Unbundling dynamic capabilities in successful Asian-Pacific shipping companies

Abstract

PurposeThis paper aims to add to the understanding of dynamic capabilities (DC) as sources of competitive advantage of successful Asian-Pacific shipping companies by demonstrating that DC development unfolds in three steps, from recognition that the environment has changed, to the decision to deploy DC, to assets re-orchestration.Design/methodology/approachBased on an approach involving two illustrative case studies, the author analyzed DC development of Chinese and Singaporean-based shipping groups in depth. The analysis was centered on DC by investigating how strategic decision-making on vertical integration, diversification and implementation of new technologies can be underpinned by developing DC to create sustained advantages.FindingsThe author found that strategic components of DC are rooted in strategic decision-making to initiate changes on the corporate and even on an operational level.Research limitations/implicationsWhile capability development is thoroughly studied, capability erosion has not been integrated into the research. The exploration of human capital as a firm’s idiosyncratic resource in assets orchestration capabilities can be future work.Practical implicationsThe proposed research contributes to the debate on micro foundations of DC and provides insights for practitioners striving for retaining competitive advantages.Social implicationsRegarding implications for the society, the research shows how the DC serve to generate competitive advantages. The author has presented a logical structure of the competitive advantage paradigm as a product of DC and business models that can be useful to decision makers.Originality/valueThe research offers insights into the composition of micro foundations of DC and demonstrates that DC can be unbounded into well-known and concrete strategic and operational management activities.