Dynamic managerial capabilities: Configuration and orchestration of top executives' capabilities and the firm's dominant logic: Research Notes and Commentaries
TL;DR: This paper develops theory about the distributed nature of efforts for organizational renewal where CEO's dynamic managerial capabilities in concerto with senior executive managerial capabilities will drive top management's ability to revitalize the firm's dominant logic and to achieve evolutionary fit.
Abstract: This paper contributes to the understanding of the executive team dynamic managerial capabilities by developing theory about the interplay between the firm's dominant logic and dynamic managerial capabilities (including managerial human capital, social capital, and cognition). We underscore the criticality of the two key CEO-level functions: configuration and orchestration of senior executive team dynamic capabilities. We develop theory on how these functions create and sculpt the management team's absorptive capacity, which in turn shapes the team's adaptive capacity. We present theory about the distributed nature of efforts for organizational renewal where CEO's dynamic managerial capabilities in concerto with senior executive managerial capabilities will drive top management's ability to revitalize the firm's dominant logic and to achieve evolutionary fit. Copyright © 2012 John Wiley & Sons, Ltd.
Citations
More filters
TL;DR: The dynamic managerial capabilities literature has developed over the past decade to the point where a review and synthesis of relevant literature can move the scholarly conversation forward The concept of dynamic manager capabilities, the capabilities with which managers create, extend, and modify the ways in which firms make a living, helps explain the relationship between the quality of managerial decisions, strategic change, and organizational performance.
539 citations
Cites background from "Dynamic managerial capabilities: Co..."
...Additionally, Kor and Mesko (2013) argue that the dominant logic of the firm—the conceptualization of its business (Prahalad & Bettis, 1986)—stems from all three underpinnings of dynamic managerial capabilities....
[...]
...…extends the dynamic capabilities perspective (Eisenhardt & Martin, 2000; Teece, Pisano, & Shuen, 1997) by directing attention to the role of managers, individually and in teams (Augier & Teece, 2009; Harris & Helfat, 2013; Helfat & Martin, in press; Kor & Mesko, 2013; Martin, 2011a; Teece, 2012)....
[...]
TL;DR: This article develops a meta-framework that specifies antecedents, dimensions, mechanisms, moderators, and outcomes of dynamic capabilities identified in the literature to date and proposes a forward-looking research agenda that outlines directions for future research.
Abstract: Although the dynamic capabilities perspective has become one of the most frequently used theoretical lenses in management research, critics have repeatedly voiced their frustration with this literature, particularly bemoaning the lack of empirical knowledge and the underspecification of the construct of dynamic capabilities. But research on dynamic capabilities has advanced considerably since its early years, in which most contributions to this literature were purely conceptual. A plethora of empirical studies as well as further theoretical elaborations have shed substantial light on a variety of specific, measurable factors connected to dynamic capabilities. Our article starts out by analyzing these studies to develop a meta-framework that specifies antecedents, dimensions, mechanisms, moderators, and outcomes of dynamic capabilities identified in the literature to date. This framework provides a comprehensive and systematic synthesis of the dynamic capabilities perspective that reflects the richness of the research while at the same time unifying it into a cohesive, overarching model. Such an analysis has not yet been undertaken; no comprehensive framework with this level of detail has previously been presented for dynamic capabilities. Our analysis shows where research has made the most progress and where gaps and unresolved tensions remain. Based on this analysis, we propose a forward-looking research agenda that outlines directions for future research.
524 citations
Cites background from "Dynamic managerial capabilities: Co..."
...…2015), a total of 46 studies have elucidated individual-level factors and their role in shaping dynamic capabilities, including human capital (Hsu & Wang, 2012; Kale, 2010), leadership (Kor & Mesko, 2013; Rindova & Kotha, 2001), and managerial cognition (Dunning & Lundan, 2010; Leiblein, 2011)....
[...]
TL;DR: In this article, the authors present a systematic and multidisciplinary review of unit-level human capital resource (HCR) research that invokes resource-based theorizing in examining the unit's HCR.
320 citations
TL;DR: In this paper, a meta-analytic analysis of the relationship between the Barnean resource-based view (RBV) and the Penrosean theory is presented, showing that versatile resources are associated with higher levels of growth, whereas VRIN resources are not.
314 citations
Cites background from "Dynamic managerial capabilities: Co..."
...For example, Penrose’s idea of the managerial mind-set links well with the recent stream of literature examining entrepreneurial cognition (Grégoire, Corbett, & McMullen, 2011) and managerial capabilities (Kor & Mesko, 2013)....
[...]
TL;DR: In this article, the authors examined the impact of digital transformation on customer value creation in the context of small and medium-sized firms (SMEs) operating in the Made in Italy sectors, with the aim of understanding how dynamic capabilities, as enabling mechanisms, may foster digital transformation.
276 citations
References
More filters
TL;DR: In this paper, the concept of social capital is introduced and illustrated, its forms are described, the social structural conditions under which it arises are examined, and it is used in an analys...
Abstract: In this paper, the concept of social capital is introduced and illustrated, its forms are described, the social structural conditions under which it arises are examined, and it is used in an analys...
31,693 citations
TL;DR: In this paper, the authors argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities.
Abstract: In this paper, we argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities. We label this capability a firm's absorptive capacity and suggest that it is largely a function of the firm's level of prior related knowledge. The discussion focuses first on the cognitive basis for an individual's absorptive capacity including, in particular, prior related knowledge and diversity of background. We then characterize the factors that influence absorptive capacity at the organizational level, how an organization's absorptive capacity differs from that of its individual members, and the role of diversity of expertise within an organization. We argue that the development of absorptive capacity, and, in turn, innovative performance are history- or path-dependent and argue how lack of investment in an area of expertise early on may foreclose the future development of a technical capability in that area. We formulate a model of firm investment in research and development (R&D), in which R&D contributes to a firm's absorptive capacity, and test predictions relating a firm's investment in R&D to the knowledge underlying technical change within an industry. Discussion focuses on the implications of absorptive capacity for the analysis of other related innovative activities, including basic research, the adoption and diffusion of innovations, and decisions to participate in cooperative R&D ventures. **
31,623 citations
TL;DR: The dynamic capabilities framework as mentioned in this paper analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change, and suggests that private wealth creation in regimes of rapid technology change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm.
Abstract: The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difftcult-to- trade knowledge assets and complementary assets), and the evolution path(s) it has aflopted or inherited. The importance of path dependencies is amplified where conditions of increasing retums exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding intemally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.
27,902 citations
TL;DR: In this article, the authors present a model that incorporates this overall argument in the form of a series of hypothesized relationships between different dimensions of social capital and the main mechanisms and proces.
Abstract: Scholars of the theory of the firm have begun to emphasize the sources and conditions of what has been described as “the organizational advantage,” rather than focus on the causes and consequences of market failure. Typically, researchers see such organizational advantage as accruing from the particular capabilities organizations have for creating and sharing knowledge. In this article we seek to contribute to this body of work by developing the following arguments: (1) social capital facilitates the creation of new intellectual capital; (2) organizations, as institutional settings, are conducive to the development of high levels of social capital; and (3) it is because of their more dense social capital that firms, within certain limits, have an advantage over markets in creating and sharing intellectual capital. We present a model that incorporates this overall argument in the form of a series of hypothesized relationships between different dimensions of social capital and the main mechanisms and proces...
15,365 citations
01 Jan 1996
TL;DR: The primary contribution of the paper is in exploring the coordination mechanisms through which firms integrate the specialist knowledge of their members, which has implications for the basis of organizational capability, the principles of organization design, and the determinants of the horizontal and vertical boundaries of the firm.
Abstract: Given assumptions about the characteristics of knowledge and the knowledge requirements of production, the firm is conceptualized as an institution for integrating knowledge. The primary contribution of the paper is in exploring the coordination mechanisms through which firms integrate the specialist knowledge of their members. In contrast to earlier literature, knowledge is viewed as residing within the individual, and the primary role of the organization is knowledge application rather than knowledge creation. The resulting theory has implications for the basis of organizational capability, the principles of organization design (in particular, the analysis of hierarchy and the distribution of decision-making authority), and the determinants of the horizontal and vertical boundaries of the firm. More generally, the knowledge-based approach sheds new light upon current organizational innovations and trends and has far-reaching implications for management practice.
12,839 citations