Abstract：The relationship between the organizational network coordination and the organization's capability is valuable for optimizing resource allocation and capability development. Existing studies, however, have only analyzed the relationship from a limited perspective with only a limited number of studies focusing on the construction industry. This study uses data from Chinese hydropower firms to study the interactions between organizational network coordination and capability. Mean value analyse provided holistic pictures of the firms' organizational coordination and capabilities. Cluster analyse revealed the resource-oriented nature of the construction firms' capabilities. A canonical correlation analysis and a regression analysis showed that internal coordination has a stronger effect on capability than external coordination and that the relationship between internal coordination and the dynamic capabilities of resource transformation and the relationship between external coordination and basic resource capability more strongly affect the interactions between coordination and capability. The relationships between network coordination and capability vary to some extent in different kinds of firms. The findings provide practical guidance to construction firms to optimize resource allocation and promote their sustainable development.
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