Internal Organizational Capabilities Research Articles

Analysis of institutional factors in the implementation of the action research methodology: lessons learned in a case study

The growing need for academic research to generate a tangible social impact has increased the relevance of collaborative methodologies. Among them, the "Action Research" method stands out for its application in the field of business organization. This is especially relevant in the field of Operations Management as it involves close collaboration with organizations.This study aims to examine the key institutional factors that influence the success of the implementation of the "Action Research" methodology in the business context. Through a case study, two main contributions are made to the "Action Research" literature. First, six key institutional factors are identified to consider in the implementation of an Action Research project: external and internal environment, leadership, strategy, communication, and organizational resources and capabilities. Second, the analysis provides a series of lessons learned that cover the influence of aspects related to company's environment; alignment of objectives; participation of employees; clear definition of roles; training; adaptation and support of work team member; an adequate technological infrastructure; how to promote the participation of external agents; and the influence of communication channels.The identification and analysis of these factors and the lessons learned serve as a reference framework for researchers who are considering carrying out an "Action Research" project to transfer it to the company with which they are going to collaborate, and thus determine if the right conditions are in place to carry out the study.

Leveraging Knowledge Management for Business Success: The Influence of Dynamic Capabilities and Entrepreneurial Competence, Moderated by Government Policy

This study examines the impact of knowledge management on business performance, mediated by dynamic capabilities and entrepreneurial competence, and moderated by government policy. A survey of 156 small and medium-sized enterprises (SMEs) in the Riau Coastal Food sector was conducted, and data were analyzed using Structural Equation Modeling (SEM). The findings reveal that knowledge management positively influences business performance, with dynamic capabilities and entrepreneurial competence acting as key mediators. However, government policy does not significantly moderate this relationship. The study highlights the importance of internal organizational capabilities in enhancing SME performance, suggesting that firms must focus on dynamic capabilities and entrepreneurial competence to maximize the benefits of knowledge management.

중소벤처기업의 조직 내부역량 및 외부 환경동태성이 해외진출 결정의도에 미치는 영향 연구 : 해외네트워크 지향성 조절효과 중심

The international expansion of small venture companies is regarded as a crucial strategy for the survival and growth of these firms, particularly as it serves as a motivation for companies with limited resources and capabilities to enter foreign markets. In light of the increasing emphasis on the significance of internationalization for small venture companies within the current business environment, this study aims to identify the key factors influencing the intention to pursue international expansion among domestic small venture companiess. To this end, a research model was established, wherein internal organizational capabilities and external environmental dynamism were treated as independent variables, while international network orientation was considered a moderating variable. A survey was conducted with a total of 264 executives and managerial personnel (CEOs, executives, and department heads) from small venture companies to test the proposed hypotheses. The study first examined the causal relationship between internal organizational capabilities and external environmental dynamism (including market dynamism and technological dynamism) on the intention to engage in international expansion. Secondly, it assessed the moderating effect of international network orientation on the relationship between internal organizational capabilities, external environmental dynamism, and the intention to expand internationally. The findings of this research are as follows: First, internal organizational capabilities (including CEO global orientation, technological capabilities, market information utilization, and investment attraction capabilities) and market dynamism positively influence the intention to pursue international expansion, while technological dynamism was found to have a negative impact. Second, the study demonstrated the importance of international network orientation in moderating the relationship between internal organizational capabilities and the intention to expand internationally, thereby contributing new insights to the existing literature. Based on the results of this study, several implications for enhancing international expansion are proposed. First, the global orientation of the CEO emerges as the most critical factor in the decision-making process for international expansion, highlighting the need for dedicated programs to support CEOs in this endeavor. Second, small venture companies should focus on strengthening their internal organizational capabilities—specifically in terms of human resources, technology, market knowledge, and investment capabilities—while also developing strategies to expand their external networks for successful internationalization. Finally, it is essential for relevant institutions to collaborate in establishing training programs for market experts that are suitable for a knowledge-based society, thereby facilitating the international expansion of small venture companies.

Drivers of Successful Adoption of Eco-innovation: Case Studies of Agricultural Cooperatives in Vietnam

Research shows that external factors dominate the key determinants of eco-innovation (EI) adoption in organizations in the agriculture sector. Studies are needed to understand the link between internal organizational capabilities and EI adoption. Given the heterogeneity in the types of agricultural cooperatives based on their origin, this study sought to fill this gap by exploring how opportunity, motivation, and ability affect the adoption of EI by agricultural cooperatives. Using a qualitative methodology, we examined seven farming cooperatives in Vietnam and found three dominant drivers of cooperatives’ formation: market, technology, and authority. Market-driven cooperatives are characterized by the presence of opportunity, motivation, and ability; technology-driven ones by motivation and ability; and authority-driven ones by motivation only. This study contributes to the literature on agricultural cooperatives and EI. It offers recommendations to leaders of cooperatives and policymakers.

Critical factors for capacity building of NGOs working in the intellectual disability sector in India: a TISM-MICMAC approach

PurposeThis study aims to identify the critical factors contributing to India-based non-governmental organizations (NGOs) capacity building and value creation for beneficiaries.Design/methodology/approachA total interpretive structural modeling technique has been used to develop a hierarchical model of critical factors and understand their direct and indirect interrelationships. The driving force and dependence force of these factors were determined by using cross-impact matrix multiplication applied to classification analysis.FindingsThis study identifies 12 critical factors influencing NGO capacity building in India’s intellectual disability sector across four dimensions. Internal organizational capabilities include infrastructure, staff qualifications, fundraising, vocational activities and technical resources. Second, coordination and stakeholder engagement highlight government and agency collaboration, dedicated board members and stakeholder involvement. Third, adaptability and responsiveness emphasize adjusting to external trends and seizing opportunities. Finally, impact and value creation emphasis on improving value for persons with disabilities (PWDs).Practical implicationsThe findings of this study have practical implications for Indian NGOs working for PWDs. The study provides NGOs with a structural model for improving organizational capacity by identifying and categorizing critical factors into the strategic model.Originality/valueThere is a scarcity of literature on capacity building for disability-focused NGOs in India. This study seeks to identify critical factors and develop a hierarchical model of those factors to assist policymakers in India in building the capacity of NGOs.

Protectionism and its Impact on MNC Subsidiaries’ Performance

AbstractThis study investigates the relationship between local protectionism and performance of multinational corporation (MNC) subsidiaries in China. We integrate overarching theories (i.e., institutional theory and extended resource-based view) to investigate a model for identifying whether local protectionism at the subnational level is beneficial or detrimental for foreign subsidiary operations or functions as a double-edged sword. We also examine whether or not internal organizational capabilities and relational capital with government moderate the effects. On the basis of regression analyses, our empirical findings reveal that the positive or negative effects of subnational protectionism in China depend on performance types. Moreover, performance contribution is considerably moderated by various internal capabilities of MNC subsidiaries. Findings offer valuable and practical implications for MNCs intending to invest in emerging economies.

Theoretical Exploration of the Organizational Resilience Factors of the Family-Owned SMEs during the COVID-19 Crisis

In a volatile and changing context shaped by the succession of economic, social and health crises, etc., the resilience of organizations and companies is a key issue for managers and decision-makers. The family business (FB) is the most dominant form of entrepreneurial activity in economies over the world. They represent 60 to 90% of all businesses worldwide, taking many forms such as: Very Small Enterprises (VSE), Small Enterprises (SE), medium-sized enterprises (SMEs), and Large Enterprises. The main objective of our study is to explore theoretically the phenomenon of organizational resilience of FBs especially in this context of Covid-19 crisis. To this end, our research question is formulated as follows: To what extent the family firms are resilient during the Covid-19 crisis? The adoption of dynamic capabilities theory and the analysis of a rich and diverse literature review allow us to explore the antecedents of organizational resilience in the FB context. Therefore, this theoretical exploration reveals; agility, strategic behavior, and internal resources and organizational capabilities as antecedents of the family businesses resilience.

Dynamic Innovation Information System (DIIS) for a New Management Age

Innovations are essential for global development and market dynamics. Innovation management is central to organizations for gaining adaptability and dynamic capabilities to ensure their sustainability over time. Right decisions are essential for the implementation of innovations. However, on many occasions, especially in the product development process, decisions are taken based on static analysis, qualitative criteria, questionnaires, and/or quantitative evaluations that are outdated. Moreover, many innovation developments do not consider the existing databases in their information systems of similar innovation projects, especially in the early phases of new innovations when evaluations are mainly driven by area, group, or person. Furthermore, inventions are introduced in different regions, plants, and socio-economic situations, providing different results. In this context, considering that innovations shape our current and future world, including all products and services, as well as how humans, organizations, and machines interact, the significance of the paper is clear. Therefore, it is necessary to develop an innovation management model based on the Viable System Model to cope with any potential future environment based on internal organizational capabilities. For this purpose, the paper designs a Digital Ecosystem for the Fourth Industrial Revolution (DE4.0) based on the Plan-Do-Check-Act methodology applicable to any information system consisting of a digital twin, a simulation model, databases from existing information systems, and quality management techniques. This DE4.0 provides a huge advantage for the applicability and scalability of innovations as it allows one to plan, monitor, assess, and improve. Moreover, based on the conceptual model, a generic project evaluation scheme is developed, providing a platform for innovation project management and control during the whole innovation life cycle. As a result, the research provides a scientific and practical contribution for an integrated management of innovations based on the best information and set of techniques available. Based on this framework, a supply-chain case study is developed. The results show how, depending on the intended goals, the past experiences, the evolution of the innovation, and the innovation scope, indicators can be influenced towards reaching the initial goals and reducing the innovation risks. Finally, a discussion about the potential use and role of the DE4.0 for innovation projects and the related learning process is performed.

Worlds Apart? Connecting Competitive Dynamics and the Resource-Based View of the Firm

Competitive dynamics and the resource-based view emerged simultaneously from the study of strategy more than three decades ago. The two subfields have advanced since then to occupy established positions in strategic management. Generally, competitive dynamics is outward-focused and interested in a firm’s moves and countermoves in the marketplace. The resource-based view looks inward, examining a firm’s internal organizational capabilities, its tangible and intangible resources. They have mostly been investigated independently; rarely have researchers put together the two pieces of internal capabilities and external competitive profile. Consequently, we have only a fragmented snapshot of the firm's core strategic elements and behaviors. Here, we compare and contrast the two perspectives along a number of dimensions such as focus of attention and conception of competitive advantage. Based on this understanding, we explore the CD-RBV interface, specifically how central elements of these research streams may be considered jointly to expand our understanding of firm behaviors and outcomes. We highlight limitations and lapses in the literature and suggest directions for future researchers interested in developing new theories connecting the intellectual boundaries of these two important strategy subfields.

Historical aspects of the origin of strategic management accounting

The necessity of the analysis of historical features of formation of the strategic management accounting has been grounded. The peculiarities of the crisis in management accounting in the 1980s have been determined. The requirements to the management accounting system in terms of strategic cost management have been identified. A significant increase in attention to the problems of development of strategic management accounting (demarcation with classical management accounting, separation of methods, empirical research of accounting practice) since the 2000s has been established. The lack of a unified interpretation of the concept of «strategic management accounting» among Ukrainian and foreign scientists has been identified. Characteristic features of strategic management accounting have been determined (development of management accounting with strategic orientation; external orientation (outward-oriented); future orientation (perspective orientation); application of both financial and non-financial typologies of measurement in focus on internal resources and organizational capabilities). The main purpose of strategic management accounting as the creation of information support to achieve competitive advantages and improve the performance of the enterprise has been grounded.

Worlds Apart? Connecting Competitive Dynamics and the Resource-Based View of the Firm

Competitive dynamics (CD) and the resource-based view (RBV) emerged simultaneously from the study of strategy more than three decades ago. The two subfields have advanced since then to occupy established positions in strategic management. Generally, CD is outward-focused and interested in a firm’s moves and countermoves in the marketplace. The RBV looks inward, examining a firm’s internal organizational capabilities, its tangible and intangible resources. They have mostly been investigated independently; with limited exceptions, researchers have yet put together the two pieces of internal capabilities and external competitive profile. Consequently, we have only a fragmented snapshot of the firm’s core strategic elements and behaviors. Here, we compare and contrast the two perspectives along a number of dimensions such as focus of attention and conception of competitive advantage. Based on this understanding, we explore the CD-RBV interface, specifically how central elements of these research streams may be considered jointly to expand our understanding of firm behaviors and outcomes. We highlight limitations and lapses in the literature and suggest directions for future researchers interested in developing new theories connecting the intellectual boundaries of these two important strategy subfields.

Antecedents of Strategic Ambidexterity in Firms’ Product Innovation

Previous literature highlights how the potential conflict between “faster, better and cheaper” and the high uncertainty of the business environment force a firm choose among a number of different strategies for new product development. This study contends that companies can develop strategic ambidexterity in product innovation and rely on a wide range of different product innovation strategies, as long as effectively exploiting internal and external resources. This work explores the relationship between external knowledge sources and internal organizational capabilities and the strategic ambidexterity in product innovation. We draw on a dataset of 600 Chinese manufacturing firms and show the breadth and depth of knowledge source and three types of organizational capability (information sharing, lean management, and training and learning practices) are positively associated with strategic ambidexterity in product innovation. We also find, when external knowledge depth is associated with internal information sharing, strategic ambidexterity in product innovation tends to increase.

A validation of a cloud migration readiness assessment instrument: case studies

Higher education institutions could introduce enormous cloud-based educational services that satisfy their stakeholders’ IT needs. Migration to these pools of cloud services is multiple decision-making processes that are impacted by different organizational and technological obstacles and drivers. Investigating the preparedness of the internal technological and organizational capabilities of a university still lacks investigation particularly in Saudi Arabia. In this study, the practicality of a research instrument called Cloud Migration Readiness Assessment (CMRA) is assessed by using three case studies. The development of the instrument was published earlier. In this study, the validation of the instrument outputs is investigated by assessing the readiness of the three cases that already have planned to adopt the cloud computing services. Subsequently, the practicality and usefulness of the CMRA were assessed using a questionnaire and interviews with IT specialists in the three selected cases. The main contribution of this study is the validation and evaluation of the CMRA tool in real-world context using three different case studies in Saudi Universities.

Managing Network Resource and Organizational Capabilities to Create Competitive Advantage for SMEs in a Volatile Environment

By considering embedded opportunities and threats in today's dynamic business environment, this study proposes that small‐ and medium‐sized enterprises (SMEs) can exploit the ties of interfirm networks to access external resources and information, thus enhancing their organizational agility and absorptive capacity in a variable business environment and enabling superior organizational performance. This study enables SMEs to combine the external resources embedded in strategic networks with internal organizational capabilities including organizational agility and absorptive capacity to create an idiosyncratic competitive advantage in a chaotic business environment.

Effects of Knowledge Acquisition, Information Capability and Relationship Quality on Product Innovation Flexibility Among Manufacturing Firms in Malaysia

Knowledge management is the process of identifying, creating, assimilating and applying corporate knowledge to take advantage of new opportunities and enhance organizational performance. It involves both internal and external organizational capabilities. This study focuses on information capability, knowledge acquisition and relationship quality as capabilities pertinent to organisations aiming to achieve greater product innovation flexibility. Understanding and improving product innovation flexibility is crucial in the context of Malaysia in order to enable the nation to be at par with other countries enjoying better knowledge capital. Central tenets in building knowledge capital are creativity and innovation. The study is carried out in the manufacturing arena specifically on Electrical and Electronics (E&E) subsector as this subsector has achieved remarkable growth and has significant influence over the Malaysian economy. Quantitative research method using survey instrument was adopted in this study. Interestingly, the findings from this study revealed only knowledge acquisition and relationship quality as having significant relationship with product innovation flexibility. The findings are important to research and practice. Firms setting out to improve product innovation flexibility should pay careful attention to knowledge acquisition and relationship quality.

Closing the Energy Efficiency Gap—A Systematic Review of Empirical Articles on Drivers to Energy Efficiency in Manufacturing Firms

Research has identified an extensive potential for energy efficiency within the manufacturing sector, which is responsible for a substantial share of global energy consumption and greenhouse gas emissions. The purpose of this study is to enhance the knowledge of vital drivers for energy efficiency in this sector by providing a critical and systematic review of the empirical literature on drivers to energy efficiency in manufacturing firms at the firm level. The systematic literature review (SLR) is based on peer-reviewed articles published between 1998 and 2016. The findings reveal that organizational and economic drivers are, from the firms’ perspective, the most prominent stimulus for energy efficiency and that they consider policy instruments and market drivers to be less important. Secondly, firm size has a positive effect on the firms’ energy efficiency, while the literature is inconclusive considering sectorial impact. Third, the studies are mainly conducted in the US and Western European countries, despite the fact that future increase in energy demand is expected outside these regions. These findings imply a potential mismatch between energy policy-makers’ and firm mangers’ understanding of which factors are most important for achieving increased energy efficiency in manufacturing firms. Energy policies should target the stimulation of management, competence, and organizational structure in addition to the provision of economic incentives. Further understanding about which and how internal resources, organizational capabilities, and management practices impact energy efficiency in manufacturing firms is needed. Future energy efficiency scholars should advance our theoretical understanding of the relationship between energy efficiency improvements in firms, the related change processes, and the drivers that affect these processes.

THE ROLE OF INTRA-ORGANIZATIONAL FACTORS IN ACCOUNTING INFORMATION SYSTEM EFFECTIVENESS

This study examines the influence of intra-organizational factors on Accounting Information System (AIS) effectiveness in Nigeria. These are internal organizational capabilities such as the internal control quality, training, and top management support that can significantly affect the success of AIS among the Nigerian Banks. In this study, exploratory research approach was adopted. A self-administered questionnaire was distributed to regional and branch offices of banks in Nigeria. A valid response rate of 48.4% was achieved, and the survey data were analyzed using Statistical Package for Social Sciences (SPSS) for the descriptive statistics and structural equation modeling for inferential analysis. The results of the study revealed that internal control quality and training are the most crucial factors in ensuring AIS effectiveness. The result further revealed that top management support is less important for the success of the systems. The findings suggest that banks should pay more attention to the internal control quality and training since they were found to be influencing the effectiveness of the system. Thus, when managers provide all the required in-house resources to support AIS, it would lead to the success of the system and which eventual result to realizing the full potential of their investment.

ORGANIZATIONAL CAPABILITIES, STRATEGIC MANAGEMENT ACCOUNTING AND FIRM PERFORMANCE

From a resource-based view perspective, the paper provides empirical evidence on new emerging strategic management accounting (SMA), its association with organizational capabilities (market orientation, entrepreneurship, innovativeness and organizational learning) and the interlinkages among these four elements of organizational capabilities. Partial least squares (PLS) technique was used to test the contingency model. Using the mail survey data of 103 manufacturing strategic business units (SBUs) of public listed companies in Malaysia, the results found that the four organizational capabilities - market orientation, entrepreneurship, innovativeness and organizational learning - collectively give rise to positional advantage leading to enhanced firm performance. SMA techniques are found to support the internal organizational capabilities. However, SMA usage is not associated with firm performance, indicating that the mediation role of SMA usage on the relationship between organizational capabilities and firm performance is not supported. The results confirm that a firm can attain above average performance if it possesses and emphasizes the four organizational capabilities collectively and these four organizational capabilities collectively are also important to support the usage of SMA techniques which can provide useful information for improvement of internal capabilities as well as resource allocation and utilization.

Performance Management in Accountable Care Organizations in the U.S. and Germany: From external reporting requirements to enabling internal performance management in physician practices

Background : USA: Performance management systems (PMSYSs) are an important tool for increasing the performance (quality, efficiency, effectiveness) of accountable care organizations (ACOs), and enable continuous improvement in affiliated physician practices. So far, there is limited knowledge about the extent of their implementation in US physician practices and about factors associated with their implementation. In addition, although performance measurement is seen as a core element of ACOs and is externally enforced, sparse information exists as to the interplay of external reporting requirements and incentives for internal PMSYSs. Germany: Whereas there are currently over 800 ACOs in the USA, Germany has only a few comparable ACO flagship projects. Also external financial and non-financial performance measurement requirements are, in comparison to the US, in an early stage. However, accountable, integrated care and performance measurement initiatives have moved up the political agenda. There may arise important insights for policy makers and health care managers from the experiences in the USA. Methods : A mixed-method approach using survey data analyses of a nationally representative sample of US physician practices (total n = 1,328; ACO practices n = 316) and case studies in the US (n=3) and Germany (n=1, Gesundes Kinzigtal) was used. Results : On average, practices affiliated with an ACO (24%) used only approximately half (53.1 points out of 100) of the measured PMSYS processes, whereas practices not participating in ACOs (76%) used even fewer PMSYS processes on average (22.6 points). Participating in an ACO was one of the strongest differentiators of US physician organizations with robust PMSYSs versus those with underdeveloped PMSYSs. Also participation in other forms of networks, such as Independent Physician Associations or Physician Hospital Organizations, and greater health information technology (HIT) capabilities and chronic disease registries were factors associated with a greater implementation of PMSYS. The use of financial and non-financial incentives offered mixed results in the survey analysis. The case studies indicate that a culture of quality drives the internal implementation and use of PMSYSs. Financial incentives play a minor role, and nonfinancial external incentives, such as public reporting, are secondary in the studied organizations. External incentives may even compete for internal PMSYS resources. Implications for the US : These findings highlight that policies to further strengthen ACOs or other networks could be a viable strategy to help physician practices strengthen their internal organizational capabilities and prepare for the new performance measurement requirements, such as the MACRA value-based payment models. External requirements have to be balanced with the strengthening of internal capabilities, such as HIT functionality. Cultural aspects and potential adverse effects of financial incentives (e.g. on intrinsic motivation) have to be considered. Implications for Germany : Although the quantitative findings are based in the US, the findings may generalize to physician practices and networks in other countries, as indicated by the German ACO case. For the advancement of performance measurement in Germany external requirements should be simplified by synchronizing initiatives and eliminating unnecessary, invalid demands, to free resources for internal PMSYS. In addition, further strengthening of networks could facilitate PMSYS implementation.

Organizational Capabilities for Integrating Care: A Review of Measurement Tools.

The success of integrated care interventions is highly dependent on the internal and collective capabilities of the organizations in which they are implemented. Yet, organizational capabilities are rarely described, understood, or measured with sufficient depth and breadth in empirical studies or in practice. Assessing these capabilities can contribute to understanding why some integrated care interventions are more effective than others. We identified, organized, and assessed survey instruments that measure the internal and collective organizational capabilities required for integrated care delivery. We conducted an expert consultation and searched Medline and Google Scholar databases for survey instruments measuring factors outlined in the Context and Capabilities for Integrating Care Framework. A total of 58 instruments were included in the review and assessed based on their psychometric properties, practical considerations, and applicability to integrated care efforts. This study provides a bank of psychometrically sound instruments for describing and comparing organizational capabilities. Greater use of these instruments across integrated care interventions and studies can enhance standardized comparative analyses and inform change management. Further research is needed to build an evidence base for these instruments and to explore the associations between organizational capabilities and integrated care processes and outcomes.