The Impact of Dynamic Capabilities on Organizational Effectiveness

Abstract This paper aims to investigate the impact of dynamic capabilities constructs i.e. sensing capability, learning capability, and reconfiguration capability on organizational effectiveness in the selected Iraqi public universities context. This study adopted the survey method to collect primary data. An online questionnaire was distributed to around 342 employees, out of which 215 completed questionnaires were obtained. The data were collected during the period from 02-08-2018 to 03-10-2018. The reliability and validity of the dimensions are assessed through confirmatory factor analysis (CFA) and the hypotheses are tested by using structural equation modeling SEM. The analytical results indicate that sensing capability does not have a positive impact on organizational effectiveness while learning capability and reconfiguration capability have a positive impact on organizational effectiveness. Thus, this study provides a better understanding of the effects of dynamic capabilities. The results of this study have the potential to help the decision-makers of universities to develop learning capability and reconfiguration capability, in turn, universities will be able to achieve superior organizational effectiveness.