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Unravelling the role of dynamic capabilities and organizational culture in building resilience strategies: insights from food and beverage manufacturing firms

Ali Endris, Abay Mintesnot, Ayelign Abate, Teklie Birhan

LogForum

2025

Vol. 21, no 3

361--381

Background: In today’s rapidly evolving business environment, organizations face unprecedented uncertainty driven by technological advancements, economic instability, geopolitical conflicts, and natural disasters. Such challenges threaten firms’ long-term sustainability, particularly in regions like Ethiopia, where prolonged conflicts have severely disrupted industrial operations. Despite its importance, organizational culture (OC) remains largely overlooked in empirical studies on firm resilience, and the influence of dynamic capabilities (DCs) on OC has been underexplored. Methods: This study examines the role of dynamic capabilities and organizational culture in enhancing firm resilience strategies (FRSs) among Ethiopian manufacturing firms. Data were collected from 220 respondents across 22 large food and beverage companies and analyzed using covariance-based structural equation modeling (CB-SEM) with smarlpls4 software. Results: The findings indicate that DCs significantly influence both FRSs and OC, aligning with prior research on the role of DCs in fostering resilience. However, the direct relationship between OC and FRSs was not statistically significant, contradicting theoretical expectations that OC is a key driver of resilience. Furthermore, OC did not mediate the relationship between DCs and FRSs. Conclusions: This study contributes to the literature by clarifying the interplay between DCs, OC, and FRSs, offering practical insights for firms navigating disruptions and enhancing sustainability. Future research should explore additional variables, such as leadership, innovation, and firm age, and extend the analysis to other industries to better understand their impact on organizational culture and performance.