The role of power relations within the organization in the building of dynamic capabilities

The study investigates how power sources and cognitive characteristics of top management teams affect dynamic abilities in the context of environmental dynamism. There is a broad research agenda to identify the factors influencing dynamic capabilities. In recent years, the relevant literature has started to provide evidence that top managers affect the firm's dynamic capabilities positively or negatively. It is seen that researches mostly focus on single executives at the top level. This trend ignores the role of top management teams in decision-making. Few studies have focused on how top management teams' demographic and cognitive characteristics affect the exploitation of the firm's dynamic capabilities. The literature on the decision-making mechanism of top management teams emphasizes the power issue and gives importance to power sources in making and implementing decisions. However, there has not been a research agenda that explains how dynamic talents, which are among the factors that give companies a competitive advantage, are affected by the power resources of the top management team. The purpose of this research is to determine the mediating role of the regulatory focus of the top management team and the mediator role of the environmental dynamism in the effect of the top management team's power resources on benefiting from the company's dynamic capabilities. The findings to be obtained as a result of the research will be useful in understanding the effect of company's top management's power sources and risk tendencies on the level of deployment of dynamic capabilities. Within the scope of the research, data were collected from 446 top managers in companies with 30 or more employees. In the analysis of the data, exploratory factor analysis (SPSS 25 Package Program), polychoric factor analysis (FACTOR), and partial least squares structural equation modeling (Smart PLS 3) were employed. As a result of the research, it has been determined that the environmental dynamism and the regulatory focus of the top management teams positively affect the level of benefit from the company's dynamic capabilities. On the other hand, it was concluded that the structural strength of the top management team increased the level of benefit from dynamic capabilities. In addition, it has been determined that the managers' focus on risk-taking and risk avoidance has a mediating role in the effect of the top management team on the power resources. Finally, it has been determined that environmental dynamism's moderator role is insignificant. The findings obtained contribute to the literature in terms of showing which features of the top management teams increase the level of benefiting from dynamic capabilities.