Showing papers on "Dynamic capabilities published in 2015"
TL;DR: This work identifies specific types of cognitive capabilities that are likely to underpin dynamic managerial capabilities for sensing, seizing, and reconfiguring, and explains their potential impact on strategic change of organizations.
Abstract: The microfoundations of dynamic capabilities have assumed greater importance in the search for factors that facilitate strategic change. Here, we focus on microfoundations at the level of the individual manager. We introduce the concept of “managerial cognitive capability,” which highlights the fact that capabilities involve the capacity to perform not only physical but also mental activities. We identify specific types of cognitive capabilities that are likely to underpin dynamic managerial capabilities for sensing, seizing, and reconfiguring, and explain their potential impact on strategic change of organizations. In addition, we discuss how heterogeneity of these cognitive capabilities may produce heterogeneity of dynamic managerial capabilities among top executives, which may contribute to differential performance of organizations under conditions of change. Finally, we propose possible directions for future research. Copyright © 2014 John Wiley & Sons, Ltd.
1,081 citations
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
TL;DR: This study builds on disruptive innovation theory by ascertaining the role of dynamic capabilities in the performance of response to digital disruption and suggests that first-order dynamic capabilities that are created by changing, extending, or adapting a firm’s existing resources, processes, and values are positively associated with building digital platform capabilities.
Abstract: Internet and digitization are fundamentally changing and disrupting newspaper companies’ traditional operating models. Disruptive innovation theory offers explanations for why companies succeed or fail to respond to disruptive innovations. This study builds on disruptive innovation theory by ascertaining the role of dynamic capabilities in the performance of response to digital disruption. Empirical results suggest that first-order dynamic capabilities that are created by changing, extending, or adapting a firm’s existing resources, processes, and values are positively associated with building digital platform capabilities, and that these capabilities impact the performance of response to digital disruption. For information systems (IS) researchers, this study clarifies the role of first-order dynamic capabilities in responding to digital disruption. For IS practice, it helps managers to focus on the most promising factors for creating first-order dynamic capabilities, for building digital platfor...
466 citations
TL;DR: The study addresses two essential research questions and provides a theory-based understanding of the impacts and antecedents of organizational BDA usage, while also providing guidance regarding what managers should expect from usage of this rapidly emerging technology.
Abstract: Despite numerous testimonials of first movers, the underlying mechanisms of organizations’ big data analytics (BDA) usage deserves close investigation. Our study addresses two essential research questions: (1) How does organizational BDA usage affect value creation? and (2) What are key antecedents of organizational-level BDA usage? We draw on dynamic capabilities theory to conceptualize BDA use as a unique information processing capability that brings competitive advantage to organizations. Furthermore, we employ the technology–organization–environment (TOE) framework to identify and theorize paths via which factors influence the actual usage of BDA. Survey data collected from 161 U.S.-based companies show that: organizational-level BDA usage affects organizational value creation; the degree to which BDA usage influences such creation is moderated by environmental dynamism; technological factors directly influence organizational BDA usage; and organizational and environmental factors indirectly i...
463 citations
TL;DR: A model of how frequent dynamic capability utilization, assessed through its underlying processes of sensing and reconfiguring, relates to marketing and technological capabilities, as well as how market, technological, and competitor turbulence might affect these relationships are proposed.
Abstract: Marketing and technological capabilities are primary drivers of a firm’s performance and thus of central interest to managers. Yet the way in which these two capabilities align with changing environments to secure superior performance remains unclear. Drawing on the dynamic capability view and data from a survey of 228 firms, this study proposes a model of how frequent dynamic capability utilization, assessed through its underlying processes of sensing and reconfiguring, relates to marketing and technological capabilities, as well as how market, technological, and competitor turbulence might affect these relationships. The results show that frequent sensing and reconfiguring have stronger positive effects in environments characterized by high competitor turbulence; however, frequent sensing can have negative relationships with marketing and technological capabilities in stable environments. Furthermore, marketing capabilities are positively associated with firm performance in highly competitive environments, whereas technological capabilities enhance performance in stable competitive environments.
422 citations
TL;DR: In this article, a large-scale survey of German manufacturing and service firms is used to examine the antecedents, contingencies, and performance consequences of interfirm differences in process innovation success, that is, firms' propensity and effectiveness of implementing new production, supply chain or administrative processes.
207 citations
TL;DR: In this paper, the authors review and synthesize extant research on entrepreneurial leadership, capabilities and their influence on the growth of small and medium-sized enterprises (SMEs) and explore the interrelationships between substantial capabilities, leadership and dynamic capabilities.
Abstract: In this article, we review and synthesize extant research on entrepreneurial leadership, capabilities and their influence on the growth of small- and medium-sized enterprises (SMEs). First, we begin by examining the processes, routines and resources underlying substantive growth capabilities; these are capabilities that enable a firm to grow by competing in its market(s) on a day-to-day basis. Second, we explore leadership in terms of the cognitions motivations and decisions to invest in growth. Third, we examine the dynamic capabilities, which extend, modify or create new substantive (growth) capabilities, to support the sustained pursuit of new opportunities. In so doing, we explore the interrelationships between substantial capabilities, leadership and dynamic capabilities. We conclude the review by highlighting areas of consensus and contention in the literature, from which we propose fruitful areas for future research.
204 citations
TL;DR: In this article, the authors examined the effects of success traps on dynamic capabilities (DCs) and consequently firm performance, taking into account firm strategy and market dynamism, and identified the commonalities of DCs across firms.
Abstract: Dynamic capabilities (DCs) are fundamental to the understanding of differential firm performance. However, the question remains why some firms are better at developing and applying DCs than others. In particular, successful firms have been warned against the tendency to fall into a success or competence trap, where success reinforces exploitation of existing competences and crowds out exploration of new competences, hindering the development of DCs. Therefore, this study examines the effects of success traps on DCs and consequently firm performance, taking into account firm strategy and market dynamism. To facilitate this, our study also identifies the commonalities of DCs across firms. Drawing on survey data from 113 UK high-tech small and medium-sized firms, we find that success traps have a significant, strong negative effect on DCs, which in turn have a weak positive effect on firm performance; DCs are manifested through absorptive and transformative capabilities as two common features across firms. We also find that the development and application of DCs is related to internal factors (such as success traps) rather than external factors (such as market dynamism).
196 citations
TL;DR: The underlying set of requirements to achieve supply management alignment is proposed and tested in this model, thereby enhancing the understanding of the processes and behaviors required for integration of internal stakeholder needs with external suppliers, which can lead to improved performance.
Abstract: Prior research has underscored the importance of internal and external supply chain integration, but the growing role of the supply management organization in developing this capability is not well specified. In this research, we explore the concept of supply management alignment, defined as the behavioral characteristics and process requirements for understanding and explicitly outlining internal stakeholder needs, and linking these to supplier performance agreements. Using the lens of dynamic capabilities, we propose a theoretical model for creating supply management alignment. This model presents the synergistic effects derived through strong internal lines of communication combined with external supply relationships based on defined metrics and processes. The underlying set of requirements to achieve supply management alignment is proposed and tested in this model, thereby enhancing our understanding of the processes and behaviors required for integration of internal stakeholder needs with external suppliers, which can lead to improved performance. We explore the complementary effects of supply management alignment on network agility and supplier performance improvements. Data from 151 UK manufacturing firms are used to test the model. The results provide a unifying framework tying together many of the prescriptive elements of strategic sourcing into a more coherent theoretical model and establish the basis for future studies of supply management alignment capabilities.
185 citations
TL;DR: It is found robust evidence that OUic-enabled ideation capability actually does not influence firm value, whereas OUIC-enabled implementation capability increases firm value.
Abstract: Challenge the common belief that OUICs are valuable by enabling firms to collect large amount of user-generated ideas.Propose that simply collecting ideas from OUICs is not valuable, whereas how firms deal with the ideas from OUICs matters for value creation.Adopt a longitudinal design and collect a large-scale panel data set to empirically test the theory.Provide threefold contribution to IS research on IT capabilities, the business value of IT, as well as IT and innovation. Social media technologies allow user-generated content and provide new opportunities and challenges for firms to transform their business. In particular, more and more firms have started strategically using the online user innovation communities (OUICs) for open innovation initiatives. The extent to which firms are able to derive business value from OUICs, however, has not been systematically examined. Drawing on a multi-theoretical foundation from the framework of dynamic capabilities and the view of innovation value chain, we conceptualize two OUIC-enabled capabilities, which are, ideation capability related to collecting user-generated ideas about potential innovation from OUIC, and implementation capability related to selecting user-generated ideas for innovation development and introducing developed innovation via OUIC. Using a large-scale panel data set consisting of 1676 firm-day observations from Dell and Starbucks, we examine the impacts of OUIC-enabled capabilities on firm value. We find robust evidence that OUIC-enabled ideation capability actually does not influence firm value, whereas OUIC-enabled implementation capability increases firm value. Novel theoretical and managerial implications are discussed.
159 citations
TL;DR: In this article, the authors investigated the impact of service-dominant (S-D) orientation on automotive retail performance metrics and provided empirical evidence of the importance of S-D capabilities.
TL;DR: In this article, a qualitative study of triple bottom line (TBL) firms was conducted to understand how they fulfill their mission and achieve their goals, and they found that TBL firms redefine value to not only focus on the end product or service but also to include the systemic cost of delivering goods.
Abstract: Supported by a qualitative study of triple bottom line (TBL) firms—those that simultaneously prioritize economic, social, and environmental objectives—we investigated the market logic and practices of TBL firms to better understand how they fulfill their mission and achieve their goals. We explored if and how TBL firms may differ in their approach to stakeholders and the management of their resources, including dynamic capabilities. We employed a research design that emphasizes the iterative comparison of narrative data within themselves and with scholarly literature [i.e., resource-based view (RBV)] to develop new theoretical insights. Because the RBV is commonly used to theorize how firms achieve competitive advantage, we explored whether TBL firms achieve competitive advantage differently from what RBV theory would predict. Our data suggest that how a firm defines value has a significant influence on the capabilities it creates and how it treats its resources. We find that TBL firms redefine value to not only focus on the end product or service but also to include the systemic cost of delivering goods. As a result, TBL firms differ from prevailing scholarly thought in RBV. They strive to have resources that are sustainable and therefore imitable, commonly found, and substitutable. Moreover, they are not only transparent in their processes but also collaborate with others in the value chain and in their sector. In doing so, they deliberately create new markets from which other firms can benefit. Rather than focusing on competitive advantage, they focus on collaborative advantage.
TL;DR: In this article, a more complete explanation of learning, its relationship to innovation, and their joint effect on early internationalization was developed, and case studies of early internationalizing firms from Australia and the United States were conducted.
Abstract: Organizational learning has been studied as a key factor in firm performance and internationalization. Moving beyond the past emphasis on market learning, we develop a more complete explanation of learning, its relationship to innovation, and their joint effect on early internationalization. We theorize that, driven by the founders’ international vision, early internationalizing firms employ a dual subsystem of dynamic capabilities: a market subsystem consisting of market-focused learning capability and marketing capability, and a socio-technical subsystem comprised of network learning capability and internally focused learning capability. We argue that innovation mediates the proposed relationship between the dynamic capability structure and early internationalization. We conduct case studies to develop the conceptual framework and test it in a field survey of early internationalizing firms from Australia and the United States. Our findings indicate a complex interplay of capabilities driving innovation and early internationalization. We provide theoretical and practical implications and offer insights for future research.
TL;DR: In this paper, a systematic literature review analyzes the links between the service infusion and strategy literature and reveals that although discussion of service infusion applies strategic management concepts, the stream lacks rigor with respect to construct definition and justification.
Abstract: Purpose – The purpose of this paper is to analyze how the service infusion literature explains competitive advantage through services. The four strategic management theories – competitive forces, the resource-based view, dynamic capabilities, and relational view – are applied in the analysis. Design/methodology/approach – A systematic literature review analyzes the links between the service infusion and strategy literature. Findings – The review reveals that although discussion of service infusion applies strategic management concepts, the stream lacks rigor with respect to construct definition and justification. Additionally, contextual variables are often missing. The result is an over-emphasis of contextually bound measures, such as technology, and focal actors. Research limitations/implications – The growing trends toward social networks, co-specialization, actor dependency and shared resources encourage service infusion scholars to focus on network-related and relational capabilities, co-opetition, o...
TL;DR: In this article, the authors developed a framework to investigate the role of marketing capabilities on the firm's export performance and found that competitive advantage has an important mediating role in the relationship between marketing capabilities and export performance.
Abstract: Purpose – By using the dynamic capabilities (DC) theory and the theory of competitive advantage, the purpose of this paper is to develop a framework to investigate the role of marketing capabilities on the firm’s export performance. Specifically, this framework depicts the consequences of marketing capabilities and focuses on the relationships among marketing capabilities, competitive advantage, and export performance. Design/methodology/approach – The authors conduct a meta-analysis of the literature on marketing capabilities and use multivariate analyses to test the framework. Findings – The study revealed that competitive advantage has an important mediating role in the relationship between marketing capabilities and export performance. Specifically, the authors found that two types of competitive advantage (i.e. low-cost advantage and differentiation advantage) positively mediate the effect of marketing capabilities on export performance. Originality/value – Although research on marketing capabilities...
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TL;DR: This article shows how new design principles—such as polyarchy, social proofs, and new forms of open organization—allow organizations to build dynamic capabilities for sustained innovation in dynamic environments.
Abstract: How can organizations put dynamic capabilities into practice? We focus on the power of organizational design, showing how managers can harness new organizational forms to build a capacity for sensing, shaping and seizing opportunities. Fast-moving environments favor open organization and self-organizing processes that quickly convert individual capabilities into actionable collective intellect. We argue that self-organizing processes do not organize themselves but require managers to design and execute them. We examine new design principles – such as polyarchy, social proofs, and new forms of open organization – that allow organizations to build dynamic capabilities for sustained innovation in dynamic environments.
TL;DR: In analysing data on the purchasing routines of 200 small and medium-sized enterprises (SMEs), this study underscores the overall importance of dynamic capabilities as a way to understand differences in operating-routine performance.
Abstract: In analysing data on the purchasing routines of 200 small and medium-sized enterprises (SMEs), this study underscores the overall importance of dynamic capabilities as a way to understand differences in operating-routine performance. The results suggest that dynamic capabilities have different performance effects in high-dynamic and low-dynamic environments. Dynamic capabilities enhance the effectiveness of operating routines under both high and low levels of environmental dynamism. Yet, when analysing the efficiency of operating routines, taking into account the costs of increased effectiveness, dynamic capabilities appear to pay off only under high levels of environmental dynamism.
TL;DR: Using rich quantitative and qualitative data on Dow Chemical's acquisitions, joint ventures, and divestitures over the past 20 years, a core contribution is an emergent theoretical framework that develops the concept of “concurrent learning".
Abstract: Much is known about the importance of dynamic capabilities Yet, surprisingly little is known about how multiple dynamic capabilities might be developed in parallel, since most existing work explores a particular dynamic capability in isolation Using rich quantitative and qualitative data on Dow Chemical's acquisitions, joint ventures, and divestitures over the past 20 years, we seek to address this gap Besides contributing by adding fresh insights about managing growth and the utility of distributed practice, and by shedding light on positive and negative experience transfer, our core contribution is an emergent theoretical framework that develops the concept of “concurrent learning ” Copyright © 2014 John Wiley & Sons, Ltd
TL;DR: In this paper, the authors propose a "stakeholder resource-based view" (SRBV) based on resource based view, stakeholder theory, and utility theory.
Abstract: We seek to conceptualize social responsibility for operations management (OM) research to develop a social responsibility lens through which to view operations. To do so, we first consider the corporate social responsibility, sustainability, as well as the bottom-ofthe-pyramid and shared value approaches and identify three challenges to developing such a lens: selecting the level of analysis, tackling the huge multitude of objectives, and developing theoretical underpinnings. We then propose a ‘stakeholder resource-based view’ (SRBV) building on resource-based view, stakeholder theory, and utility theory to address these challenges. Under SRBV, all stakeholders are treated on a par with each other. These different stakeholders are all presumed to seek maximizing their respective (expected) utility, with different drivers shaping their preferences and do so they use their respective resources, routines and dynamic capabilities. SRBV provides (a) a descriptive framework for qualitative research, (b) an instrumental framework for empirical research, and (c) a normative framework for analytical research. It enables tackling many opportunities for OM research to do with social responsibility and we outline some of these in each of the three types of research methodologies.
TL;DR: In this paper, the role of capabilities in green supply chain management (GSCM) is analyzed using an inductive research approach using a Straussian approach to grounded theory, and the authors show that firms require three categories of dynamic capabilities: sensing capabilities, alignment capabilities, and resilience capabilities.
Abstract: The supply chain management literature has investigated myriad barriers to implementing green supply chain management (GSCM). However, little research has analyzed the role of capabilities to mitigate such barriers, a research gap we address in this study using an inductive research approach. Following a Straussian approach to grounded theory, the study analyzes data generated from ten Western green-tech companies sourcing technically indispensable rare earth metals from Chinese suppliers. Our interpretive research findings show that these companies face two categories of salient, external barriers to GSCM–supply chain structure-related and environmental standards-related implementation barriers. To cope with these barriers, we argue that firms require three categories of dynamic capabilities: sensing capabilities, alignment capabilities, and resilience capabilities. By connecting our research findings with the dynamic capabilities literature, we derive theoretical propositions to guide further research on studying the role of dynamic capabilities in the implementation of GSCM.
TL;DR: In this article, the authors present a conceptual framework explaining how dynamic capabilities of the firm can be created and enacted through the entrepreneur's dynamic managerial capabilities and actions for international opportunity identification for international firm growth.
Abstract: This article aims to advance theoretical knowledge of the international opportunity recognition in international new ventures (INVs) from a dynamic capabilities perspective with particular focus on the emergent perspective of dynamic managerial capabilities. Building the extant literature on international opportunity recognition, dynamic capabilities theory, this paper presents a conceptual framework explaining how dynamic capabilities of the firm can be created and enacted through the entrepreneur’s dynamic managerial capabilities and actions for international opportunity identification for international firm growth. Drawing on the dynamic capabilities theory and more recent dynamic managerial capabilities perspective, this article enriches understanding of how opportunities are identified for the venture’s international development and growth. The article concludes with theoretical and research implications. © 2015 Springer Science+Business Media New York
TL;DR: In this paper, the concept of eco-capability was introduced, and the authors investigated this eco capability which fully leverages a firm's human, business, and technology resources using survey data from marketing managers across fourteen industries.
TL;DR: In this article, the role of business intelligence (BI) in achieving agility in supply chain context by examining the relationship between BI competence, agile capabilities, and agile performance of the supply chain.
Abstract: Purpose – The purpose of this paper is to study the role of business intelligence (BI) in achieving agility in supply chain context by examining the relationship between BI competence, agile capabilities, and agile performance of the supply chain. Design/methodology/approach – A theoretical framework is developed drawing on the resource-based view, the dynamic capabilities perspective, and the competence-capability relationship paradigm, as well as an extensive review of the literature. Structural equation modeling is employed to analyze the data collected from Iranian manufacturers in the automotive industry. Findings – The empirical results support the conceptualization of supply chain BI competence as a multi-dimensional construct comprising managerial, technical, and cultural competence, and confirm that it is a key enabler of supply chain agility in terms of both agile capabilities and agile performance. The results also provide support for partial mediation of agile capabilities on the relationship ...
TL;DR: In this paper, a model of organizational capabilities driving an eco-based competitive advantage and performance in the global hotel industry is tested based on the dynamic capabilities theory, where organizational learning, shared vision, and cross-functional integration are conducive to creating a green competitive advantage, though this is not the case with relationship building and technology sensing/response.
TL;DR: In this article, the authors provide a brief overview of theoretical aspects on dynamic capabilities and examine the relations of dynamic capabilities, innovations and organizational learning and forecast, what impact these relations have on firm performance results.
TL;DR: In this paper, the authors argue that entrepreneurial managers bear the primary responsibility for recognizing the need for business model change, for adjusting or inventing business models, for orchestrating the necessary assets, and for re-structuring the organization as needed.
Abstract: Dynamic capabilities are deeply enmeshed with business model innovation and implementation. Dynamic capabilities reside in the collective learning and culture of the organization and in the entrepreneurial skill of the top management team. Entrepreneurial managers bear the primary responsibility for recognizing the need for business model change, for adjusting or inventing business models, for orchestrating the necessary assets, and for (re)structuring the organization as needed. They are also responsible for strategy formulation, which is separate from, but related to, dynamic capabilities. The organization’s structure, incentives, and culture can, in turn, be more or less well suited to the recognition of new opportunities and the implementation of new structures that are integral to the dynamic capabilities of the firm. In short, the generation of new business models requires entrepreneurial managers to balance attention to customer needs and technological possibilities with the logic of organization.
TL;DR: In this paper, the authors use the dynamic capabilities perspective from the strategic management literature in order to develop a framework that distinguishes between generative, sourcing and integrative capabilities in MNC subsidiaries, and proposes the new construct of subsidiary dynamic knowledge capability.
TL;DR: In this article, the authors investigate how access to different types of resources affects the success of entrepreneurial start-up firms at early stages of development in small isolated economies by studying 12 start-ups based in New Zealand.
TL;DR: This research draws on the resource-based view of the firm to define firm’s internal resources and outside (i.e., relational) capabilities, and introduces dynamic service capabilities as three distinct processes that allow resources and relational capabilities to affect components of service innovation.
Abstract: Organizations today desire strategies that place them on the frontiers of service innovation. In this research, we provide a novel research framework that incorporates resources and capabilities and how they affect elements of service innovation. This research draws on the resource-based view of the firm to define firm's internal resources and outside (i.e., relational) capabilities. Because firms compete in a dynamically changing market, we introduce dynamic service capabilities as three distinct processes that allow resources and relational capabilities to affect components of service innovation. Three propositions are introduced in addition to specific examples of promising future empirical work using service-oriented firms. This study aims to contribute to service innovation through a theoretical foundation in which we posit how firms develop their service innovation through a dynamic service capabilities framework. Contributions to theory and practice are discussed in addition to limitations to the study.
TL;DR: It is suggested that companies should invest in pedagogically rich scenario processes that develop the capability of managers to sense changes, and the learning generated by scenario processes can strengthen the ‘sensing’ dynamic capabilities of firms.