Performance Mechanism of Coordination Capability Based on Dynamic Capability Framework-the Mediating Role of Operational Capabilities

A critical issue has been absent from the conversation on dynamic capabilities: how dynamic capabilities influence the enterprise performance. This paper proposes a new vision to research the performance mechanism of coordination capability as a dynamic capability. Operational capabilities are existed as mediating role. Data from International Manufacturing Strategy Survey in 2009 is used to verify the mediating model by hierarchical regression analysis. The results show that coordination capability impacts the enterprise performance positively and indirect impacts the enterprise performance through quality, cost and flexibility. This finding integrates insights from previous research in dynamic capability framework and operational management into a generalization and extension of the performance mechanism in manufacturing enterprises.