Building Dynamic Capabilities Research Articles

Model of resilience strategies of small and medium-sized tourism enterprises post pandemic crises in marine-based destination

This study investigates the resilience strategies employed by small and medium-sized tourism enterprises (SMTEs) in Tanjung Bira, a marine-based destination in South Sulawesi, Indonesia, to cope with the impact of the COVID-19 pandemic. Duchek's Model of resilience, which conceptualizes resilience as a meta-capability composed of three stages (anticipation, coping, and adaptation), is used as a key framework. An exploratory qualitative approach was employed, involving in-depth semi-structured interviews with seven informants representing various tourism stakeholders. Thematic analysis revealed several main strategies for SMTE resilience: collaboration with stakeholders, government intervention, implementation of digital marketing, strengthening SMTEs legality, and strengthening/diversification of SMTE products. Mapping these strategies onto Duchek's Model, the anticipation stage included strategic planning, risk assessment, and building dynamic capabilities; the coping stage consisted of immediate financial measures and policy support; and the adaptation stage involved diversification, technology and innovation adoption, and collaboration and networking. A key implication is that destination management organizations should create innovative products and leverage online platforms for marketing to increase visitor arrivals and boost SMTE product sales. The findings contribute to understanding SMTE resilience in the context of a marine-based destination in Eastern Indonesia and provide insights for policymakers and practitioners to support SMTE recovery and long-term sustainability post-pandemic.

Building dynamic capabilities in supplier selection in industry 4.0 era: A literature review

Firms are striving to improve their operational capacities and maintain competitive advantages in light of challenges presented by globalization, evolving consumer preferences, prolonged external disruptions, and advancements in industry 4.0. Given that their suppliers have an impact on their competitive advantages, firms must ensure that the selection process for suppliers includes dynamic capabilities such as sustainability, resilience, and digitalization. This is crucial for maintaining competitiveness and effectively managing external disruptions. The objective of this article was to provide an analysis of recent literature on supplier selection through a descriptive and thematic analysis. By examining dispersed literature, this study has developed a framework for supplier selection rooted in building dynamic capabilities of whole supply chain with three important dimensions—resilience, sustainability, and digitalization. Findings of the study will assist managers to improve their supply chain performances, particularly in their supplier selection and evaluation by highlighting the crucial role of dynamic capabilities.

Dynamic capabilities of the SMEs for sustainable innovation performance: role of environmental turbulence

PurposeThis study aims to investigate how dynamic capabilities, i.e. sensing, learning, integrating and coordinating trigger sustainable innovation performance. It also examines the direct and moderating role of environmental turbulence towards the sustainable innovation performance of small and medium-sized enterprises (SMEs).Design/methodology/approachThe data were collected through a cross-sectional survey of 169 SMEs in Oman and analysed through structural equation modelling using SmartPLS software.FindingsFindings of this study reveal that the sustainable innovation performance of SMEs is greatly influenced by the synergy of learning, integrating and coordinating capabilities. Notably, among these capabilities, coordinating capability emerges as the most important capability for SMEs with a primary emphasis on fostering both human and organizational well-being. However, this research reveals that building dynamic capabilities alone might not be sufficient to address social, ecological and economic sustainability criteria, and SMEs may need to extend their view beyond internal processes and integrate various environmental contingencies into their approaches while focusing on sustainable innovation performance.Practical implicationsThis research is useful for business managers while allocating resources in their business efficiently and effectively to achieve sustainable innovation performance. It also highlights that SMEs need to integrate various environmental contingencies into their approaches while focusing on sustainable innovation performance.Originality/valueTo the best of the authors’ knowledge, this study is one of the first to contribute to SME scholarship by mainly investigating the effect of specific four types of dynamic capabilities on sustainable innovation performance in a turbulent environment. This study is likely to contribute to the SMEs addressing sustainability innovation performance and develop capabilities to be sustainable in a turbulent environment.

Building dynamic capabilities in the transition toward a knowledge-based bioeconomy: a case study of three Finnish regions

ABSTRACT This paper analyses the role of various organisations’ dynamic capabilities in regional transitions toward a knowledge-based bioeconomy. It offers a more nuanced understanding of regional path development and agency by elucidating the concept of dynamic capabilities in regional contexts and analysing the roles and types of the dynamic capabilities of various organisations. This empirical research is based on case studies conducted in three Finnish regions using a combination of interviews, documents and statistical data. The paper argues that it is important to take a systemic perspective in analysing dynamic capabilities and look at simultaneous changes in different types of organisations.

What Takes the Wind out of Their Sails? A Micro-Foundational Perspective of Challenges for Building Dynamic Capabilities Towards Digital Business Model Innovation

While dynamic capabilities (DCs) are recognized as an important enabler of digital transformation, research lacks knowledge about the underlying challenges and adequate responses of building these capabilities. More specifically, this study aims to shed light into successful digital business model innovation (BMI) by adopting a micro-foundational approach that covers both challenges and successful measures on this path for incumbent industrial firms. Therefore, six case studies building on qualitative empirical research are analyzed that either focus on Internet of Things (IoT)-driven platform BMI or software as a service (SaaS) BMI. The results offer a variety of insights regarding challenges and respective responses. These findings are attributed to DCs and its subdimensions of sensing, seizing and transforming, further revealing the interplay of various factors for specific contexts. Additionally, the study reveals that many challenges and thus required responses are the result of individuals, processes, and structures.

Building blockchain‐driven dynamic capabilities for developing circular supply chain: Rethinking the role of sensing, seizing, and reconfiguring

AbstractGlobally, firms face increasing pressure to efficiently utilize resources and minimize costs and may do so through sustainable supply chains and circular economy practices. Emerging technologies, such as blockchain, to enable a circular economy have become a new industrial paradigm. However, firms require building dynamic capabilities through blockchain, which can be key to realizing circular economy model. This study introduces a framework for building blockchain‐driven dynamic capabilities for a circular supply chain. We further use the Decision Making Trial and Evaluation Laboratory (DEMATEL) method to evaluate three major dynamic capabilities and 18 sub‐dynamic capabilities and their interrelationships. The mining industry in Ghana sets the stage for this analysis. The study results show that although blockchain‐driven sensing dynamic capability, seizing dynamic capability, and reconfiguring dynamic capability are crucial for developing a circular supply chain, they do not strictly follow a sequence and overlap. We highlight various cause–effect relationships, providing insights into the role of sensing, seizing, and reconfiguring dynamic capabilities. That information is important to firms, stakeholders, and partners to draft an appropriate strategy to build blockchain‐driven dynamic capabilities for developing a circular supply chain.

Building resilience into smart mobility for urban cities: an emerging economy perspective

Population growth in urban cities has created transport problems such as traffic congestion, pollution, accidents, and infrastructure failures. These problems often lead to disruption of mobility, especially in emerging economies. The goal of any city is to have a resilient transport system that is free from frequent and severe disruptions. Resilience can be incorporated into smart mobility systems to create a robust, integrated and intelligent transport system. Therefore, this study sought to determine resilience factors required for a resilient smart mobility system in emerging economies. The study used interpretive structural modelling (ISM) to establish the causal interrelationships among the factors drawing from data from experts in smart cities, city transport and academia. It was found that the most critical factor to drive resilience is foresight – the ability to anticipate disruptions. Three other resilience factor categories identified were dynamism, certainty and optimisation, which all point to the importance of building dynamic capabilities. The key implication for practice highlights the role that human and artificial intelligence can play in anticipating natural, social and infrastructure disruptions. ISM offered a mechanism to determine the critical causal resilience factors to be prioritised amongst the competing demands on the limited resources of emerging economies. Apart from foresight, which was found to be a driving factor, the other resilience factors are equally strong linkage factors (influence each other), thus further revealing the complexities that decision-makers in urban cities of emerging economies constantly face. A research agenda for resilience in smart mobility in emerging economies was developed.

Building dynamic capabilities of small and medium-sized enterprises through relational embeddedness: evidence from China

Building dynamic capabilities of small and medium-sized enterprises through relational embeddedness: evidence from China

Building an Excellence Capabilities Portfolio in Higher Education: A Case Study of Higher Colleges of Technology, UAE

The Higher Colleges of Technology (HCT) has developed and deployed a set of distinctive and dynamic capabilities in alignment with the UAE national agenda. These capabilities drive an ambitious strategy that anticipates and ensures future readiness; creates student-centric value; enables and empowers human capital; exploits the full potential of digital enablement; leverages through smart partnerships and resource optimization; builds capacity for knowledge exchange; and synergizes through collaboration, co-creation, and stakeholder orientation. This study presents HCT’s methodology as a case study to develop its capabilities portfolio, structure, main connectors (internal and external forces), and business operational model and capabilities dynamics that support HCT’s continuous transformation and leading position. The study proposes a model and practices to develop and unify standards for higher education institutions (HEIs) in their journey towards building distinctive and dynamic capabilities and achieving excellence maturity.

Building dynamic capabilities of an academic library: A research agenda

Though academic libraries do not compete with others in the real sense, every ambitious librarian would want his or her library to be better than the others. How would a librarian be able to achieve this? Traditionally, librarians have focused on building excellence in processes and operations. However, such processes and operations can be imitated and implemented by other libraries, resulting in those competencies being short lived. Researchers in strategic management have developed theories on how organizations can build competencies that cannot be imitated, and thus be ahead of their competitors. One such theory – referred to as the dynamic capabilities – is adapted to identify the micro-foundations including the roles, activities and competencies required to build these capabilities for academic libraries. Four themes – searching & sensing, shaping, seizing, and transforming – related to developing dynamic capabilities of academic libraries have been identified. Potential research questions have also been formulated to direct future research.

Building dynamic capabilities for international marketing knowledge management

PurposeBy using the lens of knowledge-based view (KBV) and focusing on individual loci of knowledge, the present study addresses whether marketing knowledge management (MKM) is rooted in individual dynamic capabilities (DCs) and consequently whether it has a close relationship with the three main DCs, namely, the ability to solve a problem (substantive capability); the adaptation to rapid changes (adaptative capability); and the ability to change the way individuals solve problems (change capability).Design/methodology/approachThe present study aimed to examine the effects of MKM (the quantitative variable) on DCs (the quantitative variables). Drawing on the relevant literatures, the researchers have developed a model that defines the subjects of the empirical test. To do this, the authors opted for a hypothetico-deductive approach, which is commonly used in quantitative studies. The empirical analysis involved a linear regression and a sample of 105 managers of Italian companies operating in the knowledge intensive sector.FindingsSubstantive, adaptive and change capabilities were all positively correlated with MKM. The results indicate the significant need for individual DCs to improve business performance in terms of creativity, innovation, and flexibility in response to market changes.Originality/valueThe authors show that individual MKM has a strong relationship with individual DCs when the employees have the capacity to solve problems, adapt, and change. In turn, managers are strategically creative and imagine future possibilities in the international marketing sphere. This includes procedures and routines to learn in local markets. The study also stresses the fact that individuals represent the primary loci of knowledge.

Building data-driven dynamic capabilities to arrest knowledge hiding: A knowledge management perspective

In this study, the authors have conducted a multiple-case study on four Chinese enterprises in different industries, to explore how to build data-driven dynamic capabilities from the perspective of knowledge management, with a focus on how to arrest knowledge hiding. This research constructs a comprehensive theoretical framework of “data-driven context – dynamic capabilities – knowledge hiding,” proposing three dimensions of “institutional environment – organizational innovation – executive/individual cognition” on building dynamic capabilities, with original contributions on expanding and enriching knowledge hiding theory and dynamic capabilities theory in the data-driven context. As for practical implications, this research provides guidance on how to build dynamic capabilities to arrest or mitigate knowledge hiding for executives or individuals in the workplace, and gives enlightenment to how firms in emerging economies can construct dynamic capabilities in the data-driven context.

The impact of international interorganizational relationships on creativity: the local partner perspective in an emerging country

PurposeThis paper aims to understand how international interorganizational relationships (IORs) impact the organizational creativity of a local partner in an emerging country, and how the creative capacities of emerging countries firms are developing.Design/methodology/approachThe study is exploratory and qualitative, based on five IORs between European multinational corporations (MNCs) and Tunisian firms operating in the consumer goods sector analyzed using the Gioia method.FindingsThe results show that it seems necessary for firms in emerging countries first to be legitimate, then to have dynamic capacities (learning capacities in particular), and that they know how to develop an innovation strategy and implement it concretely. The authors highlight three different organizational mechanisms. The first concerns analyzing the legitimacy of the local partner to engage in an innovation process based on its distinctive capacities and formalization of procedures. The second involves building dynamic capabilities, especially technological and managerial skills, in order to meet the challenges of the growing collaboration between the partners and to expand their mandate. The third deals with implementing an innovation strategy on two fronts: trust between partners and sustainable innovation.Research limitations/implicationsThe contributions focus on the international dimension of the IORs' impact on creativity and the role of the local partner's creative capacities. The work highlights to what extent “techno-centric” creativity plays a role in the absorption capacity of local partners, as well as the level of assistance provided by MNCs for developing innovation in emerging countries' firms. Moreover, our results show that increasing awareness of ecological and responsible consumption is reorienting production patterns on both local and global scales and offers many benefits for local and multinational firms. The limitations concern the sample size, the narrow diversity of the sector and the lack of information regarding multinational firms.Originality/valueThe originality of this paper is to show the construction of the creative process at the level of the local partner, from the execution of a specification to the implementation of a sustainable innovation strategy.

Building dynamic capabilities in tourism organisations for disaster management: enablers and barriers

Dynamic capabilities enable tourism organisations to manage crises and disasters, yet many do not possess these competencies. This paper investigates the factors that enable or impede the development of dynamic capabilities in tourism organisations that help them to survive and thrive in crises or disaster environments. These enablers and barriers to build dynamic capabilities are compared across tourism organisations considering their age, size, and sector. Findings from 40 in-depth interviews with tourism business operators and other stakeholders in a disaster-prone region over two years show that knowledge-based, human-related, relational, and financial slack resources are important enablers of building dynamic capabilities in times of disasters. Internal process restrictions and external over-regulation act as major barriers to develop dynamic capabilities. The findings show that tourism organisations should consider reliance on the broader system in which multiple levels of actors are actively engaged in resource integration and develop shared values to enable adaptive capacity. Policymakers and tourism organisations can use this study to evaluate the appropriateness of their resources and processes in developing dynamic capabilities and thus achieve a more sustainable future in uncertain times.

Comprehending a knowledge framework as a source of dynamic capabilities in IJVs through PLS-SEM

PurposeThis study aims to investigate the relationship among knowledge transfer enablers, knowledge transfer process, absorptive capacity and innovation performance in the context of Indian international joint ventures (IJVs). These elements are woven with the thread of dynamic capabilities theory (DCT) into an integrated framework.Design/methodology/approachData analysis is conducted on a quantitative survey of 196 IJVs with partial least squares structural equation modeling as the statistical technique.FindingsCo-learning strategy, collaborative trust culture, information technology-based resources and systems and organizational structural design are found to be significant knowledge transfer enablers. Absorptive capacity has a complementary partial mediation effect on the positive relationship between knowledge transfer and innovation performance of Indian IJVs.Research limitations/implicationsThe study has pioneered in explicating the criticality of IJV’s internal dynamics to cope with the global market dynamism in a much needed Indian context. Practitioners must focus on building dynamic capabilities in IJVs to make them sustainably competitive, as proposed and evaluated by this study. Further, IJV managers need to strategize their resources, routines and structure dynamically to foster knowledge transfer and innovativeness.Originality/valueThe comprehensive model on DCT offered by this study is rare to match in literature with a completely new context, which is the need of the hour.

BUILDING DYNAMIC CAPABILITIES – A FACTOR FOR SUSTAINABLE DEVELOPMENT OF THE FIRM

Purpose: In recent years, every firm is facing serious challenges related to the implementation of the principles of sustainable development, which requires a significant change in strategic behavior, strategic decisions and company actions.The aim of the study is to develop a practicable model of dynamic capabilities supporting the sustainable development of the firm, which includes recognizable, understandable and measurable components for managers, and ensures the realization of competitive advantages in the three dimensions (economic, environmental and social) and performance, taking into account the dynamics of the environment. Method: The study uses a method based on data collection through an online survey and statistical analysis of dependencies in the model, using a correlation coefficient. Results: The results of an empirical study conducted in 123 firms operating in different markets will prove the interrelationships and dependencies in the developed model of dynamic capabilities, supporting sustainability and their impact on the process of building competitive advantages. Conclusions: The research and the conclusions made prove the necessity from building dynamic capabilities, supporting the sustainable development of the firm, as a factor that ensures the realization of competitive advantages in the three dimensions (economic, environmental and social) and performance, taking into account the dynamics of the environment.

Building dynamic capabilities by leveraging big data analytics: The role of organizational inertia

Although big data analytics have been claimed to revolutionize the way firms operate and do business, there is a striking lack of knowledge about how organizations should adopt and routinize such technologies to support their strategic objectives. The aim of this research is to explore how different inertial forces during deployments of big data analytics hinder the emergence of dynamic capabilities. To do so, we follow a multiple-case study design approach of 27 European firms and examine the different forms of inertia that materialize during big data analytics diffusion. The findings contribute to the growing body of knowledge on how big data analytics can be leveraged effectively to enable and strengthen a firm’s dynamic capabilities. By disaggregating dynamic capabilities into the underlying capabilities of sensing, seizing and transforming, findings indicate that different combinations of organizational inertia including economic, political, socio-cognitive, negative psychology, and socio-technical hamper the formation of each type of capability.

The Project-Based Firm: A Theoretical Framework for Building Dynamic Capabilities

The problem of achieving individual project performance has been replaced by the problem of achieving organizational goals through project performance. Only project-based firms able to learn and build project capabilities can successfully compete in today’s dynamic environments. The purpose of this paper is to present a dynamic capability-based framework that sheds light on how project and organizational dynamic capabilities are built and how these dynamic capabilities allow project-based firms to perform in dynamic environments. Our theoretical framework unpacks the processes of building dynamic capabilities inside a project-based firm, discussing the routines and procedures that are useful to manage projects in unstable and dynamic environments and to build and reconfigure organizational capabilities from project-led knowledge.

Building dynamic capabilities to cope with environmental uncertainty: The role of strategic foresight

Increasing environmental uncertainty poses significant challenges for organizations. Although scholars generally agree that companies require dynamic capabilities to flexibly respond to and shape uncertain environments, only little empirical research has been conducted on the factors that facilitate the development of these capabilities. This study addresses this gap and introduces strategic foresight as an important antecedent of firms’ dynamic capabilities. The paper investigates the impact of strategic foresight on two distinct types of dynamic capabilities, namely strategic flexibility and decision rationality, and how the influence of strategic foresight is moderated by the degree of environmental uncertainty. We test our hypotheses by adopting a mixed-methods approach, using both qualitative information gathered trough five expert interviews, as well as survey data collected from 79 managers familiar with strategic foresight practices. The obtained results indicate a significant positive impact of strategic foresight on firms’ strategic flexibility and decision rationality. Furthermore, this study finds that environmental uncertainty strengthens the positive effect of strategic foresight on strategic flexibility. Contributions to strategic foresight research and managerial practice for firms trying to cope with continuously increasing levels of environmental uncertainty are discussed.

Building dynamic capabilities for high margin product development: a corporate control style perspective

This article contributes to the dynamic capabilities (DCs) literature by exploring the link between sensing, seizing and reconfiguring and firm performance defined as commercially successful high margin products development (HMPD). Our qualitative findings are based on semi-structured interviews conducted within a multinational telecommunication corporation. Our qualitative findings show that the sensing, seizing and reconfiguring aspects of DCs positively influence firm performance. Moreover, the level of positive influence of DCs on performance depends on the corporate control style (CCS) of the firm, since CCS directly affects the seizing and reconfiguring activities of DCs. CCS also regulates the link between sensing and seizing DCs activities and firm performance. We find evidence that there is no specific order in which the sensing, seizing, and reconfiguring activities occur. We also find that the identification of ’Surge’ and ‘Lurch‘events is a key channel for managers to enhance DCs in their firms.