Mediating Role of Dynamic Capabilities on the Relationship between Intellectual Capital and Performance: A Hierarchical Component Model Perspective in PLS-SEM Path Modeling

The strategy of accumulating valuable assets guided by the firm’s intellectual right is often not enough to support a significant performance in a rapidly changing environment.Hence, in such an\udenvironment, superior performance relies upon the ability of a firm to integrate, build and\udreconfigure those resources, the process of which is termed as dynamic capabilities.Hence, the\udpurpose of this study is to investigate the mediating role of dynamic capabilities on the relationship between intellectual capital and manufacturing firm performance in a turbulent business setting.The data was gathered from 124 manufacturing enterprises in Nigeria and analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM).The analyzed data supported all the hypothesized relationships of the study.Hence, the study found that there is positive relationships between all the dimensions of intellectual capital and dynamic capabilities and also dynamic capabilities mediate the relationship between intellectual capital and performance.Consequently, this study concluded that managers need to deploy not only valuable resources but also dynamic capabilities by re configuring their existing resources to conceive of and implement difficult to replicate value adding strategies.Finally, the study outlined some limitations that opened the avenues for future research