Cross-sectional study demonstrates positive competitive firm performance mediated by dynamic managerial capabilities across 323 firms, highlighting strategic investments in leadership skills.
This paper explores the relationship between corporate governance, dynamic managerial capabilities, and competitive firm performance. In particular, we examine the role of dynamic managerial capabilities in the relationship between corporate governance and competitive firm performance. Using a sample of 323 firms, we demonstrate that the relationship between corporate governance and competitive performance is mediated by dynamic managerial capabilities. The research results also show that corporate governance has a positive effect on competitive firm performance. Consequently, firms tend to invest in their employees to improve their individual skills related to dynamic managerial capabilities, with the aim of achieving better results in competitive firm performance. Furthermore, firms tend to have clearer organisational structures, with the board and the top management team playing a crucial role.
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Sekliuckienė et al. (2024) studied this question.
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