Development Of Dynamic Capabilities Research Articles

Bringing brain into the game: introducing the brain-based view of dynamic capabilities

Purpose Change lies at the heart of the dynamic capability theory; however, the essence of concept of change is antithetical to the brain's predominant mode of operation i.e. maintenance of internal homeostasis. Since very little is known about the connection between neurology and dynamic capabilities, the present study aims to open this black box and propose a novel brain-based view of developing dynamic capabilities. Design/methodology/approach This study draws on the insights from neuroscience to offer propositions that not only provide realistic approaches for building dynamic capabilities, but also explain what would cause the brain to enter a state of plasticity to facilitate the development of managerial dynamic capabilities. Findings This study explains that dynamic capabilities are shaped by both lower-level neural processes and higher-level organizational processes, and that both these levels must be brought together to provide a holistic explanation about the complex phenomena of dynamic capabilities. Originality/value This study proposes a novel brain-based view of dynamic capabilities that provides neuroscientific explanations regarding how managerial capabilities can be leveraged to form organization-level capabilities without holding a priori assumptions about the application of the aggregation principle.

The impact of R&D organizational structure on developing technological capabilities and the moderation of R&D slack

PurposeDeveloping technological capabilities to enhance innovation performance is essential for firms to respond to external changes and competition. Based on the effect of organizational structure on organizational capability development, this study assesses whether a specific R&D organizational structure design can be used to develop different technological capabilities.Design/methodology/approachCombining organizational theory and the resource-based view as an integrated view, we propose several contrasting hypotheses to show the effects of three general R&D organizational structure designs (centralized, decentralized, and hybrid) on developing exploitative and explorative capabilities. We propose R&D slack as a moderator. 82 Taiwanese listed manufacturing firms were selected. Data on the firms' annual reports and their patent applications to the Taiwan Patent Office from 2005 to 2017 were collected.FindingsFirms’ adoption of centralized and decentralized R&D structures has a significant positive effect on developing exploitative capability and an opposite effect on developing explorative capability. A high or low R&D slack can moderate the impact of R&D organizational structure on non-routine capability development.Research limitations/implicationsThis study concludes that R&D organizational structure affects the development of different technological capabilities and that the effect of R&D organizational structure on the development of technological capabilities can be changed under the moderation of R&D slack, which means that the possibility of developing different technological capabilities under the same organizational structure will increase.Practical implicationsThe top manager should consider the relationship between R&D structure design and technological capability development to manage the R&D routines to influence the generation of technological capabilities. Also, they must utilize the provision of R&D slack to modulate technological capability development.Originality/valueThis study reexamines the relationship between organizational structure and capability development. It shows that organizational structure can shape unique technological capabilities and that firms may be able to change structural elements through slack resources, enabling ambidexterity or dynamic capability development without organizational change.

Digitalisation in food supply chains to build resilience from disruptive events: a combined dynamic capabilities and knowledge-based view

Purpose Building resilience in food supply chains is considered vital to tackle disruptions and ensure the availability of food. This study aims to empirically explore how firms operating in food supply chains can develop dynamic capabilities and use digital technologies to address disruption. Design/methodology/approach A multiple case study methodology was adopted to understand how the firms built resilience by developing dynamic capabilities. Twenty-five semi-structured interviews were conducted with four case companies to gather data across various functional areas (sourcing, operations and logistics). Findings Results show that knowledge management is a key antecedent to developing dynamic capabilities. The development of such dynamic capabilities − sensing, seizing and transforming, along with the adoption of digital technologies enabled firms to address the disruptions and, hence, build resilience. Resilience is demonstrated in the form of maintaining or improving performance outcomes such as profit, waste reduction, food quality, lead time, efficiency and customer satisfaction. Originality/value This is one of the earliest empirical studies that provide insights into how firms operating in food supply chains have built resilience by developing dynamic capabilities through knowledge management practices and, which required the implementation of digital technologies. The study extends dynamic capability theory with the knowledge-based view and develops a novel framework along with a pathway to build resilience.

Social media usage and sustainable performance in manufacturing supply chains: exploring dynamic capabilities

Due to the global impact of COVID-19, businesses and supply chains worldwide have been disrupted, leading to challenges for manufacturing firms and customers. Social media usage (SMU) is a vital and valuable tool that builds customer-centric supply chains by effectively communicating large volumes of valuable data. This study examines the influence of social media usage on the development of dynamic capabilities, including supply chain sensing capabilities (SCSC), knowledge sharing capability (KSC), and social capital (SC), which are crucial for constructing agile and resilient supply chains that can effectively respond to dynamic and turbulent environments, ultimately enhancing sustainable business performance. To assess the proposed investigation model, data was gathered through a structured questionnaire administered to supply chain members currently engaged with manufacturing firms. The evaluation of the proposed hypotheses is carried out through the application of structural equation modeling (SEM). The results of this study offer empirical evidence supporting the proposition that SMU within manufacturing firms promotes the development of sensing capabilities, knowledge-sharing capability, and social capital. Furthermore, this study tests the moderation role of environmental dynamism in the relationship between social media use and sustainable business performance. This underscores the pivotal role played by SMU in facilitating the adaptation and responsiveness of the supply chain to dynamic and uncertain environments, thereby contributing to the long-term sustainability and competitiveness of organizations.

Advancing the software development process through the development of technology-enabled dynamic capabilities in a project-based firm: insights from action design research

PurposeThis study aims to extend the dynamic capabilities (DCs) perspective to the project management context. The authors present supporting evidence for analyzing the creation process of DCs during the redesign of the software development process, and they examine the impact of those capabilities on organizational performance and transformation.Design/methodology/approachAn action design research approach, combined with simulation and qualitative analysis, is adopted to examine the emergence of technology-enabled DCs supported by their microfoundations and the modernization of the software development process in the target firm.FindingsAnalyzing the successful internal transformation of a software development company that was facing a slow and inconsistent product development process reveals the effectiveness of extending the DC perspective to a project-based setting. The implementation of a new project methodology and the introduction of an innovative document-handling system facilitated the renewal of the company's software development process. This led to improvements in lead time and total costs, resulting in enhanced project performance as well as customer and employee satisfaction.Practical implicationsThis study draws managerial attention to the microlevel activities of technology-enabled DC formation, such as precise calculations, external expert consultations and tool deployment.Originality/valueBy applying the sensing–seizing–transforming framework with concomitant microfoundations in a longitudinal way, this article explains the role that technology plays as the basis for DCs and analyzes the cost–benefit balance of DC development in project-based organizations.

The Impact of Organizational Resources on Organizational Agility in Hospitality Industry: A Dynamic Capabilities Approach

ABSTRACTThe present study investigates the relationship between organizational resources (financial, social, and technological capital) and dynamic capabilities development in crises periods. Through quantitative research, a theoretical framework that is based on resource‐based view and dynamic capabilities view is validated for the first time in the hospitality industry. In practice, it is explored whether the hospitality firms—based on their own resources—can develop the dynamic capability of organizational agility that enables them to cope with turbulent and unstable environments. The empirical research was conducted with the sample of 502 hospitality firms in Greece during the COVID‐19 era. The findings confirm that financial and technological capital have a positive influence on the development of agility‐related dynamic capabilities, and specifically market capitalizing agility and operational adjustment agility, for the hospitality industry during turbulent periods. Instead, social capital has a negative and no effect respectively on these two dynamic capabilities.

DYNAMIC CAPABILITIES AS A SUCCESS-FACTOR OF THE LONG-TERM BUSINESS ALLIANCE: THE CASE OF SIEMENS AND ATOS

Strategic alliances offer numerous benefits, including access to new markets, shared resources, and enhanced capabilities, which collectively contribute to a firm’s competitive edge. However, maintaining these partnerships over time remains a challenge due to the dynamic nature of collaborative relationships. The article is devoted to the analysis of dynamic capabilities of partnership and its role in the long-term development of the business alliance between Siemens and Atos. The specificity of dynamic capabilities is identified, namely the characteristics of "sensing," "seizing," and "reconfiguring" capabilities at the stages of partnership development between Siemens and Atos. Three stages of development of dynamic capabilities of the business alliance between Siemens and Atos are defined: the founding stage (2011-2014), the expansion stage (2015-2020), and the current stage (2021-2025). The founding stage involved mutual investments and the adoption of performance programs to enhance operational efficiency. The expansion stage saw the alliance focusing on Industry 4.0, cybersecurity, and digital strategy, with increased funding and expanded scope. The current stage emphasizes sustainability and advanced technologies like quantum computing and blockchain, along with joint initiatives and participation in research programs. It is found that over the decade of collaboration, the alliance has demonstrated the ability to adapt and evolve according to market and technological changes, based on the abilities of both partners to identify new opportunities, analyze market trends, and accordingly transform the alliance's business model. Thus continuous adaptation, investment in dynamic capabilities, and cooperative efforts with external partners are vital for maintaining mutually beneficial partnerships. The Siemens-Atos alliance serves as a case study illustrating how these capabilities can be effectively leveraged to achieve sustained success in a dynamic business environment.

Context-dependence of dynamic capabilities in small, entrepreneurial firm internationalization

Our study replicates a US study and an Australian study in the Italian context to address whether the home- country context influences the nature of dynamic capabilities (DCs) that are developed and deployed in small, entrepreneurial firms for these firms to internationalize. We measure a suite of dynamic capabilities and relate these to innovation in the firm which is put to internationalization. The Italian findings portray two logics, a dominant entrepreneur’s logic and a lesser significant entrepreneurial logic. The entrepreneur’s logic is centered on the entrepreneur and their vision and is dominant in the Italian model. The entrepreneurial logic, based on the bundling of DCs to learn from internal and external environments, is represented in all three countries. Our three-country comparison illustrates that dynamic capability development and deployment is indeed context-dependent. Notwithstanding contextual differences across Italian and Anglo-Saxon countries, which present spatial boundary conditions, the theoretical configuration of DCs, innovation and internationalization we replicated is retained, suggesting that it has potential to be developed further into an actionable theory of DCs for the small, entrepreneurial firm that internationalizes.

A relational view of how social capital contributes to effective digital transformation outcomes

The specifics of why and how network relationships influence digital transformations have not yet been fully understood. We address this gap by drawing on the relational view of organisations to conceptualise network relationships as the source of requisite external non-generic complementarities for the development of dynamic capabilities (absorptive capacity, integration effort and big data analytics) essential for effective digital transformation outcomes. We follow a positivist research design to test the proposed hypotheses by collecting survey responses from informants from 183 Australian healthcare organisations. The statistical findings indicate that social capital affects the digital transformation outcomes through full individual mediations of absorptive capacity (0.13*), integration effort (0.13*) and big data analytics capability (0.05*) and a full serial mediation (0.01*). This empirical evidence provides two significant advancements to both theory and practice: a) by linking development of dynamic capabilities required for digital transformations to external non-generic complementarities embedded in network relationships; and b) by delineating specific pathways through which the dynamic capabilities of absorptive capacity, integration effort and big data analytics influence digital transformation outcomes.

Dynamic capabilities and competitiveness: Relationship among industrial policy, structural transformation, and economic growth in Indonesian regional industries

The complex interactions of industrial Policy, structural transformation, economic growth, and competitive strategy within regional industries are examined in this research. Using a dynamic capabilities framework, the study examines the mediating roles of organizational innovation and adaptability in the link between competitiveness and macroeconomic variables. A two-way fixed effects model is used in this study to examine the influence of structural transformation (ST) on Industrial Policy (IP). Using regional data covering the years 2010 to 2022, the research undertaken in this paper explores the dynamics of the Indonesian economy by empirically assessing the consequences of structural change on industrial Policy. In order to establish a comprehensive model that clarifies the mechanisms through which industrial policies and structural shifts impact the development of dynamic capabilities, ultimately influencing competitiveness strategies, this research draws on a large amount of empirical data and integrates insights from seminal works. Our research adds to our knowledge of strategic management in regional industries by providing detailed information on how economic development and policy interventions influence businesses’ ability to adapt and gain a competitive edge. In addition to advancing scholarly discourse, this study offers business executives and politicians valuable insights for managing the intricacies of global economic processes.

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.

Enhancing the role of dynamic capabilities of the coal companies under the conditions of sharp price fluctuations at the international markets

In recent years, international coal markets have been facing a trend of a growing number of sharp price fluctuations during a year. This can be regarded as the evidence for the increasing intensity of market competition as well as for the growing number and significance of the external environment factors affecting the world coal market. Actually, the coal market players have to operate in the conditions of unstable prices and external limitations that in their turn require searching for new sales markets, changing logistics routes, product lines, production and technological processes, etc. It results in the increasing significance of dynamic capabilities of coal companies – organizational capabilities on changing the portfolio of resource and capabilities in response to the changing competition at the market. In the conditions of growing volatility of coal markets the adaptation capabilities of a company become a basis for its economic effectiveness and competitiveness as well as for the viability as a whole as it allows to accelerate the process of making decisions about the necessary transformations and evaluate the risks, and are crucial for the implementation of new projects. Any activities on the evaluation and development of dynamic capabilities are possible only inside a company. This task should be solved at the strategic level of decision-making alongside with identifying the company’s individual priorities for development of organizational capabilities lying in the basis of dynamic capabilities of a company.The article deal with the author’s definition of the basic categories of dynamic capabilities implemented for the coal industry. The definition presents the priorities for operation in the current conditions and the capability to transform and accept new business-models, develop analytical capabilities and skills of acquisition and alliances with other companies.

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.

Dynamic board capabilities: Developing board practices that impact corporate renewal and performance

A crucial requirement for firms to remain competitive is to consistently and simultaneously engage in exploratory and exploitative activities. The academic literature has broadly accepted that the development of dynamic capabilities (ie firms' abilities to create, reconfigure and improve resources and capabilities to fit their changing environments) are vital to meeting this competitive requirement. Research has predominately addressed these dynamic capabilities from a management perspective. Little attention has been paid to the influence of the board of directors on these firm capabilities even though boards hold the fiduciary responsibility for the corporation and its long-term viability. Even less has been written on how boards ought to organise themselves and develop their dynamic board capabilities to support and govern corporate renewal and performance effectively. This paper aims to start addressing this gap by using two related aims. First, a process framework for board behaviours is proposed that ensures, and supports, a systematic way of building and developing corporate-level dynamic capabilities. Then, evidence is presented and reviewed from a survey of two board member communities which supports the idea that board capabilities are essential for a firm's successful renewal and economic performance, and need to be improved in practice. This framework is closely aligned with well-established components identified by the management literature but differs in having the board as the unit of analysis. A crucial question and action agenda is proposed for boards eager to acquire and develop their dynamic capabilities.

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.