Organizational Capabilities Research Articles

Analysis of institutional factors in the implementation of the action research methodology: lessons learned in a case study

The growing need for academic research to generate a tangible social impact has increased the relevance of collaborative methodologies. Among them, the "Action Research" method stands out for its application in the field of business organization. This is especially relevant in the field of Operations Management as it involves close collaboration with organizations.This study aims to examine the key institutional factors that influence the success of the implementation of the "Action Research" methodology in the business context. Through a case study, two main contributions are made to the "Action Research" literature. First, six key institutional factors are identified to consider in the implementation of an Action Research project: external and internal environment, leadership, strategy, communication, and organizational resources and capabilities. Second, the analysis provides a series of lessons learned that cover the influence of aspects related to company's environment; alignment of objectives; participation of employees; clear definition of roles; training; adaptation and support of work team member; an adequate technological infrastructure; how to promote the participation of external agents; and the influence of communication channels.The identification and analysis of these factors and the lessons learned serve as a reference framework for researchers who are considering carrying out an "Action Research" project to transfer it to the company with which they are going to collaborate, and thus determine if the right conditions are in place to carry out the study.

Digital Transformation (DT) and Artificial Intelligence (AI) Convergence in Organizations

ABSTRACT Digital transformation (DT) and Artificial Intelligence (AI) are increasingly becoming a top agenda for organizations. As organizations navigate the transformative landscape of DT, the integration of AI into business processes has emerged as a critical driver for competitive advantage and innovation. Using grounded theory approach, this research focuses on describing the DT-AI integration process and developing a dynamic capability framework. The article employs a mixed methods approach with multiple phases. First, we formed a qualitative meta-synthesis through a systematic literature review (SLR) of extant knowledge (n = 72 articles reviewed) and then, interviews are carried out with experts (n = 28). We coin a new concept of Digital AIzation (DAx) (pronounced: digital AI Zay·shn), a process that effectively leverages AI technologies within the broader context of digital transformation and enables organizations to create digital value in the process. We develop a capability framework for DAx providing a list of perceptual, acquisition and transforming capabilities for organizations.

Strategy Implementation Practices and Performance of Commercial Banks in Nakuru County

Organizational performance entails recurring duties like establishing organizational goals, monitoring progress towards those objectives, and making modifications to enhance their accomplishment in a more efficient manner. Strategy implementation represents a significant phase within an organization; however, existing literature consistently underscores a notable failure rate in the implementation process across numerous organizations. The prevalence of poor performance in banks is attributed to issues such as inadequate coordination, suboptimal structural frameworks, and insufficient personnel proficiency in executing rebranding strategies. As a result, the goal of this study was to look into how Nakuru's commercial banks implemented their strategies and how well they did so. General Systems Theory, Contingency Theory, and Resource-Based Theory served as the study's guiding theories. The study targeted 108 workers from 24 commercial banks in Nakuru County using a descriptive survey research approach. A sample of 54 respondents was chosen using a stratified random selection procedure to assure representation. Structured questionnaires were used to obtain data, and they were chosen for their propensity to do so with little bias and mistake. Pilot research was done in Narok County commercial banks prior to the main investigation. The data was analysed using both descriptive and inferential statistics. Percentages, frequencies, measurements of central tendency (mean), and measures of dispersion (standard deviation) were examples of descriptive statistics. Correlations were used for inferential analysis of qualitative data. To analyse quantitative data, Version 25 of the Statistical Package for the Social Sciences (SPSS) was utilized. The study found that resources, organizational change, structure, and leadership significantly influence the performance of commercial banks in Nakuru CBD. Effective resource allocation, strategic change management, well-defined organizational structures, and strong leadership positively impact operational efficiency and overall performance. The study recommends investing in employee training, optimizing IT services, and aligning organizational structures with strategic goals. Further research should examine how organizational capabilities and market dynamics shape performance outcomes.

Navigating Generational Change: The Role of Leadership Skills in Sustaining Family Businesses in Indonesia

A 2014 PwC survey reported that 60% of the next generation is involved in senior executive roles within family businesses, and 27% are present in the company but not as senior executives. The survey also indicated that 37% of family businesses extend up to the second generation, and 33% reach the third generation. This highlights a phenomenon in Indonesia—the lack of sustainability of family businesses across multiple generations. While acknowledging the importance of accounting, management, and internal control, effective leadership in the succeeding generation can further ensure the sustainability of a family business. Therefore, it is crucial for the preceding generation to engage in efforts to acquire or prepare for such leadership. The paradox concerning the importance of the next generation in family businesses is seen as a fundamental phenomenon for developing specific hypotheses with reference to the relationship between leadership, organizational change capability, and the sustainability of family businesses. This enables these businesses to continue thriving and expanding. This study aims to identify and analyze the rules and relationships between skills, the capability of change, and the economic sustainability of family businesses in Indonesia. Utilizing a quantitative approach with an explanatory study design, the research concludes that the impact of leadership skills on the economic sustainability of family businesses, the effect of change capability on economic sustainability, and the moderating role of change capability on the relationship between leadership skills and economic sustainability are all significant, albeit at varying levels of significance. The indirect influence of leadership skills on economic sustainability through change capability is also significant, though minimal. When change capability acts as a moderator, it is proven to strengthen the relationship between economic sustainability and leadership skills.

Digital leadership moderating effect in improving the organisational performance of telecom companies through the organisational knowledge capabilities pillars

Digital leadership moderating effect in improving the organisational performance of telecom companies through the organisational knowledge capabilities pillars

Role of Investing in Human Resources in Enhancing the Organizational Renewal Capabilities of the Pharmaceutical Industry

This study aims to explore the role of the dimensions investing in human resources in enhancing the organizational renewal capabilities of companies operating in the pharmaceutical industry. An online survey was conducted among a sample of (350) individuals who worked in pharmaceutical companies in the Kingdom of Saudi Arabia. The results indicate that the dimensions of investing in human resources as assessed by employees of pharmaceutical companies positively enhance all four studied dimensions of organizational renewal capabilities (strategic competence, learning orientation connectivity, leadership practices, exploiting time) for a wide range of pharmaceutical companies. The results confirm that enhancing the investing in human resources is a promising path toward improving the regulatory renewal capabilities of pharmaceutical companies. Despite the interest in investing in human resources, the lack of consensus on the specific elements of investing in human capital limits the understanding of their implications. Building on recent developments in visualizing and measuring investing in human resources, this study addresses this gap by exploring how the investing in human resources relates to the regulatory renewal capabilities of pharmaceutical companies. Received: 25 August 2024 / Accepted: 30 October 2024 / Published: 05 November 2024

Linking Supply Chain Performance, Supply Chain Resilience, and Organizational Recovery Capability: A Proposed Conceptual Model

Linking Supply Chain Performance, Supply Chain Resilience, and Organizational Recovery Capability: A Proposed Conceptual Model

OVERCOMING LEADERSHIP CHALLENGES IN HIGHLY MATRIXED ORGANIZATIONS

AbstractThe author is a seasoned global executive who was the first Millennial and Black executive to serve as General Counsel of UPS Airlines. His perspective on matrixed organizations “is shaped by my experiences moving from a front‐line worker to specialized individual contributor to middle manager and eventually to a senior leader within the system.” Challenges to these types of organizations include, in his words, blind spots, unclear accountability, potential for conflict and political maneuvering, and inefficiencies due to role confusion. He notes that “blind spots can arise when stakeholders perceive corporate policies and strategies differently because of their organizational positions.” Unclear accountability “often leads to confusion about responsibilities and outcomes.” Within challenge three, “reporting to multiple managers often leads to confusion over priorities and power struggles, as leaders assert influence to secure resources or recognition.” And in challenge four, “Employees often receive contradictory instructions from different managers, causing confusion, frustration, and project delays.” Overcoming these challenges can lead to, in his words: Improved Collaboration and Communication; Flexibility and Adaptability; Efficient Resource Utilization; Enhanced Employee Skill Development; Clearer Project Objectives; Increased Innovation; Better Customer Focus, Cost Efficiency; More Employee Engagement; and Stronger Organizational Capability.

The impact of artificial intelligence on corporate financial asset allocation: Moderating role of organizational dynamic capabilities

The integration of artificial intelligence (AI) into corporate operations has revolutionized financial decision-making processes, yet our understanding of how AI adoption specifically impacts financial asset allocation remains limited. While existing research has explored AI's role in various financial applications, there is a critical gap in empirically examining the relationship between AI adoption and corporate financial asset allocation, particularly in understanding the organizational capabilities that enable firms to effectively leverage AI technologies. This study investigates this relationship using panel data from 25,811 firm-year observations of Chinese A-share listed companies (2008–2022). Through comprehensive regression analyses, we find that AI adoption significantly enhances corporate financial asset allocation efficiency, with this relationship being distinctly moderated by organizational dynamic capabilities. Notably, absorptive capability exhibits the strongest moderating effect, followed by innovative and adaptive capabilities. These findings advance our understanding of AI's role in corporate finance by demonstrating that the success of AI implementation in financial decision-making is contingent upon firms' underlying organizational capabilities. The results provide valuable insights for managers and policymakers in developing targeted strategies to enhance the effectiveness of AI adoption in corporate financial management.

Construction Project Organizational Capabilities Antecedent Model Construction Based on Digital Construction Context

In the context of high-quality development and the digital age, digital technology-enabled construction projects have become the only choice to promote organizational capabilities and innovation. However, the micro foundation of the organizational capabilities of construction projects has not been clarified, and its formation path is even less clear. This paper focuses on the characteristics of the times when digital technology and engineering construction are deeply integrated, conducts in-depth research on typical projects in the context of digital construction, and uses the qualitative research method of grounded theory to explore the antecedents of the formation of organizational capabilities. The results of the study establish a systematic antecedent model framework, including value integration, data traction, resource integration, technology integration, digital collaboration, and digital routines, and find out the “black box” process of the formation of construction project organizational capacities under the digital construction context. The conclusion of this study provides a theoretical basis and practical enlightenment for the construction of organizational capabilities of construction projects to cope with technological turbulence.

Modeling of relationships between producer and consumer: The impact of advanced production equipment

Subject. The article discusses the influence of advanced production equipment on modeling the relationship between manufacturer and consumer. Objectives. The aim is to assess the impact of the organization's existing production facilities, created on the basis of modern machine tools, on the possibility of building mutually beneficial relations between the manufacturer and the buyer of products. Methods. The research rests on methods of economic and mathematical modeling, in particular, the game theory tools. Results. We formulated a meaningful model of idealized interaction between the parties in the process of concluding a contract for production and purchase of goods, offered a model of positional game of the parties with complete information, in which the participants consistently make decisions with understanding the opponent's previous actions. The analysis of the constructed model enabled to determine the situation of balance between the parties and demonstrate a decrease in consumer's influence on the results of the interaction, due to flexibility and adaptability of production capabilities of the manufacturing organization. Conclusions. The findings demonstrate the influence of aspect associated with the involvement of modern production equipment on the consumer's willingness to establish mutually beneficial relationships with the manufacturing organization. This provides a basis for subsequent implementation of partnership within the framework of relationship marketing.

Knowledge Organization Capability and Competitiveness of Chartered Public Universities in Kenya

Purpose: Knowledge has increasingly become one of the most critical determining factors for organizational competitiveness. In order to acquire and sustain a competitive advantage, it is vital for an organization to develop effective strategies that foster knowledge creation, transfer and integration in the performance of the organization. Knowledge organization refers to activities such as document description, indexing, and classification that provide systems of representation and order for information and knowledge materials. The purpose of this study was to establish the relationship between knowledge organization capability and competitiveness of chartered public universities in Kenya. Methodology: The study adopted a descriptive design. The population of the research consisted of 31 chartered public universities authorized to operate in Kenya as at December 2020. The study adopted a census methodology while purposeful and convenient sampling was adopted to select respondents amongst the middle level management staff. The study used both secondary and primary data. A self-administered questionnaire was used as the primary data collection instrument. Out of 155 questionnaires that were sent out, 123 were filled and returned. Statistical Package for Social Studies (SPSS) was used for data analysis. The study used regression model to estimate the level of significance which yielded a positive and significant influence of knowledge organization capability on competitiveness of chartered public universities in Kenya. Findings: The findings indicate that organizational initiatives such as effective knowledge collaboration and utilization, deployment of information technology systems that support knowledge organisation and easy access to information and data contribute to a healthy environment conducive for knowledge management. Owing to the foregoing, the study concluded that knowledge organization capability had a significant positive impact on competitiveness of chartered public universities. Unique Contribution to Theory, Practice and Policy: The study recommended that public universities needed to embrace knowledge organization capability in order to obtain sustainable competitive advantage.

The Moderating Role of Supply Chain Agility on the Relationship Between Strategic Flexibility and Organizational Market Performance in Nigerian Pharmaceutical Industry

The pharmaceutical industry is key to the survival of the human race, but equally becoming increasingly susceptible to global disruptions. In Nigeria, records have shown that the industry is plagued with several problems, inclusive of low employee productivity, poor market share, low innovation performance, poor and marginal sales growth and low profitability, which are likely a result of a lack of strategic flexibility in the face of increasing environment turbulence and intense competition. Despite efforts from researchers, the moderating role of supply chain agility has been largely overlooked in the literature. Therefore, this study examines the moderating role of supply chain agility on the relationship between strategic flexibility (resource flexibility, coordination flexibility, proactive flexibility, reactive flexibility and futurity) and organisational performance. A survey research design was used to collect data from 642 management and senior staff employees of six pharmaceutical companies listed on the Nigerian Exchange Group. A total enumeration method was adopted for the study, with a well-structured adapted questionnaire, having Cronbach’s alpha reliability coefficients ranging from 0.725 to 0.945. Partial Least Squares Structural Equation Modeling (PLS-SEM) was chosen to achieve the research goal. The PLS-SEM analysis revealed that strategic flexibility positively affects organizational performance (β = -0.093, p> 0.050, Q2 = 0.644). However, supply chain agility negatively moderates this effect, indicating that while agility is beneficial independently, it can counteract the positive impact of strategic flexibility when combined. The study recommended that the management of pharmaceutical companies in Nigeria should pay serious attention to strategic flexibility as an organizational capability that can enhance performance in the face of increasing uncertainties in and unpredictability nature of the business environment.

The Role of Automation in Enhancing Cybersecurity: a Technical Analysis

Intelligent automation, a convergence of artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA), is reshaping modern business operations across various sectors. This article examines the transformative impact of intelligent automation on organizational efficiency, cost structures, and innovation capabilities. Recent industry surveys indicate a significant increase in adoption rates, with 67% of business leaders implementing intelligent automation at scale in 2023, up from 48% in 2020. The integration of AI and ML with RPA has enabled businesses to automate complex, cognitive tasks, leading to an average 35% reduction in operational costs and a 50% improvement in process cycle times. While challenges such as data privacy, ethical considerations, and workforce reskilling persist, the potential benefits of intelligent automation are substantial. This article explores quantifiable impacts across industries, examines real-world case studies, and anticipates future trends including hyperautomation, autonomous decision-making, and integration with emerging technologies like blockchain and edge computing. The article concludes that strategic implementation of intelligent automation solutions will be crucial for organizations to maintain competitiveness and drive innovation in the increasingly digital business landscape.

ФАКТОРИ НА ЦИФРОВАТА ТРАНСФОРМАЦИЯ

The digital transformation is profoundly changing organizations and creating new comparative advantages but also necessitating new approaches to management and organizational strategy. The majority of research on business’ digital transformation focuses on technological adoption, innovation, value creation and the dynamic capabilities of organizations. However, the question of why different organizations approach the digital transformation in various ways remains less explored. This article examines the possibilities of inferring various factors that have an impact on the adoption of digital technologies in order to improve the understanding of organizations' digital transformation strategies. Factors such as size, internationalization, research and development (R&D) expenses, foreign direct investment (FDI), turnover, wages and salaries have an expected impact on the adoption of new technologies in an organization and its digital transformation. This is supported by organizational theories such as the resource-based view (RBV), the knowledge-based view (KBV) and the technology-organization-environment (TOE) frameworks. Through examples from the scientific literature, a summary is provided on how the study of the interrelationships between these factors and organizations’ digital transformation can contribute to a better understanding of the different strategies in this field.

A multi-dimensional framework of dynamic capabilities in emerging economies’ multinationals: a systematic review of the literature

PurposeThe growth and significance of emerging economies’ multinationals (EEMs) in the global economy have transformed the business landscape. This study constructs a conceptual framework that displays and links the prerequisites of the formation, composition and development stages of dynamic capabilities (DCs) that lead to competitive advantages in EEMs.Design/methodology/approachThis study follows the preferred reporting items for systematic review and meta-analysis (PRISMA) guidelines (excluding meta-analysis) to present a systematic review of 111 empirical and conceptual academic articles published in the past 24 years in the A+, A and B tier categories in scientific journal indexes.FindingsThe findings illustrate the DCs of EEMs in terms of four components: prerequisites for formation, composition, development process and outcomes. Among these, the compositions of DCs contain four types: management capabilities of available and desired resources, agile organizational capabilities, fast-learning modes and predictive capabilities. The authors also explain the developmental stages of DCs in EEMs, which is seen as a continuous process of anticipating change, consisting of high sensitivity to opportunities, advanced knowledge absorption, resource optimization and adjustment. Additional analysis also reveals the challenges in researching and measuring DCs.Originality/valueThis study provides a highly synthesized multi-dimensional framework of EEMs’ DCs, which fills the research gap and contributes to the enrichment of extant theories. The results can guide most EEMs, particularly those in the manufacturing, IT and service industries, in cultivating entrepreneurship and creating a more efficient operational team to achieve competitiveness.

Big data analytics, company innovation and risk-taking: influence of absorptive capacity

PurposeThe purpose of this study is to empirically examine the indirect effect of big data analytics capability (BDAC) on performance through innovativeness and risk-taking among small and medium-sized enterprises (SMEs) by considering the moderating role of absorptive capacity (ACAP).Design/methodology/approachThis study utilized a quantitative method through a survey questionnaire. The hypotheses were tested with a sample size of 202 surveys completed by SME owners. Partial least squares structural equation modeling (PLS-SEM) was administered to analyze data via the SmartPLS 4.0 software.FindingsThe analysis revealed that BDAC had an indirect effect on performance through innovativeness and risk-taking. ACAP strengthened the relationship between risk-taking and performance and also enhanced the link between BDAC and performance. Interestingly, ACAP weakened the connection between innovativeness and performance.Practical implicationsFrom a practical standpoint, our study offers valuable insights for entrepreneurs in the process of implementing BDAC. The mediating roles of innovativeness and risk-taking underscore their potential as drivers of SME performance. Also, it is crucial for managers to leverage lower-order capabilities (BDAC) to build higher-order organizational capabilities (innovativeness and risk-taking) and improve performance. Finally, managers are advised to utilize ACAP to identify external opportunities that contribute to performance.Originality/valueThe current study leverages the resource-based view (RBV) to provide new insights into the significance of innovativeness and risk-taking as key drivers to harness the benefits of BDAC for improving the performance of SMEs. Moreover, this study presents evidence of the moderating role of ACAP in the above relationships.

Leveraging Knowledge Management for Business Success: The Influence of Dynamic Capabilities and Entrepreneurial Competence, Moderated by Government Policy

This study examines the impact of knowledge management on business performance, mediated by dynamic capabilities and entrepreneurial competence, and moderated by government policy. A survey of 156 small and medium-sized enterprises (SMEs) in the Riau Coastal Food sector was conducted, and data were analyzed using Structural Equation Modeling (SEM). The findings reveal that knowledge management positively influences business performance, with dynamic capabilities and entrepreneurial competence acting as key mediators. However, government policy does not significantly moderate this relationship. The study highlights the importance of internal organizational capabilities in enhancing SME performance, suggesting that firms must focus on dynamic capabilities and entrepreneurial competence to maximize the benefits of knowledge management.

Achieving SDGs Through Sustainability in Amil Zakat Organisations: Are Organisational Capacity and Social Skills Important?

Objective: This study aims to find empirical evidence related to the influence of organisational capability and social capability on organisational sustainability in the Amil Zakat Organisation (OPZ). This study also wants to prove that OPZ's social capability can moderate the influence of organisational capacity on organisational sustainability. Theoretical Framework: Providing professional organisational capacity is a form of OPZ's responsibility to improve the community's welfare through trustworthy zakat management. Thus, achieving organisational goals requires the importance of organisational capacity. Based on the stewardship theory, management is not motivated by individual goals but instead focuses on their primary goal for the organisation's benefit. Method: The methodology used in this study is a quantitative approach and the data analysis was carried out with the Moderated Regression Analysis model. Results and Discussion: The results of the research reveal that both organisational capacity and social capability have a positive influence on organisational sustainability. Furthermore, social capabilities have a positive moderating effect on the effect of organisational capacity on organisational sustainability. The test results show that the moderation in this study is included in the type of quasi-moderation. Research Implications: The results imply that the organisational capacity and social capability of OPZs have an essential role in determining organisational sustainability, where the social capability of amil zakat agencies becomes a determinant to strengthening organisational capacity in supporting the sustainability of amil zakat agencies. Originality/Value: This research provides new insights into the role of organisational capacity and social capability in achieving sustainability in the Amil Zakat Organisation. This study aligned with SDG 1 (No Poverty) by enhancing the management of Zakat funds to improve community welfare.

The Impact of Strategic Knowledge on Entrepreneurial Performance: An Analytical Research at the Ministry of Education in Iraq

The current research aims to study the impact of strategic knowledge on the entrepreneurial performance of a sample of employees in the Iraqi Ministry of Education. Its importance lies in conducting research in the government educational sector. A purposive random sample of 175 individuals was selected based on a data collection questionnaire. Strategic knowledge includes four dimensions (strategic priorities, organizational environment, and organizational capabilities). Entrepreneurial performance addresses four dimensions (proactive planning, leadership indicators, innovation and creativity, efficiency, and effectiveness). The research highlights strategic knowledge in educational administrations to ensure the success of entrepreneurial performance in Iraqi educational institutions. The research problem revolves around the impact of strategic knowledge on entrepreneurial performance practices at the Ministry of Education in Iraq. The results indicate the need for the Iraqi Ministry of Education to adopt a strategic direction through the strategic knowledge of its directorates, which leads to developing the educational landscape and understanding the importance of the appropriate direction to achieve institutional entrepreneurial Performance . Type of paper:- Research paper