seizing and transforming framework proposed by David Teece and colleagues (1997), offering a more granular operationalization of dynamic capabilities. Second, it reveals the central role of IO and its synergistic interaction with KIC and RC in driving sustainable performance. Third, the study advances the dynamic capabilities literature by positioning these capabilities as integrated antecedents of sustainable performance rather than examining them in isolation. Finally, it provides robust empirical evidence from an underexplored context, strengthening the explanatory power of dynamic capability theory in enhancing firms’ competitive positioning and sustainability outcomes.