Dynamic Capabilities View Research Articles

Corporate entrepreneurial leadership, resources, capabilities, and sustainable performance

AbstractCorporate entrepreneurial leadership (CEL) plays a critical role in promoting innovative behavior that disrupts existing practices in organizations, to say the least, encouraging new policy initiatives that could affect the business and social performance of the organizations under their sustainable development goals (SDGs). CEL can help achieve SDGs by redesigning different contextual factors to help promote various policy initiatives. In this vein, this study identifies the factors which could improve the business and social performance of the organizations helping to achieve SDGs through an amalgam of theoretical lenses, particularly the dynamic capability view. Based on extant literature, we developed, validated, and applied a theoretical model using the partial least square structural equation modeling technique on data collected from 327 respondents from different organizations. The study found that CEL capability significantly and positively impacts the various organizational entities and resources, which in turn affects the business and social performance of the organizations. Theoretical and managerial implications of the findings are also discussed.

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.

Information technology personnel competency towards organizational agility: study at Malaysia automotive

<span>Information technology and agility is a core item for organizations. With recent technology and digital transformation in Malaysia’s automotive industry, the need to understand how human competencies influence organizational agility is critical. This paper discusses the antecedent factor of information technology personnel competency toward organizational agility. Literature was reviewed and further examined upon two information systems theories, the dynamic capabilities view (DCV) and people capability model maturity (P-CMM). This study was conducted at Malaysia automotive organizations, auto A and auto B, with 151 participants. Data was collected and analyzed with SPSS and SmartPLS with the utilization of partial least square-structural equation modelling (PLS-SEM). The findings highlighted that human factor significantly influence how organizations respond to internal and external parties. These findings offer insights into empowering the IT workforce towards industrial revolution 4.0 (IR 4.0).</span>

Achieving market performance via industry 4.0 enabled dynamic marketing capability, sustainable human resource management, and circular product design

Business-to-business (B2B) firms are striving to sustain market growth and share in dynamic marketing environment with an increasing need to protect natural resources in era of sustainability and industry 4.0. Although many firms have adapted industry 4.0 technologies, circular economy and sustainability practices in their business activities, but to sustain market growth is still a challenge. They need dynamic capabilities to face the current dynamic market instead of just resources and their capabilities. This study empirically examines whether Industry 4.0-enabled dynamic marketing capabilities and sustainable human resource management (SHRM) can enable firms to implement circular product design strategies and further improve market performance. The proposed framework is based on a dynamic capability view (DCV) and tested by structural equation modeling using survey data from 424 Indian B2B manufacturing firms. The findings show that SHRM promotes Industry 4.0-enabled dynamic marketing capabilities (IDMC); IDMC and SHRM both support implementation of circular product design strategies. Circular product design is supposed to facilitate IDMC to expand market performance. But, IDMC alone is also enough to significantly enhance market performance, despite the combined positive effect of circular product design and SHRM on market performance. These findings contribute to better understanding on what type of dynamic capabilities of organizational resources should be developed and utilized to improve market performance. The study helps firms to develop dynamic marketing capabilities such as circular product design strategies, SHRM and IDMC for helping them in improving market performance while also growing sustainably.

Boosting Innovation Performance through Big Data Analytics Powered by Artificial Intelligence Use: An Empirical Exploration of the Role of Strategic Agility and Market Turbulence

Scholars and practitioners have paid attention to the critical role of big data analytics driven by AI in enhancing business performance. However, firms investing in big data analytics often fail to achieve those advantages. Our research explores the critical role played by strategic agility and market turbulence on the link between big data analytics driven by AI and innovation performance. Based on dynamic capabilities view, we developed an integrated model to examine the relationship between our study variables. We utilized a quantitative approach to collect data from manufacturing companies in Saudi Arabia. We employed structural equation modelling (SEM) through AMOS 26.0 to analyze and test the study hypotheses. Our findings indicated that big data analytics driven by AI have a significant impact on strategic agility and innovation performance. It also revealed that strategic agility mediates the relationship between big data analytics driven by AI and innovation performance. The results also showed that higher levels of market turbulence are associated with more robust connections between big data analytics, strategic agility, and innovation performance. Our work provides managers with meaningful implications on the value that organizations can create through the use of big data analytics and strategic agility.

Credible vs. deceptive threat of market entry: Empirical evidence from the US airline industry

Defending a competitive position in established markets when faced with new entrants is a fundamental element of competitive business-to-business dynamics. Earlier studies showcase that the market entry threats posed by potential entrants (PEs) provoke incumbents' responses to deter PEs' entry. It is worth noting, though, that not all posed market entry threats are credible and deserve an appropriate response. Accordingly, assessing the credibility of a threat is a precursor to efficiently undertaking any deterrent strategy. Drawing on signaling theory, resource-based theory, and a dynamic capability view, we develop a framework for examining the characteristics of a credible market entry threat in well-established industries. We specifically investigate how PEs' and incumbents' resources and capabilities (R&Cs) can explain the credibility of PEs' entry threats. Additionally, the moderating effect of competitive history between PEs and incumbents was examined. To test the hypotheses, we used a multi-market dataset of PE threats in the context of the U.S. airline industry from 1997 to 2016. Findings reveal that entry threats are less credible when incumbents have strong R&Cs and are more credible when PEs and incumbents have a rich history of competition in the related industries. Moreover, a rich history of competition also means that the incumbents' R&Cs lose effectiveness in undermining the credibility of the entry threat. These findings contribute to the B2B marketing strategy literature and provide managers with actionable insights for developing defensive strategies.

Promoting sustainable development: Multiple mediation effects of green value co‐creation and green dynamic capability between green market pressure and firm performance

AbstractThe need for organizations to safeguard and advance environmental sustainability has recently become imperative due to mounting pressures from various stakeholder groups. However, a significant research gap remains regarding how these pressures influence enterprises' green practices and performance. The aim of this study is to examine the impact of green market pressure exerted by customers and competitors on firm performance, taking into account the multiple mediating effects of green value co‐creation and green dynamic capability. Questionnaire survey data collected from 274 high‐tech manufacturing companies in the Yangtze River Delta of China were used to test the proposed relationships. By testing the mediation effects based on stakeholder theory and dynamic capability view, the results show that green market pressure positively affects firm performance, while both green value co‐creation and green dynamic capability play as an individual mediator between green market pressure and firm performance. Moreover, green value co‐creation and green dynamic capability sequentially mediate the link between green market pressure and firm performance. These findings provide valuable suggestions for improving firm performance under the background of environmental protection.

Business model pivoting and digital technologies in turbulent environments

PurposeThis paper aims to draw on the Dynamic Capabilities View to discuss how small and medium enterprises (SMEs) use digital technologies to develop digital capabilities that will enable them to change their current business model and trajectory, that is, to pivot-within turbulent environments, and subsequently to survive and grow.Design/methodology/approachThe authors collected and analysed qualitative data from 26 SMEs in South-East England that have used digital technologies to pivot during the pandemic. The data was collected via in-depth semi-structured interviews. The authors analysed the data by creating first-order concepts, second-order themes, and aggregating dimensions.FindingsThe findings suggest that (1) digital technologies enable pivoting by facilitating the creation of the following digital capability types: “digital sensing”, “digital seizing” and “digital transforming”; (2) Each of these digital capability types is underpinned by micro-foundations (sub-capabilities) and shaped by the digital culture of the organisation. (3) these capabilities are triggered by the turbulent environment and the existing digital technologies, and are shaped by the digital culture.Originality/valueThe authors contribute to the literature of digital entrepreneurship as the authors illustrate (1) how the micro-foundations of digital capabilities, as facilitated by digital technologies, assist pivoting; and (2) the process from key activities during pivoting to second-order themes that represent micro-foundations to digital (dynamic) capabilities for pivoting in turbulent environments. The study highlights the importance of digital pivoting for businesses in the UK Southeast that have many aspirations for growth and innovation, whilst striving to address multiple challenges including digital divide and literacy, inflation and cost of living crisis, as well as supply chain issues.

Digital innovation and transformation capabilities in a large company

AbstractIn a dynamic and quickly changing world, digital innovation and transformation can help enhancing organizational efficiency and have competitive advantage. In addition, the digital innovation and transformation can facilitate the development of a growth‐oriented culture of workforce. Therefore, this study aims at developing the digital innovation and transformation capabilities at large organization. The study uses a four‐layered process for driving the digital innovation and transformation in the case organization. The study positions the digital innovation and transformation mechanism through the lens of the dynamic capability view and institutional theories. The findings indicate the emergence of digital champions as change agents, a digital council as a monitoring channel, a digital core team as technological enablers and reverse mentoring as an innovative cultural dimension of change facilitating dynamic capabilities of the organization. In terms of institutional pressures, coercive and mimetic pressures emerged as major contributors to the advancement of the digital skill set and digital mindset of the experienced workforce especially, supported by Hofstede's cultural dimensions. Study further delineates the insights for practice, theory and policy. To this end, the study showcases the future scope of work at the case company, since it is an ongoing project on digital innovation and transformation to make organization and related infrastructure resilient, digital and innovative.

Nexus between technology enabled supply chain dynamic capabilities, integration, resilience, and sustainable performance: An empirical examination of healthcare organizations

Due to the twin impacts of the COVID-19 pandemic and sustainability requirements, many healthcare organizations face disruptions and uncertainties, which put patient safety at risk and decrease the overall quality of health services. Drawing on the dynamic capability view, this study aims at exploring the relationship among supply chain dynamic capabilities (SCDCs), supply chain integration (SCI), supply chain resilience (SCR), sustainable competitive advantage (SCA), and sustainable supply chain performance (SSCP). The study collected 325 usable responses from healthcare supply chain organizations in the developing country of Pakistan, including hospitals, pharmaceutical manufacturing firms, surgical and equipment manufacturing firms, etc. Structural equation modeling using Smart-PLS v.3.3.2 was adopted for the data analysis. The results indicate that SCDCs positively influence SCI, SCR, SCA, and SSCP. This study finds that SCA, SCI, and SCR mediate the relationship between SCDCs and SSCP. This study contributes by aligning the SC dynamic capabilities for supply chain visibilities (i.e., sensing, learning, and coordinating) in the healthcare context. It has examined the impacts of SCDC, SCI, and SCR collectively rather than addressing them piecemeal. Sensing, learning, and coordinating capabilities through frequent collaborative meetings offer healthcare firms SC integration, allowing them to respond to the changing environment quickly and resiliently, further improving their SCA and SSCP. Since disruptions are inevitable, healthcare organizations must turn uncertainties into opportunities and activate a dynamic and resilient strategy to absorb stress. SCA and SSCP improve when SCDCs/SCR and disruptions are properly balanced.

A dynamic capability view of career adaptation: an exploratory study

PurposeDisruptive forces, such as the global pandemic and technological innovation, are leading to growing labor uncertainty. For organizations, being able to adapt is a key skill for employees, while adapting to different employment contexts is increasingly essential for career success. This study leverages career adaptability theory and integrated dynamic capabilities to isolate skills enabling career adaptation.Design/methodology/approachA qualitative study was conducted to develop a skills codebook using a Delphi technique to converge on career adaptation skills, which was validated against leading meta-skills frameworks and a purposeful sample of 15 occupational competency models.FindingsThe codebook phase identified 24 distinct meta-skills in 6 clusters: problem-solving, self-reliance, collaboration, communication, core literacies and core workplace skills. Findings confirmed that most of the skills identified by the experts were also present across the meta-skills frameworks.Research limitations/implicationsThis study highlights research opportunities, including a recommendation to extend the codebook by conducting a large sample empirical study of occupational competency models.Practical implicationsAdaptive individuals remain attractive in the job market. With the proposed framework, individuals can systematically reflect on ways to develop career adaptation skills. Other stakeholders should support the development of skills that facilitate an individual's capacity to adapt to diverse employment contexts.Originality/valueThis study contributes to resolving the debate on skills contributing to career adaptation by combining the career adaptability theory and integrated dynamic capabilities, to produce a harmonized meta-skills codebook including labels, definitions and synonyms. This study validates the codebook against leading skills frameworks and occupational competency models.

The Impact of Entrepreneurial Leadership on Innovation Speed and Quality: The Mediating Role of Strategic Flexibility

In a highly dynamic and competitive environment, organizations must continuously and rapidly improve their innovation performance to remain competitive and sustainable in the market. Drawing on principles of the upper echelons theory and dynamic capability view of organization, this study aims to examine the mediating role of strategic flexibility in the relationship between entrepreneurial leadership and innovation speed and quality. Questionnaire was designed to data collection from a quota sample of (283) leaders and managers at branches of the most two huge Egyptian banks represent public and private sectors (NBE and CIB). Data analysis was conducted through a two-stage structural equation modeling technique by AMOS. At the first stage, the measurement model was examined for construct validity and reliability, whereas at the second stage, the structural model was run for testing the research hypotheses. The empirical results show that entrepreneurial leadership and strategic flexibility positively and significantly affect both innovation speed and quality. Furthermore, strategic flexibility partially mediates positively the relationships between entrepreneurial leadership and innovation speed and quality. This research proposes guidelines for managers to help enhance organizational innovation through dynamic and strategic flexibility in emerging economies such as Egypt.

Value of Analytics for Decision-Making: Role of Managers and Analysts

ABSTRACT Despite the hype and investments, the successful use of analytics demands human-intensive efforts to exploit its full potential. The mixed outcomes of analytics initiatives indicate the need to dive deep into how analytical activities and processes contribute to business value creation. Building on the knowledge-based and dynamic capability views and following the analytics process perspective, we examine managers’ and analysts’ roles in creating value for data-driven decision-making. We conducted Q-sorting, exploratory factor analysis, and partial least squares analysis using data from 159 firms with low to medium-level analytics. As part of our research, we conceptualize and develop two novel multi-dimensional constructs: 1) managerial analytics competency and 2) technical analytics competency and then empirically investigate their impact on decision-making efficiency and effectiveness. Our results reveal the crucial role of managerial analytics competency in driving the technical analytics competency for improved decision-making. Furthermore, our research offers significant contributions to theory and practice.

The consequences of innovation failure: An innovation capabilities and dynamic capabilities perspective

Organizations engage with innovation by leveraging their innovation capabilities and dynamic capabilities. In this study, we examined how organizational innovation capabilities and dynamic capabilities can influence organizational performance, taking into account cases when innovation projects do not yield beneficial outcomes to organizations. Building on the dynamic capability view and the notion of innovation capability, we developed a conceptual model and subsequently validated it by conducting a survey on a sample of organizations across multiple manufacturing and service industries that are based in India. By applying PLS-SEM, we found that different contextual factors including commercial viability and technological feasibility play a critical role towards innovation failure and success. In its turn, innovation failure negatively influences organizational performance.

Green supply chain technology and organization performance: Moderating role of environmental dynamism and product-service innovation capability

The green supply chain management (GSCM) system is considered as an environmentally friendly approach which considers different environmental issues in supply chain flow. There are different underlying technologies used in implementing GSCM; yet, we still have limited knowledge concerning how green SCM technology can enhance organizational performance. Further, the conditions that indirectly affect organizational performance within this context remain underexplored. Drawing on this gap of knowledge, the purpose of this research work is to investigate how adoption of GSCM can improve organizational performance. We also argue that the dynamism of the environment and the product-service innovation capability of organizations will have conditioning effects on this relationship. Grounded on the dynamic capability view as a theoretical lens, a conceptual model has been developed which is explored through feedback from 307 organizations involved in green supply chain management activities. We find that environmental dynamism and product-service innovation capability have moderating impacts on adopting green supply chain technology and organizational performance. The outcomes also indicate that green supply chain technology can considerably improve business value under certain contextual factors.

Resilience strategies to mitigate “extreme” disruptions in sustainable tourism supply chain

PurposeDrawing on the dynamic capability view (DCV), this research determines the suitable configurations of resilience strategies for sustainable tourism supply chain performance amidst “extreme” disruptive events affecting the entire supply chain.Design/methodology/approachThis research applies a multi-study and multi-method approach. Study 1 utilizes in-depth interviews to identify a list of tourism supply chain sustainability risks and resilience strategies. Study 2, using quality function deployment (QFD) technique, determines the most important resilience strategies corresponding to highly significant risks. Study 3, on the other hand, adopts a fuzzy set qualitative comparative analysis (fsQCA) to determine the best recipe of resilience strategies and risks to make the tourism supply chain performance sustainable.FindingsThe findings reveal that sustainable tourism performance during an extreme disruptive event (e.g. COVID-19 health crisis) depends on the combined effect of tourism resilience strategies and risks instead of their individual effect.Practical implicationsThe research findings offer significant managerial implications. Managers may experiment with multiple causal conditions of risks and resilience strategies to engender the expected outcome.Originality/valueThis research extends current knowledge on tourism supply chain and offers insights for managers to mitigate the risks and ensures sustainable performance in the context of extreme disruptive events.

Assessing the impact of big data analytics on decision-making processes, forecasting, and performance of a firm

There are various kinds of applications of BDA in the firms. Not many studies are there which deal with the impact of BDA towards issues like forecasting, decision-making, as well as performance of the firms simultaneously. So, there exists a gap in the research. In such a background, this study aims at examining the impacts of BDA on the process of decision-making, forecasting, as well as firm performance. Using resource-based view (RBV) as well as dynamic capability view (DCV) and related research studies, a research model was proposed conceptually. This conceptual model was validated taking help of PLS-SEM approach considering 366 respondents from Indian firms. This study has highlighted that smart decision making and accurate forecasting process can be achieved by using BDA. This research has demonstrated that there is a considerable influence of adoption of BDA on decision making process, forecasting process, as well as overall firm performance. However, the present study suffers from the fact that the study results depend on the cross-sectional data which could invite defects of causality and endogeneity bias. The present research work also found that there is no impact of different control variables on the firm's performance.

Systematic review of international marketing capabilities in dynamic capabilities view – calibrating research on international dynamic marketing capabilities

PurposeThis study aims to conduct a thorough literature review to map current studies on international marketing capabilities (IMCs) applying dynamic capabilities view (DCV). The aim of this study is to increase the chances for more conceptual and terminological rigor in future research in this particular research area.Design/methodology/approachThis is a systematic literature review following the established review process of reviews in leading (international) marketing journals. A multilevel analytical approach was adopted, combining inductive coding with deductive coding and following the logic of antecedents-phenomena-consequences.FindingsSynthesis of 20 rigorously selected previous empirical studies on IMCs applying DCV reveals that academic interest in these capabilities is well justified and growing and there are some well researched antecedents to focal capabilities (e.g. inter-organizational capabilities, outside-in market orientation) as well as their prevalent consequences (e.g. export and innovation performance). There is little knowledge of moderators to these links, especially with regard to consequences. This review illustrates that the current research lacks consistency in how key constructs are defined and measured, provides the guide to future conceptualization and measurement of so-called International Dynamic Marketing Capabilities (IDMCs) and proposes some concrete research directions.Originality/valueThe authors extend prior research in the investigated topic by critically evaluating prior works, providing improved conceptualization of IDMCs as well as concrete research agenda for IDMCs structured along recommendations for Theory, Context and Methods (TCM framework).

Why green absorptive capacity and managerial environmental concerns matter for corporate environmental entrepreneurship?

Balancing environmental sustainability and green business growth is one of the primary goals of corporate environmental entrepreneurship, while green entrepreneurship orientation (GEO) represents balanced approaches to maximize green business value-added and maintain environmental performance (EP). Green innovation (GI) strengthens green business efficiencies and drives GEO achievements. Building on the natural resource-based view (NRBV) and dynamic capability view (DCV), this research addressed the critical role of GEO and GI on EP. In addition, the effect of green absorptive capacity (GAC) and managerial environmental concern (MEC) on EP is estimated. The results indicated that GEO significantly affects MEC and GI. While GI positively influences MEC, the relationship between GI and GAC was insignificant. Additionally, GAC and MEC positively and greatly influenced EP. As GAC partially mediates the effect of GEO and GI on EP, MEC also partly mediates the relationship between GI and EP. In the context of the environment, this study presents three quantitative achievements, namely (1) it confirms the vital role of green dynamic capabilities such as GAC to balance GEO's green business agenda and maintain environmental performance, (2) GAC converts knowledge creation to knowledge applications focusing on the development of eco-friendly products and processes to reduce environmental pollution, and (3) MEC determine and focus on GI core competencies to support GEO strategies, (4) GAC level up firms green dynamic capabilities to the level of GEO, and thus maintaining ecosystem and eco-business sustainability. In light of the study outcomes, theoretical and managerial implications were highlighted.

The Dynamism of the Environment — The Impact on Service Company Competitive Advantage from a CRM Dynamic Capabilities Perspective

Abstract Objective To explore the dynamism of the environment and the impact on service company competitive advantage from a customer relationship management (CRM) dynamic capabilities (DCs) perspective. This work also aims to develop a multidimensional conceptualisation of the dynamic environment and propose a theoretical model for analysing the impact of the environment's dynamism on the relationship between dynamic CRM capabilities and competitive advantage. Research Design and Methods Based on the resource-based view (RBV) and dynamic capabilities view (DCV), the method of critical literature analysis was used. Literature sources written in the last two decades were analysed. Findings The result of the literature research became the development of a new conceptualisation of the dynamic environment and its three relevant dimensions, as well as the proposal of constructs in the theoretical model, where the dynamism of the environment plays a moderating role in the relationship between dynamic CRM capabilities and competitive advantage. Implications/Recommendations As implications for further research, empirical verification of the created model and checking the relationship between the constructs should be indicated. Contribution The findings extend the application of RBV and DCV in marketing knowledge. In addition, the model and this study's conclusions direct service firms to develop CRM capabilities that can enhance the company, thereby enabling the building of competitive advantage in a dynamic environment.