Dynamic Capabilities View Research Articles

Circular supply chain management with blockchain technology: A dynamic capabilities view

Achieving a circular economy (CE) is considered one of the most significant challenges of our time, as environmental challenges and social discrepancies keep increasing. While companies need to transform their supply chains towards sustainability and circularity, implementing CE concepts into practice is not straightforward and requires technical and non-technical capabilities, referring to dynamic capabilities. One of the most promising digital technologies for improving sustainability and circularity is blockchain. However, the literature on relationships between blockchain technology (BCT), sustainability, and the CE is still in its infancy. This study illustrates how BCT can help implement circular supply chain management (CSCM) from a dynamic capabilities perspective. A multiple case study approach examines how BCT’s potential impacts CSCM. Building on the case evidence, necessary dynamic capabilities are deduced for successful CE implementations with BCT. The analysis demonstrates that supply chain traceability and related sensing capabilities are major benefits of BCT-driven CSCM. Thus, we contribute to theory by examining which dynamic capabilities need to be developed when realizing CSCM through BCT. The results indicate that the BCT potentials depend on the business model pointing to certain contingencies.

Circular economy practices and environmental performance: Analysing the role of big data analytics capability and responsible research and innovation

AbstractThis study employs dynamic capability view theory to comprehend the interplay between big data analytics capability (BDAC), responsible research and innovation (RRI) and circular economy practices (CEPs) as an execution strategy for improving environmental performance. The study uses partial least square structural equation modelling to analyse primary survey data collected from 326 manufacturers. The results indicate that BDAC, RRI and CEPs favourably affect environmental performance. Notably, RRI emerges as the most influential factor among the three. Furthermore, the findings suggest that implementing CEPs serves as a partial mediator for the influence of BDAC and RRI on environmental performance. Surprisingly, the study finds that the moderating impact of resource commitment is not statistically significant in any of the three pairwise interactions involving BDAC, RRI and CEPs with respect to environmental performance. The results have various intriguing implications for how manufacturers can enhance their circular economy strategies to achieve better environmental performance, representing a noteworthy contribution to the foundational theory of the dynamic capability view. Finally, these findings also provide valuable insights to managers, enabling a deeper understanding of the determinants that contribute to deploying CEPs and improving environmental performance within a manufacturing setting.

Thriving in uncertainty: examining the relationship between perceived environmental uncertainty and corporate eco-innovation through the lens of dynamic capabilities

Introduction: Objective environmental uncertainty has important impacts on entrepreneurial decision-making, but entrepreneurs’ perception of uncertainty may be a more crucial factor. This is because objective environmental uncertainty may need to be filtered through entrepreneurs’ perceptions to influence their decision-making. Therefore, exploring how entrepreneurs’ perceived environmental uncertainty (PEU) affects their corporate eco-innovation behavior has significant theoretical and practical implications.Methods: Drawing on the dynamic capability view, we utilize data from the 2016 China Private Enterprise Survey (CPES) on 2,733 small and medium-sized enterprises (SEMs) to highlight the impact of entrepreneurs’ PEU on corporate eco-innovation. We also examine the moderating effect of government intervention (government subsidies and government official visiting) on this relationship.Results: Our study reveals a positive impact of entrepreneurs’ PEU on corporate eco-innovation, confirming the critical role of dynamic capability in corporate strategic adjustment under uncertain conditions. Additionally, we find that government intervention (government subsidies and official visits) has a positive moderating effect on this relationship, with entrepreneurs’ PEU and eco-innovation being mediated by corporate dynamic capability.Discussion: The study contributes to the literature on environmental uncertainty, dynamic capabilities, and eco-innovation, and provides practical implications for SMEs in developing countries. The findings highlight the importance of subjective perceptions of environmental uncertainty over objective uncertainty. The study also demonstrates that environmental uncertainty is not inherently negative, but can be managed strategically with dynamic adjustment and government support.

Role of Logistics Integration Capability in Enhancing Performance in Omni-Channel Retailing: Supply Chain Integration as Mediator

Although the importance and benefits of logistics integration in omni-channel (OC) retailing have been discussed in the literature, the impacts of logistics integration from the dimension of internal and external logistics remain unknown. To fill this gap, this study aims to investigate the relationships among internal and external logistics integration capabilities, supply-chain integration (SCI), and financial performance (FP) in OC retailing based on the dynamic capability view. An empirical study is conducted based on a survey of 230 OC retailers in China’s market. Factor analysis and regression analysis are conducted to examine the hypotheses of the proposed conceptual model. The quantitative analyses show that the internal logistics integration capability is significantly related to the external logistics integration capability, and they both have positive effects on SCI, while the external logistics integration capability generates a higher impact (i.e., almost 1.5 times that of the internal logistics integration capability). The numerical results also demonstrate that the logistics integration capabilities and SCI have similar positive effects on FP (i.e., all the relevant regression coefficients show values around 0.25), and SCI plays a partial intermediary role in the relationships between logistics integration capabilities and FP. Furthermore, the quantitative evidence addresses the fact that the FP is not influenced by OC retailers’ characteristics, indicating a fair business environment in the OC retail industry.

Benefit from market knowledge: Failure analysis capability and venture goal progress in a turbulent environment

Drawing on the dynamic capabilities view, this study investigates the role of failure analysis capability in affecting venture goal progress in the technologically turbulent environment in which entrepreneurial failures are commonplace. Combining a three-wave time-lagged questionnaire survey (Study 1) with a qualitative interview (Study 2) on high-tech entrepreneurial ventures in China, we conclude that technological turbulence weakens the positive association between failure analysis capability and venture goal progress. However, the market knowledge depth of new ventures can be applied to mitigate the negative moderating effect of technological turbulence on the failure analysis capability-venture goal progress association. Theoretical and practical implications are derived from the above findings to guide future research.

What factors affect firm performance in the hotel industry post-Covid-19 pandemic? Examining the impacts of big data analytics capability, organizational agility and innovation

The Covid-19 pandemic has had an adverse effect on the global economy, particularly the hotel industry. Industry players have turned to big data to recover and improve their business performance. This paper aims to identify the key resources to develop and build big data analytics capabilities (BDAC). Drawing upon the knowledge-based and dynamic capability views, this research also examines the interplay among BDAC, organizational agility, marketing and organizational innovations, and firm performance in the hotel industry. The partial least square structural equation modeling is used for the data analysis, while quota sampling is used for the sampling design. Based on the statistical data analysis from 115 star-rated hotels in Malaysia, BDAC positively impacts organizational agility, marketing and organizational innovations, and firm performance. Likewise, organizational agility positively impacts firm performance, marketing and organizational innovations. The empirical findings provide researchers and industry players with meaningful insights for improving firm performance in the hotel industry using big data.

Investigating the strategic IT alignment process with a dynamic capabilities view: A multiple case study

In the turbulent business environments brought about by the digital age, strategic IT alignment remains at the forefront of managers’ concerns, raising important issues for researchers. One of these issues is to further understand how firms enact their IT alignment processes and what IT and non-IT capabilities are required to support these processes. To understand this issue, we conducted four case studies in small and medium-sized enterprises (SMEs). Anchored in a dynamic capability-based view, our findings unveil how three 2nd-order, six 1st-order dynamic IT alignment capabilities, and other IT and non-IT capabilities coherently interact to support the firm's business objectives.

Assessing Chinese Textile and Apparel Industry Business Sustainability: The Role of Organization Green Culture, Green Dynamic Capabilities, and Green Innovation in Relation to Environmental Orientation and Business Sustainability

The current study aims to evaluate the role of environmental orientation (EO) on green dynamic capabilities (GDCs), organization green culture (OGC), and green innovation (GIN) toward business sustainability (BUS) in the context of Chinese textile and apparel manufacturing firms. Natural resources-based view (NRBV) and dynamic capabilities view (DCV) were used as the theoretical lenses of the research. This study is quantitative, and a purposive sampling technique was employed to collect data from the managers working in textile and apparel manufacturing firms in China. The sample size consisted of 339 managers. Partial least-square structural equation modeling (PLS-SEM) was employed to analyze the data. The study’s findings show that EO significantly and positively influences OGC and GDCs. However, the positive influence of EO on GIN was insignificant. Moreover, the result indicates that GIN is a significant mediator in the relationships between OGC and BUS and GDCs and BUS. The results demonstrate how the Chinese textile and apparel industry EO improves GDCs, GIN, and OGC, which, in turn, benefits achieving long-term business sustainability.

Examining the viability of lean production practices in the Industry 4.0 era: an empirical evidence based on B2B garment manufacturing sector

PurposeThis study aims to investigate the influence of the interrelationship between the deployment of Industry 4.0 (I4.0) technologies and the application of lean production (LP) practices on the degree of organizational sustainability performance (SP) enhancement of the Bangladeshi ready-made garment (RMG) sector.Design/methodology/approachPreviously, researchers have applied the resource-based view (RBV) or dynamic capability view (DCV) to describe the interaction of resources and capacities (technologies, management practices, SP) to analyze their effectiveness. However, in light of several contemporary academic discussions, this study contends that these organizational views are inappropriate for explicating SP. Hence, as the foundation of this study’s theoretical framework, the authors used the practice-based view (PBV), which is recommended as a useful window to evaluate the function of practices that are common and simple to emulate in execution. To test the theoretical framework and research hypothesis, this study used partial least square (PLS) analysis. For that, the authors carried out a systematic survey to collect data from 80 Bangladeshi RMG factories.FindingsThe results of this research imply that LP is a crucial factor in enhancing organizational SP. Moreover, the results also indicate that the adoption of I4.0 technologies along with LP can assist in delivering the lean objectives more efficiently and, therefore, the combined application of LP practices and I4.0 technologies play a significant role in enhancing organizational SP.Originality/valueThough the present literature indicates the probable significant association between LP and SP or I4.0 technologies and SP, no study, with the best of the authors’ knowledge, has empirically examined the combined impacts of correlation between LP and I4.0 on SP. This is also a unique study to apply the PBV theory to explain the organizational SP through the combination of common resources and technologies.

The impact of dynamic capabilities on circular economy: the mediating effect of the industrial Internet of things

PurposeThe current study aimed to identify the impact of the dynamic capabilities on the circular economy in Jordan's small- and medium-sized manufacturing enterprises sector as and the mediating role of industrial Internet of things.Design/methodology/approachThis study surveyed small and medium manufacturing enterprises operating in Jordan and collected 459 responses through an online self-administered questionnaire. The effects of dynamic capabilities and the industrial Internet of things on the circular economy were analyzed using covariance-based structural equation modeling (CB-SEM).FindingsEmpirical results showed that all hypotheses are accepted. The results also revealed that the relationship between dynamic capabilities (sensing, seizing and reconfiguring) on a circular economy is mediated by the industrial Internet of things.Originality/valueThis work expanded the application of the dynamic capabilities view to investigate the antecedent effects of the industrial Internet of things and the circular economy and deepened understanding of the dynamic capabilities view theory in assessing the dynamic activities of these firms based on the three dimensions of sensing, seizing and reconfiguring. In general, this study made a theoretical and managerial contribution to supply chain and circular economy literature.

Blockchain Technology Adoption for Improved Environmental Supply Chain Performance: The Mediation Effect of Supply Chain Resilience, Customer Integration, and Green Customer Information Sharing

Due to the complexity of building supply chain resilience (SCR) towards long-term environmental sustainability amendments, the use of emerging technologies such as Blockchain Technology (BCT) can be adopted as an innovative tool to enhance the sustainability and resilience of supply chains, especially in uncertain environments. Drawing on the Knowledge-Based View (KBV) and Dynamic Capability View (DCV), this research aims to demonstrate how the adoption of BCT can enhance the environmental supply chain performance (SCP). A total of 603 valid surveys were collected from respondents from manufacturing and service organizations in Egypt. The collected data were analyzed using structural equation modelling, and results revealed that BCT adoption alone had a negative direct impact on environmental SCP. However, when this relationship was mediated by SCR and sequentially mediated by customer integration and green customer information sharing, the results were positive. This research presents insights on how organizations can adapt to dynamic business environments, and, in addition, it extends the theories of KBV and DCV in an empirical contribution by filling the gap in understanding regarding how environmental SCP can be enhanced through the adoption of BCT.

Sustaining firm sustainability endeavors: The role of international diversification on firm CSR capability

CSR's role in the international business context has been widely noted. Yet, how firms' cross-border strategies influence firm CSR capability is largely absent in the literature. Our study examines how firm international diversification, as reflected by breadth and depth, affects CSR capability. These relationships are further built into a contingency-based model incorporating the market dynamism and competition intensity. We collect a large dataset with 6069 firm-year observations range from year 2000–2015, and we employ multiple robust methods including Newey-West robust regression and Driscoll-Kraay robust regression to estimate the model. The results demonstrate the significant driving role of international diversification on CSR capability, although diminishing return effects exist in the contingencies. Also, this relationship becomes stronger in more dynamic and more competitive environments. Our research provides unique contributions to the stakeholder theories, strategic CSR theories, dynamic capability view, and international business literature.

Understanding the Relationship between Big Data Analytics Capabilities and Sustainable Performance: The Role of Strategic Agility and Firm Creativity

The most successful organisations create businesses that can respond to sudden and unexpected changes in the market. The purpose of this research is to examine how big data analytics capabilities might, through strategic agility, impact on sustainable performance. We grounded our theoretical framework in two perspectives: the resource-based view and the dynamic capabilities view. In order to gather data from Saudi Arabian managers, we used the positivist methodology of a survey. Data were collected from 410 managers. The data were analysed using the SEM method. The findings indicated that big data analytics capabilities have a significant effect on economic, environmental, and social performance. They also revealed that strategic agility partially mediates the relationship between the capabilities of big data analytics and sustainable performance. Furthermore, the impact of big data analytics capabilities on strategic agility is stronger in a creative environment, while the strategic agility–sustainable performance relationship is more pronounced in more creative environments. The findings offer firms an insight into the actual benefits that big data analytics may generate and how firms may align the use of big data analytics with industrial conditions to foster sustainable performance.

The effects of digital technology application and supply chain management on corporate circular economy: A dynamic capability view

Developing circular economy capability has emerged as an effective response to environmental pressures on firms. The proliferation of digital technology has created uncertainty in developing corporate circular economy capability. Although research has begun to focus on the impact of digital technology application on corporate circular economy capability, empirical evidence remains absent. Simultaneously, few studies have concerned corporate circular economy capability obtained from supply chain management. The answer to the correlation between digital technology application, supply chain management, and circular economy capability is unavailable in current research. Based on a dynamic capability view, we investigate how digital technology application affects corporate circular economy capability through supply chain management regarding supply chain risk management, collaboration, and integration. This underlying mechanism was verified with 486 Chinese-listed industrial firms and the mediating model. The findings demonstrate that digital technology application and supply chain management significantly affect corporate circular economy capability. The mediating channel whereby the digital technology application provides circular economy capability can facilitate the positive impact of supply chain risk management and collaboration while undermining the adverse effects of supply chain integration. These mediating channels differentiate in heterogeneous growth firms and are more pronounced in low-growth groups. It presents an opportunity to use digital technology to reinforce the positive impact of supply chain risk management and collaboration and mitigate the negative effect of supply chain integration on circular economy capability.

Exploring drivers of business performance in web-enabled supply chains: the role of web technology training and supply chain integration

PurposeGrounded on the resource-based and dynamic capability views and the contingency theories, this study examines the direct and indirect effects of web technology training (WTT) and web-enabled transaction use (WTU) on business performance (BPE) through internal supply chain integration (ISCI) and supplier supply chain integration (SSCI).Design/methodology/approachBased on survey data collected from a sample of 175 respondents in the USA, the authors used structural equation modeling with AMOS 24.0 to test the measurement model for validity, reliability and the conceptual model for hypothesized structural relationships.FindingsThe results reveal that WTT significantly impacts WTU, which, in turn, has a significant direct relationship with BPE. Further, WTU indirectly affects BPE through SSCI. Additionally, ISCI has a significant direct effect on SSCI.Practical implicationsThe findings support the relationship between WTT and BPE via WTU SCI. Managers are advised to develop ongoing capabilities in WTT to maximize the value of WTU to enhance the ISCI and SSCI operations, thus leading to improvements in BPE.Originality/valueThe research contributes to the supply chain literature by empirically demonstrating the usefulness of WTT in improving WTU use and BPE through effective ISCI and SSCI.

The interplay between dynamic capabilities’ dimensions and their relationship to project portfolio agility and success

Recent literature emphasizes agility's importance for a project portfolio's success in a dynamic environment. Conceptually, dynamic capabilities should be relevant antecedents for portfolio agility since they help organizations cope with dynamic environments. Dynamic capabilities disaggregate into three dimensions: sensing market and technology opportunities, seizing opportunities through prioritizing and exploiting them, and continuously reconfiguring assets and structures. Although previous literature emphasizes the importance of dynamic capabilities for project portfolio management (PPM), former research rarely analyzed dynamic capabilities in PPM empirically. Further, dynamic capabilities can be conceptualized differently, and it remains unclear how different conceptualizations coexist and what effects they have on the results of a study. This paper quantitatively investigates the relationship between dynamic capabilities’ dimensions (sensing, seizing, and reconfiguring) and project portfolio agility and success using a multi-informant, cross-industry sample of 135 project portfolios. The findings show that dynamic capabilities positively relate to portfolio agility and that portfolio agility mediates the relationship between dynamic capabilities and portfolio success. Surprisingly, sensing, seizing, and reconfiguring do not have entirely complementary effects. Instead, at least two of the three dimensions must be strongly present to enhance portfolio agility positively. The study underscores the importance of dynamic capabilities for portfolio agility. It contributes to the literature on portfolio agility in PPM and a more differentiated view of dynamic capabilities' dimensions and their consequences.

Organizational Resilience of Filipino Music Performers during the COVID-19 Pandemic: A Dynamic Capabilities View

This study looks into the dynamic capabilities theory and its relationship with organizational resilience by drawing on a sample of select Filipino live music performers, specifically rock bands. A qualitative thematic analysis approach was used to answer the research questions with the help of transcribed interviews and online data. The pandemic gave rise to several obstacles. To overcome these challenges, the bands exhibited dynamic capabilities. Key themes in each of the capacities of the dynamic capabilities framework were seen, for example, Digital Transformation and Vicarious Learning under Sense, and Changing the Songwriting Process and Evolving Future Outlook under Transform. This study can help business organizations, artists, and workers in the live music industry cope with fast-changing environments and crises. This research can also serve to understand dynamic capabilities in more detail.

How entrepreneurial bricolage drives sustained competitive advantage of tourism and hospitality SMEs: The mediating role of differentiation and risk management

When confronted with challenging conditions, becoming innovative by recombining available resources is considered a critical determinant of tourism and hospitality (T&H) SMEs' resilience to risk and staying ahead of rivals. Grounded on the resource-based view theory and dynamic capabilities paradigm, this paper investigates how entrepreneurial bricolage drives the sustained competitive advantage of T&H SMEs despite resource constraints. Following the mixed-methods research design, empirical data from nine in-depth interviews and a survey with 246 T&H SMEs in Japan reveal that differences in strategic management initiatives in the form of risk management and differentiation advantage mediate the positive effects of entrepreneurial bricolage on achieving sustained competitive advantage. Consequently, this paper extends the potential of the dynamic capabilities view as an underlying theory in tourism and hospitality literature.

Capabilities for data-driven innovation in B2B industrial companies

Industrial companies are increasingly interested in innovating through data to develop solutions for customers' current and future needs. This study examines organizational capabilities for data-driven innovation (DDI) in the context of established industrial companies. Building on the prior innovation literature, resource-based view, and dynamic capabilities view, we conduct a qualitative study of technological and marketing capabilities in relation to DDI. Based on interview data from six multinational B2B companies, we find that even though technological capabilities are vital to DDI, five of the six examined companies struggle more with marketing capabilities in developing DDI. The research findings underline the central role of customer understanding and involvement in DDI, as well as the significance of the ability to articulate the DDI value proposition in a form that potential customers can grasp. The study contributes to our understanding of DDI as a phenomenon in the context of established manufacturing companies, and identifies key challenges for intangible data-driven innovations in this context.

How does information technology capabilities affect business sustainability? The roles of ambidextrous innovation and data‐driven culture

This research investigates explicitly how Information technology capability (ITC) can be tailored to achieve business sustainability via ambidextrous innovation in a turbulent environment. Moreover, the moderating factor of a data‐driven culture (DDC) is also being investigated. The research model was built on the theoretical foundations of the resource‐based view (RBV), dynamic capabilities view and existing IT capabilities literature. Through a close‐ended survey questionnaire from approximately 254 IT personnel in managerial positions working in the manufacturing industry, partial least squares‐structural equation modelling‐artificial neural network (PLS‐SEM‐ANN) is applied. Notably, the result indicated that ITC positively influences IT‐enabled dynamic capabilities (ITDC), which positively impacts ambidextrous innovations and helps manufacturing firms achieve business sustainability. Meanwhile, the moderating role of DDC between ITDC and exploitative innovation was also found. The results showed that ANN models A, B, C and D are consistent for both analysis. This study provides several novel additions to the literature on operations management and information systems (IS) researchers. IS researchers should focus on leveraging ITC to enable and support organisational capabilities rather than the direct effects of IT expenditures. Additionally, the importance of a DDC has seldom been explored together previously. Thus, this study fills gaps in existing knowledge, along with significant insights, specifically for future IT implementation. As for practical implications, this study provides corporate leaders and executives with insights about how to leverage their resources and customise their ITC in an unpredictable and volatile business environment.