The role of knowledge integration capability, reconfiguring capability, and innovation orientation in sustainable performance

Abstract

Purpose This study aims to build upon dynamic capabilities (DC) and triple bottom line (TBL) theories and investigates the influence of knowledge integration capability (KIC), reconfiguring capability (RC) and innovation orientation (IO) on sustainable performance (SP), and the impact of IO on KIC and RC. Design/methodology/approach This study uses structural equation modeling-partial least squares methodology on a sample of 156 employees of Egyptian small and medium-sized enterprises that operate in the food manufacturing industry. Findings The findings indicate significant positive effects of KIC, RC and IO on SP, which is consistent with DC theory principles. Furthermore, the statistical analysis emphasizes the significant impact of IO on KIC and RC. Originality/value First, this study reconceptualizes KIC, IO and RC within the sensing, seizing and transforming framework proposed by David Teece and colleagues (1997), offering a more granular operationalization of DC. Second, it reveals the central role of IO and its synergistic interaction with KIC and RC in driving SP. Third, the study advances the DC literature by positioning these capabilities as integrated antecedents of SP rather than examining them in isolation. Finally, it provides robust empirical evidence from an underexplored context, strengthening the explanatory power of DC theory in enhancing firms’ competitive positioning and sustainability outcomes.