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Journal ArticleDOI

Dynamic capabilities: A morphological analysis framework and agenda for future research

14 Jan 2019-European Business Review (Emerald Publishing Limited)-Vol. 31, Iss: 1, pp 25-63
TL;DR: In this paper, the authors synthesize the diverse scholarly literature about dynamic capabilities (DCs) and develop a more integrated understanding to minimize the reported apparent vagueness, and apply morphological analysis (MA) to develop a multi-dimensional conceptual framework comprising five dimensions and 26 variants that enable a structured representation of the conceptual foundations of DCs.
Abstract: The growth, diversity and applications of research into dynamic capabilities (DCs) have resulted in the whole literature on DCs becoming a complex and disconnected body of knowledge. This has led to criticisms of the subject of DCs as being vague, tautological and without practical value. Hence, the purpose of this paper is to synthesize the diverse scholarly literature about DCs and develop a more integrated understanding to minimize the reported apparent vagueness.,In this paper, the authors review various relevant themes on DCs using a selection of 133 articles published in 22 recognized, top-tier management journals during the period between 1990 and 2016, with an aim to build a structured and integrated theory. For this, morphological analysis (MA), a systems-thinking technique, is applied.,MA is applied to develop a multi-dimensional conceptual framework comprising five dimensions and 26 variants that enable a structured representation of the conceptual foundations of DCs. Further, the authors identify 81 individual DCs noted by various scholars; elucidate assumptions and antecedents relevant to the DCs approach; structure the key characteristics; and expound the input factors, impacting factors, desired outcomes and assessment yardsticks.,This would be a useful resource for researchers working in the area of DCs to explore opportunities for future research.,The MA framework helps managers to look at DCs more holistically, and hence would help them in developing, managing and retaining DCs in organizations.,This study is the original work contributed by the authors and has no specific organizational reference. This research implies new directions to look beyond individual DCs in firms toward a more integrated theory building.
Citations
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01 Jan 2009
TL;DR: In this article, the authors empirically measure four dynamic capabilities and find that the nature and effect of resources employed in the development of these capabilities vary greatly, with positive effects stemming from access to particular resources and unexpected negative effects also appearing.
Abstract: Despite the numerous observations that dynamic capabilities lie at the source of competitive advantage, we still have limited knowledge as to how access to firm-based resources and changes to these affect the development of dynamic capabilities. In this paper, we examine founder human capital, access to employee human capital, access to technological expertise, access to other specific expertise, and access to two types of tangible resources in a sample of new firms in Sweden. We empirically measure four dynamic capabilities and find that the nature and effect of resources employed in the development of these capabilities vary greatly. For the most part, there are positive effects stemming from access to particular resources. However, for some resources, such as access to employee human capital and access to financial capital, unexpected negative effects also appear. This study therefore provides statistical evidence as to the varying role of resources in capability development. Importantly, we also find that changes in resource bases have more influential roles in the development of dynamic capabilities than the resource stock variables that were measured at an earlier stage of firm development. This provides empirical support for the notion of treating the firm as a dynamic flow of resources as opposed to a static stock. This finding also highlights the importance of longitudinal designs in studies of dynamic capability development. Further recommendations for future empirical studies of dynamic capabilities are presented.

303 citations

Posted Content
TL;DR: It is argued that experience codification gives rise to inertial forces that hamper the customization of routines to any given acquisition, and that successful acquirers develop higher-order routines that prevent the generalization of inapplicable ('zero-order') codified routines.
Abstract: Building on the codification and dynamic capabilities literatures, we pursue deeper insight into the underlying mechanisms of deliberate learning in the context of postacquisition integration. We argue that experience codification gives rise to inertial forces that hamper the customization of routines to any given acquisition. We theorize, therefore, that successful acquirers develop higher-order routines-as manifested in two complementary sets of concrete organizational practices-that prevent the generalization of inapplicable ('zero-order') codified routines. After drawing on in-depth qualitative data to help build our theoretical argument, we test it formally with unique survey data on 85 active acquirers.

160 citations

Posted Content
TL;DR: In this article, the authors extend the dynamic capability view and research on organizational path dependence by arguing that path dependence can be a property of capabilities when a contingently-triggered capability path is subject to self-reinforcement (i.e., a set of positive and negative mechanisms that increases the attractiveness of a path relative to others).
Abstract: This paper extends the dynamic capability view and research on organizational path dependence by arguing that path dependence can be a property of capabilities when a contingently-triggered capability path is subject to self-reinforcement (i.e. a set of positive and negative mechanisms that increases the attractiveness of a path relative to others). The paper introduces an evolutionary perspective, which specifies the underlying selection mechanisms of the property of path dependence in internal and external firm environments. This theorization sheds new light on three paradoxes that currently blur the theoretical contribution of path dependence to research at the managerial, organizational, and industry levels: (1) the problematic coexistence of path irreversibility and managerial intentionality; (2) the ambivalent strategic value of lock-in with regard to competitive advantage; and (3) the relative homogeneity in observed dynamic capabilities, despite their (possible) path dependence that should lead to a wider variety of outcomes owing to the presence of contingency. We highlight the contributions of this perspective to strategic management research and evolutionary theories.

138 citations

Posted Content
TL;DR: In this article, the authors of the two seminal papers represent not only different but contradictory understandings of the construct's core elements, and they explore the reasons for this, using author cocitation analysis to inform their analysis.
Abstract: A critical issue has been absent from the conversation on dynamic capabilities: the two seminal papers represent not only different but contradictory understandings of the construct's core elements Here, we explore the reasons for this, using author cocitation analysis to inform our analysis Our findings suggest that the field is being socially constructed on the basis of two separate domains of knowledge and that underlying structural impediments have impeded dialog across the domains In light of this evidence, then, we take up the challenge to find a solution to this dilemma By employing a contingency-based approach, we show that there are ways to unify the field that rely, paradoxically, on integrating the two contradictory views, while still preserving the assumptions that led to their differences

94 citations

Journal ArticleDOI
TL;DR: Wang et al. as mentioned in this paper examined the effects of green human resource practices and green innovation culture on firm green performance and found that green innovation which includes green product innovation culture and green process innovation culture enhances the firm's green performance.

67 citations

References
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Journal ArticleDOI
TL;DR: In this paper, the authors examine how a public sector organization developed a new strategic approach based on the identification and use of an internal dynamic capability (learning through experimenting), in response to the need for continual performance improvement in spite of reduced financial resources.
Abstract: In this paper, we examine how a public sector organization developed a new strategic approach based on the identification and use of an internal dynamic capability (learning through experimenting). In response to the need for continual performance improvement in spite of reduced financial resources, this organization engaged in three overlapping phases as they shifted to this strategic approach. First, managers identified appropriate latent dynamic capabilities. Next, they used their leadership skills and built on established levels of trust to enable the use of these dynamic capabilities. Finally, they managed the tension between unrestricted development of local initiatives and organizational needs for guidance and control.

328 citations

Journal ArticleDOI
TL;DR: The IBM transformation illustrates the ideas behind dynamic capabilities, showing how the company has been able to sense changes in the marketplace and to seize these opportunities by reconfiguring existing assets and competencies.
Abstract: In the past 15 years, the IBM Company has undergone a remarkable transformation from a struggling seller of hardware to a successful broad range solutions provider. Underlying this change is a story of foresighted strategy and disciplined execution—of connecting knowing to doing. In strategic terms, the IBM transformation illustrates the ideas behind dynamic capabilities, showing how the company has been able to sense changes in the marketplace and to seize these opportunities by reconfiguring existing assets and competencies. We review the literature on dynamic capabilities and, using IBM as a case example, show how their strategy process permits them both to explore new markets and technologies (e.g., life sciences, pervasive computing) as well as to exploit mature products and markets (e.g., mainframe computers, middleware).

326 citations

Posted Content
TL;DR: A comprehensive alliance portfolio diversity construct that includes partner, functional, and governance diversity is offered, finding alliance portfolios with greater organizational and functional diversity and lower governance diversity were related to higher firm performance while industry diversity had a U-shaped relationship with firm performance.
Abstract: In this paper, we offer a comprehensive alliance portfolio diversity construct that includes partner, functional, and governance diversity. Grounding our work primarily with the resource and dynamic capabilities-based views, we argue that increased diversity in partners’ industry, organizational, and national background will incur added complexity and coordination costs but will provide broadened resource and learning benefits. Increased functional diversity results in a more balanced portfolio of exploration and exploitation activities that expands the firm’s knowledge base while increased governance diversity inhibits learning and routine building. Hypotheses were tested with alliance portfolio and performance data for 138 multinational firms in the global automobile industry during the twenty-year period from 1985 to 2005. We found alliance portfolios with greater organizational and functional diversity and lower governance diversity were related to higher firm performance while industry diversity had a U-shaped relationship with firm performance. We suggest firms manage their alliances with a portfolio perspective, seeking to maximize resource and learning benefits by collaborating with a variety of organizations in various value chain activities while minimizing managerial costs through a focused set of governance structures.

324 citations

01 Jan 2009
TL;DR: In this article, the authors empirically measure four dynamic capabilities and find that the nature and effect of resources employed in the development of these capabilities vary greatly, with positive effects stemming from access to particular resources and unexpected negative effects also appearing.
Abstract: Despite the numerous observations that dynamic capabilities lie at the source of competitive advantage, we still have limited knowledge as to how access to firm-based resources and changes to these affect the development of dynamic capabilities. In this paper, we examine founder human capital, access to employee human capital, access to technological expertise, access to other specific expertise, and access to two types of tangible resources in a sample of new firms in Sweden. We empirically measure four dynamic capabilities and find that the nature and effect of resources employed in the development of these capabilities vary greatly. For the most part, there are positive effects stemming from access to particular resources. However, for some resources, such as access to employee human capital and access to financial capital, unexpected negative effects also appear. This study therefore provides statistical evidence as to the varying role of resources in capability development. Importantly, we also find that changes in resource bases have more influential roles in the development of dynamic capabilities than the resource stock variables that were measured at an earlier stage of firm development. This provides empirical support for the notion of treating the firm as a dynamic flow of resources as opposed to a static stock. This finding also highlights the importance of longitudinal designs in studies of dynamic capability development. Further recommendations for future empirical studies of dynamic capabilities are presented.

303 citations

Journal ArticleDOI
TL;DR: It is proposed that simplified links between design and performance outcomes in modular environments facilitate imitation, and the same reduction in complexity drives development of dynamic capabilities.
Abstract: Modular design practices provide a lens on the link among product architecture, imitation, and the dynamic capabilities that sustain long-term performance. Looking at closed product systems, we propose that simplified links between design and performance outcomes in modular environments facilitate imitation. The same reduction in complexity drives development of dynamic capabilities. These take the form of more rapid and reliable search processes for incremental and radical innovations. The scope and timing of a firm's modular strategy influence the development of these capabilities, which are critical to sustainable modular performance advantages.

303 citations

Trending Questions (1)
What is the common theme that, according to Wilden et al. (2013), the three dimensions of dynamic capabilities share?

The common theme shared by the three dimensions of dynamic capabilities, according to Wilden et al. (2013), is the ability to sense, seize, and transform opportunities.