Ferreira, JorgeCardim, SofiaCoelho, Arnaldo2018-02-192020-06-232018-01-192020-06-232020Ferreira, Jorge; Cardim, Sofia; Coelho, Arnaldo (2020). Dynamic capabilities and mediating effects of innovation on the competitive advantage and firm’s performance: the moderating role of organizational learning capability. Journal of the Knowledge Economy. ISSN 1868-7865. p. 1-251868-7865http://hdl.handle.net/10198/22384The objective of this paper is to investigate the impact of exploration and exploitation capabilities on competitive advantage (hereafter CA) and performance, considering the mediating role of innovation capabilities (hereafter ICs) and the moderating role of organizational learning capability (hereafter OLC) on the proposed relationships. This investigation proposes a theoretical model tested using structural equation modelling (SEM), and a multi-group analysis is performed to understand the moderating role of organizational learning capability. A 90-item questionnaire exploring the relationships between dynamic capabilities (hereafter DCs) and innovation was developed, and a total of 387 valid questionnaires were collected from a sample of Portuguese’s smalland medium-sized enterprises (SMEs), a case of a transition economy. Therefore, this study contributes to the understanding of the direct and indirect impact of exploration and exploitation on CA variables, the mediating role of IC on CA and performance and the moderating effect of OLC in a transition economy.engDynamic capabilitiesInnovation capabilitiesOrganizational learning capabilityPerformancejournal article10.1007/s13132-020-00655-z