Development Of Dynamic Capabilities Research Articles

The Power of Dynamic Marketing Capability in Lao SMES: The Roles of Innovation and Entrepreneurial Capability

Introduction: This quantitative study investigates the dynamic marketing capabilities of small and medium enterprises (SMEs) in Lao PDR, using the resource-based view theory (RBV) and the dynamic marketing capability theory (DMC) as theoretical frameworks.   Methods: Data were collected through questionnaires distributed to 367 entrepreneurs in Vientiane, Savannakhet, and Champasack provinces. Structural Equation Modeling analysis was conducted using the SMART PLS 4.0 software.   Results: Findings reveal that entrepreneurial capabilities and innovative abilities significantly influence the development of dynamic marketing capabilities among Lao SMEs. Dynamic marketing capabilities positively affected both marketing and firm performance.   Discussion: The findings emphasize the importance of nurturing dynamic marketing capabilities for SMEs in Lao PDR. Environmental dynamism and government support examine the moderating role of external factors’ impact on SMEs' adaptability.   Conclusion: This study underscores the significance of DMC for SMEs in enhancing organizational efficiency and profitability in Lao PDR. The findings can serve as a guideline for businesses and policymakers to navigate the complexities of the local business landscape.

Sustainable business model innovation, dynamic capabilities, and organizational design: Insights from Norwegian aquaculture

AbstractFirms must increasingly grapple with complex sustainability challenges. Business model innovation is needed to achieve radical sustainability improvements. Recent research highlights the interrelatedness between business model innovation, dynamic capabilities, and organizational design, calling for empirical work to better illuminate these relationships. These connections are relevant in sustainability contexts, where organizational barriers and drivers have been shown to either facilitate or hinder the development of dynamic capabilities for sustainable business model innovation (SBMI). This paper presents a case study of an emergent low‐carbon offshore aquaculture value chain in Norway to illuminate the importance and roles of these organizational factors. Based on our analysis, we identify those barriers and drivers present in the Norwegian salmon aquaculture industry; add to the body of theory around organizational design, dynamic capabilities, and SBMI; and offer insights for practitioners in the aquaculture sector aiming to develop dynamic capabilities for SBMI.

Entrepreneurial Orientation and Transformational Leadership for the Development of Innovation Capabilities

Purpose: This paper aims to analyse the impact of entrepreneurial orientation (EO) through the relationship of transformational leadership (TL) for the development of dynamic capabilities (DC) for organisational innovation. Methodology/Approach: Under a qualitative method, and a single case study strategy, data were obtained from interviews with 15 senior managers and leaders of innovation activities; the document review and data triangulation method was used to analyse causality relations proposed in the theoretical framework. Findings: The empirical results confirm that the EO and TL have a positive relationship with the development of innovation capabilities. Findings indicate that risk-taking, proactiveness, assimilation, and exploitation of internal and external knowledge remain the main difficulties in improving innovation capabilities and adaptability in the technological environment. Research Limitation/implication: The present paper gathered data from a specific organisation in the field of EO. The research allowed us to better understand the incidence of EO, TL, and DC  regarding the relationship between variables, and it should be considered a potential source for enhancing innovation management capabilities. Originality/Value of paper: This work is the first that integrates the concepts of EO with other related disciplines into a single case strategy, within a specific entrepreneurship and innovation ecosystem context in a large automotive industry.

Entrepreneurship trajectories: investigating the development of dynamic capabilities and the trend of random inefficiency by designing country-specific prescriptive models

Entrepreneurship trajectories: investigating the development of dynamic capabilities and the trend of random inefficiency by designing country-specific prescriptive models

Pathways of development of dynamic capabilities for servitization transformation: A longitudinal multi-case study

Servitization is a transformation process requiring manufacturers to develop dynamic capabilities to support the change process and overcome emerging challenges over time. In this paper, we study pathways of development of dynamic capabilities for servitization transformation (the sequence of the development of capabilities and how they work together over time) and how they relate to servitization transformation outcomes. We do so based on six longitudinal in-depth case studies of manufacturing firms which, having departed from similar servitization maturity starting points, followed different capability development pathways in their transformation processes and achieved different outcomes. We found that successful pathways of development of capabilities for servitization transformation are associated with (1) developing (first-order) dynamic service provision capabilities sequentially, following a specific order over time and (2) developing (second-order) dynamic reconfiguring capabilities to overcome challenges and sustain the development of service provision capabilities and the transformation process. Our study contributes to the literature by providing an in-depth understanding of how the pathways of development of dynamic capabilities over time influence the outcomes of the servitization transformation process. It is one of the first studies to unveil in detail mechanisms by which different reconfiguring and service provision capabilities work together over time to facilitate the servitization transformation process.

Intangible resources, static and dynamic capabilities and perceived competitive advantage in exporting firms. A PLS-SEM/fsQCA approach

The aim of this paper is to fill the existing research gap in the knowledge of the interrelationships between relational resources, the static capabilities associated with the planning and organization of export activity, certain dynamic capabilities—international entrepreneurial orientation, orientation to foreign markets and strategic flexibility—and the achievement of perceived competitive advantages in international markets. The proposed conceptual model is analyzed on the basis of an empirical study using a multisectoral sample of 330 Spanish exporting companies. The results obtained, based on the use of SmartPLS and fsQCA, show that: 1) relationship resources are essential determinants for the development of an adequate export planning and organization capacity and have an impact on the international entrepreneurial orientation of the organization; 2) it is necessary to plan and organize exports well, since the adequate development of dynamic capabilities in international markets will depend on this; 3) international entrepreneurial orientation, orientation to foreign markets and strategic flexibility are essential, directly or indirectly, for the achievement of sustainable competitive advantages in foreign markets. Based on the results and conclusions obtained, the main implications for management are proposed.

Linking supply chain performance with organizational strategic performance – a review and research agenda

PurposeThis article aims to comprehensively review the measurement and management of supply chain performance (SCP) and strategic performance (SP). It strives to identify integrable features regarding frameworks, measurement approaches, practices and emerging research issues in these areas to integrate SCP and SP for measuring and managing performance. It intends to develop a dynamic-integrated-performance-system by incorporating integrable aspects of SCP and SP to link these domains for organizational performance improvement.Design/methodology/approachUsing systematic-literature-review, this study analyzes 154 articles published in selected peer-reviewed international journals from 2000 to 2023 regarding SCP and SP. It assesses existing knowledge regarding research-design followed, challenging areas and imperatives in these critical business domains to investigate the prior conceptual, empirical, case study-based and literature-review-based articles.FindingsThe study identifies integrable features regarding key theoretical and measurement frameworks, critical objectives, significant measures, effective practices for measuring and managing SCP and SP and emerging research issues common to these areas. The findings help develop a dynamic-integrated-performance-system that uses the theoretical lenses of resource-based-view/dynamic-capability-theory and adopts a comprehensive framework like DBSC (system-dynamic-model with BSC perspectives). It incorporates identified integrable measures and best practices to monitor, measure, manage and improve organizational performance for sustainable competitive advantage. The article reveals that earlier studies have overlooked analyzing SCP and SP integration aspects.Research limitations/implicationsFrom the theoretical viewpoint, the present SLR is unique in three ways: first, in investigating both the measurement and management of SCP and SP holistically; second, in identifying integrative features of these two; and third, in proposing a DIPS to link SCP and SP for performance improvement. The study reveals that existing literature has focused on measuring and managing SCP and SP in isolation without attempting a comprehensive and unified approach to integrate the respective domains. The present SLR adopts a holistic approach to link SCP and SP from SCM and strategic-management perspectives. The study proposes a dynamic-integrated-performance-system to measure, manage and improve performance in a unified method.Practical implicationsThis study provides SC and strategy practitioners with an understanding of strategy-performance pathways for achieving strategic objectives and executing risk mitigation initiatives to counter disruptions. It enables SC managers to comprehend SC practices and SCP leading to dynamic SC capabilities development. Operationalizing the proposed DIPS will help firms link SCP and SP, align operational SC practices with strategic sustainability and circularity objectives and meet sustainable development goals while benefiting social and environmental stakeholders.Originality/valueAssessing relationships and identifying a unified approach integrating SCP with SP have not been addressed earlier. This study's uniqueness is finding integrable features of SCP and SP and constructing a dynamic-integrated-performance-system to link these domains for achieving strategic competitiveness.

Understanding the relationship between entrepreneur courage quotient and enterprises' sustainable growth

This study develops the first entrepreneur courage quotient in China and conduct regression analysis and empirical testing on the relationship between Entrepreneur courage quotient and enterprises' sustainable growth using a sample of 359 entrepreneurs. The research findings indicated that Entrepreneur Courage Quotient has a direct impact on enterprises' sustainable growth, it also promotes the development of social networks and dynamic capabilities, which in turn contribute to enterprises' sustainable growth. Entrepreneur Courage Quotient also has a significant indirect effect on s enterprises' sustainable growth through social networks. Additionally, environmental uncertainty positively moderates the relationship between Entrepreneur Courage Quotient, dynamic capabilities, and enterprises' sustainable growth. This research highlights the importance of entrepreneurial courage as a charateristic for enterprises' sustainable growth and lays the foundation for future research.

Business Growth Management and The Dynamic Capabilities Concept

The paper aims to examine the specifics of the business growth management from the dynamic capabilities’ perspective. Firm growth has to be considered and analysed as a whole process rather than as a single action. The main objective of the paper is to examine the relation between firm performance and growth and the dynamic capabilities. The general assumption is that the creation and development of dynamic capabilities influence positively the business growth management processes. Dynamic capabilities reveal some common issues across firms. Those companies that intend to grow, may use their dynamic capabilities to better reconfigure their internal resources, better detect and exploit external opportunities.

Legal–institutional design and dynamic capabilities for mission-oriented innovation agencies: a new framework

Abstract Recent scholarship emphasizes the need for mission-oriented innovation policies (MOIPs) to tackle grand challenges and the importance of dynamic capabilities in innovation agencies for their implementation. However, the development of dynamic capabilities in innovation agencies, especially in relation to the legal and institutional design of such agencies, remains understudied. We propose a framework integrating research on innovation policy, dynamic capabilities, and legal institutionalism, adapting the three high-order dynamic capabilities—sense, seize, and transform—into nine more concrete low-order capabilities for implementation of MOIPs. We also look at rules and institutional design related to five groups of routines affecting the development of dynamic capabilities: (1) governance, (2) organizational design, (3) budget and finance, (4) public procurement and partnerships, and (5) human resources. We conclude by outlining the analytical and policy implications for (re)designing innovation agencies to implement MOIPs.

Toward a Multilevel Framework of Dynamic Capabilities Through the Lens of Project Management, Project Portfolio Management, and Project-Based Organizations

Project management, project portfolio management (PPM), and project-based organizations (PBOs) literature lacks in approaching the development of dynamic capabilities (DCs). However, creating a competitive advantage through DCs has been considered a valued mechanism. Hence, this study critically reviews the literature, looking for cross-fertilization that bridges the literature on DCs with project management, PPM, and PBOs, using a multilevel perspective to organize the coding book and explore the microfoundations of DCs. Merging content analysis and bibliometrics, we identify 99 DCs clustered into three levels: project management, PPM, and PBOs. It proposes a multilevel framework that classifies the core DCs per level of analysis.

Smart HRM 4.0 practices for organizational performance: the role of dynamic capabilities

PurposeThe study explores the factors affecting the use of smart human resource management 4.0 (SHRM 4.0) practices and its effect on dynamic capabilities and, consequently, on organizational performance.Design/methodology/approachThe authors used socio-technical and dynamic capabilities theory to propose the notable research model. The authors explored the factors driving the use of SHRM 4.0 practices and their contribution to organizational performance through the development of dynamic capabilities. The authors collected data from 383 senior HR managers using a structured questionnaire, and PLS-SEM was used to analyze the data.FindingsThe results show that socio-technical factors such as top management support, HR readiness, competitive pressure, technology readiness and perceived usefulness influence the use of SHRM 4.0 practices, whereas security and privacy concerns negatively influence them. Furthermore, the authors also found the use of SHRM 4.0 practices influencing the dynamic capacities (build (learning), integration and reconfiguration) and, subsequently, its impact on organizational performance.Originality/valueIts novelty lies in developing a model using dynamic capabilities and socio-technical theory to explore how SHRM 4.0 practices influence organizational performance through dynamic capabilities. This study extends the literature on SHRM 4.0 practices, HR technology use, HR and dynamic capabilities by contributing to socio-technical theory and dynamic capabilities and expanding the scope of these theories in the area of HRM. It provides crucial insights into HR and top managers to benchmark SHRM 4.0 practices for improved organizational performance.

How to mobilize owner-dynamic capabilities in megaprojects? A tripartite evolutionary game approach

PurposeCurrently, many studies have shown an increasing interest in owner-dynamic capabilities (ODCs). Existing studies mainly focus on the dynamic capability basis and capability development within the owner organization, whereas they rarely analyze the capability mobilization within the network of participants in megaprojects. Therefore, this study aims to explain the interaction and evolution of the mobilization strategies of ODCs and the cooperative strategies of other participants.Design/methodology/approachThis study develops a tripartite evolutionary game model to analyze the evolutionarily stable strategy of the owner, the reciprocal participants and the general participants. Results are numerically simulated with a validation case. The asymptotic stability of multiple group strategies is discussed under the replicator dynamic system.FindingsThis study suggests that resource complementarity significantly reduces the difficulty of mobilization. Moreover, these strategies are only effective with sufficient ODCs. The results indicate that reciprocal participants are more sensitive to the change in resource complementarity.Originality/valueThis study provides strategic guidance for mobilizing ODCs in megaprojects to better embrace uncertainty and stress, contributing to the dynamic capability literature with an evolutionary game approach. And new insight for the study of reciprocity preference in megaprojects is also provided.

Chinese Multinationals’ Dynamic Integrations in the Developed Market: From a Resource Dependence Perspective

Integrating the developed-market resources after acquisitions is a crucial tool for Chinese multinational enterprises (CMNEs) to accelerate industrial high-quality development. However, existing theories have scarce thorough explanations of the dynamic mechanism of CMNEs’ post-merger integrating resources. Our research aims at disclosing CMNEs’ post-merger integration (PMI) long-term dynamics under resource relatedness changes. We applied a multiple-case study with four typical CMNEs’ German-market PMI cases and proposed a theoretical framework based on a coding analysis of 38 interviews. Our findings highlight that: CMNEs change initial gentle integrations (partnering/preservation) to balance dependence when pre-merger resources complementary decreases with similarity increasing, or to extreme dependence when pre-merger resources similarity continually increases to extremely high. Pre-merger resource relatedness basics and later changes and CMNEs’ dynamic capability (threat and development potentials’ perception capabilities and utilization capability) are crucial factors in promoting CMNEs’ PMI changes. Our originality lies in that we consider the interactions resource relatedness changes and CMNEs’ PMI dynamics, strongly replenishing the deficiency of current PMI dynamic studies that lack considerations of resource relatedness changing; also, we simultaneously consider the two facets of dependence asymmetry and joint dependence such that broadened the application of resource dependence theory (RDT) in PMI studies. Our study offers managerial insights into CMNEs’ development leapfrog through acquisitions in developed markets that CMNEs should focus on the vital role of inter-firm resource relatedness changing. Initial gentle integration can be deepened when original resource backgrounds become more similar but should be cautious of the effect of power imbalance and selfish actions.

Understanding Corporate Green Competitive Advantage through Green Technology Adoption and Green Dynamic Capabilities: Does Green Product Innovation Matter?

Our study explores the association between the adoption of green technology and the development of green dynamic capabilities to achieve green competitive advantage. This research concentrates explicitly on the mediating function of green product innovation. The study is grounded in the dynamic capabilities theory and seeks to improve understanding regarding how organizations can attain a competitive edge by employing green practices and capabilities. Data were obtained from 312 manufacturing business managers in Bangladesh. We utilized the partial least squares structural equation modeling (PLS-SEM) method to examine the data and evaluate the proposed hypotheses. The empirical evidence suggests that both green technology adoption and green dynamic capabilities significantly impact firms’ green product innovation and competitive advantage. Additionally, the findings indicate that green product innovation is a mediating variable in the association between green technology adoption-green competitive advantage and green dynamic capabilities-green competitive advantage. This research adds to the current body of literature by presenting empirical findings highlighting the crucial role of green technology and dynamic capabilities in promoting green competitive advantage. Our results reveal that it would be beneficial for organizations to prioritize adopting eco-friendly technologies and cultivating dynamic capabilities to improve their overall green performance. The present study contributes significantly to the literature by offering insights into the strategies managers and policymakers can employ to attain sustainable competitive advantage in the manufacturing sector.

A review of dynamic capabilities evolution—based on organisational routines, entrepreneurship and improvisational capabilities perspectives

The aims of this study were to better integrate various schools of definition of dynamic capabilities theory since its emergence and to determine the evolution mechanism of dynamic capabilities by conducting a systematic literature review using bibliometrics and content analysis. The literature review identified multiple perspectives regarding the evolution of dynamic capabilities, including organisational routines, entrepreneurship, and ‘improvisational capabilities’. A micro-evolution framework of ‘individuals, groups and organisations’ was obtained from these perspectives and then aggregated into an ‘adapt-innovate-respond’ analysis framework of dynamic capabilities evolution. The analytical framework forms a spiral model of dynamic capabilities demonstrating the relationship between the evolution of dynamic capabilities and enterprises. This study integrates multiple perspectives on dynamic capabilities, establishes a comprehensive analysis framework, and clarifies the essential connotations of dynamic capability evolution. Finally, suggestions for future research on the evolution of dynamic capabilities are provided.

Dynamic capabilities developed by the interaction of individuals

THE AIMS OF THE PAPER The existence of dynamic capabilities is key for newly created organizations. However, the development of these capabilities is less researched, especially in the case of start-ups. The primary aim of the study is to explore the characteristics of the development of dynamic capabilities through the case study of a domestic start-up, to illustrate the relationship between organizational and individual capabilities, while providing insights into the interaction between individual capabilities that can lead to the development of dynamic organizational capabilities. METHODOLOGY The primary data collection took place at a domestic start-up. The chosen methodology is the case study, in which three data sources were used. The in-depth interview served as the primary data source, personal or online interviews for at least 45 minutes were conducted with all members of the organization. The in-depth interviews were supplemented by document analysis to gather information from other sources. At the end of the study, the results were validated in a management workshop. MOST IMPORTANT RESULTS During the development of dynamic capabilities four types of interactions between individual capabilities could be identified: complementation, merging and extending similarities, searching and selecting alternatives and acceptance. Each type of interaction provides a solution in different situations, but all of them ultimately contribute to the development of dynamic capabilities. RECOMMENDATIONS Development of dynamic organizational capabilities (hence flexibility) is at least partly rooted in individuals and the interactions between them. It is therefore worthwhile for organizations to emphasize the acquisition of employees with good dynamic managerial capabilities and their involvement in interactions.

Managerial Attention to Hybrid Goals and Dynamic Capability Development in Social Enterprises

Managerial Attention to Hybrid Goals and Dynamic Capability Development in Social Enterprises

Sensing, seizing, and reconfiguring dynamic capabilities in innovative firms: Why does strategic leadership make a difference?

Despite existing evidence indicating that organizational learning positively influences dynamic capabilities, the complex and dynamic interplay of leadership in this process still remains incomplete. Organizational learning models note that leadership is embedded in the development of dynamic capabilities, and this research empirically investigates the interplay of organizational learning (exploitative and exploratory learning) and strategic leadership (transformational and transactional leadership) in developing dynamic capabilities (sensing, seizing, and reconfiguring). A survey questionnaire on a sample of 106 firms is carried out, and results of hierarchical linear regressions indeed reveal that organizational learning shows a direct or indirect influence on dynamic capabilities through transactional or transformational leadership, depending on the type of department. This study is an innovative attempt to distinguish different antecedents for each type of dynamic capability on the basis of the type of learning and strategic leadership involved.JEL classification: M12

Universities' entrepreneurship mission in a Dynamic Capability approach: A multicase study in south Brazil

Objective of the study: In order to understand how universities in south Brazil have been developing their entrepreneurship mission this study aimed to analyze the role of their Technology Transfer Offices (TTOs) by the lens of the dynamic capability theory, considering sensing, seizing and transforming practices. Methodology/approach: qualitative approach, and a multiple case study strategy, 31 semi-structured interviews were carried out with different actors linked to university TTOs as well as documentary research. Main results: The results reveal that sensing, seizing, and transforming practices have been adopted by the university TTOs and are supporting them to face the new scenario in higher education represented by entrepreneurial and innovational demands. Theoretical contributions: They consist on a debate on how universities in Brazil are strategically managing their practices in order to adapt to a new era in higher education throughout the development of dynamic capabilities. Relevance/originality: This research provides an in‐depth process analysis including the microfoundations of dynamic capabilities to the development and the advance of the third mission of the universities, contributing to the study’s originality. Management contributions: The managemental contribution of this study is to offer a view of new modes and practices for other universities that are seeking to operate in an entrepreneurial dimension.