Dynamic Competitive Advantage Research Articles

Kapabilitas Dinamik dan Keunggulan Bersaing: Dinamisme Lingkungan Moderator ataukah Driver?

The aim of this study is to investigate the role of environmental dynamism in relation to dynamic capabilities and competitive advantage. This study uses a quantitative approach and type of explanatory research. The survey was conducted at 130 MSMEs in Malang Raya. Hypothesis testing using SEM-PLS. The findings of the study prove that environmental dynamism is a driver for dynamic capability, while providing evidence that environmental dynamism acts as a negative moderator for achieving competitive advantage. Another finding is that dynamic capabilities have a major effect on competitive advantage while simultaneously acting as fully mediating environmental dynamism with competitive advantage. The implication is important for MSMEs to develop dynamic capabilities in order to deal with environmental dynamism so that MSMEs can increase competitive advantage because if they do not develop dynamic capabilities, environmental dynamism will reduce MSME's competitive advantage.

Effect of Human Capital and Dynamic Capabilities on Competitive Advantage: Mediating Analysis

Aim: A better understanding of farm-level competitiveness of agribusiness sector provides the necessary framework for agribusiness farms to compete at domestic and global markets. This study aims to determine the relationships of human capital, dynamic capabilities and competitive advantage in the minor export crop sector in Sri Lanka.
 Study Design: Minor export crop farm owners involved in the commercial cultivation of cinnamon, pepper and clove in Sri Lanka were surveyed using a personally-administered, structured questionnaire. The regression-based path analysis was used to test the model.
 Results: The results indicate significant relationships between human capital and capabilities of learning and relationship building as well as between human capital and competitive advantage.
 Implications: The findings provide useful insights where an understanding of the link between human capital, as a resource, in dynamic capabilities and competitive advantage which allows human capital to be configured appropriately and deployed effectively and efficiently based on dynamic capabilities of the minor export crop farms to achieve competitive advantage.
 Original: The study has extended our understanding of the importance of human capital for in relation to dynamic capabilities.

Strategy Design Method Based on Corporate Learning System

The paper proposes a method for a strategy design that corresponds to concept of dynamic capabilities. The advan-tages and disadvantages of the methods of strategy design used by various schools of strategic management are demonstrated. The authors postulate inconsistency between a new stage of scientific knowledge and the related technique of strategic analysis and strategy design methods. The purpose of the article is to develop a method for creation a strategy based on a learning system as a key element of a competitive advantage in the concept of dynamic abilities. The method compares favorably with approaches based on the analysis of the external environment, which have a methodological contradiction, since such a stra-tegy is available to all market actors, and it is easy to repeat it. Unlike the methods of the “basic” resource concept, the proposed one allows you to expand an approach to design a strategy precisely from the standpoint of strategic actions in relation to the resources, capabilities, and competencies of the company, which can be combined into clusters that provide a syner-gistic effect. The long-term horizon of the strategy invariably requires the inclusion of corporate learning system as a gene-rator of organizational capabilities into the various clusters. It has been noted that the speed of reaction to changes which is required in a contemporary competitive environment puts forward a corporate learning system as a key competency of a company. The method corresponding to the concept of dynamic capabilities creates the possibility of developing a strategy based on a corporate learning system and provides a dynamic sustainable competitive advantage.

Entrepreneurial Orientation in Government-Owned Bank: Do They Improve Competitive Advantage?

In Indonesia, housing finance is mainly raised from banks, with the government-owned housing bank (GOHB) BTN taking the largest share of the market. In constantly growing population need for new housing unit every year and increased number of competitors requires managers of government-owned housing bank to be able to develop their dynamic capabilities and adopt a more entrepreneurial orientation (EO). However, (GOHB) are typically being linked to organization that administratively influenced by government that impeding GOHB from being high performance organization driven by EO. Moreover, the dual goals of GOHB which are business and social goals makes the managers struggle to develop and adopt entrepreneurial orientation, since they have to set priorities and trade-off between those goals. The aims of this study is to investigate the role of entrepreneurial orientation (EO) in improving competitive advantage of government-owned housing bank, and fills a gap in the literature by linking entrepreneurial orientation to the theory of dynamic capabilities. This study explored the mediating effect of multi-dimensional EO which is: innovativeness, proactiveness, and risk taking in the relationship between dynamic capabilities (DC) and competitive advantage. The method of the study is a survey using area sampling and proportionate random sampling to collect data from 115 managers in 20 branches in island of Java, during the month of May to August, 2018 (cross-sectional method). The result shows a positive relationship between dynamic capabilities to innovativeness, proactiveness and risk taking. As expecting risk taking has no mediating effect to competitive advantage.

Systematic rent in global value chains

The theory of global value chains (GVCs) is one of the most extensive and promising theories in explaining the patterns and special features of the development of regional, national and international economies, which allows improving methods and models of strategic management of enterprises participating in GVCs. Based on the theory of systematic rent by Aleksey Gubar, we put forward a hypothesis suggesting that capital reproduction within GVCs is implemented through the system of economic mechanisms of rental relations. The proposed approach transcends the limitations of strategic management in the analysis of relational rents regarding the sources and mechanisms for forming dynamic competitive advantages of enterprises in the process of their interaction within value chains at different levels. The methodological framework includes theories of technological waves, rent and contracts, as well as the system-based approach to the analysis of qualitative and structural-dynamic characteristics of capital reproduction in GVCs. The research methods are economic modelling, statistical and graphical analysis. The study of processes and trends in capital reproduction within GVCs through the prism of the mechanism of systematic rent makes it possible to identify their patterns, peculiarities, forms and dynamics while concentrating on the major sources, stimuli and factors of development. We conclude that it is necessary to consider the systematic rent mechanism when framing business strategies and programs of state and regional development of the Russian economy within GVCs. At that, ignoring or misunderstanding rental economic mechanisms can cause serious errors in economic policy.

УПРАВЛІННЯ ПЕРСОНАЛОМ ЯК ФАКТОР ЗАБЕЗПЕЧЕННЯ КОНКУРЕНТОСПРОМОЖНОСТІ ВІТЧИЗНЯНИХ ПІДПРИЄМСТВ

The article studies theoretical approaches to ensuring the competitiveness of domestic enterprises and the definition of this economic category as a set of dynamic competitive advantages generated by effectively using the managerial, resource, technological, human, information and innovation-investment resources of the enterprise in the transformation conditions of the competitive environment of their development. In order to strengthen the competitive position of the company formed a system of factors to ensure the competitiveness of enterprises in the context of its main components (management, resource, technical and technological, personnel, information and innovation and investment resources). It is proved that the determining role in ensuring the competitiveness of domestic enterprises is played by its personnel component. The main directions of development of personnel of subjects of economic activity are revealed. The necessity of using a competence-based approach to ensuring the development of personnel of enterprises is substantiated. On the basis of the analysis of existing approaches to the systematization of the main competencies of personnel and given their transformational nature at the present stage, the key competencies are identified and the tools of their formation and development are disclosed. The most important today are defined competencies aimed at the formation of systemic and strategic thinking; intersectoral communication; project management and business processes; ensuring information and digital competence; the formation of multiculturalism and openness; ensuring effective teamwork; achieving high performance in transformational conditions and increasing the uncertainty of external changes. As effective tools for the development of competencies of personnel are defined such as: individual maps of development of competences; remote coaching and coaching technology; modular program development competencies of staff; digital learning platform for the intellectual development of staff, in particular the introduction of electronic corporate universities; the use of mentoring and the involvement of professional consultants.

The impact of government subsidy of manufacturing firm innovative decision in the background of low-carbon

In the low-carbon background, the green manufacturing and a new road to industrialization should be developed in China. Government subsidies can promote the promotion of low-energy products, and thus control the total carbon emissions. Aiming at an innovation-decision dilemma of a kind of self-research and development manufacturing firms, the characteristics of disruptive innovation and sustaining innovation were analyzed in the viewpoint of the firms’ dynamic competitive advantages. A 0-1 nonlinear decision model was built with consumer surplus as the optimization objective. This model can provide guidance for government policy strategy and manufacturing firm innovation decision. A genetic algorithm was developed to solve the 0-1 nonlinear decision model. A case study of an automobile was reported to demonstrate the feasibility and rationality of this approach.

Green product innovation, green dynamic capability, and competitive advantage: Evidence from Chinese manufacturing enterprises

AbstractThis study focuses on how green product innovation affects green dynamic capability and competitive advantage in the Chinese manufacturing industry. The empirical research indicates that green product innovation is positively correlated with both competitive advantage and green dynamic capability, whereas green dynamic capability also has a significant impact on competitive advantage. Furthermore, this paper finds that the resource integration capability, resource reconfiguration capability, and environmental insight capability of green dynamic capability play intermediary roles between green product innovation and competitive advantage. Corporate reputation positively moderates the relationship between green product innovation and resource integration capability and positively moderates the relationship between green product innovation and resource reconfiguration capability, whereas there is no moderating effect between green product innovation and environmental insight capability.

기업역량이 동적역량과 경쟁우위 그리고 성과에 미치는 영향 -대구지역 기술벤처기업들을 중심으로-

기업역량이 동적역량과 경쟁우위 그리고 성과에 미치는 영향 -대구지역 기술벤처기업들을 중심으로-

When do Dynamic Capabilities Lead to Competitive Advantage? The Importance of Strategic Fit

AbstractRecent studies suggest the relationship between dynamic capabilities and competitive advantage may be jointly affected by organizational and environmental factors. We enrich this nascent perspective by developing a configurational theoretical framework – underpinned by the mechanism of strategic fit – wherein dynamic capabilities lead to a competitive advantage when they support a strategic orientation appropriate for the levels of dynamism and munificence in the environment. Results of a fuzzy‐set Qualitative Comparative Analysis using primary data show that dynamic capabilities lead to a competitive advantage in dynamic, munificent environments by enabling the combination of differentiation and low‐cost orientations. In stable, non‐munificent environments, dynamic capabilities are effective in support of a low‐cost orientation. The central insight of this study is that the relationship between dynamic capabilities and competitive advantage is contingent upon the strategic fit between organizational and environmental factors, contributing to a more rigorous and configurational dynamic capabilities view.

中国中小企业智力资本对动态能力与竞争优势的影响研究

中国中小企业智力资本对动态能力与竞争优势的影响研究

Dynamic Capabilities: Evidence from Agriculture Cooperatives in Indonesia

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Validating a Design Thinking Strategy: Merging Design Thinking and Absorptive Capacity to Build a Dynamic Capability and Competitive Advantage

Design thinking in the management context has suffered from vague definition, gaps in literature, and lack of theoretical foundation. Research streams in absorptive capacity and dynamic capabilities have reached a point of convergence with respect to design thinking and absorption of external knowledge. As such, this study draws on both absorptive capacity and dynamic capability theory to provide theoretical foundation for the strategic consideration of design thinking in strategy, organization design, and organizational learning. In doing so, this study extends seminal absorptive capacity theory providing empirical evidence of design thinking as a dynamic capability to enhance absorptive capacity. Additionally, this study extends dynamic capabilities theory by confirming design thinking as a means of integration, learning, and reconfiguring knowledge to build competitive advantage. Therefore, this study merges existing research streams to empirically validate design thinking as a dynamic capability which must be strategically considered.

Seizing windows of opportunity by using technology-building and market-seeking strategies in tandem: Huawei’s sustained catch-up in the global market

This paper analyzes the strategies by which Huawei, one of China’s few privately-owned multinational firms, responded to various windows of opportunity as technology, policy and demand changed during the evolution of the telecommunication industry between the late 1980s and 2014. Based on a historical longitudinal analysis, our in-depth case study unfolds the dynamic process by which Huawei utilized dual technology-building and market-seeking strategies to capitalize on those windows of opportunity and to achieve sustained catch-up, not only in technological capability but also in the global market. By linking strategy at the firm level to external conditions at the sector level, this paper contributes to theory on how latecomers develop firm-specific advantages and enriches our understanding of how they develop dynamic competitive advantage to achieve sustained catch-up.

The Moderating Effect of Guanxi on the Dynamic Capacity and Competitive Advantage of Chinese International Contractors

With the active support of the national policy “One Belt and One Road” Initiative, Chinese contractors seized this historic opportunity to accelerate strategic globalization, and they gradually stood out in international construction projects owing to their low-cost advantage. However, despite China having large-scale contractors and wide-range business, compared to developed countries, a considerably large gap still exists. China is confronted with complex and changeable international projects filled with increasing competition. Thus, it is both a focus issue and a major task for Chinese international contractors, and many scholars, to consider how Chinese contractors can obtain and maintain long-term competitive advantages to improve their capabilities in response to dynamic environmental changes. Therefore, the objectives of this study are (1) to study the influence of the dynamic capability of Chinese contractors on competitive advantage in a project and (2) to explore the moderating effect of Chinese guanxi on the dynamic capability and competitive advantage of Chinese international contractors. This study primarily aimed at researching the impact of dynamic capacity of Chinese contractors on competitive advantage and the moderating effects of Chinese guanxi. The findings suggest that the environmental perception capability and the integration and coordination capability of the dynamic capability have a significant positive effect on the project competitive advantage; business guanxi positively moderates the relationship between the environmental perception capability and the competitive advantage. Business guanxi also negatively moderates the relationship between learning ability and competitive advantage, while political guanxi negatively moderates the relationship between the environmental perception capability and competitive advantage. This paper contributes to the construction management literature not only by providing empirical evidence on the dynamic capability and competitive advantage of Chinese contractors but also by expanding guanxi research. The results may also help Chinese contractors by providing strategic reform guidance and sustainable development in international construction projects.

Explaining logistics social responsibility from a dynamic capabilities perspective

PurposeSo far, most of the literature on logistics social responsibility (LSR) has prioritized the examination, classification of and adaption toward positive LSR practices instead of investigating necessary logistics service providers’ capabilities to implement LSR strategies. Therefore, the purpose of this paper is to contribute to theory by an assessment of LSR and its linkages to dynamic capabilities theory to gain insights into how logistics service providers can foster an enhanced application of LSR practices.Design/methodology/approachThe paper is conceptual and grounded on dynamic capabilities theory. Relevant literature from logistics management, supply chain management and sustainable supply chain management (SSCM) as well as dynamic capabilities was examined to build upon existing theory by conceptualizing LSR from a dynamic capabilities perspective. In addition, propositions for future research are presented based on the conceptual model.FindingsWith regards to the controversial discussion in the literature about the direct link between dynamic capabilities and competitive advantage as well as the necessary degree of heterogeneity of dynamic capabilities, the conceptualization of LSR from a dynamic capabilities perspective adds new elements to this discussion. Considering long-term or even sustainable competitive advantage, the current degree of homogeneity across logistics services might hinder a sustainable advantage in the long run and demands for more advanced logistical capabilities. In this line, it is important to understand and utilize the causal relationships between different logistical resources and capabilities to achieve a unique long-term advantage allowing logistics service providers to further enhance LSR practices.Practical implicationsDue to the current role of logistics service providers, they should not just foster their resources focusing on the relationship to the focal firm, but they should also develop and implement new logistical capabilities derived from SSCM-related dynamic capabilities to design alternative service portfolio extensions and new business models.Originality/valueAlthough dynamic capabilities have been studied intensively in the last two decades, the causal relationships between different logistical resources and necessary dynamic capabilities to achieve advantages by enhancing LSR practices still lack conceptualization. To build on the understanding of LSR, the paper at hand presents a conceptual framework explaining LSR and SSCM practices through the lens of dynamic capabilities theory.

FIRM FUNCTIONS AND THE NATURE OF COMPETITIVE ADVANTAGE IN INTERNATIONALIZING SMEs

Prior literature suggests that dynamic capabilities enable, on the one hand, firms to respond successfully to the changes in the markets, and on the other hand, to embrace firms’ ability to shape their business environments. However, existing studies have not fully considered how some firms within the same industry are able to shape markets, and why others need to adapt to these changes in a Kirznerian manner. We make an attempt, based on contemporary literature on the microfoundations of dynamic capabilities, to explain how resource allocation between marketing and R&D function — as one of the microfoundations and as a central contributor to innovation — influences the sustainability of competitive advantage and, consequently, a firm’s ability to create or respond to exogenous shocks. Findings from our multiple-case study on internationalizing SMEs indicate that investments in marketing and R&D functions per se are a necessary though not sufficient condition for building dynamic capabilities and competitive advantage. Rather, the extent to which companies are able to follow their own strategies is closely tied to the microfoundations of dynamic capabilities.

Dynamic Capabilities and Competitive Advantage of Fast Foods Restaurants

The study focused on the relationship between dynamic capabilities and competitive advantage of fast foods restaurants in Rivers State, Nigeria. A cross-sectional survey research design was adopted, while primary data was collected via the administration of a structured questionnaire. Three hypotheses were formulated that, the dimensions of dynamic capabilities do not significantly correlate with the competitive advantage of the firms. However, the result of the analysis disproved the null hypotheses, meaning that dynamic capabilities of the firms significantly influence their levels of competitive advantage. It was recommended that managers of the firms should encourage quick response to environmental changes, by enhancing their employees’ capability to detect, monitor and respond to competition. Also, employees should be exposed to current trends, technologies and business applications in the sector to enhance their competencies which will, in turn, improve the competitive advantage of the firm.

Measuring the Performance of Logistics Industry in the Context of Karachi

The Freight Forwarding and Logistics industry play a vital role in the overall economy of Pakistan. The purpose of this study is to determine the effect of the dynamic capabilities, services, capabilities, competitive advantage, and information sharing capabilities on organizational performance in the logistics industry in Karachi, Pakistan. Dynamic capabilities, services, capabilities, competitive advantage, and information sharing capabilities hypothesized as positively impacting on organizational performance. An online survey was conducted and the data were obtained from a sample size of 100 full time and part time employees from the logistics industry in Karachi. We performed multiple regression analysis to indicate all factors significant impact on organizational performance. The reliability test was also performed which showed that our study is significant. Conducting the research in a city with low literacy rate and low employee growth rate resulted in a small sample size because many people tend not to respond to online surveys.

Relation between dynamic analytical capabilities and competitive advantage: theoretical approach

Motivation: The contributory factor to undertake the subject was a research gap regarding the role of dynamic analytical capabilities in building competitive advantage of the organization. The analyzed issue is gaining in importance in an era of increasing requirements for the reinforcement of competitive position of organization, creation of unique resource bundles, ability to access extremely rapidly growing amounts of data, development of business intelligence, big data analysis and even competition analyses. Many scientific papers and case studies have shown that Dynamic analytical capabilities (DAC) of the organization can provide benefits to organizations and create competitive advantage. Aim: The purpose of this paper is to identify dynamic analytical capabilities of the organization as an emerging research area on building a competitive advantage. Also the objective of this paper is to present theoretical model which describes the relationship between the three elements: dynamic analytical capabilities of the organization, analytical maturity and competitive advantage. In order to achieve the defined purpose, the critical literature analysis on dynamic analytical capabilities of the organization, analytical maturity and competitive advantage will be performed. Due to this fact, this paper presents a theoretical study. Results: The article presents the concepts of dynamic analytic capabilities, considering factors that affect it. As a result of literature research, I constructed a theoretical model showing the relationship between the dynamic analytical capabilities and its determinants, analytical maturity and competitive advantage. The results of studies led me to make the statement that the analytical maturity of the organization is a mediator of relationship between dynamic analytical capabilities and competitive advantage of organization.