KMAN Publication Inc. (KMANPUB) International Journal of Innovation Management and Organizational Behavior (IJIMOB) 3041-8992 6 Serial Number 27 2026 07 01 Predicting Organizational Innovation from Entrepreneurial Orientation and Dynamic Capabilities: The Moderating Role of Environmental Dynamism Predicting Organizational Innovation from Entrepreneurial Orientation and Dynamic Capabilities: The Moderating Role of Environmental Dynamism 1 19 EN Journal Article 2026 04 20 <table> <tbody> <tr> <td> <p><strong>Objective:</strong> This study aimed to predict organizational innovation from entrepreneurial orientation and dynamic capabilities and to examine the moderating role of environmental dynamism among small and medium-sized enterprises in Thailand.</p> <p><strong>Methods and Materials:</strong> This quantitative, cross-sectional, correlational study was conducted among 412 managers, owner-managers, executives, and senior organizational decision-makers working in Thai small and medium-sized enterprises. Participants were selected from manufacturing, wholesale and retail, information and communication technology, hospitality, professional services, and other service sectors. Data were collected using standardized measures of entrepreneurial orientation, dynamic capabilities, environmental dynamism, and organizational innovation. Construct reliability and validity were assessed using Cronbach’s alpha, composite reliability, average variance extracted, and confirmatory factor analysis. Pearson correlation analysis and hierarchical multiple regression were used to test the direct relationships among the variables. Moderation analysis was performed by entering mean-centered interaction terms for entrepreneurial orientation × environmental dynamism and dynamic capabilities × environmental dynamism. Statistical significance was set at p &lt; .05.</p> <p><strong>Findings:</strong> Entrepreneurial orientation significantly predicted organizational innovation (B = 0.36, SE = 0.04, β = .35, t = 8.47, p &lt; .001), while dynamic capabilities showed the strongest direct effect (B = 0.48, SE = 0.05, β = .44, t = 10.19, p &lt; .001). Environmental dynamism also had a significant positive effect on organizational innovation (B = 0.12, SE = 0.04, β = .12, t = 3.12, p = .002). The main-effects model explained 56% of the variance in organizational innovation. Environmental dynamism significantly moderated both the entrepreneurial orientation–innovation relationship (B = 0.15, SE = 0.04, β = .14, t = 3.79, p &lt; .001) and the dynamic capabilities–innovation relationship (B = 0.19, SE = 0.04, β = .17, t = 4.62, p &lt; .001), increasing the final explained variance to 61%.</p> <p><strong>Conclusion:</strong> Organizational innovation in Thai SMEs is strengthened by entrepreneurial orientation and dynamic capabilities, particularly under highly dynamic environmental conditions, indicating that firms benefit most when proactive strategic behavior is combined with strong adaptive and reconfiguration capabilities.</p> </td> </tr> </tbody> </table> https://www.journals.kmanpub.com/index.php/ijimob/article/download/5673/11908