Dynamic capabilities: A morphological analysis framework and agenda for future research
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.
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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
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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
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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
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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
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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TL;DR: This work argues that dynamic capabilities theorizing to date is based on rational or normative notions of actions, neither of which account for novelty in action, and proposes that to overcome this impasse dynamic capabilities research needs to incorporate a concept of creative action into its theoretical apparatus.
Abstract: Dynamic capabilities research aims to explain how firms manage to change in order to sustain their competitive advantage. Yet, despite considerable progress, dynamic capabilities theorizing struggles to capture novelty, which lies at the heart of change. We argue that this is caused by inherent limitations of the ways in which human action has been conceptualized: dynamic capabilities theorizing to date is based on rational or normative notions of actions, neither of which account for novelty in action. Hence, we propose that to overcome this impasse dynamic capabilities research needs to incorporate a concept of creative action into its theoretical apparatus. We elaborate on the positioning of creative action relative to existing dynamic capabilities theorizing and outline its implications for future dynamic capabilities research.
52 citations
TL;DR: In this paper, the authors examine the influence of organizational context on the relationships between outsourcing and manufacturing flexibility, and derive grounded hypotheses by combining theoretically developed propositions with insights from case studies of 11 manufacturing companies that outsourced some portion of their manufacturing.
Abstract: Purpose – The purpose of this paper is to examine the influence of organizational context on the relationships between outsourcing and manufacturing flexibility. In doing so, the authors study four types of manufacturing flexibility: product, mix, volume, and labor competence flexibility. Design/methodology/approach – Based on transaction cost economics theory and resource-based view of competitive advantage, the authors focus on economies of scale and scope, asset specificity, organizational learning, and dynamic capabilities as contingencies affecting outsourcing-flexibility relationships. Combining theoretically developed propositions with insights from case studies of 11 manufacturing companies that outsourced some portion of their manufacturing, the authors derive grounded hypotheses. Findings – Empirical results show that in some cases the effects of outsourcing on different types of manufacturing flexibility vary based upon some contingency factors. Research limitations/implications – Due to the qu...
50 citations
TL;DR: In this paper, the authors examined the moderating effect of certain e-procurement system types on the relationship between IT capabilities and firm performance, including collaboration capability and dynamic capability.
Abstract: Firms need to find a proper fit between their own information technology (IT) capabilities and IT systems in order to enhance performance. Thus, the purpose of this paper is to examine the moderating effect of certain e-procurement system types on the relationship between IT capabilities and firm performance. Moderated regression analysis is used to test for interaction effects of IT capabilities, including collaboration capability and dynamic capability, and e-procurement system types including, E-market and Extranet. Data of 142 Korean manufacturing firms are collected and used in the analysis. There is a stronger effect when relationships between IT capability and firm performance are considered with the involvement of other resource such as e-procurement system type. When e-procurement has a minimum-information sharing function and a high market-making function, collaboration capability had a greater contribution on financial performance. On the other hand, when an e-procurement system has limited sea...
45 citations
TL;DR: This study uses an experiment to induce dynamic capabilities in the laboratory and reveals that more efficient use of resources, increasing efficiency of coordination, reliance on more appropriate action sequences, and greater deliberation in action are characteristic qualities of dynamic capabilities.
Abstract: Despite the prominence of dynamic capabilities in the strategy and organization literatures, we still lack an empirically grounded understanding of the construct. Featuring an extended version of an established card game, our study uses an experiment to induce dynamic capabilities in the laboratory. Our findings reveal that (a) more efficient use of resources, (b) increasing efficiency of coordination, (c) reliance on more appropriate action sequences, and (d) greater deliberation in action are characteristic qualities of dynamic capabilities. Beyond empirically identifying dynamic capabilities, we offer implications for dynamic capabilities and transfer theory.
41 citations
TL;DR: The exploratory findings support the notion that design creativity is a static capability and support for design creativity as a dynamic capability, contingent upon personality traits is apparent.
Abstract: Purpose – Viewing creativity through the theoretical lens of the resource‐based view, the paper attempts to answer a fundamental question: is design creativity a static or dynamic capability? If static, then firms need to acquire personnel who are already creative. If dynamic, then personnel's creative talents should be developed through training.Design/methodology/approach – In an exploratory controlled experiment of 74 design engineers from ten firms, two forms of training emphasizing design creativity as static or dynamic capability were applied. Creative designs developed by the participants were judged by professionals inside each organization. Results were analyzed using structural equation modeling.Findings – The exploratory findings support the notion that design creativity is a static capability. In tandem, support for design creativity as a dynamic capability, contingent upon personality traits is apparent. Training may help develop some people's creative skills.Research limitations/implications...
38 citations