Dynamic and Coordinative Capabilities: Creating Competitive Advantage for Architectural Firms

Abstract

With the emergence of new organizational forms and environmental dynamism, research on organisational capabilities and their value creation has become an important focus among scholars. The aim of this paper is to investigate the role of organisational capabilities (OC), specifically dynamic capabilities (DC) and coordinative capabilities (CC) for the strategic performance of architecture companies. Based on the resource-based-view (RBV) we hypothesize that DC and CC, which are embedded in the organization itself and developed through projects and individual capabilities, influence the strategic performance of architects and thus lead to competitive advantage and higher performance of architectural firms. The research framework is empirically evaluated by using data from architecture companies in Austria, Germany and Switzerland. We test the hypotheses by applying a stepwise regression analysis. Our research results provide strong support for the hypotheses that innovation capabilities and coordinative capabilities have a strong influence on firm performance, especially when moderated by environmental uncertainty.