Dynamic capabilities and private label performance: some correlations? Focus on three Italian food retailers

The dynamic capabilities (DCs) framework is useful to explain the ability of companies to interpret, react and anticipate the change in markets. Dynamicity and complexity of markets have strong impact on retail industry and the ability to quickly react is a key point in companies' strategies. Studies about relations between dynamic capabilities and private label performances of retailers are limited in literature. This work contributes to research studying how DCs are involved in the management of private label (PL), by checking connections between the existence of DCs and the PL retailer’s performance. The aim of this work is to research on the management of PL management of 3 Italian large retailers checking how DCs are in relation with private label performance. The results show that the best PL performances are present in retailers with highest level of DCs. That helps retailers to gain opportunities in interpreting and reducing the environmental complexity through DCs, even to better manage the PL asset.