Innovating for Financial Sustainability in Nonprofit Symphony Orchestras: A Dynamic Capabilities 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.

PurposeSo far, most of the literature on logistics social responsibility (LSR) has prioritized the examination, classification of and adaption toward positive LSR practices instead of investigating necessary logistics service providers’ capabilities to implement LSR strategies. Therefore, the purpose of this paper is to contribute to theory by an assessment of LSR and its linkages to dynamic capabilities theory to gain insights into how logistics service providers can foster an enhanced application of LSR practices.Design/methodology/approachThe paper is conceptual and grounded on dynamic capabilities theory. Relevant literature from logistics management, supply chain management and sustainable supply chain management (SSCM) as well as dynamic capabilities was examined to build upon existing theory by conceptualizing LSR from a dynamic capabilities perspective. In addition, propositions for future research are presented based on the conceptual model.FindingsWith regards to the controversial discussion in the literature about the direct link between dynamic capabilities and competitive advantage as well as the necessary degree of heterogeneity of dynamic capabilities, the conceptualization of LSR from a dynamic capabilities perspective adds new elements to this discussion. Considering long-term or even sustainable competitive advantage, the current degree of homogeneity across logistics services might hinder a sustainable advantage in the long run and demands for more advanced logistical capabilities. In this line, it is important to understand and utilize the causal relationships between different logistical resources and capabilities to achieve a unique long-term advantage allowing logistics service providers to further enhance LSR practices.Practical implicationsDue to the current role of logistics service providers, they should not just foster their resources focusing on the relationship to the focal firm, but they should also develop and implement new logistical capabilities derived from SSCM-related dynamic capabilities to design alternative service portfolio extensions and new business models.Originality/valueAlthough dynamic capabilities have been studied intensively in the last two decades, the causal relationships between different logistical resources and necessary dynamic capabilities to achieve advantages by enhancing LSR practices still lack conceptualization. To build on the understanding of LSR, the paper at hand presents a conceptual framework explaining LSR and SSCM practices through the lens of dynamic capabilities theory.

As a relatively young, yet flagship discipline of strategic management, dynamic capabilities research has emerged as one of the central perspectives exploring the foundations of the achievement of sustainable competitive advantage, especially in the context of dynamic environments. Dynamic capabilities are deeply rooted in, and sometimes seen as an extension of, the resource-based view of the firm. The notion that competitive advantage both stems from the exploitation of current capabilities and the development of new ones was already vaguely conceptualized by prominent contributors of the resource-based view such as Edith Penrose and Birger Wernerfelt. However, the idea that there are special capabilities—dynamic capabilities—enabling organizations to build, integrate, or reconfigure their internal and external resource and competence base, was formerly conceptualized in the late 1990s as a separate yet connected stream of research (see Teece, et al. 1997—cited under Seminal Papers—which is titled “Dynamic Capabilities and Strategic Management”). The dynamic capabilities perspective is also strongly connected to evolutionary economics. This is why the field has focused for some time on the exploration of semi-automatic and path-dependent routines as the foundation of dynamic capabilities. However, proponents of the behavioral theory of the firm have criticized this approach and integrated the deliberate human element in the dynamic capabilities perspective (for an overview of the theoretical assumptions underpinning the dynamic capabilities perspective, see the article “Dynamic Capabilities and the Role of Managers in Business Strategy and Economic Performance”—Augier and Teece 2009, cited under Conceptual Refinements). As a result, various important debates emerged in the community and the field has been generally criticized for its ambiguity, inconsistency, and conflicting assumptions. This is exemplified by the important number of diverging conceptual contributions to the field, still up to this day, and by the relatively late materialization of empirical work. Nevertheless, the vast number of contributions illustrates the necessity to consider dynamism, which underlies the concept of dynamic capabilities, as a key component of competitive advantage and organizational adaption (see the separate Oxford Bibliographies in Management article “Organizational Adaptation”). The key contributors of the dynamic capabilities perspective in management research are, among others, Kathleen Eisenhardt, Constance Helfat, Margaret Peteraf, David Teece, and Sidney Winter. To support scholars to move toward a theory of dynamic capabilities, this bibliography provides an overview of the field, its origin and developments, while highlighting the conceptual and empirical problems that remain to be solved.

ABSTRACTBig data analysis (BDA) adaptation has been spreading unprecedentedly fast among Chinese enterprises to gain a competitive advantage. Based on the resource-based theory (RBT) and dynamic capability theory (DCT), this study aims to propose a conceptual model to identify the sources of competitive advantages, interrelationship of their components, and the mechanism of obtaining competitive advantage. The results reveal several important findings. 1) Different dimensions of dynamic capabilities all have effects on competitive advantage, but they have different paths to influence these. 2) Two dimensions of dynamic capabilities have direct effects on the competitive advantages, and strategy flexibility has indirect effects on these. 3) Three dimensions of resources all indirectly and positively influence competitive advantages by affecting dynamic capabilities. 4) The path of resources and dynamic capabilities affecting competitive advantage are identified. The findings have important implications for managers that leverage BDA to achieve comparative advantages in business.

The level of product innovativeness in Jordan is low. It is therefore beneficial to maintain a balance between exploration and exploitation to improve the innovativeness of products. This conceptual study aims to examine the factors that influence the product innovativeness in Jordanian industrial SMEs. Three anchor theories have been used to conceptualise product innovativeness: Resource-based theory, Dynamic capability theory and Contingency theory. This study examines product innovativeness from the dynamic capability perspective, while also considering the impact of a firm’s resources from the resource-based perspective and the environment in which a firm operates based on Contingency theory. The quantitative method employed, and data gathered through cross-sectional questionnaires. The data was analysed using the Smart-PLS 3.3.3 structural equation model. This study has proven beneficial for 1753 Jordanian industrial SMEs. The findings of this study provide practical recommendations and guidelines for policymakers and the government to assess their current policies and strategies to establish a framework for promoting product innovation in Jordanian industrial SMEs.

Linking manufacturing digitalization and technological Innovation: The mediating role of dynamic capabilities

This study examines the relationship between digital transformation and human resource management (HRM) practices in public universities in the United Arab Emirates via a synthesis of Resource-Based View and Dynamic Capabilities Theory. Despite the growing interest in digital transformation, limited research has examined its implications within public universities in the United Arab Emirates. Adopting a conceptual approach, this paper provides a comprehensive framework that connects the important elements of digital transformation, comprising technological infrastructure, digital transformation culture, and human resource capabilities, to the core HRM practices, namely recruitment, training, and performance appraisal. This study contributes to the existing literature by proposing a dual conceptualization of digital transformation as both a strategic resource and an adaptive capability that enhances HRM effectiveness. Moreover, the current study proposes a structured questionnaire approach for future empirical validation using Structural Equation Modelling (SEM). It is expected that future empirical findings will demonstrate that it is not only the size of technology investment, but also the organization’s ability to develop dynamic capabilities like organizational learning and strategic flexibility that mediate the relationship between digital transformation and HRM practices. Despite the growing interest in digital transformation, limited research has examined its implications within public universities in the United Arab Emirates. In particular, little is known about the underlying mechanisms through which digital transformation influences HRM practices, especially the mediating role of dynamic capabilities. Furthermore, the integration of the Resource-Based View and Dynamic Capabilities Theory in explaining this relationship remains underexplored in higher education contexts. Accordingly, this study aims to develop a conceptual framework that explains the relationship between digital transformation and HRM practices in UAE public universities. The study draws theoretical implications through the integration of RBV and the dynamic capabilities perspective into the ecosystem domain of digital HRM, as well as for university leaders and policymakers who would design systematic processes to align digital transformation initiatives in a way that serves human resource strategies. It highlights the need to create a digital culture, develop workforce digital competencies, and take an integrated approach to build sustainable institutional performance.

PurposeThe view that dynamic capabilities theory can help explain how lean organizations improve has been put forward by scholars. However, there is still a lack of research on the matching relationship between the application of lean practice and the internal elements of enterprise organization from the perspective of dynamic capabilities. The purpose of this study is to validate the moderating effect of dynamic capabilities on the relationship between lean practices and operational performance.Design/methodology/approachThis study used the method of survey and empirical research to collect sample data from 263 enterprises in China. Through literature review, this study put forward the moderating hypotheses around dynamic capabilities, lean practices and operation performance and used the method of regression analysis to validate these hypotheses.FindingsThe results showed that dynamic capabilities have a partially moderating effect on the application of lean practices. Specifically, dynamic capabilities have a significant moderating effect on the relationship between just-in-time, total quality management, total preventive maintenance and operational performance, while dynamic capabilities have no significant moderating effect on the relationship between human resource management and operational performance.Originality/valueThe research conclusion complements and enriches the lean practices literature from the perspective of dynamic capabilities. Existing studies mainly focus on the moderating role of external environmental factors, while there is a lack of empirical research on the role of dynamic capabilities in lean practices literature. The research results will help enterprises further understand the matching relationship between lean practices and dynamic capabilities and then improve the success of lean practices application.

While prior research has examined the role of smart technologies (e.g., IoT and AI) in sustainability, the combined influence of IoT, AI, and organizational capabilities on hotel sustainable performance, particularly through the mediating roles of data-driven decision-making and innovation capability, remains underexplored. This study investigates how the integration of smart technologies, specifically the Internet of Things (IoT) and artificial intelligence (AI), as well as dynamic managerial capabilities focusing on data-driven decision-making (DDM) and innovation capability (IC), enhances hotel sustainable performance (HSP) within the context of Saudi Arabia’s hospitality sector. Grounded in the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT), the research develops and tests a conceptual model that explores both the mediating roles of DDM and IC in the link between IoT and HSP and the moderating role of AI application in the relationships between IoT and DDM, IC, and HSP. Using data collected from 312 managers of four- and five-star hotels across Saudi Arabia, the study employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine the hypothesized relationships. The results reveal that IoT has a significant positive effect on HSP, DDM, and IC. Further, the IoT-HSP relationship is partially mediated by both DDM and IC. Furthermore, AI significantly strengthens the relationships between IoT and DDM, IoT and IC, and IoT and HSP, highlighting AI’s crucial role as an enabler of digital transformation and sustainability. The findings extend the RBV and DCT by demonstrating how technological resources, when combined with dynamic managerial capabilities, lead to superior sustainability outcomes. Practically, the study emphasizes that hotels must pair digital adoption with employee training, innovation culture, and AI-powered analytics to enhance HSP.

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.

Green technological innovation has become a pivotal tool for driving economic restructuring and achieving environmental sustainability. However, in the face of complex and volatile market and policy environments, a critical question remains: how can enterprises effectively select and implement innovation pathways to address environmental turbulence? Drawing on data from 14,751 Chinese listed companies from 2012 to 2022, this study employs dynamic capabilities theory and a fixed-effects panel model to examine the impact of dynamic capabilities on firms’ choice of green innovation pathways. Results show a significant positive influence of dynamic capabilities on green innovation, although this effect varies depending on the research and development model and the level of environmental turbulence. Firms with high dynamic capabilities tend to favor independent research and development, with an effect coefficient of 0.778 (p<0.01); firms with moderate dynamic capabilities benefit more from cooperative research and development, with a coefficient of 0.045 (p<0.01); and firms with lower dynamic capabilities primarily pursue green innovation through technology transactions, with a coefficient of 0.052 (p<0.01). Furthermore, environmental turbulence significantly moderates the relationship between dynamic capabilities and green innovation negatively, with an interaction coefficient of -0.088 (p<0.05), indicating that environmental uncertainty weakens the positive impact of dynamic capabilities.These findings suggest that firms can select suitable research and development models aligned with their level of dynamic capabilities and adopt flexible innovation strategies to effectively manage environmental turbulence. This study proposes the following policy recommendations: enterprises should strengthen their dynamic capabilities, particularly in knowledge acquisition, resource integration, and adaptability to environmental changes, to enhance their green innovation capacity. Additionally, the government should increase policy support for green technological innovation by offering financial subsidies, tax incentives, and intellectual property protections, helping enterprises maintain their innovation momentum amid environmental turbulence.

This research explores the impact of dynamic innovation capabilities on firm performance, investigating how alliances and networks improve the focal firm’s capabilities. We examine four innovation capabilities and their effect on profitability, performance, and growth of companies in the food industry. Drawing on the extant literature on innovation and dynamic capabilities theory, we develop six hypotheses to explain the relationship between different innovation capabilities and firm performance. We test the proposed research model and hypotheses using partial least squares structural equation modeling (PLS-SEM) with primary data from the food industry in Greece. Results indicate that dynamic innovation capabilities play a crucial role in improving profitability, growth, and overall firm performance through ordinary innovation capabilities. This study provides critical insights into innovation capabilities in the food industry. These insights are significant because prior studies have not investigated the relative effects of different innovation capabilities on profitability, growth, and overall firm performance, particularly the interrelationships between dynamic and ordinary innovation capabilities. The generalization of the study results may be limited due to the sample size.KeywordsInnovationDynamic CapabilitiesPLS-SEMFood industryGreece

El éxito de las Beyoungri Danche depende de las estrategias financieras que sus líderes utilizan para hacerlas sostenibles en el tiempo. La recopilación de buenas prácticas de las Beyoungri Danche coreanas en la literatura y una investigación exploratoria de contenidos web de tres organizaciones exitosas, permite aprender tácticas de otra cultura que ha demostrado un alto nivel organizacional y fortalecer el diálogo alrededor de un tema de interés común.

Purpose Through the theory of dynamic capability, this study aims to make theoretical hypotheses and empirical explorations on the relationship between supply chain quality management (SCQM) practices, dynamic supply chain capability (DSCC), supply chain resilience (SCR) and environmental dynamics. Design/methodology/approach In this study, DSCC is used as a mediating variable in the relationship between SCQM practices and SCR. To enhance the resilience of the supply chain, the moderating effect of environmental dynamics was tested. About 426 completed questionnaires were obtained from a cohort of Chinese manufacturing enterprises, and the proposed hypotheses were tested using the structural equation model method. Findings Empirical evidence shows that SCQM practices have a significantly positive impact on SCR at the overall level. Achieving better DSCC plays an important mediating role between SCQM practices and resilience. In addition, environmental dynamics have a moderating effect on the relationship between SCQM practices and DSCC. Originality/value This study constructs the influencing mechanism of SCQM practices on SCR through dynamic capability theory and enriches the relevant literature on SCR research. This study also provides management guidance for firms to enhance SCR through SCQM practices in an uncertain environment.

Iraq’s fragile and resource-constrained entrepreneurial ecosystem exposes startups to persistent environmental turbulence that challenges conventional decision-making structures. Drawing on the theory of dynamic capability, this study examines how the four dimensions of the VUCA environment—volatility, uncertainty, complexity, and ambiguity—shape the strategic decision making process in Iraqi startups. A quantitative cross-sectional research design was employed, and survey data were collected from 200 founders and senior managers using validated five point Likert-type scales. Partial least squares structural equation modeling (PLS-SEM) was applied to assess the measurement and structural models. The results indicate that all four VUCA dimensions exert a positive and significant effect on the effectiveness of the strategic decision-making process. Rather than treating VUCA conditions solely as constraints, Iraqi startups appear to leverage them as catalysts for agility, experimentation, and learning-oriented decision behavior. These findings extend dynamic capabilities theory to an emerging, post conflict context by suggesting that relational and intuitive forms of competence—such as improvisation, experiential learning, and trust-based collaboration—can partially substitute for formal structures and analytical routines. Practically, the study offers insights for entrepreneurs, incubators, and policymakers on how to strengthen startups’ strategic responsiveness through flexible planning, continuous environmental sensing, and dynamic learning mechanisms.