Capability Theory Research Articles

Digital Leadership and Sustainable Competitive Advantage: Leveraging Green Absorptive Capability and Eco-Innovation in Tourism and Hospitality Businesses

This study explores the influence of digital leadership (DL) on sustainable competitive advantage (SCA) in tourism and hospitality businesses, focusing on green absorptive capability (GAC) and eco-innovation (EI) as mediators. This study focused on middle-line management in travel agencies and hotels in Saudi Arabia. A total of 323 valid responses were collected and analyzed using WarpPLS 7.0, a PLS-SEM analysis tool. DL positively affected SCA, GAC, and EI. In addition, SCA was positively impacted by GAC and EI. Furthermore, this study found that GAC and EI significantly mediated the DL→SCA relationship. This study enhances the Dynamic Capabilities Theory, offering valuable insights for tourism and hospitality managers to utilize digital strategies and environmental initiatives for eco-conscious market competitiveness.

Seizing Capabilities and Performance of Supermarkets in Kenya

In Kenya the supermarkets provide market access for the manufacturers’ and small and medium enterprises’ products. In the recent past renowned supermarket brands such as Nakumatt, Tuskys, Choppies and Uchumi have collapsed due to underperformance. This paper examines the influence of seizing capabilities on the performance of supermarkets in Kenyan cities. The study was anchored on the dynamic capability theory (DCT). The study was grounded on positivism research philosophy and adopted crossectional descriptive research design. A structured questionnaire was used to collect primary data from 629 licensed supermarkets. A sample size of 304 respondents from a population of 1258 senior managers was used. Stratified random sampling method was used to select the sample size in Nairobi, Mombasa, Kisumu, and Nakuru. Descriptive statistics such as mean and standard deviation and inferential statistics which included correlation and regression are the statistical tools that were used to analyse the data. Statistical package for social scientists (SPSS) software version 28 was utilized to explore the data. The findings demonstrated that seizing capabilities have a statistically significance (β = 0.511, t = 12.501, p < 0.05) influence on the performance of supermarkets in the Kenyan cities. The study demonstrated that it is vital for supermarkets’ management to consciously design business models and allocate resources that can facilitate the optimal exploitation of new business opportunities to add value to the supermarkets. The management should develop a resource mobilization strategy to fund long term projects that are aimed at seizing opportunities that will improve supermarket’s survival and performance.

Perfect couple or toxic relationship? A meta‐analysis of the effects and interplays of lean and agile strategies to improve performance

AbstractBoth lean and agile practices have emerged as dominant organizational strategies to improve supply chain and firm performance. In addition, combinations of lean and agile, so‐called leagile practices, have developed. Most extant studies have tested the effects of specific subsets of lean, agile, or leagile practices on performance. This study proposes a comprehensive framework to investigate the complementary versus mutually exclusive performance gains of lean, agile, and leagile practices and their combinations. We review the literature and conduct a meta‐analysis of 127 empirical studies, yielding a total of 969 effect sizes across 30,741 firms. Our results indicate support for the positive link between lean, leagile, and agile practices and firm performance. Further analyses provide support for some aspects of cumulative capability theory, while others support aspects of trade‐off theory. We thereby enlighten the discourse about the cumulative and comparative effects of lean, leagile, and agile leveraging our comprehensive framework of practices. Specifically, our contribution identifies practice combinations that can be considered more valuable performance enhancers than others. Furthermore, our research guides managers on aligning and adapting lean, leagile, and agile practices with their firms' strategic priorities and performance goals. Finally, we showcase areas that require additional empirical investigation.

Key antecedents and consequences of blockchain technology adoption in the wine industry: a multiple case study analysis

PurposeThe present study aims to identify the antecedents and consequences of blockchain adoption in the wine industry from the absorptive capacity perspective through a multiple case study approach.Design/methodology/approachA multiple case study approach was utilized, wherein data was gathered through semi-structured interviews and secondary sources of information from the five Italian innovative wineries.FindingsThe results show that the dynamic capabilities of wineries and the creation of strategic partnerships are common conditions for the adoption of blockchain technology (BCT). In addition, findings reveal that creating value for all supply chain stakeholders and preventing counterfeit products are the most important consequences of BCT adoption.Research limitations/implicationsThis study fills a gap in the literature by investigating the drivers of BCT technology adoption under two theoretical lenses, Absorptive capacity and Dynamic capability theories, confirming the usefulness of these two theories in explaining the process of innovation adoption.Originality/valueThe originality of our research study lies in its investigation of the antecedents and consequences of BCT adoption in the wine supply chain, focusing specifically on the role of dynamic capabilities, knowledge acquisition and assimilation, strategic partnerships and open interactions with external actors in driving technological innovation and the successful implementation of BCT in the wine industry. By offering empirical data on the drivers and impacts of BCT adoption, as well as theoretical implications for technological innovation and value creation in the wine sector, our study contributes to filling gaps in the existing literature and provides practical insights for wineries and AgTechs seeking to integrate BCT into their business models.

Catalyzing Green Identity and Sustainable Advantage in Tourism and Hotel Businesses

Global environmental concerns necessitate a heightened focus on green practices by businesses to balance sustainability and profitability. Therefore, this study investigates the effects of green ambidexterity (GA), green organizational identity (GOI), and green internal marketing (GIM) on sustainable competitive advantage (SCA) in travel agencies and hotels. The PLS-SEM approach was used to test the proposed model of the study. In total, 317 valid responses were gathered from full-time middle- and upper-management personnel of travel agencies category A and five-star hotels operating in Egypt. The findings revealed that GA positively impacts GOI, GIM, and SCA. Also, GOI and GIM positively impact SCA. In addition, GOI and GIM mediate the relationship between GA and SCA. The study advanced dynamic capability theory by emphasizing the importance of internal processes in harnessing sustainability-oriented dynamic capabilities. The study recognized the relationship between SCA, GOI, GIM, and GA and provided insightful implications on how businesses might develop and use their sustainability-related strengths.

Coopetition, exploration and exploitation capabilities, and growth performance in digital healthcare ventures.

Studies focusing on coopetition and dynamic capabilities have expanded significantly over the past several decades. Coopetition strategy and dynamic capabilities are increasingly recognised as sources of sustained competitive advantage. The purpose of this paper is to provide a better understanding of the factors driving growth performance in digital healthcare ventures by examining the role of coopetition, exploration and exploitation capabilities, and environmental uncertainty. While numerous studies have examined the competitive advantage of coopetition, its specific contribution to the growth of ventures in the digital realm remains less explored. Clarifying the strategic role of coopetition in driving growth performance is critical for delineating the intricate relationship between coopetition and growth performance, particularly in the context of digital healthcare ventures. To fill in this research gap, this study uses coopetition theory and dynamic capabilities theory to look at how exploration and exploitation capabilities, as well as environmental uncertainty, affect the relationship between coopetition and growth performance in digital healthcare ventures. We collected a total of 338 questionnaires from Chinese digital healthcare ventures between March 2023 and August 2023. We conducted data analysis using SPSS 26.0 and its macro-program PROCESS. Our results confirm that coopetition has a positive effect on growth performance in digital healthcare ventures. Furthermore, exploration and exploitation capabilities fully mediate the relationship between coopetition and growth performance. Moreover, environmental uncertainty significantly and distinctively moderates the impact of exploration and exploitation capabilities on growth performance. This study contributes to the existing literature by providing deeper insight into the relationship between coopetition and growth performance in digital healthcare ventures. It also offers important practical implications for public health improvement and socio-economic development.

Exploring Theories and Social Policy Changes During COVID-19 Pandemic

The COVID-19 pandemic presented unprecedented challenges to the capacity of developed welfare states to meet emerging needs. In its initial year, the pandemic prompted a wave of new social policy programmes and modifications to existing ones. This study empirically investigates the applicability of various social theories in elucidating the dynamics of social policy changes during the COVID-19 crisis. Reflective analysis employs Hegelian dialectics as a methodological framework on established theories, including welfare regime theory, path dependence theory, path creation, and incorporates contemporary perspectives such as capability theory. The aim is to reflect and discern what these approaches explain and how these theoretical paradigms account for the observed shifts in social policy dynamics. The paper builds on previously published studies focused on the dynamics of persistence and change, mitigation and prevention, divergence and convergence, and continuity and irruption in social policies implemented in response to the pandemic. The article also contributes at developing a theoretical and methodological reflective approach to examine social policy changes in multiple contexts.

Knowledge Management and Capability Theory in Structured Products: Perspectives From Industry Professionals

The structured products industry has lagged development of other areas of financialization. But that is changing quickly. This paper investigates the forces driving this industry’s recent and rapid growth using interviews with industry professionals which we analyze through the lens of intelligent complex adaptive systems theory and capability theory. We unpack the relationship between retail investors and issuers of structured products as well as the fintech-enabled knowledge management structure these firms have developed to exploit retail opportunities. We find that the lag in development has been due to the necessity of lower costs and the ability to create individualized structured products. The firms that are succeeding in this industry have identifiable sources of competitive advantage that make them more likely to achieve and sustain viability above mere survival than their rivals, what we call capability. From this, we extract generalizable principles for all knowledge management professionals.

THE NEXUS BETWEEN MANAGERIAL CAPABILITIES, SPONSORSHIP AND PERFORMANCE OF PRIVATE CHARTERED UNIVERSITIES IN KENYA

The changing higher education space has created the need for universities to align themselves in order to record improved performance and also be able to compete globally with other universities. Universities are considered as institutions as well us organisations and therefore they need to have managers with the relevant capabilities in order to drive the university forward. Unlike public universities that are sponsored by the government private universities have different sponsors who influence their ability and capability to performance. A triangulation of both quantitative and qualitative designs was used. This study therefore sought to investigate the nexus between managerial capabilities, sponsorship and performance of private chartered universities in Kenya. This study targeted all the registered private chartered universities and was pegged on the dynamic capabilities theory and the agency theory. Data was collected using questionnaires and analysed using SPSS version 25. The study findings indicated that sponsorship influenced managerial capabilities and performance of private chartered universities in Kenya. KEYWORDS: Managerial Capabilities, Performance, Private Chartered Universities, Sponsorship

Entrepreneurial Resilience During COVID-19: The Survival of Small Businesses Using Dynamic Capabilities Theory and Effectuation Theory

Objectives: This study explores how Bali's sport tourism stakeholders used dynamic capabilities to mitigate COVID-19's impacts. Given Bali's reliance on sport tourism, understanding recovery is crucial. The research aims to identify pandemic challenges, explore strategic recovery plans, and understand how entrepreneurs leverage dynamic capabilities for survival and growth. Theoretical Framework: The study integrates dynamic capabilities and effectuation theories with entrepreneurial resilience. Dynamic capabilities involve adapting, learning, and transforming activities to meet changing environments. Effectuation theory focuses on leveraging available means and making decisions based on emerging opportunities. Together, these theories offer a comprehensive understanding of adaptation strategies among Bali's sport tourism entrepreneurs. Method: Using a qualitative design, the research conducts semi-structured interviews with 10 small and medium-sized enterprises (SMEs) in Bali's sport tourism sector. Results and Discussion: Findings highlight resilience's role in fostering adaptability, motivation, and a learning mindset. An activity-based model for dynamic capabilities focuses on integration, learning, and transformation with employee and customer involvement. Leveraging dynamic capabilities, assessing opportunities with available means, and using innovative technologies are crucial for strategic decisions in uncertain environments. Research Implications: This study contributes to the entrepreneurship and strategic management literature. Integrating dynamic capacities, effectuation theories, and entrepreneurial resilience provides useful insights for academics, policymakers, and practitioners. The work offers practical solutions for resilience in dynamic contexts. Originality/Value: This study enhances understanding of how Bali’s sport tourism entrepreneurs adapt to a transformed entrepreneurial ecosystem. It serves as a valuable resource for developing resilient strategies for future disruptions.

Relationship between supply chain disruption orientation and firm’s resilience in China: the dynamic capabilities perspective

ABSTRACT This study attempts to reveal the relationship between supply chain disruption orientation (SCDO) and firm’s resilience in China under the background of the US–China trade war. Furthermore, the paths to build firm’s resilience through resource reconfiguration and organizational learning (OL) are explored with dynamic capabilities theory. We adopt mixed-methods research design, collecting survey data from 220 Chinese manufacturing firms to test the conceptual model with partial least squares structural equation modelling and second-hand data from Dow Jones Factiva to conduct theme analysis. The results show that resource reconfiguration and OL have full mediation effect on the relationship between SCDO and firm’s resilience, respectively.

Thriving in vertical schools: aspirations for inclusion and capability from a salutogenic design perspective

AbstractSchool designs have far-reaching future impacts. Facilities often remain unchanged for decades influencing whether generations of young people feel included and can access educational entitlements, especially those identifying as someone from a marginalised or minority group. Student perspectives are therefore essential to understand inclusive school environments. Student perspectives about their experiences of thriving in three new Australian vertical high schools designed to be inclusive from the outset were analysed alongside aspirations from the adults involved in designing them. Inclusion was uniquely conceptualised through capability and salutogenic theories that informed the analysis of annotated maps from over 200 Year 8 students. Inclusive environments were more evident when they were meaningful, made sense, and were easy to manage. Students highlighted the importance of choice, comfort, and spaces for resetting. Aspects where students had to work harder to manage the learning or themselves in the environment point to challenges in achieving SDG4a, where facilities need to be inclusive for all. The new conceptual approach extends current theory on designing for inclusion with intentionality in a holistic way to guide greater realisation of inclusive aspirations in school environments.

Dynamic Capability Theory in Islamic Bank Merger Discourse in Indonesia (Profitability, Productivity, and Efficiency Perspective)

Dynamic Capability Theory in Islamic Bank Merger Discourse in Indonesia (Profitability, Productivity, and Efficiency Perspective)

Role of leadership styles in connecting quality culture and university performance: a higher education perspective from Saudi Arabia

PurposeThis study examines the influence of quality culture (QC) on university performance (UP) within the higher education (HE) context of Saudi Arabia, exploring the mediating roles of transformational (TFL) and transactional leadership (TNL) styles.Design/methodology/approachThe study utilizes a cross-sectional survey approach, collecting data through online surveys from administrators representing public and private universities in Saudi Arabia. Data analysis is conducted using PLS-SEM.FindingsThe findings indicate that QC exerts a notable direct influence on UP, along with an indirect effect mediated by TFL and TNL. Additionally, the influences of TFL and TNL on UP are statistically significant. However, the effect of TNL on UP and its role as a mediator in the QC-UP relationship demonstrate partial significance.Research limitations/implicationsThis study enriches the theoretical comprehension of quality assurance in HE by incorporating QC as a dynamic capability within Dynamic Capability Theory and TL and TFL as valuable resources within Resource-Based View theory. However, limitations such as a cross-sectional design and reliance on input solely from university administrators must be acknowledged.Practical implicationsThe study offers practical insights for policymakers, administrators, and quality managers, emphasizing the economic benefits of robust QC in universities. It highlights QC's impact on policy, curriculum development, and public trust, advocating tailored strategies to improve efficiency and collaboration, crucial for overcoming bureaucratic barriers, especially in public universities.Originality/valueThe originality of this study lies in introducing TFL and TNL as mediators between QC and UP within a university setting.

Does digital transformation foster carbon emissions reduction? Evidence from China’s manufacturing supply chain

PurposeScholars and practitioners have long debated carbon dioxide (CO2) emissions reduction via setting double-carbon goals of peak emissions and carbon neutrality in China. Our study, based on dynamic capability and resource dependence theory (RDT), explores whether digital transformation (DT) affects carbon emissions reduction (CER), and the role of operations and supply chain management (OSCM) factors in this relationship.Design/methodology/approachThe samples are constructed with 454 A-shared listed manufacturing firms with complete financial data from 2010–2021. Regression models with fixed effects are applied to estimate the potential parameters.FindingsWe find that DT promotes CER. The performance output of CER is strengthened when supplier concentration and customer concentration are high. In contrast, the performance output of CER is weaker when environmental uncertainty is high.Originality/valueThe findings of our study enrich the literature on CER in Chinese manufacturing firms and highlight DT and OSCM factors as important drivers influencing CER practices.

Understanding the role of organizational design in fostering long-term dynamic capabilities: a longitudinal case study

PurposeOrganizational design has been suggested as a facilitator of an organization’s dynamic capabilities. This study aims to investigate the role of organizational design in the concept of dynamic capabilities and explores how it facilitates long-term dynamic capabilities in practice.Design/methodology/approachEmpirical data were collected via a longitudinal case study conducted at a global company engaged in the development and manufacture of railway equipment. Specifically, this study focused on one of the organization’s sites in Sweden for a period of approximately five years.FindingsOrganizational design has a twofold impact on dynamic capabilities, functioning as both a facilitator and an impediment. It is essential for structures and processes to align with the available resources and capabilities of an organization. Moreover, managers’ beliefs and decision making significantly influence the extent to which organizational design choices effectively foster dynamic organizational performance.Originality/valueThis longitudinal case study contributes to the theory of dynamic capabilities by identifying key changes in an organization that is transforming to become more dynamic and the impact of organizational design on the organization’s dynamic capabilities.

The influence of leadership on organizational adaptability

Aim. To identify how leadership, strategy, technology, and organizational structure complexity influence organizational adaptability and what is the role of leadership in this process.Objectives. On the basis of dynamic capabilities theory to study adaptive processes of modern organization; to investigate the influence of innovation, strategy and complexity of organiza­tional structure on organizational adaptability processes; to show the influence of leadership on adaptive processes.Methods. The article is based on a sociological study, which was carried out on the basis of online surveys of 245 respondents. Structural modeling was used to test the hypotheses.Results. The study revealed that strategy and technology influence the level of adaptability of the organization, and leadership, mediating the influence of strategy, technology and complex organizational structure, simplifies the processes of adaptation of the organization. Due to the influence of leadership, the complexity of organizational structure does not hinder adaptive processes. Organizational adaptability using leadership is effective in organizations where intel­lectual capital exists.Conclusions. Strategic leadership techniques promote organizational adaptability. The leader uses a leadership style that aligns tasks and focuses on relationship approaches that lead to adaptive change in the organization.

An empirical examination on firm innovativeness and supply chain resilience: The role of information sharing from a dynamic capabilities view

AbstractSupply chain disruptions present an existential threat to firms in today's highly competitive global economy. To appropriately thwart and mitigate this threat, firms must innovate capabilities that enhance and properly balance investments in their supply chain resilience posture. This study investigates the importance of information sharing and its interactive influence on firm innovativeness and resilience. This study uses a survey and partial least squares multigroup analysis to empirically test a theoretical model grounded in dynamic capabilities theory. Contributions from this study highlight that regardless of firm size, firm innovativeness is a significant antecedent to supply chain resilience. Key findings show that small firms use information sharing, whereas large firms do not, with their suppliers to accelerate innovation efforts in developing supply chain resilience capabilities. This study extends knowledge in the field by providing insights enabling large firms to improve their information sharing efforts to enhance innovation activities.

Corporate digital transformation and financing constraints: The moderating effect of institutional investors

In the age of digitization, digital transformation has emerged as a crucial pathway for companies to achieve sustainable development. In a sample of 24,103 firm-year observations from 3,508 listed companies in China's A-share market between 2007 and 2020, we investigate the relationship between corporate digital transformation and financing constraints based on dynamic capability theory. The proportion of intangible assets dedicated to digital technology is employed as a measure of the degree of digital transformation, and the SA index is utilized to assess the level of financing constraints. The findings demonstrate that digital transformation plays a significant role in alleviating financing constraints. In addition, greater institutional ownership leads to a pronounced negative correlation between digital transformation and financing constraints. From the perspective of dynamic capability theory, this study provides empirical evidence supporting research on economic consequences associated with digital transformation. Our results may contribute towards government formulation and implementation of policies promoting digital transformation to create a supportive external environment for businesses. Companies must seize opportunities associated with digital transformation to mitigate financing constraints.

Role of Readiness to Change in the Relationship Between Workforce Agility and Digital Transformation

This paper uses dynamic capabilities theory to explore the role of readiness to change as mediator in the intricate relationship between workforce agility and digital transformation. A total of 161 usable responses were gathered in two-waves of surveys from Indian organizations. Structural equation modelling was utilized to rigorously test the research hypotheses. The results unearthed a noteworthy positive link between workforce agility and the readiness to change, and this readiness, in turn, significantly influenced digital transformation. Intriguingly, the study also unveiled a direct relationship between workforce agility and digital transformation. The findings contribute a valuable thread to the literature, as it seamlessly weaves the concept of workforce agility into the fabric of digital transformation with Industry 4.0 context. This study would empower HR managers with a deeper understanding of the workforce's mindset and their preparedness to navigate technological changes. Such insights are indispensable, as effective change implementation hinges on insightful leadership.