Middle Managers and Dynamic Capabilities in manufacturing firms: an empirical investigation

This thesis explores the strategic role of Middle Managers in relation to Dynamic Capabilities and their impact on firm performance, particularly in volatile environments. The first chapter offers a theoretical overview of how recent studies have increasingly recognized the importance of Middle Managers in shaping strategy, from which the “Middle Managers Perspective” stems. It also examines the concept of Dynamic Capabilities, their connection to the Resource Based View, and the methods used to measure them. Dynamic capabilities are highlighted as crucial drivers of firm performance, especially in turbulent markets, due to their ability to foster adaptation and innovation. Following, a part dedicated to the connection between Middle Managers and Dynamic Capabilities is presented, describing the current state of research and the emerging research gap. The second chapter presents an empirical analysis of three pairs of comparable firms in machinery-building high technology industries, selected following a Grounded Theory with Theoretical Sampling approach, leveraging both Theoretical and Literal Replications, and focuses on how varying behaviours of Middle Managers, in relation to Dynamic Capabilities, influence bottom-line results. The findings emphasise the critical role Middle Managers play in developing Dynamic Capabilities, suggesting that firms can improve resilience and innovativeness by leveraging the skills and insights of this management level.