Dynamic Managerial Capabilities Research Articles

Rational versus intuitive cognition and influence of dynamic managerial capabilities on SMEs’ perceived international performance: evidence from emerging economy

Purpose This study aims to investigate the relationships between managers’ cognitive styles, dynamic managerial capabilities and firms’ perceived international performance. The study is based on cognitive-experiential self-theory, dynamic managerial capabilities and international entrepreneurship. Design/methodology/approach Data were collected from 283 managers of small medium enterprises (SMEs) in Türkiye, an emerging economy. The research was conducted using quantitative methods, and Smart partial least squares (PLS) 4 software was used for data analysis. The data were examined through structural equation modelling and mediation analyses. Findings Findings indicate that rational cognitive styles positively influence managerial human capital, managerial social capital, managerial cognition and perceived international performance. However, the effect of intuitive cognitive styles was confirmed only on managerial cognition. Additionally, it was found that managerial cognition positively affects perceived international performance, whereas managerial social capital has a negative impact. However, the effects of managerial human capital could not be confirmed. Moreover, a full mediation relationship of managerial cognition between intuitive cognitive styles and perceived international performance was identified. Originality/value This research carves out a unique niche by synergizing cognitive-experiential self-theory with dynamic managerial capabilities to investigate their conjoined effect on firms’ international performance, an area previously underexplored. Unveiling insights from burgeoning economies like Türkiye enriches the existing body of knowledge, offering substantial contributions to the field of international business.

The effect of institutional pressures and dynamic managerial capability on strategic renewal: The case of strategic agility and digital readiness as mediators in healthcare industry

This research investigates the role of institutional pressures, dynamic managerial capabilities, strategic agility and digital readiness as mediating factors in the gap of the healthcare sector's post-pandemic digital transformation. This study employed strategic and managerial questionnaires involving 308 medium-sized private hospitals in Indonesia and LISREL 6.0 was used for the analysis. Findings indicated that strategic agility did not mediate dynamic managerial capability for strategic renewal. Moreover, the private healthcare sector was found to be influenced by pressures to imitate other hospitals and competitors, and digital readiness had a stronger mediating effect than strategic agility. The study enriches organization theory by investigating institutional pressures driving strategic renewal. It also enhances the literature on strategic management by exploring the mediating role of strategic agility and digital readiness in strategic change. Lastly, it highlights the association between digital readiness and managerial and organizational aspects resulting from strategic change and further emphasizes the need for integrated teams and digital health services in hospitals to achieve strategic renewal.

Supply chain resilience: When the recipe is more important than the ingredients for managing supply chain disruptions

Over the past two decades, considerable research has focused on enhancing supply chains' capacity to cope with disruptions. Consequently, the concept of supply chain resilience (SCRE) has emerged, with the prevailing view that building resilience into the supply chain effectively manages disruptive events. However, given the concept's nascent state, little is understood about the processes through which a supply chain becomes resilient. This study employs fuzzy qualitative comparative analysis (fsQCA) to explore the configurations of managerial and organizational capabilities that contribute to improving the resilience of supply chains against both high- and low-impact disruptions. It identifies four key “recipes” that combine different resilience antecedents to enhance supply chain resilience. The findings illustrate how various combinations of organizational and managerial antecedents of SCRE, as suggested by the dynamic capabilities theory and its extension, the dynamic managerial capabilities theory, operate to build supply chain resilience. Additionally, the study demonstrates that principles of complexity theory—namely, asymmetric relationships, equifinality, and causal complexity—are integral to developing SCRE.

Navigating institutional pressure: Role of dynamic managerial capabilities and strategic agility in healthcare organizations’ renewal

ABSTRACT This paper aimed to analyze healthcare organizations’ pressures regarding digitalization caused by uncertainties after the pandemic. The study investigates the relationship among healthcare organizations‘ institutional pressure, dynamic managerial capabilities (DMC), strategic agility, and strategic renewal, focusing on selected private hospitals in Indonesia. Top executives and managerial personnel responded to our survey within five months before the investigation. Data were analyzed using partial least squares structural equation modelling (PLS-SEM) with hierarchical component models (HCMs). The study found that institutional pressures positively impacted strategic agility, whereas DMC strengthened the connection between institutional pressure and strategic agility. This study also indicates that strategic agility influences strategic renewal positively.

A comprehensive mixed-methods study on cross-border e-commerce SMEs, digital transformation and dynamic managerial capabilities

The development of the digital trade ecosystem heavily relies on the expansion of cross-border e-commerce (CBEC) platforms. CBEC companies are actively involved in digital transformation (DT) initiatives to bolster their core competencies and market share. E-commerce has experienced rapid growth in recent years, particularly since the global market faced significant disruptions due to the COVID-19 pandemic in 2020. As the market continues to globalize, more Chinese entrepreneurs are shifting their focus towards the international arena. They aim to increase investments in high-tech productivity within their organizations while also concentrating on enhancing their dynamic managerial capabilities to drive transformation within cross-border e-commerce companies. Therefore, the current study examines how organizational DT impacts the management capabilities of Chinese cross-border e-commerce managers from the perspective of dynamic managerial capabilities. The research employed a mixed-method approach. Firstly, a bibliometric analysis was conducted using VOS Viewer and R studio. Data was collected from two databases, Web of Science and Scopus, to analyze publication trends across countries and identify journals with the highest number of publications and citations. This analysis aimed to provide a comprehensive understanding of the context of the subject. Secondly, seven in-depth interviews were conducted using purposive and chain-referral sampling techniques, drawing insights from CEOs based on their real-life experiences with organizational DT. The results of the study revealed that technology has led to the decentralization and flattening of organizational structures. Managers are increasingly using social platforms to connect with experts and potential collaborators. Furthermore, the study highlights the role of psychological support in bolstering dynamic managerial capabilities.

Entrepreneurs' dynamic managerial capabilities as a source of sustained competitive advantage for small and medium enterprises

Entrepreneurs' dynamic managerial capabilities as a source of sustained competitive advantage for small and medium enterprises

If You Want to Go Fast, Go Alone; If You Want to Go Far, Go Together. In Favor of a Partnership Approach to Directors of Incubators’ Dynamic Managerial Capabilities

On the cusp of the 2000s, the incubation industry had started to become competitive after 20 years of stability. The question of adapting incubators to this turbulent environment was now on the table. In this context, the aim of this article is to better understand the role of directors of incubators during the transformation process of their organizations. The concept of dynamic managerial capabilities is used as a means of responding to this gap. The capabilities of the directors of incubators were studied during a longitudinal multiple case study. The main contribution of this research is the partnership relationship built up by these actors to transform their organizations. The foundations of the directors’ dynamic managerial capabilities (cognition, human, and social capital) are then combined with the cognition, human, and social capital of their partners to seize opportunities: new incubation models that had been the subject of resistance to change within incubators.

Cognitive styles and dynamic managerial capabilities: implications for SMEs in a transition economy

PurposeThe dynamism of competition in international markets requires managers to react accordingly and ensure the firm's survival and competitiveness. This study examines the impact of cognitive styles and dynamic managerial capabilities (DMC) on a firm's international performance and the mediating role of these capabilities in the relationship between cognitive styles and international performance.Design/methodology/approachThis study adopts a quantitative cross-sectional research design, employing a sample of 306 firm owner-managers from exporting companies in Kosovo.FindingsThe findings suggest that managers' cognitive styles positively influence firm international performance, including their impact on DMC. Results also indicate that only managerial cognition mediates cognitive styles' effects on a firm's international performance, compared to managers' social capital.Originality/valueIn this study, the authors contribute to the literature by integrating cognitive styles with DMC in a transition country. Moreover, the authors demonstrate that DMC mediate the impact of cognitive styles on the firm international performance.

The interaction of actor-independent and actor-dependent factors in new venture formation: The case of blockchain-enabled entrepreneurial firms

AbstractThe study seeks to explore how blockchain technology enables the creation of new ideas for ventures and to examine the activities of founders and entrepreneurial teams in shaping those ideas. We adopted several theoretical frameworks – external enablers theory, dynamic capabilities (DCs), and dynamic managerial capabilities (DMCs) – to explain the interaction of the actor-independent and actor-dependent factors in the process of new firm formation. We analysed four Hungarian blockchain start-ups that operate across financial services, cryptocurrency trading, crypto asset management, energy, information technology, and identity industries and create high value-added and cross-industrial offerings for Hungarian and foreign markets. Using qualitative study research results, the study develops the model of external enablers, founders' and firm capabilities and new venture creation. We identify three interconnected external enablers – namely, market volatility associated with the growing popularity of cryptocurrencies and the underlying blockchain technology, the properties of blockchain, and the ideology behind the technology – and discuss the role of entrepreneurs' DMCs and sensing and seizing activities in discovering and shaping these enablers into profitable business ideas.

Without friction, no shine: how dynamic managerial capabilities combine for family firms’ digital transformation

Research shows that digital transformation (DT) of small and medium-sized family firms is a major challenge, where family dynamics introduce idiosyncrasies in how managers sense, seize, and orchestrate DT. In this study, we focus on those dynamic managerial capabilities that are closely related to individual cognitive traits - sensing and seizing – to understand how they operate at the individual level and how they interact at the team level in such a transformation process. We draw on an in-depth case study of the digital transformation of a family business, the largest independent fashion retailer in the Netherlands. Our microfoundational lens sheds light on the mechanisms through which familiness underpins dynamic managerial capabilities for DT. Specifically, we identify purposeful friction as an interpersonal capability that modifies individual managers’ sensing and contributes to the bridge between sensing and seizing. To complete the model, we identify collaborative value-based decision making and experimental implementation as team-level capabilities that underpin DT seizing. Our theoretical model contributes to the current literature by unraveling the microfoundations of how team-level interaction enhances individual managers’ sensing and seizing capabilities for digital transformation in the context of family firms.

Managers' emotion-regulation capabilities and family firm innovativeness: a dynamic managerial capability view

PurposeWhile previous studies have proved the significance of family firm innovativeness (FFI), the question of how the emotion-regulation capabilities of family business managers affect FFI still remains open. This paper aims to examine the impact of the emotion-regulation capabilities of family business managers on FFI moderated by the family involvement in business management.Design/methodology/approachThe present study is based on a quantitative research design. Data were collected with the help of a telephone survey. Overall, 192 family firms were surveyed, and the results were analysed using structural equation modelling (SEM).FindingsThe findings indicate that managers' emotion-regulation capabilities (independent variable) positively impact FFI (dependent variable). The research results also indicate that having more family members involved in the business (moderating variable) can lead to better innovation outcomes, assuming these family managers have sufficient emotion-regulating capabilities.Research limitations/implicationsThe research context could be broadened by differentiating between the industries in which family firms operate. This could aid a better understanding of the challenges, opportunities and market trends in different sectors. Future research might also include more diverse countries with deep family business traditions, strengthening the robustness of the findings across more varied contexts.Originality/valueUsing a multi-level perspective, this study contributes to the dynamic managerial capabilities and family business literature by showing that, in an environment where familial relationships can affect working relationships, the ability of managers to control their emotions and others' emotions can be a critical managerial resource that impacts FFI.

How Green Practices Enhance Competitive Advantage: Evidence from the Hospitality Industry

The growth of tourism in Indonesia demonstrates favorable progress; however,Indonesia's competitive position in the tourism sector remains below that ofSingapore, Malaysia, and Thailand. Empirical research findings reveal acrucial fact: the presence of shifting travel preferences and the rise of greentourism. The objective of this study is to analyze the factors contributing to theattainment of Green Competitive Advantage within the Hotel Industry in theNusa Dua region. This study employs a quantitative approach. Primary data iscollected through the use of questionnaires and interviews, and data analysisemploys Structural Equation Modeling-Partial Least Squares (SEM-PLS). Theresearch results indicate that Dynamic Managerial Capabilities (DMC) have apositive influence on Environmental Capabilities (EC). DMC also has apositive impact on Green Innovation Capabilities (GIC), yet DMC does nothave a direct positive effect on Green Competitive Advantage (GCA). Indirectly,DMC does not significantly and positively affect GCA through GIC. A similarpattern emerges regarding the indirect influence of DMC on GCA through EC.The combined indirect effect of DMC on GCA through EC and GIC does notyield a significant positive impact. However, in terms of overall impact, DMChas a positive and significant influence on GCA. EC has a positive andsignificant impact on GIC, yet EC's direct and indirect impact on GCA is notpositive. Similarly, GIC does not exhibit a significant positive impact on GCA,aligning with the obtained findings.

The impact of dynamic managerial capabilities on firm performance: A moderated mediation analysis of German DAX firms

Abstract In an era of hypercompetition, research and development (R&D) investments are vital for organizations to stay competitive. This microlevel study draws on dynamic managerial capability (DMC) theory to explore the mechanisms contributing to competitive advantages. It posits that DMCs enhance firm performance by increasing R&D spending, and explores the moderating role of slack resources due to their effect on resource availability. Employing hierarchical regression analysis and bootstrapping methods on a longitudinal sample comprising 31 German DAX firms, the findings robustly demonstrate that DMCs facilitate firm performance by fostering R&D expenditures and confirm the moderating effect of specific slack resources. However, only internal but not external slack resources amplify the relationship between DMCs and R&D intensity. Overall, this study emphasizes the critical role of managers’ microlevel capabilities in determining firm performance and sheds light on how different slack resources influence the relationships between DMCs, R&D intensity, and firm performance.

The Role of Dynamic Managerial Capabilities of School Principals on School Performance through Networking Capabilities and Spiritual Motivation

This study was conducted in the educational settings of the East Java Integrated Islamic School Network (JSIT), encompassing Kindergarten to High School levels. This study examines the impact of dynamic managerial ability, spiritual motivation, and networking ability on school performance across all East Java Integrated Islamic School Network levels. To achieve the research objective, a mixed-methods approach involving quantitative and qualitative interviews was employed. Empirical evidence revealed that the Principal's Dynamic Managerial Ability significantly influences School Performance. Furthermore, Spiritual Motivation has a notable impact both on the Principal's Dynamic Managerial Ability and directly on School Performance. In contrast, while Networking Ability does not significantly affect the Principal's Dynamic Managerial Ability, it does have a marked influence on School Performance. Additionally, Spiritual Motivation and Networking Ability significantly affect School Performance mediated by the Principal's Dynamic Managerial Ability.

Dynamic Managerial Capabilities and New Product Development in the Fashion and Apparel Design Industry

Dynamic Managerial Capabilities and New Product Development in the Fashion and Apparel Design Industry

Sustainable Development as a Strategy for Enhancing Competitiveness in Tourism Business in Indonesia

The growth of tourism in Indonesia has demonstrated significant progress; however, Indonesia's competitive position in the tourism sector remains below that of Singapore, Malaysia, and Thailand. Empirical studies have revealed a crucial fact: the existence of shifting demands in tourism and the emergence of green tourism. The objective of this research is to formulate a strategy for the development of the tourism industry in Indonesia, aimed at achieving competitive advantage. This study adopts a quantitative approach. Primary data were gathered through the use of questionnaires and interviews, and data analysis was conducted using the Analytical Hierarchy Process (AHP). The research findings indicate that the strategy deemed most essential and viable for achieving Green Competitive Advantage (GCA) within the Hospitality Industry is fostering, enhancing literacy/understanding, and raising GCA awareness among all hotel management personnel. This strategy aims to bolster the commitment and involvement of hotel management in implementing environmentally friendly and sustainable business practices. The most pivotal factors in attaining GCA within the hospitality industry companies are Dynamic Managerial Capabilities, followed by government policies, innovation capabilities, and environmental capabilities. The primary actors contributing to the realization of GCA are the government, community, company leader, and associations.

Organizational agility, dynamic managerial capability, stakeholder management, discretion, and project success: Evidence from the upstream oil and gas sectors

Today's organizations are dealing with a turbulent and unpredictable business environment. In these uncertain times, it is critical that managers at all levels have a deep understanding of discretion as part of the decision-making process. This study investigated the relationship between perceived managerial discretion and project success in the upstream oil and gas sectors. A total of 108 project managers participated in this study. We analyzed data using covariance-based structural equation modelling (CB-SEM) to construct a framework that highlights the importance of dynamic managerial capabilities and organizational agility on perceived managerial discretion. The results confirm and emphasize the direct role of perceived managerial discretion on project success. The study notes the essential roles of strategic management literacy in mediating the relationship between perceived managerial discretion and project success in Indonesia and provides insights for middle managers seeking to foster the success of projects by considering strategic management literacy.

Digital Leadership and Dynamic Managerial Capabilities

The purpose of this research is to examine the influence between digital leadership and dynamic managerial capabilities. This research itself was conducted in the City of Ternate. The population in this study are all business actors both online and offline in Ternate City. Determination of the sample in this study using purposive sampling with a judgment sampling approach with the condition that the respondent is intended to have the capacity as a business leader and the business has a net worth of more than 50 million rupiahs up to a maximum of 500 million rupiahs. Besides that, only businesses are traded online. This aims to measure leadership digitally and dynamically the ability of a leader, totaling 106 people. Testing the hypothesis in this study using simple linear regression. The results of hypothesis testing indicate that the hypothesis proposed in this study is supported. Next, recommendations for future research are discussed.

Dynamic capabilities developed by the interaction of individuals

THE AIMS OF THE PAPER The existence of dynamic capabilities is key for newly created organizations. However, the development of these capabilities is less researched, especially in the case of start-ups. The primary aim of the study is to explore the characteristics of the development of dynamic capabilities through the case study of a domestic start-up, to illustrate the relationship between organizational and individual capabilities, while providing insights into the interaction between individual capabilities that can lead to the development of dynamic organizational capabilities. METHODOLOGY The primary data collection took place at a domestic start-up. The chosen methodology is the case study, in which three data sources were used. The in-depth interview served as the primary data source, personal or online interviews for at least 45 minutes were conducted with all members of the organization. The in-depth interviews were supplemented by document analysis to gather information from other sources. At the end of the study, the results were validated in a management workshop. MOST IMPORTANT RESULTS During the development of dynamic capabilities four types of interactions between individual capabilities could be identified: complementation, merging and extending similarities, searching and selecting alternatives and acceptance. Each type of interaction provides a solution in different situations, but all of them ultimately contribute to the development of dynamic capabilities. RECOMMENDATIONS Development of dynamic organizational capabilities (hence flexibility) is at least partly rooted in individuals and the interactions between them. It is therefore worthwhile for organizations to emphasize the acquisition of employees with good dynamic managerial capabilities and their involvement in interactions.

Market opportunities seizing capability and fish farming firm performance: A dynamic managerial capability perspective

The role that owner-managers’ managerial capabilities play in agricultural firms' strategic change and performance is still unclear. A firm's market opportunities seizing capability (OSC) is a source of competitiveness and superior performance. The objective of this study is to establish how owner-manager's dynamic managerial capabilities (DMCs) including managerial human capital, managerial social capital and managerial cognition affect firm performance through the mediating effect of OSC, as well as the moderating effect of market dynamism in the relationship OSC and firm performance. 306 cross-sectional data collected at fish farming firms (FFF) level in southern Benin were used and partial least squares structural equation model was applied to test research hypotheses. The results of SmartPLS4 reveal that owner-managers’ DMCs including business ties (BTs), political ties (PTs), and managerial cognition (MC) demonstrate a significant effect at improving FFF market OSC and performance. Finding also underline the significant contribution of market dynamism to FFF performance as well the mediating role of market OSC in the relationship between BTs, PTs, MC, and FFF performance. Findings suggest that FFF owner-managers can achieve superior performance by strengthening their DMCs while improving market OSC. The study provides useful insights to FFF owner-managers, agriculture policymakers and practitioners who are engaged in agriculture firms' strategic management and sustainable performance.