How dynamic capabilities improve the operational performance of farmers' cooperatives—Evidence from the Guangdong Province area of China

Abstract

From the perspective of dynamic capabilities, this study investigates how capabilities shape the operational performance of agricultural cooperatives in Guangdong Province, China. Using survey data from 286 cooperatives, a structural equation model and a moderated mediation model were constructed to assess the joint effects of ordinary and dynamic capabilities. The results indicate that improvements in ordinary capabilities (e.g., technical and marketing capabilities) and dynamic capabilities (e.g., acquisition, integration, learning and innovation) both significantly enhance cooperative performance. Mediation analysis further shows that dynamic capabilities improve the operational performance indirectly by strengthening ordinary capabilities, supporting the theoretical view that capability development is cumulative and path‐dependent. Moreover, the moderated mediation model reveals that environmental stability amplifies the indirect effect of dynamic capabilities on the operational performance through ordinary capabilities. Under conditions of low environmental dynamism, dynamic capabilities more effectively convert acquired knowledge into practical operational skills, particularly technical and marketing competences, thereby contributing to sustainable performance. These findings extend dynamic capability theory to the cooperative sector and underscore that, in increasingly complex environments, cooperatives must simultaneously cultivate ordinary and dynamic capabilities to sustain resilience, competitiveness and long‐term performance.