Capability Development Process Research Articles

Political Schemas and Corporate Political Activities During Foreign Market Entry: A Micro-process Perspective

The paper analyses how multinational enterprises (MNEs) manage their interactions with host governments during the market entry process. A qualitative multiple case study collected data through in-depth interviews with multiple participants in six New Zealand MNEs. The analysis identifies two distinct political schemas which represent MNE managers’ assumptions and heuristics regarding how to approach interactions with foreign governments, systematic and episodic, which lead to the enactment of distinct patterns of political activities, each supported by certain political resources and capabilities. We then identify several sources of the variations in these two political schemas at the managerial, firm, industry, and country levels of analysis. Our study deepens understanding of the micro-processes of corporate political activity (CPA) and the processes and activities through which political resources and capabilities are developed, deployed and leveraged by MNE actors in managing their interactions with host governments during the market entry process. In doing so, we highlight the role of international experience in influencing the process of political capability development, and also the role of managerial actions in shaping this evolutionary process.

An Innovation Capability Development Process for Firms in Developing Countries: A Theoretical Conceptual Model

Firms in developing natons possess low innovaton capabilites due to the absence of an adequate conceptual model that consolidates the innovaton capability development (ICD) constructs tailored to their needs. To describe the ICD in these frms, research fndings should have consolidated both the technical and fnancial aspects of innovaton. However, they have provided only a litle account of informaton on the ICD process via integratng the technical and fnancial aspects of innovaton. The aim of this research is thus to develop a conceptual model of the ICD process which is highly valuable to frms in developing countries (FDC). Methodologically, this research is based on a broad literature review. Following this, two key fndings were obtained. Firstly, three key constructs of ICD, namely knowledge accumulaton, knowledge applicaton and fund generaton were identfed. The frst two constructs consttute the technical aspect and the third construct represents the fnancial aspect of innovaton capability. Secondly, using these three key constructs, the research proposed a conceptual model that defnes a process of ICD for the FDC. These fndings imply that frms’ ICD effort can be beter explained by integratng the technical and fnancial aspects of innovaton. As far as our knowledge is concerned, this paper is unique regarding providing a detailed review and discussion regarding the ICD process for FDC. In conclusion, the model can place a great emphasis on the understanding of the key constructs and their relatonships to enhance the attudes and practces of frms to develop their innovaton capability.

Integrating the content and process of capability development: Lessons from theoretical and methodological developments

AbstractThe literature on capability development has focussed on either the content or process of capability development. Such a partial explanation of the capability development phenomenon has created some flaws in the literature. This paper argues that integrating the content and process of capability development is the way ahead in theorising in this field. Analysis of the methodological development in parallel to theory development reveals the critical role of microprocesses in such integration. To develop an integrative view of capability development we propose a conceptualisation of capability development processes through internal and external strategic fit and emphasise the role of knowledge and innovation processes. We also argue that a critical realism approach is of high relevance to researching such an integrative view.

The European defense market: Disruptive innovation and market destabilization

The global defense industry is shifting toward a new paradigm in which an emphasis on technology-driven capability development is being undermined by disruptive innovations emanating from the commercial sector. This evolution is likely to result in important effects on the defense market, lessening barriers to entry and turning upside down the approach to innovation. For the defense sector this entails that shifts in the organizational behavior of firms and military establishments are required if the full benefits of innovation are to be captured and integrated into defense capability development processes. This article analyses this shifting paradigm with the European defense market as a departure point. Briefly exploring the shifts in defense industrial processes since the 20th century, this article outlines the benefits of integrating the defense and civilian technological and industrial bases.

Exploratory Study on Relationship between Entrepreneur Characteristics and Dynamic Capabilities in Export SMES

Small and medium-sized enterprises (SMEs) play a key role in economic and social development of any country. However, research has revealed that SMEs in Sri Lanka suffer from poor sustainability and low performance compared to other countries. According to the literature, SME performance is associated with directly unobservable owner and firm factors which are based on internal capabilities. With the ever-increasing dynamism of the market and increased competition from large multinational companies, it is essential for the SMEs to adapt to the environment promptly. Dynamic capabilities of export SMEs must be more amplified and leveraged than those of a firm with a less ambitious, purely domestic SMEs. Given the strong position of entrepreneur in the SME context, this study argues that antecedents to dynamic capabilities can be found at the individual entrepreneur level. It identifies entrepreneurial orientation, human capital and social capital of the entrepreneur as key characteristics at the individual level. This research used a quantitative research methodology and a randomly selected sample of 197 export SMEs in Sri Lanka were analyzed. The results were analyzed using partial least squares–structured equation modelling (PLS–SEM). This study empirically established that entrepreneur characteristics positively influence development of organizational dynamic capabilities. The outcome of this research will enhance the understanding of SME capability development process.

Dynamics of industry architecture and firms’ knowledge and capability development: an empirical study of industry transformation

ABSTRACTThere is a lack of empirical evidence supporting existing conceptualisations and particularly clarifying the underlying mechanisms involved in the role of dominant firms in industry transformation. This research undertook an in-depth single case study of how a firm managed its knowledge and capability development processes to shape the industry architecture to its benefit. We investigated how a dominant firm manipulates the interdependencies with local suppliers and positions itself at higher levels of the industry architecture hierarchy. Findings suggest that such processes take place over the course of several product innovation projects and across different levels of the product architecture. Such findings contribute to helping firms to manage their knowledge and capability development processes and transform the industry architecture to their advantage.

Investigating the alternative paradigms of manufacturing competence: an empirical study

Purpose The purpose of this paper is to explore the relationship of strategic manufacturing effectiveness utilizing the four-stage model of Hayes and Wheelwright (H-W) with overall performance of manufacturing, market alignment and production competence (PC). In addition, it attempts to understand the relationship of strategic manufacturing effectiveness with manufacturing capability development modes, strategic groups of companies and the nature of improvement programs being employed. Design/methodology/approach Structured questionnaire was used to capture data from manufacturing organizations. Responses from managers of 47 Indian manufacturing companies were used to test the seven propositions that were developed to examine the paradigms of manufacturing competence. Findings The analysis revealed that the strategic manufacturing effectiveness of manufacturing companies based on H-W’s four-stage model has significant positive correlation with the overall performance of manufacturing and PC of the company. Further, the analysis substantiated the relationship of strategic manufacturing effectiveness with capability development process and the nature of improvement programs. Research limitations/implications This exploratory study is based on a small sample of manufacturing companies with diversity and hence it may not be representative of all industry sectors. Second, it has used several scales for measuring the relevant constructs which themselves are not proven, hence, the findings should be taken with caution. Originality/value This is an initial research focussing on the relationships among different elements of manufacturing competence such as manufacturing capabilities, PC, manufacturing capability development mode and overall performance of manufacturing with strategic manufacturing effectiveness using H-W model. H-W model was primarily proposed as an audit tool for managers, was hitherto not adequately studied in relation to other paradigms of manufacturing competence.

Developing dynamic capabilities for learning and internationalization

Purpose– The purpose of this paper is to examine the development process of dynamic capabilities.Design/methodology/approach– The paper adopts a qualitative, longitudinal participant-observation research design. A single case study firm was observed over a ten-year period of active researcher engagement allowing for the collection of rich data on the development and deployment of dynamic capabilities as they evolved.Findings– Dynamic capabilities can be identified as sensing, seizing and transforming. They are capable of intentional development by managers through strategic decision making and deliberative learning, within a path-dependent evolution.Research limitations/implications– A longitudinal single case study allowed for a close look at the development of dynamic capabilities, exploring the context and conditions that facilitated change and tracing the evolution of the organization’s processes. However, this study remains subject to the limits of a single case approach. Future cross-sectional research would be able to test the conceptual model and allow for generalization of the findings to other populations of firms.Practical implications– The dynamic capability concept has been criticized for being of little practical use to managers. This research shows the process of intentional dynamic capability development, offering insights to practicing managers.Originality/value– This research adds to the relatively scant base of empirical work on dynamic capabilities and offers a conceptual model of dynamic capability development. The paper contributes to the neglected area of dynamic capabilities in SME’s, showing that the dynamic capability concept is relevant to this sector. The paper provides insight for practitioners by showing that intentional dynamic capability development is achievable.

HPCMP CREATE-AV Quality Assurance: Lessons Learned by Validating and Supporting Computation-Based Engineering Software

A successful fielding of computation-based engineering (CBE) software requires quality assurance to be built into the fabric of capability development and deployment processes. Good software quality is an emergent property of the healthy interplay among CBE software development teams, testing teams, user support, and training teams, with the vital notion of continual feedback to improve the user experience. This article describes how the HPCMP CREATE Air Vehicles (AV) project addresses these topics through the functions performed by its quality assurance group. Industry quality standards are discussed and their strengths and weaknesses within the CREATE-AV framework addressed. The article concludes with lessons and best practices learned over the course of an extended (seven+ year) effort to field next-generation multiphysics aviation design tools to the DoD community.

Timing cooperative relationships with sequential capability development process to reduce capability development trade-offs

A key challenge for a firm is to continuously develop new capabilities in order to address changes in the external environment. Prior research on firm capabilities posits that knowledge sharing within supply chains can contribute to the firm׳s new capability development efforts. Although existing research on capabilities clearly links firm capabilities to firm advantage, it does not prescribe a process by which a firm should develop the capabilities required to compete successfully in the marketplace. Such prescription is necessary because (1) a firm faces trade-offs when developing capabilities in the short-run and (2) interdependencies among capabilities require a firm to prioritize and develop capabilities in a sequential manner. The sequence in which a firm develops new capabilities matters when the development of one capability can influence the development of a different capability and the effect is unidirectional and asymmetrical. Prior research primarily relies on Ordinary Least Squares (OLS) and Structural Equation Model (SEM) to determine whether differences in a firm׳s capabilities explain differences in performances. However, these statistical tools have limitations when determining the sequence in which a firm should develop various interdependent capabilities. Therefore, the purpose of this study is to delineate and prescribe a capability development process using Analytic Network Process (ANP) to reduce capability development trade-offs. ANP can be used to determine which capabilities are more important to achieving a desirable firm performance and to prescribe the sequence by which a firm can develop capabilities. We show that a firm can avoid capability development trade-offs and develop interdependent capabilities by efficiently using knowledge acquired from suppliers and customers when it develops a quality capability followed by low cost, delivery, and flexibility capabilities.

Alliance Partners and Firm Capability: Evidence from the Motion Picture Industry

Interfirm alliances have long been identified as channels for learning and acquiring partners’ knowledge and capability. In this study, we offer a new perspective on the influence of alliance partners on a focal firm’s capability by focusing on “link” alliances that are motivated by the prospect of exploiting complementarities rather than acquiring partners’ capabilities. Specifically, we consider the case of alliances between resource-rich and resource-poor firms and examine the capability development opportunities and threats that face the resource-poor focal firm as by-products of a link alliance. We use data on the population of independent motion picture production studios in the United States and their alliances with the major studios during 1990–2010 to test our proposed theory. The results show that the number of major partners exhibits an inverted U-shaped effect on an independent studio’s capability. We also find contingent effects: both an independent studio’s alliance experience with major partners and its level of specialization intensify (positively moderate) this relationship. Contrary to our expectation, we find no support for the contingency of major partner turnover. In addition to offering a new perspective on the role of alliances in a firm’s capability development process, our study highlights some of the key contingencies surrounding the benefits resource-poor firms receive from their resource-rich partners.

An Empirical Study of Capability Development within Product Innovation Projects

The objective of this paper is to develop insights into firms’ strategic capability development processes within product innovation projects. In particular, the research aims at investigating the interactions among product innovation, knowledge processes, and capability development within firms. Building on qualitative data from the auto-industry, our analysis reveals that across four product innovation projects, the case company developed architectural knowledge and capability. Findings reveal that, along with changes at each level of product architecture, “design knowledge” and “design capability” have been developed at the same level of product architecture, leading to capability development at that level. Furthermore, findings suggest that such capability transformation resulting from knowledge and capability creation over the course of case projects leads to modularization of product architecture. Overall, the research contributes to identifying and emphasizing the role of micro processes in capability development and renewal, which in turn enhances our understanding of strategic capability development processes.

Functional Safety and Development Process Capability for Intelligent Transportation Systems

Intelligent transportation systems (ITS) require the extension of the systems engineering approach to a higher system level. Up to now, vehicles could be considered as closed systems while in future they have to be seen as components of an open system with ad hoc interfaces. Since ITS influence the series development and production of single vehicles, standards and procedures of process quality, systems engineering and functional safety apply for this higher level as well. The paper discusses the impact of those standards to the design of ITS and the role of model-based software and service oriented architectures (SOA) as means for process quality and functional safety assurance. It emphasizes on the mutual synergies between process capability standards, functional safety, model-based development and design for variability. Finally, it shows an approach for the design of ad hoc and distributed systems proposed by the authors.

Coordinating the processes of resource enrichment and capability deployment

Purpose – The purpose of this paper has been to address the research question of how are the processes of resource enrichment and capability deployment coordinated during information technology (IT) implementation at a small- and medium-sized accounting firm (SMAF)? Increasingly, organizations need to respond to a wide range of IT-based opportunities and pressures. The situation is no different in an accounting firm. Many accounting practitioners have advocated investment in IT to improve accounting firms’ productivity. To date, there are many instances of how IT has radically transformed the nature of accounting practice. Nevertheless, little is known about how IT capability is developed in SMAFs. In particular, the resource enrichment process during IT capability development has been understudied. Design/methodology/approach – The strategy of this paper was to undertake qualitative case research of an ERP systems upgrading project at SMAF. The case study approach is particularly appropriate for this exploratory study because it allows the capture of organizational dynamics of the phenomenon better (Newman and Sabherwal, 1996; Yin, 2003). Its strength also lies in its ability to explain the phenomenon based on the interpretation of data (Klein and Myers, 1999). Next, the paper will explain the case study approach. It approached fieldwork at SMAF, with a premise that resource enrichment and capability development exist and are identifiable using an existing theoretical lens. Accordingly, this study draws on Sirmon et al. (2007) ’s concept of resource enrichment process and objectively studied the IT capability development process through the resource enrichment lens. At the same time, it was recognized that resource enrichment and capability development may have their own unique characteristics, unrelated to any theoretical models offered in the organizational literature. Findings – The purpose of this paper has been to address the research question of how resource enrichment process may occur during IT capability development process of an SMAF. This study used a resource-based view of firms as its analytical lens. The study has drawn on SMAF’s sage ACCPAC ERP solution (ACCPAC) system upgrading experience by interviewing relevant project stakeholders and reviewing secondary data extensively. Our analysis identified two actions that were instrumental in enriching resources in the IT capability development process: collective leadership and managing change. Three attributes that supported the resource-enrichment process include effective governance structure, extensive IT knowledge and business experience, and stakeholder commitment. In addition, two coordinating mechanisms were put in place to enable an organization to transform existing resource and capability: informational and IT structure. Originality/value – From research point of view, this paper makes several theoretical contributions. First, this study has contributed to the accounting information systems literature by examining the transformation processes of resource and capability enrichment during IT implementation of a context that is little known. It helps to address the call for more research into IT use and the impact of such tools by SMAFs by Omoteso and Sangster (2011). Second, this study extends the understanding of the IT capability development process by demonstrating how an organization developed IT capability. Through this case, how fundamental resources can be leveraged through specific actions and strategies undertaken have been uncovered. The empirical evidence gathered in the case of SMAF provides useful insights into how resources and capabilities may be enabled. Third, the coordination of the resource and capability transformation contributes to theory development as the coordination mechanisms derived from this analysis offer an insights into how a set of enriched resources and capabilities are synchronized during IT implementation.

Exporters moving toward emerging markets: a resource-based approach

Purpose – The purpose of this paper is to understand whether and how specific capabilities at the firm level can sustain firms during the process of international expansion in emerging markets (EMs). Design/methodology/approach – A quantitative study was carried out, and the authors analyzed data from a sample of 271 manufacturing firms. A logistic regression was used to check for differences in the endowment of resources and capabilities of firms solely focussing on advanced markets (AMs) or extending their international scope to EMs as well. Findings – Firms that expanded their business in EMs showed a significantly higher endowment of international experience and marketing capabilities compared with firms that focussed only on AMs. The authors found that the size of the firm is irrelevant: even small firms can reach EMs by leveraging an appropriate set of capabilities. Research limitations/implications – The study is cross-sectional and cannot provide a longitudinal view of the process of capability development. Future research will be needed to detail the process of capability development during the international expansion of firms into EMs. Practical implications – Regardless of size, firms that plan to enter EMs should develop specific capabilities, especially marketing capabilities, to increase the likelihood of success. Already internationalized firms have a considerable advantage due to the knowledge they have accumulated in other markets. Originality/value – This paper advances understanding of the process of the international expansion of firms in EMs from a resource-based perspective.

Capability development with process maturity models – Decision framework and economic analysis

Despite the need for sustaining competitive advantage, scholars and practitioners struggle when deciding which organizational capabilities they should develop to what extent. Today, inconsistent recommendations bear the risk of misallocating corporate funds. Despite recent advances, further research needs to be conducted with respect to how uncertainty can be considered in capability development decisions and whether the cutting of capabilities is a feasible option. Against this background, we propose a conceptual framework for structuring capability development decisions. Due to the close relationship between capability development and business process management, the framework builds on process maturity models and the principles of value-based business process management. We also conduct an economic analysis to disclose general relationships that govern capability development based on process maturity models.

System Approach to Direct the System Development Capability

In the paper our original approach for taking decisions in capability development process is presented. The developed model is a tool that formally includes real options logic and thus directs the decision-making process regarding development of capabilities. Basic method applied to the numeric part of the model is fuzzy analytic hierarchy process. The following phase uses interval results of this method to calculate the integral uncertainty evaluation, which compared with boundary assessment, defines the risk of this process. How the use of such model will affect the quality of decision-making in real environment will be known the future, when the model will actually be subjected to the learning curve logic.

Organizational Learning and the Development of Global Health Educational Capabilities: Critical Reflections on a Decade of Practice

This paper describes the process of organizational global health capability development at the University of Maryland Baltimore over the past decade. Theories of organizational learning and of organizational capabilities are applied in this retrospective analysis of organizational innovations in global health education within UMB as well as in the University of Maryland School of Nursing.

전산지원 시스템 엔지니어링 도구를 이용한 합동능력 통합 및 개발 환경 구축 사례

US DoD operated JCIDS(Joint Capability Integration and Development System) for top down requirement generation. Although the JCIDS can be a good practice for the countries which are trying to shift from bottom up to top down requirement generation, it contains many processes related with review and approval. In this study we structured a joint capability integration and development process from the JCIDS eliminating the organization dependent review or approval process so that it can be applied to any organization with some modification. Furthermore we implemented the process in the computer aided systems engineering tool, Cradle, for convenient use of the process. The result of this study can provide a basic process for top down capability development, and an efficient why of doing each element of the process using CASE tool.

Case Study on Critical Success Factors of Running Scrum

Agile development 12 principles, and adaptive project management life cycle model are applied to case study of J group, the critical success factors of running Scrum are identified as follows: 1) explicit the process of project management and a self-managing group with Scrum; 2) professional agile development and release capability; 3) building learning organization. J group as a pioneer Scrum agile software development practices, realizes the productivity of significant promotion and cost reduction, accelerates the product to the market, improves customer satisfaction and achieves a more transparent development process and higher predictive capability. The study aims to improve the success rate of the running Scrum.