Dynamic Managerial Capabilities and International New Venture Performance: A Multilevel Study of Cultural Perspective

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.

Purpose. Drawing on the concept of dynamic managerial capabilities, to propose a model that incorporates managerial human and social capital, and managerial cognition in the dynamic capabilities framework.
 Design/Method/Approach. The study is an empirical in the context of the current conflict in the eastern Ukraine and is an analysis a non-profit field with an extremely high dynamic environment. The data was collected using a quantitative survey with 70 private corps, non-commissioned officers, and higher-ranked officers.
 Findings. The model provides a direct relationship between dynamic capabilities and dynamic managerial capabilities, whereby the latter is constituted by the perceived manager’s competence (manager’s human capital), manager’s team (manager’s social capital), and manager’s goal congruence towards the goals of the organization (managerial cognition).
 Theoretical implications. This paper expanded the body of research on dynamic managerial capabilities by developing the following arguments: (1) dynamic managerial capabilities directly influence organizational dynamic capabilities; (2) managerial social capital mediates relationships between managerial human capital and organizational dynamic capabilities; (3) managerial social capital mediates relationships between managerial cognition and organizational dynamic capabilities.
 Originality/value. This research not only shows how a non-profit organization can act efficiently, it is also an example of an application of strategic management theory to a practical field with life or death consequences.
 Research limitations/Future research. This research opens avenues for future research on dynamic capabilities in non-profit organizations.
 Paper type – empirical.

International new venture performance: Role of international entrepreneurial culture, ambidextrous innovation, and dynamic marketing capabilities

PurposeIn this study, the authors explore how sensing and seizing of market opportunities, asset reconfiguration and top management team (TMT) consensus on these elements jointly relate to a firm's international expansion. By doing this, the authors contribute to the existing literature by addressing dynamic managerial capabilities at the TMT level instead of considering them as individual executives' traits. The authors use the qualitative comparative analysis (QCA) method to analyze our data from 261 TMT executives in 63 firms. The findings indicate that sensing, seizing and reconfiguration capabilities are highly relevant for internationalization but in different configurations for specific stages and elements of international business. Presence of sensing as a part of configurations is observable, especially in connection to a firm having foreign customers and explicit internationalization strategies, while configurations where seizing and reconfiguration emerge are connected to firms showing continuity in the international markets. The authors’ results also indicate that a lack of TMT consensus in connection to dynamic managerial capabilities is a driving force that allows the firm not to stagnate with regards to internationalization. Yet, lack of TMT consensus combined with low reconfiguration capabilities seems to generate negative results, which suggests that different views are not helpful if the firm is incapable of changing its approaches.Design/methodology/approachThis study uses data gathered with a questionnaire where the executives select either “yes” or “no” in response to statements describing the firm situation with regard different managerial aspects and progress of international growth. The authors analyze these data from 261 TMT executives from 63 firms using the QCA method.FindingsThe findings indicate that sensing, seizing and reconfiguration capabilities are highly relevant for internationalization but to different extents for specific elements of international business; generally, while sensing is needed, in particular, for having foreign customers and internationalization strategies in the first place, seizing and reconfiguration became relevant for continuity in the international markets. Consensus or rather lack of it on these elements also plays a role. It seems that some disagreement is a driving force that allows the firm not to stagnate with regards to internationalization. However, TMT disagreement combined with low reconfiguration capabilities seems to generate negative results, which suggests that different views are not helpful if the firm is incapable of changing its approaches.Research limitations/implicationsThe findings contribute to existing knowledge by exploring how managerial capabilities influence firm-level dynamic capabilities from the point of view of the TMT. The authors also add to existing research that has often focused on the relationships between TMT executives' demographic traits and TMT consensus and, further, the (subsequent) firm performance by looking at different configuration rather than linear linkages. Together, these notions further mean that the authors change the point of view on diversity. The authors consider the consensus on existing managerial dynamic capabilities rather than evaluate the functional diversity or the TMT executives' agreement on strategic moves.Practical implicationsAll capabilities are important. TMT does not need to agree on everything, as long as they acknowledge where their problem areas are, and they can capture at least some of the relevant trends and opportunities. In fact, having some lack of consensus seems to be a driving force that allows capabilities to be questioned and potentially keeps (false) under-appreciation of existing capabilities from becoming a barrier to international expansion.Originality/valueUnlike previous studies that have focused on the relationship between the TMT executives' demographic characteristics and firm performance or the relationship of the demographics and TMT strategic consensus at a general level – or studies that have explained international performance with TMT consensus (or with dynamic managerial capabilities), this study brings forth how the dynamic managerial capabilities and the TMT executives' strategic consensus with regard to these capabilities influence the firm's international expansion. Here, the authors consider internationalization widely, looking at whether the firm has foreign customers or international expansion strategy in place, and whether there this activity is sustained and continuous (with repeated trading and long-term international contracts, in particular). To our knowledge, there is no research on TMT strategic consensus that explains how the unanimity among executives on dynamic managerial capabilities connects to the firm's international expansion.

PurposeThe aim of this study is to explore dynamic managerial capabilities (DMCs) and their effect on public organisational performance. While the previous research has focused on how leadership style impacts on organisational performance, the authors have investigated how the dynamic managerial capabilities of middle managers and their organisational capacity for change as well as their attitude towards the change are linked to organisational performance.Design/methodology/approachThe dataset was gathered during the field research carried out in a large public Indonesian government institution. In total, 313 managers and their direct followers participated in this study. The authors have employed structural equation modelling to test the hypotheses.FindingsThe results of this study demonstrate the role of the dynamic capabilities of the middle managers associated with organisational performance. The results show that dynamic managerial capabilities and organisational performance are mediated by the organisational capacity for change.Practical implicationsMiddle managers should equip and develop their capabilities in order to embrace change in the organisation through the communication between the different staff levels, uniting the vision and mission with the organisational members. Further, the organisation should empower the role of the middle managers by increasing their authority and participation in the policy-making that is part of the change process. In addition, the workplace could implement interventions to optimise the dynamic managerial capabilities held by the middle manager and employees through assessments and mentoring. Finally, particular training programmes could be implemented to boost the employees' skills and flexibility, thereby keeping them agile in the context of the changes in the work environment.Originality/valueThe role of the dynamic managerial capabilities of the middle manager is a prominent factor when facilitating a high level of organisational performance in a public organisation. However, the role of dynamic managerial capabilities does not have a direct effect on organisational performance if the organisation does not have the capacity to change, particularly in the Indonesian context.

The competitive environment within which organizations operate is evolving faster than ever, prompting organizations to change to keep up with the environmental changes. The dynamic capabilities (DCs) view seeks to answer how organizations attain and sustain competitive advantage in changing environments. In the past two decades, there has been a proliferation of research in the DCs domain; yet much remains to be investigated regarding the antecedents and outcomes of DCs. The term “dynamic marketing capabilities” (DMCs) refers to a subset of DCs with the emphasis on customer value. This research studies four DMCs: proactive market orientation, agility, opportunity creation, and value innovation. The development of DCs may be triggered by the necessity to reconfigure resources in dynamic environments or by managers’ decisions to change the current way of doing things in an attempt to improve performance. Therefore, environmental dynamism and dynamic managerial capabilities are antecedents of DCs. To achieve competitive advantage, organizations can employ two distinct but complementary strategies. First, they can match environmental demands by reconfiguring and renewing their organizational resource base. Second, they can create market turbulence. Therefore, these two strategies act as mediators between DMCs and organizational outcomes. A conceptual framework is developed in order to examine the relationship between DMCs, their antecedents, and outcomes. A sample of 270 usable responses was obtained from top and senior managers working in Australia. After ensuring the constructs’ reliability and validity, the hypotheses were tested by means of hierarchical regression analysis and structural equation modeling. The results indicate that environmental dynamism and dynamic managerial capabilities positively affect the studied DMCs; however, the effect of dynamic managerial capabilities is stronger. Moreover, DMCs have a positive impact on operational marketing capabilities and induced market turbulence; these in turn positively affect organizational outcomes. The multi-mediation tests confirmed that operational marketing capabilities and induced market turbulence mediate the effect of DMCs on organizational outcomes. This study contributes to and extends the knowledge of DCs by proposing an integrative conceptual framework, explaining the antecedents of DMCs and the mechanism by which DMCs are linked to organizational outcomes. The findings re-emphasize the need for DCs in dynamic environments and highlight the critical role of dynamic managerial capabilities. Another contribution is that the study incorporates the element of induced market turbulence, hitherto missing in the literature pertaining to DMCs. This study also emphasizes that operational marketing capabilities mediate the relationship between DMCs and organizational performance. Moreover, four distinct DMCs (i.e., proactive market orientation, agility, opportunity creation, and value innovation) are identified, and scales are developed and validated to measure them. The findings suggest that these DMCs perform as anticipated. This research provides several insights for managers regarding DCs and how to apply them to organizations. The results of this study demonstrate that it is necessary for organizations to invest in developing DMCs, not to achieve performance improvement directly, but to optimize their operational marketing capability configuration. This, in turn, improves organizational outcomes. Moreover, managers are encouraged to invest in the development of DCs as a strategic rather than tactical approach. Another implication is that in ambiguous environments, organizations need to not only adapt to the environment, but also to employ strategies of environment constructing.

PurposeManagers play a critical role in shaping the development of firms due to the risky and long-term nature of innovation. Although the managerial effect on strategic change has long been factored into organizational theories, scholars still lack a complete understanding of the specific managerial capabilities that drive innovation in today's digital economy. The present study builds on dynamic managerial capabilities theory to close this research gap. The paper proposes managers' dynamic capabilities and their three underlying drivers – managerial human capital, social capital, and cognition – as a direct antecedent to digital firms' innovativeness.Design/methodology/approachThe study draws on survey data from German Industry 4.0 manufacturing firms, which were analyzed using regression analysis.FindingsThe results confirm managers' dynamic capabilities as facilitators of innovation. In contrast to previous research on nondigital industries, the findings demonstrate that only the complete portfolio of managers' dynamic capabilities promotes innovativeness in digital firms. The study provides evidence for the importance of dynamic managerial capabilities in the digital economy yet contradicts previous research on nondigital industries related to the advantageousness of managers' human capital, social capital, and cognition for innovation.Originality/valueThe study contributes to the literature by being the first to holistically test the effects of dynamic managerial capabilities on innovation in digital firms. The results offer a nuanced account of managers' dynamic capabilities, thereby expanding dynamic managerial capabilities theory to the digital economy.

This article analyses how dynamic capabilities are enacted in micro-enterprises and what role different parties and managerial time allocation play in this enactment. Drawing upon three in-depth case studies of micro-enterprises, we make three theoretical contributions. First, after arguing that micro-enterprises are likely to enact individual- or group-level dynamic managerial capabilities rather than organisation-level dynamic capabilities, we counter Teece’s warnings about the vulnerable nature of dynamic managerial capabilities. Second, we identify that how managers allocate their own time, is a core micro-foundation of dynamic managerial capabilities; we illustrate that failure to allocate time to capability enactment can lead to capability vulnerability. Finally, we introduce the notion of ‘self-damaging dynamic managerial capabilities’ – these being capabilities that damage established micro-foundations.

Education in Indonesia faces great challenges in adjusting to the demands of the times. The development of the industrial and business world is moving faster than the readiness of human resources produced by the education system. This study aims to analyze the role of Organizational Networking Capabilities and Agile Leadership on Organizational Performance through Dynamic Managerial Capabilities with the Moderation of Professional Capabilities and Dynamic Organizational Culture. This study uses a quantitative approach, employing a survey method. In this study, theoretical and empirical studies were conducted to formulate problems, followed by hypotheses. After collecting field data, calculations were performed using MPlus, and the results were used to analyze the dissertation. The sampling technique utilized a questionnaire in one stage from 75 schools, consisting of 375 school leaders and 375 senior teachers or certified teachers in Greater Surabaya and Greater Malang. From the results of hypothesis testing, it was found that Organizational Networking Capabilities has a significant effect on Dynamic Managerial Capabilities (H1) and Organizational Performance (H4), as well as through the mediation of Dynamic Organizational Culture (H8). Agile Leadership has no significant effect on Dynamic Managerial Capabilities (H2) or Organizational Performance (H5), but it has a significant effect on Organizational Performance through the mediation of Dynamic Organizational Culture (H9). Agile Leadership, moderated by Professional Capabilities, has a significant effect on Dynamic Managerial Capabilities (H3). Dynamic Managerial Capabilities has no significant effect on Organizational Performance (H6), but its effect becomes significant when moderated by Dynamic Organizational Culture (H7). Thus, some hypotheses are supported while others are not, indicating the important role of organizational capabilities, agile leadership, and organizational culture in organizational performance.

PurposeThe purpose of this conceptual paper is to explicate the role played by information technology (IT) in enabling managerial dynamic capabilities. By doing so, this paper seeks to address a critical theoretical gap regarding IT’s role in enabling dynamic capabilities (DCs). DCs are knowledge-intensive and information-intensive processes and play a crucial role in facilitating strategic renewal of firms operating in volatile, uncertain, complex and ambiguous business environments. Although managers play a central role in the DCs framework, extant research has only focused on the role of IT in enabling firm-level and process-level DCs.Design/methodology/approachThis conceptual paper uses the literatures on dynamic managerial capabilities, individual-level information system use, social capital, human capital, managerial cognition and technology-enabled learning to build propositions that link managerial IT use with the enablement of dynamic managerial capabilities.FindingsThis paper introduces a new construct called individual IT leveraging capability (IILC) and provides theoretically grounded arguments that link IILC with managerial social capital, managerial cognition and managerial human capital. It also explicates the relationships between managerial social capital, managerial cognition and managerial human capital and the dynamic managerial capabilities of sensing, seizing and reconfiguring.Research limitations/implicationsThe establishment of the linkage between IT and dynamic managerial capabilities extends the literature on the business value of IT. This work also adds to the literature on dynamic managerial capabilities by providing a theoretically grounded argument that IT can act as an antecedent of such capabilities.Originality/valueTo the best of the authors’ knowledge, this paper is arguably the first to theorize the role of IT in enabling managerial DC and thus addresses a critical gap in academic research literature.

Given the complexities of today’s hypercompetitive economy and challenges imposed by recent crises, managerial capabilities have become critical for realizing strategic change. Dynamic managerial capability (DMC) theory offers a useful theoretical lens for analyzing how managers make strategic decisions to build and sustain competitive advantages in dynamic environments. Despite receiving less attention than the broader field of dynamic capabilities, the existing body of research has reached a point where a comprehensive synthesis of the current state of knowledge is warranted. Past reviews of DMCs are either outdated or do not comprehensively examine this multifaceted construct, making a review of research highly necessary and timely. This review systematically synthesizes 54 empirical studies on DMCs. It contributes to the literature by systematically synthesizing DMC research and summarizing these findings into a multi-level framework. This review demonstrates that research on DMCs has significantly progressed over the years, for example, through conceptual expansions, new levels of analysis, or methodological advancements. The developed framework provides an overview of the nomological network surrounding DMCs. A systematic historical analysis of research limitations and recommendations offers a rich research agenda for DMCs. These findings guide scholars and managers by overviewing the foundations of DMCs, demonstrating why strong DMCs are critical for achieving sustainable competitive advantage, and how this theory applies to management practice. Altogether, this review presents an up-to-date review of DMC literature by systematically synthesizing its developments—looking back—and pointing to central research opportunities—looking forward.

This chapter discusses the extent to which dynamic managerial capabilities determines CE and eventually firm’s performance. Such discussion enriches Adner and Helfat’s (2003) dynamic managerial capabilities and hence demonstrates a more integrative framework of dynamic managerial capabilities. One hundred and thirty-three chief executive officerss and editors-in-chief of Indonesia local newspaper publishers participated in the study on which this chapter is based. Such study finds that three elements of dynamic managerial capabilities (managerial human capital as measured by talent management practices, managerial social capital, and managerial cognition as measured by managers’ perception on task environment) positively and significantly affect corporate entrepreneurship, and it in turn positively and significantly affects firm’s performance. These findings highlight the role of dynamic managerial capabilities in creating corporate entrepreneurship. This study conceptualized the development of corporate entrepreneurship as strategic resources within a firm in the Indonesian’s local newspaper industry context. Dynamic managerial capabilities elements conceptually manifest the dynamic capabilities view into managerial action and it represents how manager responds to the environment through dynamic capabilities action. Limitations of the study are also identified in this chapter to warrant further research.

Crossing the chasm: The role of dynamic managerial capabilities in the turning point of early internationalizing firms

Purpose Although dynamic capabilities have been extensively theorized, empirical evidence remains fragmented, leaving unresolved how managerial capabilities translate into performance and under what conditions. Integrating the dynamic capabilities view (DCV) with contingency theory, this study examines how dynamic managerial capabilities (DMCs) influence small and medium-sized enterprise (SME) performance through strategic flexibility (SF), moderated by market turbulence (MT). Design/methodology/approach Drawing on survey data from 536 SMEs across five service sectors in Jordan – an emerging-market context characterized by institutional voids and resource scarcity – partial least squares structural equation modeling (PLS-SEM) was employed to test a moderated-mediation model. Findings Results show that DMCs significantly enhance both strategic flexibility and performance. SF partially mediates the DMC–performance relationship, accounting for roughly one-quarter of the total effect. Moreover, MT strengthens the positive SF–performance link through second-stage moderation, indicating that flexibility yields greater value under turbulent conditions. Practical implications SME executives should institutionalize strategic flexibility by embedding systematic market monitoring, cross-functional coordination and rapid resource-reallocation routines. Policymakers should tailor capability-building initiatives to sectoral turbulence levels, fostering adaptive rather than static resilience. Originality/value This study advances understanding of how dynamic managerial capabilities generate performance by (1) validating strategic flexibility as the organizational mechanism linking managerial microfoundations to outcomes, (2) identifying market turbulence as a contextual amplifier of this mechanism and (3) demonstrating these dynamics in resource-constrained Jordanian SMEs where managerial agency compensates for institutional voids – thereby extending the theoretical and contextual boundaries of the dynamic capabilities view.

Dynamic Managerial Capabilities and Competitive Advantage Bruce W. Bellner, Donald MacLean Abstract The literature on dynamic capabilities (DCs) has received wide attention in the field of strategic management. Although studies have tended toward the organizational level, some have begun to examine action at the managerial level via the concept of dynamic managerial capabilities (DMCs). The purpose of the study, which involved inductive theory building in the underdeveloped DMC literature, was to investigate empirically what DMC managers used in practice to create competitive advantage during episodes of significant external environmental change. A multi-case study was conducted with CEOs from five small-to-medium sized enterprises (SMEs) in the finance/insurance and real estate sectors. The results were further developed in a survey study. They show that DMCs employed by managers include learning-based and innovation-based capabilities, and involve managers engaging in participative leadership. These capacities are mutually interdependent and reinforcing, are technically and evolutionarily fit, and also impact on ordinary and other dynamic capabilities toward achieving advantage. Full Text: PDF DOI: 10.15640/smq.v3n3a1