Purpose This study aims to examine how Environmental Dynamism (ED) influences Firm Performance (FP) through a capability-driven process, positioning Organisational Resilience (OR) as a central transformation mechanism. It further examines how Resource Orchestration Capability (ROC) and Organisational Ambidexterity (OAD) enable resilience-building and sustained performance under turbulent conditions. Design/methodology/approach Grounded in dynamic capability theory, the study develops and tests a multi-stage conceptual model linking ED, ROC, OAD, OR and FP. Data were collected through an online survey administered to 211 managerial respondents across diverse industries in India. Partial Least Squares Structural Equation Modelling was used to assess measurement validity, structural relationships and mediation effects. Findings The results indicate that ED does not directly influence FP but operates through internal capabilities. ROC and OAD significantly enhance OR, which in turn has a strong positive effect on FP. Additionally, both capabilities partially mediate the relationship between ED and OR, confirming a capability chain through which firms reframe environmental turbulence as an opportunity and convert it into sustained performance outcomes. Originality/value This study re-conceptualises ED as a capability-activating mechanism and positions OR as a higher-order dynamic capability. By advancing a capability-systems perspective, it provides a process-based explanation of how firms achieve sustained performance in high-velocity, emerging-market contexts.
Bhushan et al. (Mon,) studied this question.