Showing papers on "Dynamic capabilities published in 2013"
01 Feb 2013
TL;DR: A model to examine how IT capabilities affect firm performance through absorptive capacity and supply chain agility in the supply chain context is proposed and concludes with implications and suggestions for future research.
Abstract: Researchers and practitioners regard information technology (IT) as a competitive tool. However, current knowledge on IT capability mechanisms that affect firm performance remains unclear. Based on the dynamic capabilities perspective and the view of a hierarchy of capabilities, this article proposes a model to examine how IT capabilities (i.e., flexible IT infrastructure and IT assimilation) affect firm performance through absorptive capacity and supply chain agility in the supply chain context. Survey data show that absorptive capacity and supply chain agility fully mediate the influences of IT capabilities on firm performance. In addition to the direct effects, absorptive capacity also has indirect effects on firm performance by shaping supply chain agility. We conclude with implications and suggestions for future research.
562 citations
TL;DR: This paper argues theoretically and demonstrate empirically that these effects are contingent on organizational structure and the competitive intensity in the market, and outlines the advantages of PLS-SEM for modeling latent constructs, such as dynamic capabilities, and concludes with managerial implications.
554 citations
TL;DR: In this article, the authors identify key microfoundations forming the basis of successful realignment of a firm's dynamic capabilities so as to achieve a better fit with service innovation activities.
482 citations
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.
421 citations
TL;DR: In this paper, the authors examine how knowledge management (KM) affects innovation performance within biotechnology firms and hypothesize that KM dynamic capabilities act as a mediating variable between KM practices and innovation performance.
Abstract: This article examines how knowledge management (KM) affects innovation performance within biotechnology firms. This is an industry in which small- and medium-sized biotech enterprises live together with the biotech divisions of large pharmaceutical firms. We conceptualize KM as a set of practices and dynamic capabilities, and hypothesize that KM dynamic capabilities act as a mediating variable between KM practices and innovation performance. We use structural equation modelling to test the hypotheses on a data set from the biotechnology industry. The results support our conceptualization and demonstrate its utility in explaining differences in innovation performance across firms. Findings have important implications regarding KM and innovation in high-tech small- and medium-sized enterprises.
348 citations
TL;DR: In this paper, the authors contribute to the entrepreneurial orientation (EO) performance literature by offering a wider picture that includes two intermediate steps: organizational learning capability (OLC) a...
Abstract: This research contributes to the entrepreneurial orientation (EO)–performance literature by offering a wider picture that includes two intermediate steps: organizational learning capability (OLC) a...
328 citations
TL;DR: The model holds for a sample of 377 Chinese manufacturers in six major industrial groups in Suzhou, Dalian, and Tianjin and suggests that institutions in developing countries with significant environmental concerns such as China should encourage and support ISO 9000 implementations by local firms.
234 citations
TL;DR: A review and synthesis of the extant literature on dynamic capabilities in public organizations is provided in this article, where an analytical model that captures the antecedents, microfoundations and effects of dynamic capabilities is presented.
Abstract: This article provides a review and synthesis of the extant literature on dynamic capabilities in public organizations. Although this theoretical perspective holds potential to enhance our limited understanding of how public organizations change in response to their increasingly turbulent and complex environments, it has received little attention in the public management field. Against this backdrop, this article seeks to contribute to future research on public sector change by advancing an analytical model that captures the antecedents, microfoundations and effects of dynamic capabilities in public organizations.
152 citations
TL;DR: This study conducts a theoretically grounded typology development exercise based on an extensive review of the existing dynamic capabilities literature, identifying seven frameworks presented in the literature that showed some consistency in underlying concepts but conflict in nomenclature and application.
Abstract: Purpose – The purpose of this paper is to synthesize existing knowledge‐based dynamic capabilities research into a single typology for managerial and academic use.Design/methodology/approach – Based on the resource‐based and knowledge‐based views, this study conducts a theoretically grounded typology development exercise based on an extensive review of the existing dynamic capabilities literature.Findings – The paper identifies seven frameworks presented in the literature that showed some consistency in underlying concepts but conflict in nomenclature and application. Identifying over 80 uses of knowledge‐based dynamic capabilities in the literature review, three complementary dimensions that are common amongst the frameworks are identified and integrated into a consistent typology of eight knowledge‐based dynamic capabilities to encompass the extant literature.Originality/value – Addressing fragmentation in the knowledge‐based dynamic capabilities discourse, the paper advances the concept of knowledge‐ba...
141 citations
TL;DR: A framework of business analytics for supply chain analytics (SCA) as IT-enabled, analytical dynamic capabilities composed of data management capability, analytical supply chain process capability, and supply chain performance management capability is proposed.
Abstract: Supply chain management has become more important as an academic topic due to trends in globalization leading to massive reallocation of production related advantages. Because of the massive amount of data that is generated in the global economy, new tools need to be developed in order to manage and analyze the data, as well as to monitor organizational performance worldwide. This paper proposes a framework of business analytics for supply chain analytics (SCA) as IT-enabled, analytical dynamic capabilities composed of data management capability, analytical supply chain process capability, and supply chain performance management capability. This paper also presents a dynamic-capabilities view of SCA and extensively describes a set of its three capabilities: data management capability, analytical supply chain process capability, and supply chain performance management capability. Next, using the SCM best practice, sales & operations planning (S&OP), the paper demonstrates opportunities to apply SCA in an integrated way. In discussing the implications of the proposed framework, finally, the paper examines several propositions predicting the positive impact of SCA and its individual capability on SCM performance.
115 citations
TL;DR: The effects of dynamic capabilities are larger for activities directed toward initially accessing resources than those directed toward further developing them, which is consistent with the potential for firms to rely on knowledge gained through resource access activity when conducting subsequent activity to further develop resources.
Abstract: This study analyzes dynamic capabilities that support activities directed toward accessing resources and further developing resources to make them commercially usable. We develop theory and empirically investigate the impact of dynamic capabilities on the amount and success of these activities and whether the impact of dynamic capabilities differs between the two types of activities. Using unique data from the upstream oil industry, we develop an objective measure of dynamic capability that is distinct from the outcomes of utilizing these capabilities. We find that firms with more sophisticated dynamic capabilities undertake greater amounts of activity to access resources and further develop them prior to commercial use; they also have greater success in these activities. Finally, these effects of dynamic capabilities are larger for activities directed toward initially accessing resources than those directed toward further developing them, which is consistent with the potential for firms to rely on knowledge gained through resource access activity when conducting subsequent activity to further develop resources.
TL;DR: In this paper, the authors examined how EII contributes to environmental management capabilities in terms of corporate environmental innovativeness and adaptability, and found that supplier EII is insufficient in improving environmental management capability.
Abstract: Although environmental sustainability has emerged as an important organizational capability to protect the environment and sustain businesses, there is little knowledge on how it is developed. This is of particular importance when environmental management no longer relies solely on an individual firm's efforts, but on its supply chain partners as well. Building on dynamic capabilities theory, environmental information integration (EII) is defined as the organizational capacity of sharing information on environmental management with supply chain partners to facilitate coordination of environmental management practices. This study examines how EII contributes to environmental management capabilities in terms of corporate environmental innovativeness and adaptability. The research model is empirically tested using data collected from 230 firms. The findings show that supplier EII is insufficient in improving environmental management capabilities. Internal EII contributes to corporate environmental adaptability, while customer EII engenders both corporate environmental innovativeness and adaptability. This study suggests that strategic values of EII go beyond the sharing of environmental management information between supply chain partners, simultaneously contributing to the environmental management capabilities of firms. This study contributes substantially to environmental management research by providing empirical evidence on the specific dimensions of EII in supply chains that contribute to environmental management capabilities and business values.
TL;DR: In this paper, the authors focus on certain drivers of SME sales growth related to knowledge and innovation, and conclude that external sourcing has direct effects on both product and process innovation, with an indirect effect mediated by process innovation.
Abstract: This paper focuses on certain drivers of SME sales growth related to knowledge and innovation. Building on the dynamic capabilities literature, we test whether two organizational capabilities (external sourcing and employee involvement in renewal activities) predict sales growth, and if so, whether such effects are mediated by process and/or product innovation. Based on survey data from a panel study of Dutch SMEs, and controlling for several firm characteristics (firm size, sector, age and family business), we conclude that external sourcing has direct effects on both product and process innovation, with an indirect effect (mediated by process innovation) on sales growth. In line with our hypothesis development, we also find that employee involvement, while positively affecting process innovation, has a negative effect on sales growth. Firm size moderates the effects of two of the variables (external sourcing and product innovation) on sales growth, with more positive effects found for the smallest firms, results supporting the nimbleness (versus resource-based) view.
TL;DR: In this article, the authors explore the critical dynamic capabilities of small and medium enterprises in the innovation process and identify the dynamic capabilities that enable the implementation of open innovation practices based on qualitative data from the manufacturing industry.
Abstract: This paper aims at exploring the critical dynamic capabilities of small and medium enterprises (SMEs) in the innovation process and at identifying the dynamic capabilities that enable the implementation of open innovation practices. Building on qualitative data from the manufacturing industry deriving from an in-depth investigation of the capabilities of four innovative case firms, the patterns between the firm's portfolio of dynamic capabilities and the different types of open innovation processes are mapped. This study makes three primary contributions to the body of knowledge. This is the first attempt to link dynamic capabilities to an open innovation approach undertaken by SMEs. Second, the study extends existing work on innovation in SMEs by identifying key dynamic capabilities in this context. Finally, the case-based research provides empirical evidence of dynamic capabilities in practices, where analysis reveals that companies with strong sensing, seizing and reconfiguring capabilities are more inclined to develop open innovation approaches. Copyright © 2013 John Wiley & Sons, Ltd.
TL;DR: In this article, the authors investigated how exploitation capability and exploration capability as two critical building blocks of dynamic capabilities are independently and interactively associated with IJVs' financial and competitive outcomes in an emerging economy, and how the two context variables (IJV autonomy and organizational culture distance of IJV partners) moderate the effect of exploitation capability on IJV performance.
Abstract: Drawing on the dynamic capabilities perspective as the overarching theoretical underpinning in the context of IJVs, this study investigates (1) how exploitation capability and exploration capability as two critical building blocks of dynamic capabilities are independently and interactively associated with IJVs’ financial and competitive outcomes in an emerging economy, and (2) how the two context variables (IJV autonomy and organizational culture distance of IJV partners) moderate the effect of exploitation capability and exploration capability on IJV performance. Using a sample of 102 IJVs in an emerging economy, this study finds general support for the theoretical model. Results suggest that IJVs in a foreign emerging economy tend to perform better when they possess greater abilities to exploit current resources as well as by dynamically renewing their competitive advantage. Moreover, exploitation capability and exploration capability interact in such a way that they “reinforce” each other. Lastly, the contribution of exploitation capability and exploration capability to IJV performance is stronger when IJVs enjoy greater autonomy and when the organizational culture distance between partners of IJVs is small. Theoretical and managerial contributions are discussed and limitations and future research are explored.
TL;DR: It is concluded that dynamic capabilities are more effective in implementing organizational change at high degrees of environmental dynamism.
Abstract: The purpose of this study is to explore the moderating effect of environmental dynamism on the relationship between dynamic capabilities and new venture performance using the rapidly changing environment in China as a case. Using a sample of 115 firm observations, we applied the partial least squares structural equation modeling approach to model these relationships and found that opportunity-sensing capability and reconfiguration capability have significant impacts on new venture performance. Additionally, each of these capabilities has a stronger impact on new venture performance at higher levels of environmental dynamism. We conclude that dynamic capabilities are more effective in implementing organizational change at high degrees of environmental dynamism.
29 Mar 2013
TL;DR: In this article, the authors compare traditional, organization-centered models of innovation with more recent work on open innovation, and suggest that when critical tasks can be modularized and when problem-solving knowledge is widely distributed and available, open innovation complements traditional innovation logics.
Abstract: This chapter contrasts traditional, organization- centered models of innovation with more recent work on open innovation. These fundamentally different and inconsistent innovation logics are associated with contrasting organizational boundaries and organizational designs. We suggest that when critical tasks can be modularized and when problem- solving knowledge is widely distributed and available, open innovation complements traditional innovation logics. We induce these ideas from the literature and with extended examples from Apple, the National Aeronautics and Astronomical Agency (NASA) and LEGO. We suggest that task decomposition and problem- solving knowledge distribution are not deterministic but are strategic choices. If dynamic capabilities are associated with innovation streams, and if different innovation types are rooted in contrasting innovation logics, there are important implications for firm boundaries,
TL;DR: In this paper, the authors argue that firms grow during institutional transitions by developing a set of capabilities that they label market-political ambidexterity to embrace both governments and markets.
Abstract: In emerging economies undergoing institutional transitions, while market forces have grown, government influences are not necessarily in decline. Therefore, in addition to market capabilities, firms also need to develop political and nonmarket capabilities. We argue that firms grow during institutional transitions by developing a set of capabilities that we label market-political ambidexterity to embrace both governments and markets. Viewing market-political ambidexterity as a bundle of dynamic capabilities, we contribute to the literature by articulating this important but previously underexplored construct. [Key words] Ambidexterity, market-political ambidexterity, institutional transitions, emerging economies
TL;DR: In this article, a multidimensional theoretical construct of absorptive capacity and the evolutionary economics concept of organisational routines are used to analyse 14 case studies of innovative not-for-profit ventures in Australia and the UK.
Abstract: Research into the phenomenon of social innovation has long focused on what it is and why people become engaged in this form of behaviour. However, another piece of the theoretical jigsaw requires understanding how this type of innovation is enacted by organisations. This article looks at the means by which not-for-profit ventures pursuing socially innovative activities develop the necessary capabilities to innovate. The multidimensional theoretical construct of absorptive capacity and the evolutionary economics concept of organisational routines are used to analyse 14 case studies of innovative not-for-profit ventures in Australia and the UK. The results show that these organisations have a unique mediating function in the social innovation process by configuring internal and external absorptive capacity routines to combine user and technological knowledge flows. The article concludes by proposing some research directions for those taking forward the study of social innovation.
TL;DR: In this paper, the relative impact of dynamic capabilities on various dimensions of strategic flexibility in Indian manufacturing industry is evaluated and validated by employing various statistical tools, such as human resource capabilities, innovative capabilities, technological capabilities, alliance capabilities and research and development capabilities.
Abstract: Purpose – The purpose of this paper is to evaluate the relative impact of dynamic capabilities on various dimensions of strategic flexibility in Indian manufacturing industry. Design/methodology/approach – In this study, 102 manufacturing organizations have been extensively surveyed, to assess the relative impact of different dynamic capabilities on various dimensions of strategic flexibility. The correlations between dynamic capabilities and strategic flexibility have been evaluated and validated by employing various statistical tools. Findings – The research focuses upon the significant contributions of dynamic capabilities such as human resource capabilities, innovative capabilities, technological capabilities, alliance capabilities and research and development capabilities, towards managing flexibility at strategic level in manufacturing organizations. Originality/value – This study provides the first empirical evidence of such a relationship with a relative choice between dynamic capabilities for man...
TL;DR: It is suggested that incremental learning will be positively related to organizational performance, especially when the underlying business model is labour rather than capital intensive.
Abstract: This paper examines the antecedents, consequences and moderators of incremental learning capabilities, understood as an organization's ability to gradually adapt and expand its knowledge base. Conceptualized as a dynamic capability, incremental learning is expected to be a vital driver of organizational adaptation. As dynamic capabilities consist of bundles of relatively stable routines, it is proposed that an organization's level of incremental learning capabilities will be highly persistent over time. It is also argued that building and exercising incremental learning capabilities is resource intensive and will as such tend to rely on the availability of sufficient slack resources. Last, it is suggested that incremental learning will be positively related to organizational performance, especially when the underlying business model is labour rather than capital intensive. To test these theoretical ideas, the authors draw on extensive panel data from all public non-specialist hospitals in England and find broad support for their hypotheses.
TL;DR: In this paper, a survey of US small and medium-sized enterprises (SMEs) explores whether firms have "dynamic" capabilities that change their ethics-focused operational capabilities, and what effects those dynamic capabilities have on both ethical and competitive performance.
Abstract: Our analysis of survey data of US small and medium-sized enterprises (SMEs) explores (1) whether firms have ‘dynamic’ capabilities that change their ethics-focused operational capabilities; (2) what effects those dynamic capabilities have on both ethical and competitive performance; and, (3) whether those effects are contingent on a firm’s entrepreneurial characteristics. Our survey reveals that about a quarter of SMEs self-report high levels of these ethics-focused dynamic capabilities. We use hierarchical OLS to analyze the survey data to find that the general effect of these capabilities is positive on an SME’s ethical performance, and that the performance effects are contingent on an SME’s degree of entrepreneurial orientation and sensitivity to changes in the business context. The main implication is that the extent of heterogeneity in types, roles, and performance effects of ‘higher-than-operations-level’ capabilities is likely underestimated in current dynamic capabilities theory and application.
TL;DR: In this paper, the authors draw on the relationship marketing literature and the resource-based perspective to examine how firms can increase their customer value creation by exploring two specific driving forces, i.e., strategic importance of supply chain partners and interfirm integration, and relationship-enabled responsiveness as the dynamic capabilities derived from the driving forces.
TL;DR: The role of IT in improving firm's dynamic marketing capabilities was considered and important direct effects of a firm's market orientation, use of IT to support CRM, and the functionality of IT infrastructure capabilities on itsynamic marketing capabilities were showed.
TL;DR: It is proposed that relating scenario planning with early warning scanning provides firms with synergic capabilities that help frame top management attention on possible future contexts and how they might unfold.
TL;DR: In this article, the authors developed a multiple-indicator multiple-cause model to explain dynamic capabilities generation and found that only organizations with managers who perceived a high degree of environmental dynamism have generated dynamic capabilities.
Abstract: The purpose of this paper is to develop a multiple-indicator multiple-cause model to explain dynamic capabilities generation. We use one of the main common effects of dynamic capabilities (operational, structural and strategic flexibility) to design a measurement tool for dynamic capabilities generation. Based on this measurement tool, we test the influence of several factors identified in the specialized literature as potential causes that trigger and promote dynamic capabilities generation. We use data from a survey of 200 CEOs of Spanish firms to test the model. The results show that only organizations whose managers have perceived a high degree of environmental dynamism have generated dynamic capabilities. The results also show that knowledge codification and technical innovation are significantly related to dynamic capabilities generation. We attempt to shed light on current theoretical debates about dynamic capabilities generation and provide a practical guide to explain the origin and results of dynamic capabilities that have been tested empirically.
TL;DR: A capability maturity model is proposed to assist in the development of robust PPM capabilities that will continue to evolve and stay relevant to the rapidly changing environment.
Abstract: Purpose – The purpose of this paper is to increase understanding of project portfolio management (PPM) capability evolution, in order to guide the implementation and ongoing development of robust capabilities.Design/methodology/approach – This research adopts a dynamic capabilities perspective and draws on organizational learning theory to investigate the path‐dependent nature of PPM implementation and development. It employs a multiple‐case study of six organizations.Findings – Each of the case organizations reported a high level of evolution and change within their PPM capabilities, both purposeful and unintended. Potential “fragilities” are identified, such as the emergence of a “success trap” that inhibits explorative innovation and difficulties in stopping poor projects to reallocate resources. Based on findings from the literature and the multiple‐case study, a capability maturity model is proposed to assist in the development of robust PPM capabilities that will continue to evolve and stay relevant...
TL;DR: In this article, a new analytical framework was developed assuming that the internationalization process relies on the firm's innovative capability, which is derived from core competences and competence formation at firm level is influenced by the characteristics of the national environment.
TL;DR: In this article, the fundamental role of dynamic capabilities in corporate sustainable development is examined, and a framework for corporate sustainability is developed to monitor the emerging sustainability needs of various stakeholders, and seize sustainable development opportunities.
Abstract: Purpose – Differences in corporate commitments to sustainability have attracted increasing attentions of both researchers and practitioners. However, reasons behind such differences still lack a generic theorization. We propose that one source of these differences lies in the development and application of what we refer to as dynamic capabilities for corporate sustainability within the firm. Drawing on the dynamic capabilities view, the objective of this paper is to examine the fundamental role of dynamic capabilities in corporate sustainable development. Design/methodology/approach – The research developed a framework of dynamic capabilities for corporate sustainability and used the approach of content analysis to verify the framework based on the CSR reports of UK leading companies. Findings – The research demonstrates that the dynamic capabilities for corporate sustainability enable firms to monitor the emerging sustainability needs of various stakeholders, seize sustainable development opportunities f...
TL;DR: In this paper, the authors examined the interrelationships among the domestic institutional environment for entrepreneurship, a firm's innovation capability, and an SME's decision to grow using an internationalization or innovation-based strategy.
Abstract: The paper examines the interrelationships among the domestic institutional environment for entrepreneurship, a firm’s innovation capability, and an SME’s decision to grow using an internationalization or innovation-based strategy. The effects of both the external institutional environment and the internal dynamic capabilities on the firm’s subsequent performance are evaluated. Cross-sectional cross-industry data from 188 Russian SMEs were collected in order to address these issues. The results suggest that the initial decision of an SME to pursue an internationalization strategy is influenced by conditions in the cognitive institutional environment and the SME’s internal ability to innovate. The initial decision to pursue innovation-based growth, however, is affected only by a firm’s internal factors. However, the growth outcome depends on the normative institutional environment, in other words on favorable societal attitudes to the phenomenon of international entrepreneurship. The paper demonstrates the complexity of institution-based and resource-based factors that affect SME growth in emerging economies, and provides recommendations concerning strategic policy objectives.