The competitiveness of businesses depends on the
resources and capabilities that businesses are possessing, developing, and exploiting,
including dynamic capabilities. In turn, competitiveness positively affects the
business performance. However, whether there is an impact of dynamic
capabilities on business performance is still unclear. Moreover, research on
the mediating role of entrepreneurial
orientation and innovation in the relationship of dynamic capabilities and
business performance is rare. The research objective of this study is to check
the impact of dynamic capabilities on business performance and the mediating
role of entrepreneurial orientation as well as innovation in the relationship
of dynamic capabilities and business performance. The PLS-SEM method is
used. The research sample with 405 observations was collected using non-probability method. The respondents were
managers of tourism small and medium
businesses. Research results show that dynamic capabilities directly
and indirectly impact the performance of small and medium-sized tourism
businesses in the South Central Coast region of Vietnam through entrepreneurial
orientation and innovation.
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