Dynamic Capabilities and Strategic Performance Under Polycrisis: The Roles of Strategic Flexibility and Regenerative Capability

Firms increasingly face polycrisis environments in which geopolitical, climate, technological, and supply chain disruptions interact and cascade. Drawing on the dynamic capability view, the study examines how strategic flexibility and regenerative capability relate to strategic performance and how their values vary with polycrisis intensity. Survey data from 780 Indian manufacturing firms are analyzed using partial least squares‐based structural equation modeling (PLS‐SEM) and permutation‐based multigroup analysis. Both capabilities are positively associated with strategic performance. Strategic flexibility has its strongest performance effect at intermediate polycrisis intensity, significantly exceeding its effects at low and high intensity. Regenerative capability is also strongest at intermediate polycrisis intensity, although the cross‐group evidence provides only partial support. The study extends dynamic capability research by conceptualizing polycrisis intensity as a boundary condition and positioning regenerative capability as a strategic mechanism that links socio‐ecological renewal to strategic performance amid polycrisis.