Effect Of Dynamic Capabilities Research Articles

The Mediating Role of Digital Transformation in the Effect of Dynamic Capabilities on Business Resilience

The purpose of this research is to investigate the interplay among dynamic capabilities, digital transformation, and business resilience, particularly focusing on micro, small, and medium enterprises (MSMEs) in Indonesia. This study used a survey method to collect the data and then analysed it using Structural Equation Modelling (SEM) to test the hypothesis. The results show that dynamic capabilities and digital transformational positively affect business resilience. Furthermore, digital transformational as a mediator between them. This research provides further suggestions on how dynamic capabilities can improve digital transformational in their business resilience. The conclusion drawn from this study is that dynamic capabilities directly influence digital transformation and contribute to its success. Furthermore, dynamic capabilities indirectly affect business resilience through digital transformation, with digital transformation acting as a mediator in the correlation between dynamic capabilities and business resilience. This finding underscores the significance of dynamic capabilities in driving digital transformation adoption and subsequently enhancing business resilience, particularly in the context of Indonesian MSMEs.

The Effect of Dynamic Capabilities on MSMEs Digitalization: Exploring the Moderating Role of Firm Age

The Effect of Dynamic Capabilities on MSMEs Digitalization: Exploring the Moderating Role of Firm Age

DIGITAL TRANSFORMATION IN THE SMALL TO MEDIUM INDUSTRIES (IKM) AUTOMOTIVE COMPONENTS IN INDONESIA

Digital transformation is a new strategy in maintaining business continuity and supporting the stability of SMI players when the conditions of the business environment experience rapid changes, especially in the midst of the Corona Virus Disease 2019 (Covid-19) pandemic.. The research developed a model of the moderating effect of adaptive leadership on the relationship of strategic flexibility to digital transformation by integrating strategic intelligence, workforce transformation, and dynamic capabilities. The study used quantitative methods through questionnaires and Focus Group Discussion (FGD) confirmation and analyzed with Structural Equation Modeling (SEM) assisted by SmartPLS. The research sample is 147 respondents from the Small and Medium Industrial (SMI) players/owners of automotive components in Indonesia. The results show the model development for the influence of strategic intelligence on strategic flexibility that is positive and significant, the effect of workforce transformation on strategic flexibility that is positive and significant, the influence of dynamic capabilities on strategic flexibility that is positive and significant, the influence of strategic intelligence on digital transformation that is positive and significant, the influence of workforce transformation on digital transformation that is positive and significant, the effect of dynamic capabilities on digital transformation that is positive and significant, the influence of strategic flexibility on digital transformation that is positive and significant, and adaptive leadership moderating the relationship between strategic flexibility on digital transformation of automotive component SMIs in Indonesia

Pengaruh Kapabilitas Dinamis Dan Kapabilitas Inovasi Terhadap Keunggulan Kompetitif

This study aims to determine: (1) The effect of dynamic capabilities on competitive advantage case studi UMKM Kabupaten Kolaka. (2) The effect of innovation capability on competitive advantage case studi UMKM Kabupaten Kolaka.(3)the influence of dynamic capabilities on innovation capabilities as a mediating (intervening) variable in case studies UMKM Kabupaten Kolaka. this research is an explanatory research model with a Quantitative approach. Data collection in this study used literature study and questionnaire distribution. The population of this study were all UMKM of Kolaka Regency. While the sample of this study were 55 respondents using purposive sampling technique.. Testing research instruments employed validity and reliability tests by using SPSS 25.0. The data analysis technique used in this study is Structural Equation Modeling (SEM) based on Partial Least Square (PLS) wich measurement model test (outer model) and structural model testing (inner model) with Smart PLS 4.0. Based on the results of the study, it is known that there is a positive and significant influence between the dynamic capabilities variable on competitive advantage Behavior, this is indicated by the P-Value of 0.005. And the innovation capability variable also has a positive and significant effect on competitive advantage, this is indicated by the P-Value of 0.000. And the dynamic capabilities on innovation capability as mediating (intervene) variable also has a positive and significant effect

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.

The Effects of Dynamic Capabilities on Firm’s Financial Performance

Firms often face significant challenges to stay competitive in the present economic environment, thus, dynamic capabilities are vital as it is a substantial factor in accomplishing better business performance. This study involved yearly data of 62 firms in the ACE market that engaged with dynamic capabilities, the data was collected from the year 2012-2021. The data was gathered from the firm's annual report and has been analyzed using two-step GMM. Generally, the ACE market is consistently associated with inferior performance and capital compared to the main market. Hence, the market has the possibility of being delisted and affecting capital market performance. Therefore, this study includes dynamic capabilities in the ACE market to study the market’s performance. The results obtained are consistent with the theory, whereby changes in dynamic capabilities contributed to a positive return on the firm’s performance. However, the small capital nature of the ACE Market limits the investment in the dynamic capabilities. This study concluded that more priority to be given to the awareness of dynamic capabilities in the current competitive era. The result proved that the investment in the dynamic capabilities improved the performance of the Ace market even though some of the firms in the ACE market ignored dynamic capabilities due to capital constraints. Thus, policymakers should play their role in providing grants for the firms in the ACE Market to improve the investment in dynamic capabilities.

The Effect of Dynamic Capability and Market Orientation on MSME Marketing Performance in Malang City

The purpose of this study was to find out how dynamic capabilities and market orientation influence the marketing performance of MSMEs in Malang City. This research uses quantitative techniques. All MSMEs in Malang City are included in the population used. Sampling using a probability sample with stratified random sampling. There were 382 respondents as samples and questionnaires were used to collect data. Data analysis technique with multiple linear regression. This study found that dynamic capabilities and market orientation have a relationship that has a significant positive effect on the marketing performance of MSMEs. The need to concentrate on dynamic capabilities and market orientation because these two things play an important role in improving the marketing performance of MSMEs in Malang City.

The effects of dynamic capabilities on international SMEs' performance

Developing countries such as Iran face many challenges which can impact international small and medium-sized enterprises (SMEs) to a larger extent due to their limited resources and bargaining power. International SMEs are confronted by a number of challenges such as how to develop the dynamic capabilities needed to help them attain a high level of performance. By studying international SMEs, we investigate this matter by situating competitive advantage to mediate dynamic capabilities and firm performance. The partial least square technique was used to analyse the data which was collected through a self-administered survey. The survey was obtained from 166 SMEs in Iran. The findings suggest that dynamic capability does not have a significant impact on international SME performance. Moreover, competitive advantage does not mediate the relationship. This study offers recommendations to international SMEs on how to leverage comprehensive knowledge on dynamic capabilities and competitive advantage to enhance their performance in developing markets.

The effects of dynamic capabilities on international SMEs performance

The effects of dynamic capabilities on international SMEs performance

How do dynamic capabilities affect performance? A systematic review of mediators

Scholars constantly seek insights into the effects of dynamic capabilities (DC) on performance. As a result, researchers followed various paths, including microfoundations and multilevel explanations of DC, and propose different measures of and perspectives on performance, reflecting their distinct conceptual foundations. Consequently, debates about precisely how DC affect performance continue. In line with its theoretical origins, research on DC has recently begun to blossom around the indirect effects of DC. However, the field is highly fragmented. To advance this domain theoretically, a consolidated, systematic review is needed. To provide one, this article starts with a detailed analysis of the indirect effects of DC at individual, organizational, and environmental levels. Then, as a second step, this study provides a comprehensive consolidation of the underlying arguments and theoretical approaches used to predict that certain variables function as mediators. According to these findings, the authors identify research gaps and propose an instructive research agenda.

Managing Technological Innovations: Dynamic Capabilities, Collaborative Innovation and born-digital

In contrast to the digital transformation of the incumbents, born-digital SMEs embrace digital logic in organisation’s design, processes and governance from the very start. So far, the scholars have focused on the digital transformation of the incumbents, thus, little is known about how dynamic capabilities, collaborative innovation and firm performance interact in the context of born-digital SMEs, which has no legacy of the incumbent firm. Therefore, the research question is how dynamic capabilities and collaborative innovation affect the performance of born-digital SMEs. We aim to investigate the impact of dynamic capabilities of born-digital SMEs on their performance when collaborative innovations mediate it. The empirical research was based on 268 complete viable responses from born-digital SMEs in the US, Sweden and Lithuania. The study results show that the effect of dynamic capabilities on born-digital SMEs performance is more significant when mediated by collaborative innovations. Furthermore, the study highlights that although the impact of dynamic capabilities on partnership networks and relational collaboration is significant, only relational collaboration significantly affects the performance of born-digital SMEs.

The Impact of Dynamic Capabilities on Strategic Supremacy through Organizational Immunity at Jordanian Telecommunication Companies

This study aimed at analyzing the impact of dynamic capabilities on strategic supremacy through organizational immunity at Jordanian telecommunication companies. The study population consisted of all managers and department heads, who represented the sampling unit to collect data from the researched companies. A survey sample of the study population was adopted. The descriptive analytical approach was used and the questionnaire was adopted as a main tool for data collection. A number of statistical methods were used, including means, multiple regression and structural equation The study concluded that there is an effect of dynamic capabilities with its dimensions on strategic supremacy, that there is an effect of dynamic capabilities on organizational immunity and that there is an effect of organizational immunity on strategic supremacy with an indirect effect of organizational immunity as a mediating variable between dynamic capabilities and strategic supremacy. The study recommended the need to pay attention to learning, integration, building organizational memory, applying benchmarking practices and managing strategic alliances in line with the main objectives.

How manufacturing firms navigate through stormy waters of digitalization: the role of dynamic capabilities, organizational factors and environmental turbulence for business model innovation

AbstractAlthough research has shown that business model innovation (BMI) is an effective means to remain competitive in the digital age, many firms do not respond appropriately and often fail to exploit new digital opportunities. In this study, we adopt a microfoundational approach to understand the role and effects of dynamic capabilities (DCs) on BMI in the context of digitalization. Furthermore, we test how this relationship is influenced by contextual factors. Our results from a survey of German manufacturing firms demonstrate the importance of building strong DCs for effective BMI in the context of digitalization. We also highlight the advantages of an entrepreneurial leadership and mindset in this context. The study further suggests that environmental turbulence in the digital context acts as an antecedent to DCs and BMI, rather than moderating their relationship. While strategic factors indirectly affect BMI as antecedents of DCs, we found no evidence of an influence of the organizational structure.

Effect of three innovation components in businesses on social innovation

Purpose- The aim of this study is to provide a theoretical understanding of transformational leadership, dynamic capabilities and business model innovation processes that may be necessary for strategic management in enterprises, and to investigate the interaction of these factors and their effects on social innovation as a tool. In this context, the effects of dynamic capabilities and the contributions of transformational leadership in business model innovation processes were tried to be determined, the effect of intra-organizational dynamics on innovation and how the mentioned three innovation components shape social innovation were investigated. Methodology- Quantitative research method was used in the research and survey forms were used within the scope of the study. 198 employees working in SMEs in Istanbul were used as sample. In order to test construct validity of the study; factor analysis, correlation analysis were used to measure the severity and direction of the relationship between the variables and regression analysis was used to measure causality between variables. Findings- The transformational leadership variable does not explain the social innovation variable. The Business Model Innovation variable explains the social innovation variable by 8%. The Business Model Innovation variable explains the transformational leadership variable by 10%. Dynamic Capabilities variable explains social innovation variable by 10%. Although the Dynamic Capabilities variable explains the transformational leadership variable at a rate of 17%, its contribution was found to be weakly positive. Conclusion- Social innovation cannot be carried out only by social entrepreneurs, non-governmental organizations and the state. Businesses enable their employees to change their perspectives on life and integrate them with society. Therefore, individuals within the organization can be socially innovative as well as benefit directly or indirectly from social innovation. Based on this phenomenon, it is known that business model innovation, transformational leadership and dynamic abilities are meaningful among themselves in the business literature. This significance has been tested in social innovation in business organizations. Keywords: Transformational leadership, business model innovation, dynamic capabilities, social innovation, strategic management. JEL Codes: 030, M10, M54

Dynamic Capabilities, Business Strategy, Innovation and Performance of FMGC Campanies

Majority of studies have been geared towards examining the critical role of business strategy, innovation and SMEs performance in Malaysia. Current studies, however, reported contradictory results on business strategy and innovation on financial performance in different contexts. Therefore, this study claims that there should be a moderating variable is required to promote the relationship between business strategy, innovation and organizational performance. This study, therefore, has incorporated the dynamic capabilities as a moderator to improve the relationship between business strategy (differentiation strategy and cost-leadership strategy), innovation (product innovation and process innovation) and financial performance. The study aims to describe the relationship of cost-leadership strategy, differentiation strategy, product innovation and process innovation on the financial performance under the moderating role of dynamic capabilities. To establish the proposed conceptual framework, two theories were introduced: resource-based view (RBV) and dynamic capabilities (DC). The recent literature was used to obtain information on the factors that enabled the present study to establish a conceptual framework and eight propositions formulated. The moderating effect of dynamic capabilities on business strategy (cost-leadership strategy and differentiation strategy) and innovation (product innovation and process innovation) are the main theoretical contribution. Furthermore, limitations and recommendations for future research presented.

The Effect of Human Capital Development on Strategic Renewal in the Egyptian Hospitality Industry: The Moderating Role of Dynamic Capabilities

Purpose: the primary goal of this research is to provide insight into the effect of human capital development on strategic renewal in the Egyptian hotel industry. In addition, to examine the effect of dynamic capabilities as a moderating variable in the relationship between human capital development and strategic renewal. 
 
 Methods and tools: questionnaires were distributed based on a simple sampling method and collected in the Egyptian hospitality industry. 310 questionnaires were distributed, and 204 usable samples were obtained, yielding a 66% response rate from those who agree to participate. The Partial Least Square-Structural Equation Modeling (PLS-SEM) method has been used for analyzing the data and testing our hypotheses. The analysis of this paper was done using SPSS V. 23 for both descriptive and inferential statistics and Smart PLS V.3.3.3 for PLS-SEM analysis. 
 
 Results: this study indicates that human capital development has a statistically significant effect on Strategic Renewal; also, the findings observe that Dynamic Capabilities have a statistically significant impact on Strategic Renewal. And the Moderating Effect of dynamic capabilities not approved. 
 
 Theoretical and empirical contribution: The conceptual model with statistical results that emphasizes the significance of human capital development for the strategic renewal of business enterprises in the Hospitality field of developing countries has been investigated in this study. Human capital development has previously been highlighted, but its impact on strategic renewal has not been extensively investigated. Besides, this study provides valuable insights for decision-makers. As recommends that hotel managers consider human capital development and present it as a vital part of strategy formulation.

The Effect of Dynamic Capabilities on Organizational Excellence (An Extracted Research from a PhD Dissertation)

The Effect of Dynamic Capabilities on Organizational Excellence (An Extracted Research from a PhD Dissertation)

The Effect of Dynamic Capabilities and IT Capability on Firm Performance Perspective Mediating by Digital Transformation in Small Medium Enterprise

The purpose of this study is to determine the effect of information technology capabilities and dynamic capabilities on company performance which is moderated by digital transformation. The research approach used is quantitative with the type of survey research. The population in this study were small and medium enterprises (UKM) in the manufacturing sector in Surakarta which were registered in the database of the Surakarta Cooperative and UMKM Office with a sample of 100 SMEs with the unit of analysis being the owners of MSMEs. Data analysis was performed by conducting data quality tests and hypothesis testing using PLS (Partial Least Square). The results of the study concluded that information technology capabilities and dynamic capabilities have an influence on company performance through digital transformation.

B2B 중소기업의 동적역량이 마케팅역량과 기업성과에 미치는 영향

B2B 중소기업의 동적역량이 마케팅역량과 기업성과에 미치는 영향

Effect of Dynamic Capabilities on Competitive Advantage of Manufacturing Firms in Nairobi, Kenya

Previous studies on manufacturing firms particularly in less developed countries have revealed that a third of these firms have failed to become operational as well as additional failures or closures of firms in previous years due to lack of sensing, seizing and reconfiguring of firm’s capabilities leading to competitive advantage. There are no empirical studies in Kenya that show the effect of dynamic capabilities and competitive advantage of manufacturing firms which this study strives to achieve. The main objective of the study was to determine the effect of dynamic capabilities on competitive advantage of manufacturing firms in Kenya. The specific objectives of the study were to assess the effect of sensing, seizing and reconfiguration capabilities on competitive advantage of manufacturing firms in Nairobi, Kenya. The study adopted explanatory research design and data was collected using survey approach on a target population of 762 manufacturing firms registered under Kenya Association of Manufacturers. A sample size of 321 firms was selected based on Yamane formula of determination in selecting respondents to be served with the questionnaires. Pearson correlation was used to test the linear. relationship of variables while multiple regression model was used to analyze data in order to test the hypothesis for the study Descriptive and inferential statistics were used in data analysis and the study findings revealed that there was a positive and significant effect of sensing capabilities and competitive advantage (β=.392, p=.000); seizing capabilities and competitive advantage (β=.194, p=.000); reconfiguration capabilities and competitive advantage (β =.174, p=.001) with all p-value being less than .05. The study recommends that managers and industry practitioners should put more emphasis on, and appreciate the role of the leader in the deployment of dynamic capabilities by sensing, seizing, reconfiguring their capabilities in order to achieve competitive advantage in the ever changing contemporary operating environment.