Model Of Dynamic Capabilities Research Articles

Adaptability of a Business and Superior Performance: Triad Model of Dynamic Capabilities

This study examines the relationship between business adaptability and superior performance. The researchers used Exploratory Factor Analysis and Kruskal-Wallis statistics to analyze data from a survey of 227 companies associated with a University Center. The study found that the Triad Model of Dynamic Capabilities, which includes Sense, Seize, and Transform components, explained 78.38% of the variance in business adaptability. The findings confirm the importance of Sense, Seize, and Transform capabilities in sustaining competitive advantage, as demonstrated by the observed superior performance of the organizations. The originality of the paper lies in identifying higher-order capabilities associated with business adaptability in organizations across different sectors.

Towards a more balanced treatment of culture in international business using an ethnographic design: a multinational family business case study

PurposeThe negative cultural bias vis-à-vis international business and cross-cultural management has been duly acknowledged, necessitating recommendations towards investigating its positive effects. Methodologically, quantitative research clearly predominates, and there have been calls for alternative approaches. Thus, this conceptual paper addresses the research gap (methodological and thematic) by investigating if multicultural teams can be an essential part of the global workforce and whether positive effects exist regarding dynamic capabilities, learning and knowledge transfer.Design/methodology/approachThe underlying ethnographic research design enabled exploring within the embedded single case study from an emic perspective, including qualitative observation and semi-structured expert interviews, and provided detailed insights into the company’s multicultural work environment.FindingsThe results reveal that applying a qualitative design allowed the needed exploration and show that multicultural, geographically dispersed teams are positively experienced and considered necessary in today’s globalised world. They are likely to increase in the future. Moreover, dynamic capabilities (multicultural competencies) are indispensable for multicultural teamwork. Regarding learning opportunities, different viewpoints for discussion and the ability to reflect on these offer valuable insights. In line with theory, multiculturality is considered a “two-edged sword”, providing simultaneous benefits and challenges. Contrary to the theory, even highly important information transfers can occur virtually, although occasional physical contact is essential for trust building.Originality/valueThe multinational family business offers a unique example of a positive relationship between multiculturalism and organisational excellence and demonstrates how the application of a qualitative methodology can support theory building by delivering a revised model of dynamic capabilities in multicultural environments with geographical dispersion.

Village Unit Cooperatives on Dynamic Capability and Creative Capability Adaptation to Innovation Performance: The Role of Competitive Advantage

This study aims to examine the dynamic capability model and its implications for innovation performance in the context of competitive advantage. The research design used is causal quantitative research using survey methods. Respondents were 106 managers of village unit cooperatives in the Kediri and Madiun areas, East Java, Indonesia. The measurement variable uses seven Linkert scales. Partial Least Square (PLS) is used to test the causal relationship between constructs. Based on the results of the analysis, it shows that dynamic capabilities and adaptive creative capabilities do not have a positive effect on innovation performance, dynamic capabilities and adaptive creative capabilities have a positive effect on competitive advantage. Competitive advantage has a positive effect on innovation performance. Finally, the results provide support for the model of dynamic capabilities, adaptive creative capabilities, and the implications of innovation performance in the context of competitive advantage, therefore village unit cooperatives must increase the elements of competitive advantage by increasing dynamic capabilities and adaptive creative capabilities to managers.

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.

Rapid start antiretroviral therapies for improved engagement in HIV care: implementation science evaluation protocol

BackgroundIn 2020, the Health Resources and Services Administration’s HIV/AIDS Bureau funded an initiative to promote implementation of rapid antiretroviral therapy initiation in 14 HIV treatment settings across the U.S. The goal of this initiative is to accelerate uptake of this evidence-based strategy and provide an implementation blueprint for other HIV care settings to reduce the time from HIV diagnosis to entry into care, for re-engagement in care for those out of care, initiation of treatment, and viral suppression. As part of the effort, an evaluation and technical assistance provider (ETAP) was funded to study implementation of the model in the 14 implementation sites.MethodThe ETAP has used implementation science methods framed by the Dynamic Capabilities Model integrated with the Conceptual Model of Implementation Research to develop a Hybrid Type II, multi-site mixed-methods evaluation, described in this paper. The results of the evaluation will describe strategies associated with uptake, implementation outcomes, and HIV-related health outcomes for patients.DiscussionThis approach will allow us to understand in detail the processes that sites to implement and integrate rapid initiation of antiretroviral therapy as standard of care as a means of achieving equity in HIV care.

The theory of technological response and progress in chaos

PurposeThis study aims to develop the first Theory of Technological Response and Progress in Chaos (TRPC) and examine the case of technological development during the COVID-19 pandemic. The research objectives of this study were to: identify the key technologies that act as a response mechanism during the chaos event, specifically in the case of COVID-19; examine how technologies evolve, develop and diffuse in an immediate crisis and a chaotic environment; theorise various types and periods of technological response and progress during the emergence of chaos and the stages that unfold; and develop policy-oriented recommendations and establish technological foundations to address subsequent chaos events.Design/methodology/approachThis study used the grounded theory as a methodology with a mixed-method approach that included quantitative and qualitative methods. The authors used the quantitative method to assist with the qualitative step to build the TRPC theory. Accordingly, this study integrated machine learning and text mining approaches to the qualitative data analysis following the steps of the grounded theory approach.FindingsAs a result of the TRPC theory development process, the authors identified three types of technologies (survival, essential and enhancement technologies) and five types of periods (stable, initial, survival-dominant, essential-dominant and enhancement-dominant periods) that are specific to chaos-technology interactions. The policy implications of this study demonstrate that a required technological base and know-how must be established before a chaotic event emerges.Research limitations/implicationsConcerning the limitations of this study, social media data has advantages over other data sources, such as the examination of dynamic areas and analyses of immediate responses to chaos. However, other researchers can examine publications and patent sources to augment the findings concerning scientific approaches and new inventions in relation to COVID-19 and other chaos-specific developments. The authors developed the TRPC theory by studying the COVID-19 pandemic, however, other researchers can utilise it to study other chaos-related conditions, such as chaotic events that are caused by natural disasters. Other scholars can investigate the technological response and progress pattern in other rapidly emerging chaotic events of an uncertain and complex nature to augment these findings.Practical implicationsFollowing the indications of the OECD (2021a) and considering the study conducted by the European Parliamentary Research Service (Kritikos, 2020), the authors identified the key technologies that are significant for chaos and COVID-19 response using machine learning and text intelligence approach. Accordingly, the authors mapped all technological developments using clustering approaches, and examined the technological progress within the immediate chaos period using social media data.Social implicationsThe key policy implication of this study concerns the need for policymakers to develop policies that will help to establish the required technological base and know-how before chaos emerges. As a result, a rapid response can be implemented to mitigate the chaos and transform it into a competitive advantage. The authors also revealed that this recommendation overlaps with the model of dynamic capabilities in the literature (Teece and Pisano, 2003). Furthermore, this study recommends that nations and organisations establish a technological base that specifically includes technologies that bear 3A characteristics. These are the most crucial technologies for the survival- and essential-dominant stages. Moreover, the results of this study demonstrate that chaos accelerates technological progress through the rapid adoption and diffusion of technologies into different fields. Hence, nations and organisations should regard this rapid progress as an opportunity and establish the prior knowledge base and technologies before chaos emerges.Originality/valueThe authors have contributed to the chaos studies and the relationship between chaos and technological development by establishing the first theoretical foundation using the grounded theory approach, hereafter referred to as the TRPC theory. As part of the TRPC theory, the authors present three periods of technological response in the following sequence: survival technology, essential technology and enhancement technology. Moreover, this study illustrates the evolving technological importance and priorities as the periods of technological progress proceed under rapidly developing chaos.

Enhancing Digital Presence for Maximizing Customer Value in Fast-Food Restaurants

Digital transformation has altered the way customers interact with restaurants. As a result, digital transformation has had an enormous impact, changing restaurant customer value. Therefore, this research aims to develop a dynamic and sustainable method for creating customer value in digital transformation. This study suggested digital dynamic capabilities and digital customer orientation as a process model (i.e., sensing, seizing, transforming, and refining) to develop digital transformation and create a dynamic customer value. We chose fast-food restaurants in Egypt to examine the proposed model using a qualitative approach of semi-structured interviews with fast-food managers and hospitality experts. The findings indicated that fast-food restaurants’ different digital transformation capabilities and tools (e.g., value innovation, SWOT analysis, artificial intelligence, new technology selection criteria, digital maturity, building several digital platforms, and gathering and analyzing customers’ online reviews) help them create customer value. However, interviewees highlighted how well-suited the suggested digital dynamic capabilities are to serve as drivers of digital transformation in fast-food restaurants and create a dynamic customer value. This research expands the dynamic capabilities theory by adding digital customer orientation (i.e., proactive and reactive to customer feedback) to develop digital transformation and create customer value in fast-food restaurants. This research provides fast-food restaurant managers with an in-depth explanation of how to implement the digital dynamic capabilities model for executing digital transformation and developing a new dynamic customer value.

A Duality Model of Dynamic Capabilities: Combining Routines and Improvisation

Dynamic Capabilities are predominantly conceptualised as being based on routine, stable patterns of behaviour. This is paradoxical with their intended purpose to elicit change in firms’ resource base and operational capabilities that allows them to face highly dynamic environments. I contribute to resolve this paradox by bringing the concept of duality to the Dynamic Capabilities debate. In particular, I argue that the view of Dynamic Capabilities as routines stems from the misconception that reliable outcomes can be attained only through stable mechanisms. Drawing on the literature on routine dynamics and on improvisation, as well as the empirical evidence of previous research, I propose a duality model that conceives Dynamic Capabilities as based both on routines and on improvisation. This duality perspective highlights the interdependence and complementarity between predictable stable routines and extemporaneous improvised actions that are both necessary to reliably achieve the (often radical) change needed to compete in highly dynamic environments. Rather than dealing with stable routines and improvisation as a trade-off, organisations must dynamically strive for the right balance, managing them concurrently and synergistically.

Leveraging big data for strategic marketing: A dynamic capabilities model for incumbent firms

Big data can improve the profitability and competitiveness of organisations by extending market knowledge and strategic marketing insight. However, there is a disconnect between the opportunities presented and the readiness of incumbent firms to engage with big data, with consequences for their ability to benefit from it. With many organisations overwhelmed by how to manage and use big data, the paper identifies the dynamic capabilities required to exploit big data for strategic marketing and to improve market responsiveness. Data gathered from in-depth, semi-structured interviews with senior managers from four case study organisations, reveals the five interconnected dynamic capabilities required to leverage value from big data. These capabilities are shown to be part of a sequential ‘sensing-reconfiguring-seizing’ process, in which the reconfiguring capabilities play a vital role. The findings contribute to dynamic capabilities theory by identifying and mapping the configuration of big data capabilities required to support strategic marketing initiatives. A new Big Data Capabilities Model is developed, which can be used by organisations to guide how they can leverage value from big data.

The influence of e-trust on a job performance model based on employees’ dynamic capabilities during a crisis caused by a Black Swan event

PURPOSE: In a crisis such as the COVID-19 pandemic, employees play a key role in the ability to survive and achieve both sufficient and outstanding performance in the organization. Therefore, both the characteristics of people in the organization and the possibility of influencing the improvement of their performance at work, have become the focus of attention of scientists and practitioners. In this context, the purpose of this article is to analyze the role of e-trust in strengthening the influence of employees’ dynamic capabilities on the job performance of employees among organizations operating under the conditions of the COVID-19 pandemic. METHODOLOGY: An empirical study was performed based on the Employees’ Dynamic Capabilities model. In order to verify the potential relations, empirical studies were conducted in 1200 organizations located in Poland, Italy and USA. The companies were selected on the basis of the purposive manner. The structured questionnaire was prepared and the CAWI (Computer-Assisted Web Interview) method was used in this research. The reliability of the scales used in the survey was tested and afterwards a multigroup path analysis was performed using IBM SPSS AMOS. The model was verified, confirming the presumed relationships between the variables. FINDINGS: It has been proven that the higher the level of e-trust is, the stronger the influence of EDC is on job performance of organizations operating under a crisis caused by a Black Swan event mediated by P-J fit, work motivation, job satisfaction and work engagement. IMPLICATIONS: This study contributes to the current knowledge of management, in particular human resource management. In the theoretical area, the relationships between the factors influencing job performance in the difficult conditions of the crisis caused by the Black Swan event were described. On the other hand, from a practical point of view, indications on how to shape leadership behavior during remote work, with particular emphasis on the e-trust aspect, seem to be important. ORIGINALITY AND VALUE: This research enriches the considerations regarding the existing Employees’ Dynamic Capabilities model. The role of the e-trust factor, which is an important part of e-leadership, in the context of the impact on this model was indicated and discussed. The conclusions are a solid step in the development of knowledge about managing employees during remote work, which not only became a solution for the time of the crisis, but was also permanently introduced to the current work organization.

Shaping Dynamic Capabilities Through Merger & Acquisition Activity: Context Of Banking Industry

Digitalization is being accelerated by the ongoing COVID-19 crisis, which has the boosted demand for digital services. The Banking industry must adapt to keep up with the digitalization disruption by exploiting Mergers and Acquisitions (M&A) or establishing Financial Technology related to capturing dynamic capabilities. Dynamic capabilities in the banking context can be achieved whenever additional values were shown in the post-M&A process, bringing the financial and operational performance in better condition for the acquiring banks. The purpose of this paper focuses on exploring mergers and acquisitions in the banking industry through the lens of dynamic capabilities. Hence, based on several literatures that has been elaborated, this paper aims to formulate the conceptual model of dynamic capabilities in mergers and acquisitions in the banking industry. The conceptual model demonstrates that the convergence of capability in sensing and seizing opportunities can result in new product development, while the nexus of sensing and transforming capabilities generates cost and operational efficiency in the context of the banking industry.
 Keywords—Dynamic capabilities; Merger & Acquisition; Banking; Conceptual Model; Financial Technology; Value creation. COVID-19.

Lessons For Enhancing Competitive Advantage: Dynamic Capabilities Framework

In turbulent business environments, building and exploiting competitive advantages necessitate manufacturing companies to start new strategic initiatives. For this purpose, new product development (NPD) should be seen as dynamic capabilities (DC) that enable companies to create a better match between the configuration of a firm’s resources and changing conditions. This study aims to make use of the operationalised DC model including sensing, seizing and reconfiguration capacities in a hierarchical decision structure. A multi-case-studies approach is employed for validation of the DC assessment model on automotive companies which are categorized as European, Japanese and American. The qualitative analysis reveals the appropriate management practices underlying the micro-foundation of DC at the operational management level, which can help chief executives to implement the appropriate strategy for enhancing NPD performance. Managers can creatively leverage their companies’ DC components by conceiving of different ways to integrate these DC components into NPD projects.

Open for business: Towards an interactive view on dynamic capabilities

Theories of business relationships and networks suggest that a firm's relationships with other organizations matter for its performance and survival (Håkansson & Snehota, 1995). Inspired by business relationship and network perspectives, we expand Teece's (2007) dynamic capabilities model and develop an interactive dynamic capabilities framework with three pairs of capabilities: sensing and being sensed, seizing and being seized, and reconfiguring and being reconfigured. Conducting process data analysis of two cases, we shed light on how firms can change and enhance their business performance through the three pairs of interactive dynamic capabilities. The framework adds to the theory of dynamic capabilities by conceptualizing how they can operate across firm boundaries, in inter-organizational relationships, networks or ecosystems populated by many organizations involved actively, and interactively, in sensing, seizing and reconfiguring themselves and each other.

A cogwheel model of dynamic capabilities: Evidence from an Australian university

AbstractThe Australian tertiary education sector has been experiencing transformational change for many years driven by shifts in public policy and funding, emergent competition on an increasingly international scale, a seemingly never‐ending number of universities restructures, and the sudden rise of online teaching forced upon by the global COVID‐19 pandemic. This high level of environmental uncertainty suggests that if universities want to remain competitive, they might need to reconsider their strategies through adopting a dynamic capabilities (DCs) approach, such as outlined in this paper. This research is built on Teece et al.’s DCs model to examine an Australian university between 2012 and 2021. This research adds to our understanding of DCs by developing a metaphorical Cogwheel Model of Dynamic Capabilities that captures DCs’ complex and dynamic process. This model has implications for leadership and managerial practices, especially when organisations seek to navigate a strategic pathway into the future.

A measurement model of dynamic capabilities of the continuous improvement project and its role in the renewal of the company’s products/services

A measurement model of dynamic capabilities of the continuous improvement project and its role in the renewal of the company’s products/services

Dynamic capabilities for circular manufacturing supply chains—Exploring the role of Industry 4.0 and resilience

AbstractAn organisation's sustainability performance is influenced by its capabilities (skills, resources and competences) which in turn affects the performance of its entire supply chain. However, recent research has not sufficiently explored the convergence of dynamic capabilities, circular economy, resilience and Industry 4.0 concepts for manufacturing supply chains. Therefore, this study aims to identify how dynamic capabilities theory can enable circular and resilient supply chains. A qualitative research process was deployed in three stages: literature review, European project and nine expert interviews. Key investigative variables were used to identify capabilities used in manufacturing, and five research propositions were developed to address the gaps found in literature. The empirical data helped reveal challenges to circular economy implementation and validate the literature findings. The main contributions include a dynamic capabilities model, a causal relationship model and five research propositions for circular economy implementation.

Dynamic capabilities for managing racially diverse workforces: Effects on competitive action variety and firm performance

In this study, we develop and test a model of dynamic capabilities for integrating, building, and reconfiguring racially diverse workforces through diversity-specific management routines, such as mentoring programs, formal network groups, internship-based recruiting practices, and succession planning for racial minorities. We find that diversity management routines (DMR) collectively enhance a firm’s ability to compete with a wider range of competitive actions, which in turn increases financial performance. We also find that the indirect effect of diversity management routines on company performance is conditional on the presence of diversity cognition routines (DCR). Firms fail to benefit from diversity management routines when they do not incorporate diversity cognition practices. Our moderated mediation model contributes to a better understanding of how companies can manage racially diverse human resources (HR) to increase competitive action variety and improve firm performance.

A Dynamic Capabilities Model of Innovation in Large Interfirm Projects

Large-scale projects often involve hundreds or even thousands of businesses. There are opportunities for these firms to produce innovations to solve problems and improve the project’s outcomes, but the time-bounded nature of the project and technical interdependencies also constrains innovation. Using quantitative analysis of data from firms in large oil and gas projects, we show that Teece’s sensing, seizing, and reconfiguring model of dynamic capabilities theorizes innovation in this interfirm project context. We also identify connections between these microfoundations that are not captured in Teece’s linear model, where sensing activities moderate the relationship between seizing activities and innovation.

A holistic model of dynamic capabilities and environment management system towards eco-product innovation and sustainability in automobile firms

PurposeEnvironmental pollution has emerged as a major concern in the 21st century following the introduction of sustainable development (SD) by the year 2030, whereby one of the predominant goals is related to the manufacturing industry. In Malaysia, the automotive industry is acknowledged as the backbone driving for economic growth and recognised as a source of environmental deterioration. Therefore, eco-innovation is, thus, introduced as one of the efforts for minimised environmental effects, reduced social impact and firm value sustenance. In particular, eco-product innovation is one of the renowned environmental innovation dimensions and displays high adoption and diffusion rates in developed countries due to green awareness and government financial assistance. However, developing countries such as Malaysia show relatively low adoption of such practices amongst companies, whereby most of the efforts are driven by the governments, supplier and customer demands. Therefore, this paper aims to delineate the factors of voluntary initiatives undertaken by the Malaysian automotive and auto parts industry towards eco-product innovation.Design/methodology/approachThe research drew from the micro-level perspective, thus using dynamic capabilities (DC) constructs and environmental management system (EMS) strategy variables. The constructs included technology collaboration, green human resources and eco-culture, while the variables denoted formal EMS and top management support. Survey data were obtained from 242 entities within the Malaysian automotive and auto parts industry, which were subjected to analysis via confirmatory factor analysis and structural equation modelling.FindingsThe findings revealed the moderating role played by eco-product innovation for the association linking EMS strategy and sustainability development, while no moderator effects were observed between DC and sustainability development. Thus, future research can be performed in the meso and macro-level areas by using qualitative research across different sectors.Originality/valueThis paper explicates novel literature content, particularly for the field of eco-product innovation; it positions an empirical analysis from the micro-level perspective regarding the antecedence of DC and environmental strategy towards eco-product innovation and SD, mainly in the automotive industry.

Motivating business towards innovation: A panel data study using dynamic capability framework

National strategic dynamic capabilities refer to the nations' ability to acquire, develop, and transfer national resources into innovation. This would help provoke firms and individuals’ capabilities to sense and seize to expedite innovative performance transformation. This study suggests that through the dynamic capabilities (DC) framework, the government can increase Innovation by channelizing the economic innovation system indicators. Macroeconomic indicators from 62 countries were taken to assess the significance of indicator-based dynamic capabilities model. The results confirm that sensing and seizing indices motivate Innovation, while the cost of business negatively moderates sensing. This model suggests that governments can motivate Innovation by exploring the indicators which are determining the sensing and seizing environment of decision-makers in businesses.