Factors affecting on dynamic capabilities in firm performance of sustainable community enterprises

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Abstract

This study examines the role of intellectual capital in fostering sustained performance within Thai community enterprises. The variety of expertise, frameworks, and processes inside the organization poses a significant obstacle to competitiveness. The study examines the mediating function of dynamic capabilities in the relationship between absorption capacity, intellectual capital, and organizational performance. A quantitative research approach is employed. Data was gathered from 346 executives and owners of community firms in Sakon Nakhon province. Conduct an analysis with structural equation modeling (SEM). The findings validate a substantial direct effect, with intellectual capital exerting a pronounced influence on dynamic capability and a modest impact on organizational performance. The capacity to absorb enhances both dynamic capacities and organizational performance. Significantly, dynamic capabilities serve as the primary middleman. This increases the way intellectual capital and its ability to absorb information affect how well an organization performs, showing a strong direct link to performance. The study’s results validate that intellectual capital, absorption capacity, and dynamic capabilities. It serves as a fundamental element of dependency for sustainability. Community enterprises should prioritize the integration of knowledge, creativity, and adaptability in transforming samples into strategy. This study offers empirical data endorsing the resource-based strategy for enhancing the resilience of community enterprises..

Keywords: Intellectual Capital, Absorptive Capacity, Dynamic Capabilities, Firm Performance, Community Enterprises

Authors’ individual contribution: Conceptualization — A.U.; Methodology — S.S.; Software — D.S.; Formal Analysis — C.P.; Resources — C.U.; Writing — Original Draft — S.S.; Writing — Review & Editing — A.U.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D22, D24, M11

Received: 17.04.2025
Revised: 29.07.2025; 10.09.2025
Accepted: 22.09.2025
Published online: 24.09.2025

How to cite this paper: Uppachai, A., Swasthaisong, S., Udomkijmongkol, C., Sompong, D., & Phoonkasem, C. (2025). Factors affecting on dynamic capabilities in firm performance of sustainable community enterprises. Business Performance Review, 3(2), 29–39. https://doi.org/10.22495/bprv3i2p3