Dynamic Innovation Capabilities Research Articles

Identifying microfoundations of dynamic managerial capabilities for business model innovation

Identifying microfoundations of dynamic managerial capabilities for business model innovation

The role of dynamic capabilities for business model innovation in organizations from relatively stable markets

The present paper aims to explain how dynamic capabilities contribute to business model innovation in established organizations. It draws on a qualitative research design based on a single case study of an established multinational company operating in the construction materials industry (production and sale), which developed a service solution in lightweight façades. In addition to explaining how the sub-dimensions of dynamic capabilities contributed to the success/failure of the new business model, from its idealization and structuring to its execution, the paper shows which dynamic capabilities were present at the beginning and which ones were developed during the innovation. The study uncovers four important findings: 1) dynamic capabilities should be present in top leadership for the development of business model innovation; 2) the occurrence of dynamic capabilities takes place in a non-sequential and non-linear fashion; 3) dynamic capabilities contribute to the creation of competitive advantages in relatively stable environments; and 4) existing resources are important catalysts of results for business model innovation in established organization. The paper hence highlights the role of top leadership in business model innovation, as well as identifies the contribution of dynamic capabilities in relatively stable markets, alongside the catalyzing role of available resources in established organizations.

Dynamic Capabilities for Business Model Innovation in Logistics: The Role of Digital Technologies

The rising competition among firms necessitates new ways of doing business, especially in this digital era. This is fundamentally true of logistics companies as they strive to innovate their business models using digital technologies. Nevertheless, the dynamic competence gained by logistics firms while using digital technologies for BMI has not received sufficient research attention. Driven by the expedient research question, how do firms leverage digital technologies to develop dynamic capabilities for BMI, this study teases out the pathways to BMI by investigating how logistics companies engage digital resources to gain dynamic capabilities. Following the procedures established in Gioia methodology, we perform thematic analysis on qualitative data from the whitepapers of 20 logistics companies prominent for technology-enabled business models. Results reveal that while engaging digital technologies for their business processes, logistics businesses and their managers can sense opportunities for business expansion; seize these opportunities by mobilizing digital resources as well as reconfigure their processes to continue to take advantage of the recognized opportunities.  Our results contribute to the dynamic capabilities theory by building on its core arguments to explicate the theoretical foundations of BMI development. Additionally, three propositions emerge regarding the sources of dynamic capabilities in the utilization of digital technologies by digital logistics.

Capacidad Dinámica de Innovación, Ventaja Competitiva y Tercera Misión en las IES

This essay raises aspects related to the dynamic capabilities (DC) of innovation and competitive advantages in Higher Education Institutions (HEIs), fundamental aspects are presented for this type of institution to achieve development, differentiation and positioning in the global educational field; The importance of the development of the third mission is highlighted, due to the important role they have in achieving quality, through the services offered in relationships and links with the environment; leading HEIs to an extraordinary increase in their capabilities and creating a competitive advantage to function in the changing educational market. The objective was set: Describe and analyze the dynamic capabilities of innovation and the third missionary activity, around the creation of competitive advantages in HEIs. It is a descriptive essay, with a reflective analysis, on the problem raised, based on a macro (field) study in which the observation technique was applied to collect the information with which the SWOT presented was structured. about the case study of said research. With the preparation of this descriptive analysis, it was basically concluded that the failures identified as weaknesses or threats in an organization can be resolved by applying appropriate strategies, and determining the dynamic innovation capabilities available to restructure and reorganize the processes. In the case of HEIs, the rectors and other personnel must investigate, detect, strengthen, and of course take advantage of and improve existing resources, to raise the quality of the processes, services and products they offer; being an unequivocal way to create sustainable competitive advantage, the efficient development of the activities that encompass the third mission.

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.

Microfoundations of Dynamic Capabilities for Social Innovations in Small Non-Profit Organizations

The promotion of social innovations by non-profit and business organizations has gained increasing interest. Yet, there has been limited research on routines that organizations use to facilitate social innovations. This paper uses a dynamic capabilities framework to understand the microfoundations of dynamic capabilities for social innovation in small non-profit organizations. Through analysis of routines of 20 small organizations in five European metropolitan areas, the paper demonstrates that many microfoundation aspects resemble generic abilities of opportunity identification, alliancing, user engagement, networking, and organizational learning. However, their orientation toward public values requires incorporating commitments to social value and principles of ethics, responsibility, and sustainability, into different organizational processes. We suggest that social impact does not always require substantial investment and can be achievable through modest changes such as repurposing surplus resources. Building flexible routines that enable such incremental changes is a key element of organizational capability to adapt to changing contexts.

DISENTANGLING THE INNOVATION ORIENTATION, INTELLECTUAL CAPITAL, AND DYNAMIC INNOVATION CAPABILITY RELATIONSHIPS IN EMERGING ECONOMY START-UPS

Purpose: Based on the Dynamic Capabilities View (DCV) and Knowledge-based View (KBV), this study investigates the relationships between intellectual capital (IC) resources and dynamic innovation capabilities in the context of new ventures. Design/methodology/approach: Data for the study is collected from 311 start-up firms in Turkey and is analysed via Structural Equation Modelling. Findings: The results indicate that the effects of human capital and social capital on dynamic innovation capability are fully mediated by innovation orientation (IO). Besides, dynamic innovation capability is found to be strongly associated with innovation performance. Practical implications: In the study, IO is suggested as a useful mechanism for encouraging the deployment of an innovation focus in all functions of a firm for attaining long-term sustained competitiveness. Thereby, the findings are expected to present important implications for start-up founders and policy-makers, by highlighting the importance of knowledge management and investing in human and social capital resources for generating the capability to innovate. Originality/value: The most significant contribution of the study is the development of a model suggesting IO as a mediating variable between the IC resources and dynamic innovation capability relationship in the context of start-up firms. Furthermore, the findings indicate a positive and significant association between the dynamic innovation capability and innovation performance in these economic units.

Enhancing green technology innovation through enterprise environmental governance: A life cycle perspective with moderator analysis of dynamic innovation capability

Consolidating the leadership of enterprises in Environmental Governance (EG) and enhancing their Green Technology Innovation (GTI) are vital for fostering global ecological civilization. Previous research has primarily focused on the non-linear relationship between EG and GTI but has overlooked the factors that contribute to varying GTI effects in response to EG constraints across different stages of a business's life cycle. Drawing on data from Chinese A-share listed enterprises, this study investigates the impact of EG on GTI by considering two typical forms of EG: cost-based and voluntary participation. Furthermore, it introduces the concept of dynamic innovation capability (DIC) based on the principles of open innovation paradigm. The findings reveal that, contrary to the positive influence observed during the growth and maturity stages, EG has no significant effect on GTI during the recession stage. One-way ANOVA results demonstrate that enterprises' DIC varies across different life cycle stages, with a declining trend observed during the maturity, growth, and recession stages. Moreover, the study finds that DIC, encompassing absorptive, operational, perceptual, and relational capabilities, positively moderates the impact of EG on GTI. These conclusions shed light on the differentiated effects of EG on enterprises' GTI at various life cycle stages.

Influence of cooperation networks on the relation between dynamic innovation capabilities and innovative performance

The present paper analyzes the influence of cooperation networks on the relation between dynamic innovation capabilities and innovative performance. Interviewing 258 Brazilian manufacturing organizations, and using Structural Equation Modeling through SmartPLS software, the results show that the dynamic capabilities of products and organizational significantly influences product and process innovation performance. Process dynamic innovation capabilities only influence innovation performance in process efficiency. Regarding the performance of organizations in cooperation networks, this favors companies to obtain results in process innovation, as well as influences positively and significantly in the development of all dynamic innovation capabilities observed in this study. This work contributes to increase the knowledge about the influence of cooperation networks on the dynamic innovation capabilities and innovative performance of companies. The results are of relevance to organizations and managers, who can use this information to reflect on organizational practices and management attitudes, in order to assist in the development of organizational strategies and decision making.

Dynamic innovation capabilities of enterprises

Dynamic innovation capabilities of enterprises

Role of Managerial Innovation Behavior for Moderating the Effect of The Dynamic Innovation Capability on Banking Performance

Role of Managerial Innovation Behavior for Moderating the Effect of The Dynamic Innovation Capability on Banking Performance

THE ANTECEDENTS OF BREAKTHROUGH INNOVATION IN SMALL AND MEDIUM-SIZED ENTERPRISES (SMES) DURING COVID 19 PANDEMIC.

Purpose – This study replicates ideas of Cheng and Chen (2013) to determine the effects of dynamic innovation capabilities and open innovation activities on breakthrough innovation. Based on the Resource-based view of the firm (RBV) and dynamic capabilities view (DC), the authors seek to argue that dynamic innovation capabilities and open innovation activities significantly affect breakthrough innovation positively in a turbulent environment.
 Design/methodology/approach – Based on a cross-sectional design, a questionnaire was distributed to a sample size of Zimbabwean 300 SMEs management. The target respondents were the business owners and managers who had wide knowledge and understanding in leadership. The survey’s data were analysed through regression.
 Findings – The findings supported the argument that dynamic innovation capabilities and open innovation activities positively and significantly affect breakthrough innovation.
 Practical implications – Business owners and managers must realise the critical rationale of SMEs dynamic innovation capabilities and open innovation activities in fostering breakthrough innovation.
 Originality/value/contribution – This study added to the existing literature that survival and growth of SMEs must promote and support emerging industries even in an uncertain environment (e.g. Covid 19 pandemic environment), with activities that foster breakthrough innovation.

Regional Geographic Diversification and Innovation: Moderating Roles of Environmental Dynamics

Regional geographic diversification helps multinational enterprises (MNEs) to obtain learning opportunities and dynamic capabilities for innovation. However, due to the turbulent environments associated with doing business internationally, the effectiveness of regional geographic diversification can be contingent on internal and external situations. Drawing on contingency theory, this study investigates whether the regional geographic diversification-innovation relationship is moderated by the MNEs’ internal (organizational change and churn in human resources) and external environmental dynamics (industrial growth and instability). To empirically test the hypotheses, this research uses multi-source and time-lagged data obtained from 323 manufacturing companies and 850 observations in a nine-year period in Korea. We find that regional geographical diversification is positively related to organizational innovation. The effect of regional geographical diversification on organizational innovation is stronger under the high organizational change. The relationship between regional geographical diversification and organizational innovation is moderated by churn in human resources but in an opposite direction. The effect of regional geographical diversification on organizational innovation is positively moderated by industry instability. Theoretical and managerial implications of the study are discussed.

Developing Dynamic Capabilities for Business Model Innovation in Start-ups: The Role of the Board

Corporate governance research suggests that Boards of Directors can play a key driving role in promoting entrepreneurship and innovation. This role is especially crucial in start-ups or entrepreneurial firms that need to constantly renew their know-how and adapt their business model in order to find their place in the competitive environment. This research addresses how the Board behaves to nurture and drive business model innovation in a start-up. Basing on a dynamic capability perspective, this study investigates how, within a Board, Directors can adopt modes of interaction and dialogue that foster the renewal and development of know-how to innovate the business model. It also examines how such modes of interaction and dialogue can facilitate collaboration with partners in its ecosystem to transform the resources needed to innovate the business model and its implementation. It also focuses how Boards need to reconfigure their role when performing their tasks. The research is carried out by a single case study approach and investigates a young start-up company involved in the design of high tech innovative medical devices. Emerging findings show how a new combinative capability is generated by dynamically shaping the ecosystem and managing relationships with the actors involved.

Impact of dynamic innovation capabilities on organizational agility and performance in saudi public hospitals

Despite the fact that the public healthcare sector has improved significantly, inefficiency persists, and little progress has been made in learning how to solve inefficiencies. Consequently, one of the most important concepts that affect the organizational agility and performance in healthcare are dynamic innovation capabilities. This study aims to investigate the impact of dynamic innovation capabilities on agility and performance in public hospitals in Saudi Arabia. The researcher utilized a dynamic capabilities theory to describe how four important contextual characteristics (sensing capabilities, combination capabilities, networking capabilities and learning capabilities) may affect the agility of healthcare organizations. The population sample for this research included 151 leaders and managers of public hospitals. After responding to the questionnaire, the Statistical Package for Social Science (SPSS) was used to analyse the data. The data collection process involved exploring the independent variables dynamic innovation capabilities that are expected to influence the dependent variable of organizational agility and performance in the public hospitals. The major results of the research showed that there is a positive relationship between the independent variables of the dynamic innovation capabilities and the dependent variables of organizational agility and organizational performance. 
 Keywords: Healthcare Innovation (HCI), Dynamic Innovation Capabilities (DIC), Organizational Agility (OA).

Dynamic core capabilities of IoT firms in the product lifecycle: a resource-based view

ABSTRACT External resources are a crucial factor in the development of corporate dynamic core capabilities. Following a resource-based view, we study the impact of external technical coordination on the development of dynamic core capabilities for product innovation of IoT firms. Based on the survey of 184 IoT firms, we construct order parameter models at different stages of the product lifecycle to explore the comprehensive influence mechanism of external technical coordination on dynamic core capabilities (integration capability and modularity capability) and innovation performance. The results find that the influence of external technical coordination on dynamic core capabilities and innovation performance changes with the product lifecycle on the whole. It shows a trend of weakening. Meanwhile, we reveal the heterogeneous impact of external technical coordination at different stages of the product lifecycle. Its influence on integration and modularity capabilities is different. This study provides some insights for strategic management research and builds a theoretical basis for the development of dynamic core capabilities for product innovation of IoT firms at different stages of the product lifecycle.

Dynamic Innovation Capabilities and their Impact on Export Performance in Times of Economic Crisis

Dynamic Innovation Capabilities and their Impact on Export Performance in Times of Economic Crisis

Developing dynamic capabilities for community collaboration and tourism product innovation in response to crisis: Nepal and COVID-19

International tourism will continuously face challenges to fully recover after COVID-19 unless destinations implement universally agreed upon public health protocols that make travellers feel safe. This challenge is even more daunting for least developed countries like Nepal, which relies on rural, nature and adventure tourism. These rural regions, already under stress prior to COVID-19, must now address the pandemic’s consequences before availing themselves of opportunities for more sustainable tourism development that experts believe the pandemic confer. We use “mutual gaze” to examine how exchange relationships between rural and urban stakeholders shape collaborative decisions on tourism development. We conceptualise tourism development interactions through the innovative development of unique offerings to attract domestic tourists during the pandemic. Data on Nepal’s rural tourism sector reveal that representative local associations enable innovation through the integration of dynamic capabilities and resources in the development of sustainable tourism products. While the study confirms the significant role government plays in facilitating cooperation among stakeholders to legitimise relationships and ascertain sustainability goals, it reveals organic collaboration is essential for inclusive planning and decision making at grassroots’ level.

The Microfoundations of Dynamic Capabilities for Incremental and Radical Innovation in Knowledge‐Intensive Businesses

AbstractWe theorize and test the impact of two microfoundations of dynamic capabilities on incremental and radical innovation in knowledge‐intensive businesses (KIBs). We argue that numerical flexibility and training, as human resources (HR) microfoundations that enable the configuration and deployment of resources, have different implications for incremental and radical innovation. Furthermore, we contend that those KIBs that make significant use of numerical flexibility will invest less in training, thus impacting innovation outcomes. We test our arguments using an original, longitudinal dyadic dataset assembled from 1750 structured interviews conducted with HR directors and senior managers in 875 KIBs located in Finland, France, Sweden and the UK. We find that numerical flexibility is negatively related to both incremental and radical innovation, whereas training is positively related to both. Our test of the moderating impact of training on both types of innovation resulting from the use of numerical flexibility was not statistically significant. Overall, we suggest that not all efforts by KIBs to mobilize resources and capabilities and align them with a complex external environment in the pursuit of innovation are necessarily beneficial. We highlight some research, policy, and practice implications that arise from our findings.