The Nexus between Dynamic Capability and Firm Performance: The Mediating Role of Multichannel Integration Quality in the Banking Sector

Authors

DOI:

https://doi.org/10.20372/star.V14.i1.05

Keywords:

Dynamic capability, multichannel integration quality performance

Abstract

The main objective of the study was to examine the effects of dynamic capability (DC) on bank performance (BP) mediated by multichannel integration quality (MCIQ) in the case of Commercial Bank Ethiopia (CBE) Ambo District. The study adopted an explanatory research design, employing a quantitative approach to investigate the causal relationships between the key variables. For this study, primary data were collected from bank employees 235 using a standardized questionnaire and employed simple random sampling to ensure representation of the population. Data was analyzed using AMOS 23 and SPSS 25 with SEM to test hypotheses. The results revealed that DC and MCIQ have significant positive effects on bank performance. Furthermore, the findings showed that the effect of dynamic capability on bank performance is partially mediated by multichannel integration quality. Based on the findings, it is recommended that practitioners and decision-makers prioritize developing dynamic capability and improving multichannel integration quality to achieve sustainable performance. The study provides empirical evidence on dynamic capability and multichannel integration quality in the banking industry. Future research could explore the role of other mediating factors to extend the study to other sectors or countries for broader generalizability.

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Author Biographies

Negash Geleta, Ambo University

 Department of Management, College of Business and Economics,

Ambo University, Ambo, Ethiopia

Chalchissa Amentie, Ethiopian Civil Service University

Department of Development Management, College of Finance, Management and Development, Ethiopian Civil Service University, Addis Ababa, Ethiopia

Misganu Getahun, Wollega University

Department of Management, College of Business and Economics,

Wollega University, Nekemte, Ethiopia

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Published

30.03.2025

How to Cite

Geleta, N., Amentie, C., & Getahun, M. (2025). The Nexus between Dynamic Capability and Firm Performance: The Mediating Role of Multichannel Integration Quality in the Banking Sector. Journal of Science, Technology and Arts Research, 14(1), 49–64. https://doi.org/10.20372/star.V14.i1.05

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Section

Original Research

Categories

Received 2024-11-09
Accepted 2025-03-18
Published 2025-03-30

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