Determinants of firm performance: a structural equation approach

This research analyzes specific determinants of firm Performance (FP) taking the Resource Based View (RBV) theory into account. Our conceptual model defines the Dynamic Capabilities (DC) as the result of firm’s Learning (LO), Market (MO) and Entrepreneurial Orientations (EO), which mediate the development of Competitive Advantages (CA) and improving firm Performance (FP). For the first time, the mediator role of DC between specific business orientations – MO, EO and LO – and the development of CA and FP is analyzed. The study supports the view that DC enhances CA (Differentiation and Cost Leadership) as well as enhances FP.