The moderating effects of environment dynamics on the relationship between organizational capabilities and small firm growth in China

This paper addresses the influence of organizational capabilities on past growth and perceived future growth of small firms, and examines the moderating role of environment dynamics on the above relationships. Questionnaires are, supplied to 100 small firms for data collection. Results indicate that organizational capabilities are positively related to the, past growth and the perceived future growth. Environment dynamics will moderate the relationship between organizational capabilities and the future growth opportunity that a stronger relationship will be found when the level of environment dynamics is high. However, the interactive effects of environment dynamics and organizational capabilities on past growth are not found.