Dynamic Capabilities Research Articles

External green pressure, dynamic capability, and green innovation: The regulating effect of executive environmental attention

Aiming to investigate the mediating effect of green dynamic capability on external green pressure and green innovation, as well as the moderating effect of executive environmental attention on external green pressure and green dynamic capability, this study preferred a theory model with five hypotheses. A valid sample of 357 interviewees was investigated to test the proposed hypotheses, and structural equation modeling was utilized. In addition, external green pressures mostly have a significant impact on green innovation, the green dynamic capability as a mediator. Also, executive environmental attention moderates the relationship between external green pressure and green dynamic capabilities. The results offer unique contributions to the literature and some suggestions for practicing in manufacturing enterprises.

Cyber resilience in organisations and supply chains: from perceptions to actions

PurposeThis empirical study investigates the direct and indirect effects on managers’ perceptions of cyber risks, the implementation of cyber resilience strategies and the perceived effectiveness of these strategies for supply chains. Cyber risks pose significant threats to organisations and supply chains. Yet they remain insufficiently addressed and managed.Design/methodology/approachPrimary data were collected from a sample of Italian organisations using a survey. The structural equation modelling methodology was employed to empirically investigate cyber resilience strategies in supply chains.FindingsResults indicate that effective cyber resilience is linked to awareness of the negative impacts of cyber risks, particularly supply chain disruptions. This awareness leads to the adoption of various cyber resilience strategies. According to managers' perceptions, several strategies are identified in the study as the most effective in enhancing the cyber resilience supply chains. The findings offer insights for managers regarding the relationship between cyber risk perceptions, supply chain cyber resilience strategies and their effectiveness. These relationships are studied using the theory of perceived risk and the dynamic capabilities theory.Originality/valueThis study advances knowledge for academics and practitioners in the fields of supply chain resilience and supply chain risk management. It contributes to the development of a risk-based thinking model in organisations and supply chains by drawing upon a dual theoretical perspective.

Microfoundations of dynamic capabilities enabling scaling pathways of sustainability‐oriented innovation business models

AbstractUsing the lens of the microfoundations of dynamic capabilities, this article sheds light on the scaling pathways (scaling up, out, and deep) of sustainability‐oriented innovation business models (SOI BMs). Empirical data from 20 small‐sized agri‐food organizations working on SOI as a core BM value proposition was collected and analyzed. We categorized microfoundations of dynamic capabilities of these organizations through multi‐layered deductive and abductive coding and a two‐level analysis and showed they are interconnected. Our results also highlight that specific microfoundations of dynamic capabilities mutually reinforce each other and collectively result in the realization of each scaling pathway. Our cross‐case analysis shows interdependence amongst scaling pathways, where the success of one is a prerequisite for another. This research offers a framework to unpack scaling pathways and provides important insights into scaling strategies and practices for developing SOI BMs, benefiting researchers, practitioners, and policymakers.

ФАКТОРИ НА ЦИФРОВАТА ТРАНСФОРМАЦИЯ

The digital transformation is profoundly changing organizations and creating new comparative advantages but also necessitating new approaches to management and organizational strategy. The majority of research on business’ digital transformation focuses on technological adoption, innovation, value creation and the dynamic capabilities of organizations. However, the question of why different organizations approach the digital transformation in various ways remains less explored. This article examines the possibilities of inferring various factors that have an impact on the adoption of digital technologies in order to improve the understanding of organizations' digital transformation strategies. Factors such as size, internationalization, research and development (R&D) expenses, foreign direct investment (FDI), turnover, wages and salaries have an expected impact on the adoption of new technologies in an organization and its digital transformation. This is supported by organizational theories such as the resource-based view (RBV), the knowledge-based view (KBV) and the technology-organization-environment (TOE) frameworks. Through examples from the scientific literature, a summary is provided on how the study of the interrelationships between these factors and organizations’ digital transformation can contribute to a better understanding of the different strategies in this field.

Artificial intelligence‐based dynamic capabilities and circular supply chain: Analyzing the potential indirect effect of frugal innovation in retailing firms

AbstractAcademics and practitioners are increasingly interested in the role of the circular supply chains in maximizing resource use and improving sustainable performance. However, the shift from linear to circular supply chains is still at an early stage and still needs more research. The current study seeks to test the direct effects of artificial intelligence‐based dynamic capabilities on frugal innovation and circular supply chains in a group of retail firms operating in Jordan. The current paper also aims to test the potential indirect effect of frugal innovation. To achieve these objectives, a research framework was developed that explains hypothesized relationships between the previous constructs and was tested empirically through a sample of 212 respondents from the top administrative level in these firms. The casual and quantitative approach was employed to test the hypothetical relationships, and the partial least squares‐structural equation modelling (PLS‐SEM) approach was employed as a tool to analyze the data. The empirical results reported through data analysis showed acceptance of all hypothesized relationships that were hypothesized in this study, as there was a positive effect of both artificial intelligence‐based dynamic capabilities and frugal innovation on circular supply chains. In addition, the mediation was statistically significant, as frugal innovation mediated the relationship between artificial intelligence‐based dynamic capabilities and circular supply chains. This study had a set of interesting contributions at the theoretical and the managerial contributions, as this paper is the first work in the body of the literature that explores these innovative relationships. The current paper also contributed to developing recommendations that would improve sustainable performance in the retail sector by enhancing its dynamic capabilities based on artificial intelligence tools, which leads to strengthening circular supply chains.

Dynamic Capabilities and Technology Competence: A Study on Firm Performance in Groom Big Programs

Dynamic Capabilities and Technology Competence: A Study on Firm Performance in Groom Big Programs

Leveraging Knowledge Management for Business Success: The Influence of Dynamic Capabilities and Entrepreneurial Competence, Moderated by Government Policy

This study examines the impact of knowledge management on business performance, mediated by dynamic capabilities and entrepreneurial competence, and moderated by government policy. A survey of 156 small and medium-sized enterprises (SMEs) in the Riau Coastal Food sector was conducted, and data were analyzed using Structural Equation Modeling (SEM). The findings reveal that knowledge management positively influences business performance, with dynamic capabilities and entrepreneurial competence acting as key mediators. However, government policy does not significantly moderate this relationship. The study highlights the importance of internal organizational capabilities in enhancing SME performance, suggesting that firms must focus on dynamic capabilities and entrepreneurial competence to maximize the benefits of knowledge management.

How to improve supply chain sustainable performance by resilience practices through dynamic capability view: Evidence from Chinese construction

This study explores the relationship between supply chain resilience (SCR) and sustainable supply chain performance (SSCP) within the context of the Chinese construction industry, a sector known for its complexity and vulnerability to disruptions. Drawing on data from 525 construction companies, the research investigates how SCR directly influences SSCP and examines the mediating role of dynamic capabilities in this relationship. The results highlight those dynamic capabilities, specifically the ability to seize and reconfigure, serve as critical mediators in the resilience-sustainability relationship while sensing does not have a significant mediating effect. This suggests that in highly dynamic environments like China's construction sector, focusing on capturing opportunities and reconfiguring resources is more effective for achieving sustainable outcomes than relying solely on sensing capabilities. This finding contributes to the growing body of knowledge by providing a nuanced understanding of how resilience practices can be leveraged to promote long-term sustainability.

Corporate venture capital, value creation and information technology: Basis for dynamic capability framework

Corporate venture capital, value creation and information technology: Basis for dynamic capability framework

COLLABORATIVE SUPPLY CHAIN MANAGEMENT IN THE SHARING ECONOMY: AN EMPIRICAL RESEARCH

This study examines the impact of the sharing economy on collaborative supply chain management among Turkish international trade firms. The sharing economy, which involves temporary access to underutilized resources via digital platforms, has challenged traditional supply chain models, necessitating resilient and flexible collaborations. The research utilizes the Inter-organizational Relationships (IOR), Unified Theory of Acceptance and Use of Technology (UTAUT), and Resource-Based View (RBV) frameworks, highlighting dynamic capabilities. Through structural equation modeling and expert interviews, the findings reveal that trust and information sharing are essential, but their effects on e-collaboration are complex. Trust negatively correlates with e-collaboration, indicating that electronic platforms may mediate trust in low-trust environments. On the other hand, performance expectancy and facilitating conditions significantly boost e-collaboration adoption. The study identifies e-collaboration as a dynamic capability, improving operational performance, customer/supplier satisfaction, growth, and profitability. This research contributes theoretically by integrating organizational and individual perspectives on e-collaboration and elucidates the intricate relationships between trust, information sharing, and technology in supply chains. Practical recommendations are provided for leveraging technological innovations to enhance trust and information sharing in collaborative supply chains.

Assessment of primary care services operational resilience by patients: Implications for COVID-19 recovery

While the National Health Service of the United Kingdom recovers from COVID-19, it's crucial to assess the impact of the dynamic capabilities within its healthcare services to ensure future public health protection. This study adopts mixed methods of literature review and surveys. Survey findings reveal that agility, flexibility, and building redundancy proved instrumental in reconfiguring resource foundations swiftly and fostering new partnerships. These actions were essential for sustaining service quality and efficiency. The analysis recommends that patients and healthcare professionals should co-design a technology-driven primary care service provision that is person-centric and digitally inclusive. Furthermore, primary care service stakeholders should develop targeted collaborations, and workforce development should be a priority to increase medical reserve in the healthcare system. This research provides empirical evidence, enabling the National Health Service to persist in enhancing dynamic capabilities and reinforcing resilience for anticipated and unforeseen future challenges.

Managerial ability and firm growth: intellectual capital components

PurposeThis study analyses the way various components of intellectual capital (IC), namely, human capital (HC), structural capital (SC), relational capital (RC) and innovation capital (INNC), act as mediators in the relationship between managerial ability (MA) and a firm’s ability to achieve growth.Design/methodology/approachThis study employs data envelopment analysis to quantify the MA of 825 Taiwanese listed electronics companies from 2017 to 2022. The proxies of firm growth are return on asset growth, operating income growth and total asset growth. This study then utilises a three-step mediation analysis methodology to examine the relationships between MA, IC and firm growth.FindingsFindings indicate that HC, SC, RC and INNC mediate the link between MA and firm growth. This suggests that competent managers can capitalise on the potential benefits of these investments to achieve firm growth.Practical implicationsCompetent managers can utilise different IC investments to grow the financial performance and strength of their businesses. Managers should continually scan, secure opportunities and adjust their investments in knowledge assets in accordance with the dynamic capabilities view. That is, managers, in general, and operations managers, in particular, can implement guidelines that prioritise IC investments in the future to expedite firms’ development.Originality/valueThis study extends the existing frameworks that study investment variables as mediators between MA and firm outcomes. Most particularly, this study adopts four components of IC for measurement. Moreover, firm performance is measured using dynamic growth indicators rather than static measures.

Critical Success Factors for Building Resilience in Circular Supply Chains of Electric Vehicle Batteries: Evidence from an Emerging Country

Given the global expansion of electric vehicles (EVs), decision makers in developing and emerging countries must address important challenges across EV battery supply chains (EVBSCs) toward circularity. For example, batteries usually make up about 40% of an EVs’ value, and the race to achieve net zero emissions will further underscore the critical need for vital minerals and metals, such as lithium, cobalt, and graphite, necessary to make batteries. Stakeholders routinely question the resilience of circular (C) EVBSCs worldwide, from mining valuable materials to manufacturing the batteries necessary to support the widespread deployment of EVs. Identifying and investigating critical success factors (CSFs) of any system is a necessary step in achieving its targets. Little research, however, has been performed to investigate the CSFs for building resilience in EVBSCs, particularly those focused on building a circular supply chain. The goal of this research is, therefore, to systematically scrutinize the CSFs of resilient C-EVBSCs in Türkiye. To this end, a decision framework applying inter-valued neutrosophic ISM-MICMAC is proposed. Based on expert opinions, an application of the decision framework finds that effective government policies, directives, and incentives and well-established dynamic capabilities, are key driving CSFs to building resilience in a C-EVBSC.

Pathways to corporate green technological innovation: An analysis from the perspective of dynamic capabilities

Green technological innovation has become a pivotal tool for driving economic restructuring and achieving environmental sustainability. However, in the face of complex and volatile market and policy environments, a critical question remains: how can enterprises effectively select and implement innovation pathways to address environmental turbulence? Drawing on data from 14,751 Chinese listed companies from 2012 to 2022, this study employs dynamic capabilities theory and a fixed-effects panel model to examine the impact of dynamic capabilities on firms’ choice of green innovation pathways. Results show a significant positive influence of dynamic capabilities on green innovation, although this effect varies depending on the research and development model and the level of environmental turbulence. Firms with high dynamic capabilities tend to favor independent research and development, with an effect coefficient of 0.778 (p<0.01); firms with moderate dynamic capabilities benefit more from cooperative research and development, with a coefficient of 0.045 (p<0.01); and firms with lower dynamic capabilities primarily pursue green innovation through technology transactions, with a coefficient of 0.052 (p<0.01). Furthermore, environmental turbulence significantly moderates the relationship between dynamic capabilities and green innovation negatively, with an interaction coefficient of -0.088 (p<0.05), indicating that environmental uncertainty weakens the positive impact of dynamic capabilities.These findings suggest that firms can select suitable research and development models aligned with their level of dynamic capabilities and adopt flexible innovation strategies to effectively manage environmental turbulence. This study proposes the following policy recommendations: enterprises should strengthen their dynamic capabilities, particularly in knowledge acquisition, resource integration, and adaptability to environmental changes, to enhance their green innovation capacity. Additionally, the government should increase policy support for green technological innovation by offering financial subsidies, tax incentives, and intellectual property protections, helping enterprises maintain their innovation momentum amid environmental turbulence.

Solid, structured composite neutron detectors with high dynamic range capability

Neutron detectors are essential across disciplines such as fundamental science, nuclear security, safeguards, and civilian applications. While 3He-filled gas proportional counters have long been revered for their efficacy in detecting thermal neutrons and praised for their efficiency, neutron/gamma discrimination, and stability, the scarcity of 3He has spurred a search for alternatives. Here, we explore a solid structured scintillating particle composite (SPC) consisting of 6Li-containing scintillating glass particles within an acrylic matrix as a neutron detector for high dynamic range applications. We show for the first time that an SPC neutron detector can boast an intrinsic detection efficiency of 0.261% for pure 252Cf fission neutrons and an overall neutron detection efficiency of (0.546 ± 0.003)% at the Neutron Free-in-Air facility while being able to function in an intense gamma-ray environment. We also show that the SPC neutron detector supports fast neutron capture times and enables a dual-readout scheme that extends the detector dynamic range to high incident neutron fluxes. A scalable fabrication process allows for tailoring the SPC detector properties to the requirements of specific applications. Good agreement is found between the experimental results taken with a National Institute of Standards and Technology traceable 252Cf source and the coupled MCNP6 and optical-ray-tracing simulations.

Which innovation capabilities are relevant for technological and non-technological innovation? Implications for manufacturing firms' financial performance

PurposeThis paper investigates which innovation capabilities are more important for driving technological and non-technological innovations and which of the two innovation types has the greatest impact on the financial performance of manufacturing companies.Design/methodology/approachBased on a theoretical model of four innovation capabilities – two technological: Technology Development Capability and Operations Capability, and two non-technological: Management Capability and Transaction Capability – a database of 1,331 Brazilian manufacturing companies was analyzed through partial least squares structural equation modelling (PLS-SEM).FindingsThe results indicate that technological capabilities (Technology Development and Operations) have a greater impact on technological innovation. However, both technological capabilities also affect non-technological innovation, with the Technology Development Capability being the most influential in this relationship. Results also indicate that non-technological capabilities (Management and Transaction) have a greater impact on non-technological innovation. Nevertheless, both non-technological capabilities also impact technological innovation, especially the Transaction Capability, which is the most influential in this relationship. Furthermore, it was identified that non-technological innovation has a more significant impact on financial performance than technological innovation, presenting a novel finding to the field of innovation in manufacturing.Originality/valueThis manuscript refutes prior discussions and opens new possibilities for the interconnection of dynamic and ordinary innovation capabilities in two different arrangements, each aimed at improving a specific type of innovation. A theoretical framework is proposed to highlight that, depending on the innovation type focused on, ordinary innovation capabilities can be more relevant than dynamic ones for innovation in the manufacturing sector. From these theoretical advancements, practitioners can understand that investments in non-technological resources, skills and routines can also boost technological innovation, as well as sales, profit and market share growth.

Influence of Knowledge Capabilities on Performance of Kenyan Fintech Companies

Purpose: The purpose of the study was to examine the influence of knowledge capability on performance in Kenyan fintech companies. The research questions that guided the study were to establish the influence of knowledge acquisition, knowledge assimilation, knowledge transformation and knowledge exploitation on performance of Kenyan fintech companies. The theoretical review of the study used the dynamic capabilities theory. Methodology: The study adopted a descriptive research design with a target population of 850 employees at management level working at 85 Kenyan fintech companies. Stratified random sampling technique was used to select a sample size of 272 management level employees. Primary data was collected using a questionnaire and analysed using descriptive and inferential statistics. The statistical package for the Social Science was used as a data analysis tool and thereafter the data was presented in figures and tables. Findings: Findings on the first research question, indicated that there was a negative correlation between fintech performance and knowledge acquisition capability. The multiple linear regression results revealed that knowledge acquisition had no statistically significant influence on the performance of fintech. The results from the regression coefficients indicated that knowledge acquisition capability did not significantly predict the performance of fintech firms in Kenya. For the second research question, the correlation analysis findings indicated that knowledge assimilation capability had a negative relationship with performance of the fintech companies. The regression coefficient results indicated that knowledge assimilation capability did not significantly predict the performance of fintech organizations in Kenya. Regarding the third research question, correlation results noted that knowledge transformation capability had a negative relationship with performance of fintech firms. Findings of the regression coefficients indicated that knowledge transformation capability significantly did not predict performance of fintech organizations in Kenya. On the last research question, correlation results revealed that knowledge exploitation capability had a negative relationship with performance of fintech firms. Regression coefficients result indicated that knowledge exploitation capabilities did not significantly predict the performance of fintech firms in Kenya. Unique Contribution to Theory, Policy and Practice: The study concluded that knowledge capabilities did not significantly influence the performance of Kenyan fintech companies. This is mainly attributed to the other elements and factors that influence performance more. The study recommends that fintech institutions should increase their focus on knowledge capabilities to compete sustainably in turbulent business environments. Fintech organizations can fully exploit the knowledge they receive to effectively achieve strategic objectives. Additionally, due to other factors being more influential in predicting performance, further research is required with these additional variables considered.

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 interplay of digital transformation, agility, environmental volatility, and innovation to spur enterprise performance: Evidence from Chinese electric vehicle firms

Given the rapid growth of China's electric vehicle (EV) industry, with sales expected to reach over 10 million units annually by 2025, there is an urgent need to understand how digital logistics, supply chain agility, and innovation can drive sustainable performance amidst increasing environmental volatility. This study utilises the dynamic capability theory and proposes a framework that examines the interplay between digital transformation, agility, dual innovation, environmental volatility, and enterprise performance. A survey was circulated among the managers working in the EV industry. We received 197 responses. The data was analysed using Smart PLS software using structural equation modelling (SEM). The findings reveal that digital transformation has significant positive relationships with enterprise performance, agile capability, and innovation capability. Additionally, agile and innovation capabilities have positive effects on enterprise performance. The study recommends investment in digital transformation programs and fostering an agile, innovative culture in the EV industry.

Interplay between GHRM and logistics social responsibility: when big data analytics matters

PurposeThis paper analyses the role of green human resources management (GHRM) practices on the application of logistics social responsibility (LSR) practices and examines the moderating effect of big data analytics (BDA) utilisation levels within these relationships.Design/methodology/approachBased on quantitative research methodology using survey data from 404 managers in the logistics service providers (LSPs) industry in the Philippines, PLS-SEM technique was used to test hypotheses formulated in this research.FindingsEmpirical results achieved suggest that GHRM practices have a significant positive impact on LSR. Among all individual GHRM practices, green training and development did not have any influence on LSR. While the results also revealed that BDA assimilation acts as a moderator of the relationship between GHRM and LSR, no support was found for the moderation effect of BDA acceptance or adoption on this relationship.Originality/valueThe study fills a gap in the logistics literature by introducing dynamic capabilities theory to the nexus between GHRM and SLR for the first time, which reveals previously unknown answers on effects of GHRM practices on LSR. The study also introduces BDA assimilation as an important moderator that can strengthen positive impact of GHRM on LSR.