Organizational Factors Enhancing Firm Performance of Small- and Medium-sized Manufacturing Firms: Group Norms of Senior Management and Dynamic Capabilities

Abstract

The business environment surrounding small- and medium-sized manufacturing firms in Japan is rapidly changing. This study focuses on dynamic capabilities, which are considered effective organizational capabilities to cope with a rapidly changing business environment, and examines the impact of learning capability, integrating capability, and senior management’s group norms on corporate performance. Based on the results of the questionnaire analysis, we found that learning capability and team efficacy are important factors that improve the performance of small- and medium-sized manufacturing firms. We also found that norms for maintaining consensus as perceived by senior management should be suppressed or promoted in some cases, depending on the phase of the business process.