The Influence of a Deficit in Employees’ Dynamic Capabilities on Job Performance in Organisations During the Decline Stage of the Organisational Life Cycle as a Symptom of Organisational Death
The Influence of a Deficit in Employees’ Dynamic Capabilities on Job Performance in Organisations During the Decline Stage of the Organisational Life Cycle as a Symptom of Organisational Death

Summary/Abstract: This article investigates the impact of employees’ dynamic capabilities (EDCs) on jobperformance within organisations during the decline stage of the organisational life cycle(OLC), particularly as they approach organisational death. EDCs, which include anemployee's ability to adapt, innovate, and solve problems, have been extensively studied inthriving organisations, but their role during organisational decline remains underexplored.This study addresses this gap by examining whether EDCs positively influence jobperformance through mediators such as work motivation, job satisfaction, and workengagement in organisations nearing the end of their operations. For two-part empiricalanalysis, data were gathered from organisations in Italy, Poland, and the USA, some of whichwere at varying stages of decline due to the external crisis caused by the COVID-19 pandemic.The results indicate that in organisations continuing operations, EDCs had a significantpositive impact on job performance, mediated by work engagement, work motivation, andjob satisfaction. However, in organisations heading toward death, EDCs failed to influencejob performance significantly. The study concludes that EDCs' lack of impact on jobperformance may be a critical symptom of organisational death, suggesting that organisationsunable to leverage their employees' capabilities during times of crisis may be doomed tofailure. This research contributes to the OLC literature by identifying the absence of EDCs'influence on job performance as a key predictor of organisational demise, offering newinsights for management practices during the decline phase of an organisation.

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