Dynamic Capabilities View Research Articles

Unlocking Sustainable Growth: The Role of Artificial Intelligence Adoption in Jordan Retail Sector, Moderated by Entrepreneurial Orientation

Although businesses are under pressure to consistently improve both their capacities and business processes, the artificial intelligence (AI) revolution is seen as an appealing company approach that has attracted attention. By offering improved company structures, the application of AI technology has the potential to significantly alter company procedures while also lessening the impact of outside catastrophes. Additionally, using AI can enhance the socioeconomic circumstances of a particular area and have a positive impact on the social worth and economic sustainability of businesses. Few studies have been conducted recently on the use of AI to support businesses at various stages of development and sustainability. In addition, there isn’t much research that shows that the retail sector can benefit from the use of various modern AI technologies. To bridge this gap, this investigation looks into the moderating effect of entrepreneurial orientation. A theoretical framework was established using the assistance of the resource-based view (RBV) and dynamic capability view (DCV) assumptions, in addition to a survey of the available literature. The PLS-SEM method was used in this paper and got 311 respondents from Amman, Jordon retail sector. The findings show that the industry needs to make strategies for social justice and economically favorable approaches that have a beneficial impact by adopting AI approaches. This paper also shows that EA has a moderate impact on performance connections within the industry.

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.

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.

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 social ties on balanced vs combined innovation: the role of dynamic capabilities and innovation climate in knowledge-intensive business services firms

Purpose This study aims to investigate the impact of business ties, political ties and dynamic capabilities on balanced and combined ambidextrous innovation within the knowledge-intensive business services sector using the dynamic capability view framework. It explores the mediation role of dynamic capabilities in the relationship between business and political tie with these forms of innovation. In addition, it examines how innovation climate moderates the relationship between dynamic capabilities and ambidextrous innovation. Design/methodology/approach Multilevel analysis was conducted on 520 individuals from 61 KIBSs firms in the UAE using AMOS 26. Findings Results showed that BT indirectly affect both balanced and combined AI, with a greater impact on combined innovation. However, DCs did not significantly mediate the relationship between PT and AI. In addition, the IC was found to moderate the effects of DCs on both types of AI, with a stronger effect on combined innovation. Originality/value This study contributes to the literature by highlighting the importance of DCs and climate in the context of innovation and ambidexterity and by advancing the understanding of how these capabilities and organizational factors promote superior innovation.

Changing the sails to survive the storm: Strategies that foster international business model innovation during a crisis

Persisting global crises, such as COVID-19, pose significant challenges for international companies. The increase in uncertainty and instability in foreign markets has profoundly affected firms' strategic decisions, forcing them to adapt to dynamic conditions in order to maintain or improve their international performance. Grounded in the dynamic capabilities view, this study examines how exploration and exploitation strategies drive international business model innovation, ultimately affecting international performance and expectations concerning crisis survival during the COVID-19 crisis.Utilizing survey data from 1455 internationalized companies, we use structural equation modeling to test our hypotheses. The results show that, although both exploration and exploitation strategies foster international business model innovation, exploration has a stronger effect than exploitation. The results further emphasize that international business model innovation has a positive impact not only on the expectation of crisis survival but also on the international performance.

The Performance Implications of Management Control Systems and Dynamic Capabilities: Evidence from Vietnam

Drawing on the resource-based view and dynamic-capability view, this study examines the relationship between the interactive use of management control systems, dynamic capabilities, and firm performance in the Vietnamese information and communication technology industry. The research model and hypotheses have been tested by partial least squares-structural equation modelling (PLS-SEM) with 240 survey samples obtained from managers working in Vietnamese information and communication technology firms. The results indicate that the interactive use of management control systems has a positive effect on dynamic capabilities. Additionally, both the interactive use of management control systems and dynamic capabilities have direct positive effects on firm performance. The results reveal that dynamic capabilities complementary mediate the relationships between the interactive use of management control systems and firm performance. This study provides theoretical and managerial implications for Vietnamese information and communication technology firms that are striving to develop management control systems and dynamic capabilities for enhancing firm performance.

Self-reliance or dependence? patterns of information technology use on innovation performance

The association between information technology (IT) and firms’ innovation performance remains underexplored within the current Operations Management literature. We attempt to address this void by exploring how patterns of IT use (exploration and exploitation) influence innovation performance. We also introduce distinct types of supply chain (SC) innovation strategies, and explore how internal, external, and ambidextrous (balanced and combined) innovation strategies moderate the relationship. Drawing upon the dynamic capability view, we consider patterns of IT use as firms’ dynamic capabilities that can foster innovation performance, and regard SC innovation strategy as organisational paths that may influence the effectiveness of IT use. We empirically examine the relationship using data from 995 manufacturing firms featured in the World Bank China Enterprise Survey. We find IT exploitation and exploration positively influence innovation performance. Additionally, the internal innovation strategy can amplify the positive effect of IT exploitation, while exerting a non-significant moderating effect on IT exploration. Interestingly, the positive impacts of both IT use patterns on innovation are weakened when firms adopt external and ambidextrous innovation strategies. Our study contributes to a deeper comprehension of the relationship among IT use, SC innovation strategies, and firms’ innovation performance based on a dynamic capability view.

A nexus of multiple integrations and business performance through supply chain agility and supply flexibility: a dynamic capability view

Purpose Manufacturing capability is a crucial component of every nation’s economy and pharmaceuticals are frequently a significant part of the manufacturing sector. Pharmaceutical supply chains are essential to health-care systems, contributing to living quality and shorter hospital stays. This study aims to examine the role of multiple integrations on business performance (BP) through supply chain flexibility (SCF) and supply chain agility (SCA). Design/methodology/approach Data was collected from 198 supply chain professionals in the pharmaceutical sector of the developing economy of Pakistan. The sample was collected based on a nonprobability purposive sampling approach. A five-point Likert-scale survey was used and analyzed with the PLS-SEM technique using SmartPLS 4. Findings This study found that process integration (PI) does not affect SCA, whereas relationship integration and measurement integration positively affect SCA. SCA positively impacts BP. In contrast, all integrations significantly influenced supply flexibility and BP except for PI. Finally, SCF significantly mediates the relationship between all integrations and BP. Originality/value This study examined the relationships of multiple integrations on BP, directly and indirectly, through SCF and agility. The theory of dynamic capabilities has been applied and extended to increase the comprehensiveness of the findings. A developing economy’s pharmaceutical industry supply chain was examined, producing empirical evidence of the results.

Machine Learning and Digital Twins-enabled Supply Chain Resilience: A Framework for the Indian FMCG Sector

Disruptions highlight machine learning (ML)-powered digital twins as a significant technology to ensure supply chain resilience (SCR). The authors acquired supportive data by conducting semi-structured interviews with 37 fast-moving consumer goods supply chain professionals. Using open, axial and selective coding approaches, the authors mapped and discovered the themes that constitute the essential elements of ML-enabled SCR. The findings of the research underscore four principal capabilities in which ML is poised to enhance the resilience of supply chains, namely (a) visibility, (b) supply chain analytics, (c) managing levels of inventory and (d) consumer behaviour. The research implications employ empirical data to demonstrate how integrating ML with digital twins into the supply chain enhances resilience and presents a comprehensive framework utilizing ML to improve SCR. The research draws upon the dynamic capability view theory.

Examining the relationship between organizational capabilities and business sustainability among start-ups: a dynamic capability view

Purpose Start-ups require a competitive advantage to integrate sustainable practices and develop organizational capabilities to thrive in dynamic business environments. However, implementation of these practices presents several ethical challenges. This study aims to quantify the influence of organizational capabilities (information technology capabilities and organizational virtues) on start-ups' competitive advantage and readiness to implement environmental, social and governance practices. Design/methodology/approach This study employed a survey design, and data were collected from 320 start-up founders and/or managers in India. The data were analyzed using Smart PLS 4.0. Findings The findings suggest that organizational capabilities, including information technology capabilities and organizational virtues, play an important role in enhancing start-ups' competitive advantage and readiness to implement sustainable practices. Dynamic capability mediates these relationships, while entrepreneurial orientation moderates the relationship between organizational virtues and dynamic capability. Practical implications This study has significant implications for organizations implementing sustainable business practices through the development and nurturance of organizational virtues and information technology capabilities. The study is also useful for leaders, managers and entrepreneurs in training and development, managing tradeoffs and maintaining important organizational capabilities to establish a balance between people’s concerns, the environment and profits. Originality/value Few studies have examined the role of organizational capabilities, sustainable business practices and competitive advantage in the context of start-ups. This study contributes to the literature on sustainable entrepreneurship and organizational capabilities.

Enhancing organizational performance through HR analytics capabilities: mediating influence of innovative capability and moderating role of technological turbulence

This research aims to emphasize on Dynamic Capability View and Human Capital Framework to analyze the effect of HR Analytics capabilities on organizational performance with innovative capability as a mediator. Further, the study will evaluate the role Technological Turbulence as a moderator. An empirical test utilizing a sample of 418 Indian HR professionals through structural equation modeling and Artificial Neural Network (ANN) was conducted. The findings illustrates that HR Analytics capabilities (intangible resources, human skills and tangible resources) have a significant impact on organizational performance. Innovative capability acts as a significant mediator between HR analytics capabilities and organizational performance. The relationship between organizational performance and innovative capability is positively moderated by technological turbulence. Further the mediated moderation impact of Innovative capability and Technological turbulence was significant between HR analytics capabilities and organizational performance. This research makes recommendations for HR directors and executives on how to effectively utilize their resources while keeping innovation in mind. The influence of technological turbulence encourages organizations to innovate and enhance business performance.

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.

Enhancing Firm Performance: How Entrepreneurial Orientation and Information Technology Capability Interact

Applying information technology capabilities (ITC) to business processes is critical in the current data and information age. However, various bottlenecks and barriers restrict the adoption of ITC. To address these obstacles, fostering an entrepreneurial orientation (EO) can be beneficial. Drawing on the dynamic capabilities view, this study develops and tests a model that empirically analyzes how EO influences the adoption of ITC. The proposed model also assesses the separate and joint effects of EO and ITC on firm performance (FP). The research hypotheses were tested using a survey of 157 Chilean firms, and the PLS-SEM method was applied. The findings indicate that EO promotes the development of ITC and that the synergistic relationship between the two positively affects FP. These findings provide valuable insight for managers in terms of aligning their strategic approach with technological capabilities to enhance their company’s success.

Supply chain integration capability: A three-stage circular model of visibility, agility, and flexibility

This paper presents supply chain capabilities in a three-stage circular model. Different from most studies exploring supply chain integration (SCI) from the perspective of processes, this paper studies SCI from a holistic approach. By applying dynamic capability view (DCV), this study develops a measurement of SCI capability based on the three-stage circular model. The scale items were drawn from existing literature. A survey study gathered 187 responses from firms in New Zealand. Factor analysis was conducted to validate the measurement of supply chain integration in the New Zealand businesses. The paper defines the SCI capability as a second-order construct including several well-studied dynamic capabilities such as visibility, agility, and flexibility. The three-stage circular model enables firms to learn, response, and reconfigure to achieve rapid continuous improvement in supply chains. This paper provides new insights and practical implications in SCI and supply chain capability studies and practices in the Industry 4.0 era.

Value capture in IoT-driven business models: considerations about smart resources and isolating mechanisms in networked environments

PurposeThis conceptual paper aims to contribute to a better understanding of value creation and value capture with smart resources in the Internet of Things (IoT)-driven business models against the backdrop of an increasingly networked and connectivity-based environment. More specifically, the authors screen strategic management theories and adapt them to the specificities of new types of smart resources by focusing on a conceptual analysis of isolating mechanisms that enable value creation and value capture based upon different types of smart resources.Design/methodology/approachBy adapting the state of the art of the contemporary resource-based discussion (resource-based view, dynamic capabilities view, relational view, resource-based view for a networked environment) to the context of IoT-driven business models, the paper typifies valuable intra- and inter-organisational resource types. In the next step, a discursive discussion on the evolution of isolating mechanisms, which are assumed to enable the translation of value creation into value appropriation, adapts the resource-based view for a networked environment to the context of IoT-driven business models.FindingsThe authors find that connectivity shapes both opportunities and challenges for firms, e.g. focal firms, in such business models, but it is notably social techniques that help to generate connectivity and transform inter-organisational ties into effective isolating mechanisms.Originality/valueThis paper lays a foundation for a theoretically underpinned understanding of how IoT can be exploited through designing economically sustainable business models. In this paper, research propositions are established as a point of departure for future research that applies strategic management theories to better understand business models that work with the digitisation and connectivity of resources on different levels.

What is the Effect of Digital Platform Capabilities on the Opportunity Set? The Moderating Role of Governance Mechanisms

Abstract In the digital age, certain digital platforms, such as Google Android and Tencent, have experienced remarkable growth. Nevertheless, other digital platforms encounter severe challenges that contribute to their downfall. The development disparities among digital platforms are primarily attributed to the opportunity set, an aspect still underexplored in the existing research. Based on the Chinese context, this study adopts the dynamic capabilities view to investigate how digital platform capabilities, specifically platform integration and reconfiguration capabilities, influence the opportunity set from the perspective of complementors. Additionally, we examine the moderating impact of governance mechanisms, encompassing formal contracts and relational mechanisms, challenging the prevailing notion that formal contracts always benefit platforms. Drawing insights from survey data including 476 complementors across 48 Chinese digital platforms, our findings reveal that the positive relationship between platform integration capability and the opportunity set is strengthened when formal contracts are employed. However, the positive relationship between platform reconfiguration capability and the opportunity set weakens with formal contracts but strengthens with relational mechanisms. Our study enriches the opportunity set research by empirically revealing the formation mechanism of the opportunity set in digital platforms from the dynamic capabilities view. Furthermore, it extends the application of platform governance literature by introducing nuanced perspectives on the boundary conditions of governance mechanisms in the Chinese context. Ultimately, this paper offers valuable practical insights for platform owners in China, guiding them in enhancing their capabilities and crafting effective governance mechanisms. Simultaneously, it provides direction for Chinese complementors to leverage both formal and informal relationships with platform owners, effectively transforming digital platform capabilities into the opportunity set.

Leveraging technology in humanitarian supply chains: impacts on collaboration, agility and sustainable outcomes

Purpose This study aims to understand the role of technology adoption (TA) in improving the efficiency and environmental sustainability (ENS) of humanitarian supply chains through collaboration and supply chain agility. This study made an attempt to explore how technological resources can be used strategically to achieve operational efficiency and contribute to sustainable humanitarian logistics. Design/methodology/approach The data collected from 274 respondents involved in humanitarian logistics is analyzed using the confirmatory factor analysis and the Partial Least Squares Structural Equation Modeling. These respondents include logistics managers, coordinators as well as other relevant personnel from different non-governmental organizations, international aid agencies and relief operations. Findings The results of this study show that TA plays a critical role in improving both collaboration and supply chain agility in humanitarian operations. It is evidenced that both collaboration and agility significantly moderate the relationship between TA and supply chain outcomes, respectively, improving the effectiveness and ENS of aid delivery. In particular, technology-facilitated collaboration and agility cut down operational costs, reduce the response time and minimize the environmental impact. Originality/value This study extends the application of dynamic capabilities view in humanitarian operations and supply chain and elaborates on how technological capability improves humanitarian supply chain performance. This study also highlights the mediation role of agility and collaboration to achieve aid delivery efficiency and ENS.

Strengthening organizational resilience: role of sustainable supply chain, digitalization and business model adaptation

PurposeOrganizational resilience is a prerequisite to ensure preparedness and quick recovery from disruptions for an organization. However, there is scant literature that examines antecedents that are associated with resilience. This study aims to evaluate antecedents of organizational resilience considering three factors: sustainable supply chain management (SSCM), business model adaptation (BMA) and digitalization.Design/methodology/approachThis study considers the dynamic capability view as a theoretical lens to formulate the hypotheses between the mentioned constructs. The authors test the hypotheses based on the data collected from 259 manufacturing companies. The authors consider structural equation modeling and mediation analysis to analyze the proposed hypotheses.FindingsThe results of structural equation modeling suggest that there is a positive association between SSCM and organizational resilience. Furthermore, the results suggest that digitalizing the business processes and deploying an adaptable business model can help organizations enhance their resilience levels.Originality/valueThis study contributes to the literature by identifying dynamic capabilities that can influence organizational resilience and extending the relevance of BMA and digitalization in the context of sustainability and resilience. Furthermore, this research informs managers on effective pathways for managing future disruptions.

Ambidextrous supply chain strategy: roles and consequences with agile manufacturing and resilience

PurposeThe purpose of this study is to investigate the influence of ambidextrous strategy on supply chain resilience and its impact on firm performance, employing the Dynamic Capabilities View.Design/methodology/approachThrough a survey of 215 supply chain professionals, the research employs a structural equation modeling analysis to examine the relationships between ambidexterity, agile operations, resilience, and performance.FindingsThe findings demonstrate that the ambidextrous strategy significantly enhances both agile operations and supply chain resilience. In turn, agile operations and resilience positively impact firm performance. The study also reveals that agile operations and supply chain resilience partially mediate the relationship between ambidextrous strategy and firm performance.Originality/valueThis research contributes to the supply chain management literature by highlighting the importance of an ambidextrous approach in fostering agile operations and resilience, thereby improving firm performance. It extends the dynamic capabilities view framework by elucidating how ambidexterity acts as a pivotal mechanism for adapting to disruptions and securing competitive advantage in volatile markets. Finally, measurements of ambidextrous strategy and resilience are provided to further enhance practitioners’ understanding of building these important components in networks.