Dynamic capabilities exploitation of market and hierarchy governance structures: An empirical comparison of Taiwan and South Korea

Abstract

This empirical investigation reports on the role of drivers of dynamic learning mechanisms (DLMs) in exploiting dynamic capabilities (DCs) of market and hierarchy governance structures. Using a sample of 367 Taiwanese market and 210 South Korean hierarchy organizations, this study differentiates the role of drivers of DLMs in these organizations to provide more robust insights into DCs exploitation in polar governance structures. This study posits that learning intent and embedded learning are important primary antecedent drivers of DCs exploitation. The findings reveal that manager integration power, external linkages, codification of experience, and ambiguity are key drivers of DCs exploitation in market governance structures. External linkages, repeated practice, codification of experience, and ambiguity are key drivers of DCs exploitation in hierarchy governance structures. These results show that DCs exist in specialized learning routines and that DCs exploitation is based on organizational DLMs. This study highlights an influential innovation routine view of DCs exploitation and proposes a clear theoretical model of DCs exploitation via the exploitation of various drivers of DLMs.