Dynamic capabilities and sustainability performance of NGOs in Lebanon: The moderating role of environmental uncertainty

Abstract

The purpose of this study is to examine how dynamic capabilities influence the sustainability performance of non-governmental organizations operating in Lebanon under conditions of environmental uncertainty. The study addresses the need to understand how NGOs in fragile and crisis-affected contexts can sustain their organizational, social, economic, and environmental performance despite all political instability, economic pressure, donor dependency, and institutional uncertainty. The methodology uses a quantitative explanatory research design, based on the Dynamic Capabilities Theory, focusing on sensing, seizing, and reconfiguring capabilities. Survey data were collected from 407 NGO managers and senior personnel in Lebanon, and Partial Least Squares Structural Equation Modeling was applied to assess the measurement model, test the direct effects, and examine the moderating role of environmental uncertainty. The findings show that seizing and reconfiguring capabilities have significant positive effects on sustainability performance, while sensing capabilities do not have a significant direct effect. Environmental uncertainty has a significant positive direct effect on sustainability performance, but it does not moderate the relationships between dynamic capabilities and sustainability performance. The structural model accounts for 53.9% of the variance in NGOs’ organizational sustainability performance (R-squared = 0.539), with environmental uncertainty emerging as a primary direct driver with a medium effect size (F-squared = 0.181). The practical implications suggest that NGO managers should prioritize resource mobilization, partnership development, operational restructuring, and adaptive planning rather than relying only on environmental scanning. The results also guide policymakers and donors in designing support mechanisms that would strengthen NGO resilience and long-term sustainability in uncertain environments.