International Journal of Human Capital in Urban Management
Quarterly Publication

Does dynamic capability influence organizational sustainability? Understanding the mediating role of business model innovation


Articles in Press, Accepted Manuscript
Available Online from 29 May 2026
International Journal of Human Capital in Urban Management

Document Type : ORIGINAL RESEARCH ARTICLE

Authors

M. A. Hasan 1
X. Zhang 1
Y. Xiang 1
M. M. U. Hoque 1
M.J. Uddin 2
N. R. Chowdhury 1

1 School of Business, Sichuan University, Chengdu, Sichuan, China

2 School of Economics and Management, Tongji University, Shanghai, China

Abstract
BACKGROUND AND OBJECTIVES: Organizational sustainability has become a focal point for businesses worldwide, with growing interest in how dynamic capabilities contribute to sustainability from environmental, social, and economic perspectives. This study aimed to investigate the effects of dynamic capability on sustainability within small and medium-sized enterprises using the Triple Bottom Line and Natural Resource-Based View frameworks. Specifically, it explored how dynamic capabilities influence the adoption and implementation of sustainable business practices in Small and Medium Enterprises.
METHODS: Structural equation modeling based on partial least squares was employed to analyze the data using data from a survey of 448 Small and Medium Enterprise owners and managers in Bangladesh. This study used PLS-SEM with SmartPLS (version 3.2.9) and IBM SPSS Statistics (ver. 26). This methodology helped examine the relationships between dynamic capability, business model innovation, and organizational sustainability across the three TBL dimensions.
FINDINGS: The results showed that dynamic capability had a significant direct impact on organizational sustainability, with adaptability, innovation, and resource reconfiguration being key drivers. While business model innovation positively contributed to sustainability, its mediating effect in the relationship between dynamic capability and sustainability was found to be modest. This study also found that dynamic capability, which negatively affects business model innovation uptake, accounted for 13.3 % of the influence on organizational sustainability.
CONCLUSION: These findings provided policy-makers with crucial information for better e-waste management policy development, addressing the conflict between development and conservation. These insights may be applicable in Bangladesh and other countries as well.

Keywords

Dynamic capability
Business model innovation
Triple bottom line
Natural resource-based view
Organizational sustainability.
Subjects
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  • Receive Date 08 August 2025
  • Revise Date 25 November 2025
  • Accept Date 28 May 2026

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