Organizational Capabilities Research Articles

Business readiness for dual transformation: an analysis of business capabilities for digital and sustainable transformation

In a dynamic business environment, the convergence of Digital Transformation and Sustainable Transformation has emerged as a comprehensive strategy for companies seeking to thrive in the modern era. For this transformation to successfully develop, the appropriate conditions must be present to carry out a process of digitisation and sustainability. Therefore, this research aimed to identify the readiness level of companies established in the city of Tijuana, Mexico, to adopt a dual transformation process. An analysis of the different digital and sustainable transformation models was carried out, and a self-diagnosis model was designed. Then, a quantitative instrument was applied to a sample of 148 small, medium and large companies in Tijuana between 2022 and mid-2023. The analysis consisted of a descriptive analysis of the data and a correlation analysis. It concludes that the elements that most explain the dual transformation are strategy, culture, organisational and technical capabilities. Likewise, the related factors are definition and communication, alignment, and scope of the objectives within the strategy; change management, knowledge and collaboration in the culture; within the organisation: leadership, processes and organisational structure; and finally in the technical capabilities data management, training and systems integration. The results of this research allowed us to identify and propose strategies to implement the dual transformation and increase the scalability and competitiveness of the adopting companies.

Operationalizing responsible AI principles through responsible AI capabilities

AbstractResponsible artificial intelligence (RAI) has emerged in response to growing concerns about the impact of AI. While high-level principles have been provided, operationalizing these principles poses challenges. This study, grounded in recent RAI literature in organizational contexts and dynamic capability theory, and informed by literature on RAI principles and expert interviews in organizations deploying AI systems, (1) problematizes the high-level principles and low-level requirements and underscores the need for mid-level norms by adopting dynamic capability as a theoretical lens, and (2) develops five themes to capture firms’ RAI capability, including (i) understandable AI model, (ii) bias remediation, (iii) responsiveness, (iv) harmless, and vi) common good. As our contribution to the field of information systems (IS), this study extends the emerging literature on operationalizing RAI and dynamic capabilities, empirically elucidating the capabilities needed by firms. For IS practice, we provide organizations deploying AI with novel insights to aid in the responsible implementation of AI.

Marketing pioneering orientation as a mediator between operation management capability and firm’s innovation performance

Purpose This study aims to examine the impact of operation management capability on firm’s innovation performance through the mediation of marketing pioneering orientation. Design/methodology/approach This study uses a quantitative method with data collected from questionnaires filled out by 189 managers of Israeli companies that operate in international markets. Based on the resource-based view and dynamic capabilities theories, this study developed and analysed the research model using SmartPLS 4 software. Findings The main findings show that operation management capability affects marketing pioneering orientation and firm’s innovation performance. Additionally, the findings reveal that marketing pioneering orientation serves as a partial mediator in the relationship between operation management capability and firm’s innovation performance. Research limitations/implications This study focuses on operation management capability and marketing pioneering orientation as two organisational characteristics that increase firm’s innovation performance. However, other organisational characteristics also can affect firm’s innovation performance. Future research could examine the effect of these characteristics on firm’s innovation performance. Practical implications Managers should strengthen their organisational capabilities with regard to operations management and a marketing pioneering orientation to enhance the firm’s innovation performance. Such an approach should provide the company with a competitive advantage over its rivals. Social implications Today, more customers are aware of the environment and are looking for greener products, packaging, recycling and logistics. Therefore, marketing PO might identify innovative and sustainable ways to improve organisations’ environmental performance by exploring new sustainable processes, modifying procedures and pursuing green supply chains. Originality/value The uniqueness of this study is in this study’s research model, which combines two disciplines from the research literature (logistics and marketing) and examines their effect on firm’s innovation performance.

A Novel Financial Anti-fraud Method based on Machine Learning Algorithms

Digital finance is booming, financial technology is maturing, and the development of information technology has had a massively positive impact on society. However, such progress also introduces a new type of risk: the underground network industry is experiencing explosive growth, and telecommunications network fraud has caused enormous financial losses. In the age of digital finance, although commercial banks have ushered in new possibilities and created momentum, they must also confront new obstacles and needs for digital transformation. In this context, online financial services have emerged as the new primary battleground. In this study, based on the RFM high-dimensional derived features and machine learning techniques, a high-dimensional transaction behavior portraits-based anti-fraud machine learning model is created. Using big data, stream computing, and other technologies, as well as systematic deployment, application strategy, and iterative model optimization, we developed a set of machine learning-based in-event risk control solutions. Confirmed to have an AUC of 0.972, this model provides key insight into fraud risk, identifies fraudulent transactions in milliseconds, and has value and relevance for enhancing the in-transaction risk management capabilities of online digital financial organizations.

Developing individual capability in organizations through the promotion of heutagogy

PurposeThis paper aims to address the United Nations’ Sustainable Development Goal 4 “quality education” through the adoption of heutagogic ideas in improving work-based learning for individuals.Design/methodology/approachThis paper locates a discussion of heutagogy within the wider context of vocational and higher education, as well as through reference to the theoretical discourse on learning theory.FindingsHeutagogy is concerned with the development of individual capability through the creation of a learner-determined curriculum that is attuned to professional goals. Organizations that adopt heutagogic approaches enhance corporate adaptiveness through personalized learning.Originality/valueThis briefing provides the reader with an accessible insight into both the individual and organizational benefits of adopting heutagogic ideas in professional development. As organizations confront an increasingly uncertain external environment, this paper offers an insight into how to develop individual capability.

Detection and disclosure of workplace mental health challenges: an exploratory study from India

Workplace mental health challenges have emerged as a significant concern post-pandemic. Despite this, the pervasive stigma surrounding mental illness leads to the concealment of symptoms and reluctance to seek professional help among employees. This study aims to explore the perception of different stakeholders towards the ‘Detection and disclosure’ of workplace mental health challenges in the Indian context. Fifteen semi-structured interviews were conducted with human resource professionals, counselors, and employees who had previously experienced mental health challenge(s). Thematic analysis was done to identify recurring themes and sub-themes. Three critical pathways were identified: minimizing the inhibitory factors, including lack of awareness, denial, low self-efficacy, stigma, and underestimating organizational capability; maximizing the encouraging factors, including psychological safety, perceived social support, and communicating success stories; and implementing supportive organizational practices, including generating awareness and literacy, build the organizational capability, strengthen the role of managers, leadership advocacy, policies, and processes. By fostering a culture of support and prioritizing employee well-being, organizations in India can create healthier and more resilient work environments, benefiting both individuals and the larger society.

Incongruities in Innovation: Exploring Inconsistencies in Business Innovation Strategies

This research explores the phenomenon of incongruities in business innovation strategy through a systematic literature review. Analysis of the current literature reveals different types of incongruities, their causal factors, and their impact on innovation performance. Findings show that strategy-implementation gaps, culture-innovation misalignment, and resource allocation inconsistencies are the most common types of incongruities. Factors such as short-term performance pressure and resistance to change contribute significantly to the occurrence of incongruities. Their impact on innovation performance includes innovation portfolio imbalance and failure in radical innovation. Strategies to overcome incongruities include the development of ambidextrous leadership, balanced innovation portfolio management, and enhancement of organizational dynamic capabilities. This research highlights the importance of a holistic approach in innovation management and provides directions for future research.

Research for understanding and promoting innovation by small-and-medium sized firms in the least developed countries

ABSTRACT With a strong policy focus on small and medium-sized enterprises (SMEs) in the least developed countries (LDCs), there is a demand for information that can inform efforts to promote innovation, technological development and SME development. This paper presents results from a bibliometric analysis of publications on SME development in the LDCs. It was informed by different perspectives on how SME innovation occurs: mainstream emphasis on formal research and development and a framework emphasizing learning and organizational capabilities. The results show that there are low levels of research on SME development in the LDCs and generally there is limited coverage on topics that can inform SME innovation and technological development in SMEs. Our findings highlight the need for further research on SME development in LDCs that is informed by a wide perspective of what innovation and technological development are in these countries and can guide policy efforts.

Enhancing Service Innovation Performance of Hotels: The Role of Organizational Learning Culture and Dynamic Capabilities

Organizations are beleaguered by stiff competition, a dynamic market environment, and rapid technological changes that threaten the survival of businesses rambling to gain a competitive advantage. Past studies bring forth the role of innovation in services, crucial in driving tremendous growth in terms of economic activity. But, what contributes to innovation in services remains a sparsely researched area. The present study proposes a research model to examine the impact of organizational learning culture on service innovation performance in hotels with dynamic capabilities as a mediating variable. Structural Equation Modeling (SEM) is used for assessing the relationship between variables and validates the research model. The unit of analysis comprised individual employees working in four-star and five-star rated hotels located in the tourist-bound cities of Lucknow, Agra, and Varanasi in Uttar Pradesh (India). Empirical evidences support the positive role of dynamic capabilities in the relationship between organizational learning culture and service innovation performance thereby asserting the importance of developing distinctive capabilities for enhancing service innovation performance in hotels.

The Role of Organizational Innovation Capability in The Relationship Between Disruptive Innovation and Organizational Performance of Thai Listed Firms

This research aims to examine the mediating effect of organizational innovation capability on the relationship between disruptive innovation and organizational performance. Data collection was implemented through a mail survey method via questionnaires completed by the executive managers of Thai-listed firms. Of the returned and completed surveys, 148 questionnaires were deemed usable. Statistical analysis was performed by means of structural equation modelling, to test the hypothesized relationships. Results indicated that organizational innovation capability plays a vital role through its mediating effect on the relationship between disruptive innovation (technological disruption and market disruption) and organizational performance. The findings contribute insights for current and large firms regarding the influence of disruptive innovation, indicating that this ensures enhanced organizational performance via organizational innovation capability. More importantly, the study also increases the knowledge of disruptive innovation, informing predictions and assisting decision-makers involved in generating firms’ competitive advantages.

Analyzing how COVID-19 moderates the relationship between organizational learning capabilities, technological innovation, supply chain management and enterprise performance in the automobile industry

PurposeThis study explored how COVID-19 moderated the relationship between organizational learning capabilities (OLCs), technological innovation (TI), supply chain management (SMC) processes and enterprise performance (EP). It aimed to give ideas on how organizations could change and do well during big disruptions.Design/methodology/approachDesign: A structured questionnaire served as the data collection tool, employing a stratified sampling technique. Partial least squares (PLS) was utilized for data processing. Information was gathered from the automobile industry in Xian, China, providing an in-depth understanding of how COVID-19 moderated the variables under examination.FindingsThe study discovered that COVID-19 changed how organizational learning, TI, SCM and EP interacted. Some organizations had trouble keeping up with learning and innovation, but others used them to make their SCM stronger, leading to better performance. Also, different effects of COVID-19 were seen in various industries and organizations.Practical implicationsThis study provided practical implications for managers, policymakers and practitioners. It emphasized fostering OLCs and TI as crucial for resilience during disruptions like COVID-19. Strategic investments in SCM were highlighted to mitigate disruptions and seize opportunities. Additionally, context-specific approaches were underscored for navigating pandemic-induced challenges.Originality/valueThis study enhanced existing literature by analyzing how COVID-19 moderated the link between organizational learning, TI, SCM and EP. Through diverse methodologies and organizational contexts, it offered fresh insights into dynamic organizational responses to disruptions, advancing both theoretical understanding and practical knowledge in the field.

Business intelligence competencies and their impact on organizational ambidexterity

In Jordan’s banking sector, organizations face the dual challenge of stability and innovation. Achieving this balance requires a deep grasp of leveraging capabilities for existing opportunities and exploring new ones. The key lies at the intersection of business intelligence and organizational ambidexterity. Therefore, this study has investigated the relationship between business intelligence and organizational ambidexterity within the Jordanian banking sector. It examined the impact of managerial, technical, and cultural competencies of business intelligence on organizational ambidexterity in Jordanian commercial banks listed on the Amman Stock Exchange. The quantitative study involved 449 bank employees. The data were gathered via a questionnaire, and the responses were analyzed using R language version 4.2.2. The results indicated that managerial competencies (z = 8.26, p = 0.000) and technical competencies (z = 4.09, p = 0.000) exhibit statistically significant positive direct effects on organizational ambidexterity. Additionally, cultural competencies were found to have a statistically significant direct effect on organizational ambidexterity (z = 2.083, p = 0.037). Managerial, technical, and cultural business intelligence competencies play crucial roles in the adoption of organizational ambidexterity among Jordanian commercial banks. Achieving organizational ambidexterity necessitates integrating these competencies with organizational capabilities.

The relationship between organizational learning and innovation capability in the Vietnamese banking sector

This study investigates the influence of organizational learning on the innovation capability of commercial banks in Vietnam. Its aim is to identify the nature of the relationship between these constructs and empirically examine whether organizational learning practices impact banks' innovation capabilities. This research uses in-depth interviews with a large-scale survey administered to employees across various Vietnamese commercial banks employing a mixed-methods approach. Data collection primarily relied on questionnaires with 280 valid responses to explore the direct and indirect effects of organizational learning on innovation capability. Quantitative analysis and structural equation modeling (SEM) were conducted using Smart-PLS software to assess scale reliability, test hypotheses and analyze the collected data. The findings confirm a direct and positive relationship between organizational learning and bank innovation capability. Three factors such as commitment to learning, shared vision and open-mindedness were found to exert significant positive influences on the bank’s product and process innovation. However, intra-organizational knowledge sharing exhibited a significant and positive impact only on process innovation with an insignificant effect on product innovation. This finding concerning the limited influence of knowledge sharing on product innovation represents a critical discovery, warranting further investigation into the underlying reasons. It potentially highlights the need for a nuanced understanding of open innovation within the context of commercial banking.

Barriers to social enterprise growth in developing countries: proposition of a multilevel approach

PurposeThe purpose of this study is to investigate the hybridity of social enterprises (SEs) by examining the barriers to growth they face at the individual, organizational and institutional levels. Through this investigation, the study aims to contribute to our understanding of hybrid SEs and advance knowledge in the field.Design/methodology/approachThis exploratory study uses Gioia’s grounded theory method to analyze qualitative data from 16 interviews conducted with established SEs, dissolved SEs and consulting centers in Vietnam.FindingsSEs do have barriers to growth that distinguish them from traditional enterprises. Hybrids face barriers to growth at individual, organizational and institutional levels. This study offers a theoretical framework and provides the process model of SE barriers to growth. The SE growth process demonstrates the complex and dynamic interplay of specific components within two groups: organizational capacities and the SE ecosystem elements. This highlights the roles of various actors and institutions within the ecosystem in enhancing organizational capabilities and removing barriers to SE growth, extending knowledge of the SE, barriers to growth and the ecosystem literature.Research limitations/implicationsThis paper has two main limitations. First, it is an empirical research conducted in a specific context, so the results may not be universally applicable. Second, it has a qualitative approach, which has limitations in comparing differences among different groups, such as hybrids versus traditional enterprises. However, these limitations also open numerous possibilities for further research directions. For instance, future research could apply this theoretical framework to conduct surveys in diverse contexts and use quantitative analysis to further examine the model of hybrid constraints.Originality/valueThe findings of this paper contribute to a more holistic understanding of barriers to growth facing SEs, which is an under-researched topic in the Vietnamese context. This paper offers a theoretical framework of barriers and the process of growth, providing potential recommendations for practitioners seeking to support SEs in addressing their unique challenges, and suggests avenues for further research in this area.

The role of organizational performance in sustaining competitive advantage through reverse logistics activities

PurposeReverse logistics (RL) activities are becoming crucial in today’s business environment because of their ability to enhance organizational capabilities to manage waste and resources effectively and efficiently as an approach for achieving sustainability. These capabilities can eventually create sustainable competitive advantage (SCA). Drawing on resource-based view (RBV), this study posits RL as a tool to develop capabilities gained from high performance (financial and nonfinancial) to enhance SCA.Design/methodology/approachCovariance-based structural equation modeling (SEM) was used to analyze 1,207 responses collected from manufacturing organizations operating in Egypt. Data were gathered through an online survey sent via email to manufacturing organizations operating in Egypt, particularly Cairo, Giza and Alexandria, as these governorates contain most business activities in Egypt and hence high a percentage of waste.FindingsResults indicated that RL activities (recycling, remanufacturing, repair, recondition and disposal) can fully mediate the relationship between organizational performance (financial and nonfinancial) and SCA. However, the remanufacturing and recycling mediating roles between financial performance and SCA were not significant.Research limitations/implicationsApplying this research in a developing country (Egypt) will help extend RBV and incentivize organizations to apply RL activities, which can potentially solve several environmental issues such as decreasing waste.Originality/valueUsing the research variables in combination will help in filling the literature gap as previous research focused on RL and only organizational operational performance, where RL was used as an independent variable with no illustration of how its dimensions affect performance or its mediating role between performance and SCA.

How does big data analytics capability affect firm performance? Unveiling the role of organisational resilience and environmental dynamism

ABSTRACT In a dynamic environment, organisations are increasingly compelled to utilise big data analytics (BDA) to develop organisational resilience, which will help them weather disruptions and gain competitiveness. By investigating 213 Chinese firms across a diverse array of industries, this study seeks to uncover the mechanisms and boundary conditions through which BDA capability affects firm performance. Drawing on the organisational capabilities-based theory and information technology-enabled organisational capabilities perspective, we both theoretically and empirically verify that two types of organisational resilience (i.e., proactive resilience and reactive resilience) mediate the relationship between BDA capability and firm performance. Our findings reveal that environmental dynamism positively moderates the impact of BDA capability on reactive resilience and strengthens the positive mediation effect of reactive resilience on the relationship between BDA capability and firm performance. This study contributes to the information systems literature by theoretically and empirically clarifying the pivotal roles of proactive resilience and reactive resilience as mediating mechanisms and by describing the contingent effect of environmental dynamism on the relationship between BDA capability and performance. The results provide new insights into how managers deploy BDA to achieve superior performance in a dynamic environment.

Supply Chain Integration and Organizational Resources and Capabilities: The Moderating Effect of Stakeholders’ Support

Supply Chain Integration and Organizational Resources and Capabilities: The Moderating Effect of Stakeholders’ Support

Unlocking Success: Factors Influencing Zakat Collection and Reputation at Zakat Institution

This study aims to determine the factors that influence the increase in zakat collection and institutional reputation at the Muhammadiyah Zakat Infaq and Shadaqah Institution (LAZISMU). The variables studied are Digital Fundraising, Organizational Capability, Religiosity as independent variables. Increased collection as the dependent variable and institutional reputation as the mediating variable. The sample used was 249 respondents from the western, central and eastern Indonesian regions. Data analysis techniques using Structural Equation Model (SEM) techniques with the help of Smart PLS 4 statistical tools. The results showed that digital fundraising, organizational capabilities have a positive and significant influence on increasing zakat collection and institutional reputation. Religiosity has a positive and significant influence on increasing zakat collection. However, it has no influence on institutional reputation. The mediation results show that institutional reputation mediates the relationship between digital fundraising, organizational capability, religiosity to the increase in zakat collection. The implication of this research is that to obtain the level of trust of muzakki to pay professional zakat, it is necessary to pay attention to good institutional management and adequate personnel support so as to increase the collection of zakat and institutional reputation.

Municipal capacity for water justice: a cross-case comparison of affordability and equity policies in Pennsylvania and Massachusetts

ABSTRACT Water unaffordability is a growing environmental justice crisis for vulnerable groups in the United States due to increasing water rates. These injustices disproportionately affect low-income and minority groups. We investigate how organizational capacity and learning processes influence the ways publicly managed water utilities develop and implement policies addressing water unaffordability. We also investigate the connections between financial, relational, and technical capabilities on offered customer assistance plans (CAPs). Combining these two areas of analysis, we examine how organizational capabilities and contextual factors (e.g. citywide poverty) influence the quality and efficacy of CAPs. This comparative case study of 11 cities and towns in Massachusetts and Pennsylvania draws on 33 semi-structured interviews with utility staff and other local officials, as well as a review of policy documents from utilities and online resources. Our findings demonstrate that organizational dynamics undermine the efficacy and adoption of CAPs. From interviews, the efficacy and adoption of CAPs depends on how utilities handle fixed costs and mediate knowledge gaps, and their ability to innovate around financial barriers to meet customer needs. Utilities in high-poverty cities were best situated to leverage organizational capacity in administering CAPs, regardless of utility size.

Implementation of Analytical Hierarchy Process (AHP) to select the best vendor for bio-efficacy trials (case study: the xyz agrochemical company)

Purpose: The pesticide industry is highly regulated by various regulations and requirements. Getting a distribution permit for a pesticide depends on the results of bio-efficacy trials carried out by institutions outside the company (vendors). These vendors must be selected from a list that has been made by the Ministry of Agriculture. Choosing a vendor is quite a difficult endeavor because not all vendors have the same competencies. Research Methodology: One method to choose a vendor among several vendors based on various criteria hierarchically that meets the requirements is to use the Analytical Hierarchy Process (AHP) method. This thesis presents the results of the trial of the use of the AHP method in the XYZ Agrochemical Company using a qualitative and quantitative approach by collecting primary data through questionnaires and interviews with a team of Research and Development experts from the XYZ Agrochemical Company. Results: The results of the case study at the XYZ Agrochemical Company show the practical application of the AHP model in real-world vendor selection scenarios, providing an overview of the relative significance of each criterion and its impact on the overall decision-making process. Limitations: Secondary data was obtained from government regulations, company reports, and relevant literature to form vendor profiles, organizational capabilities, and pesticide regulations that apply specifically to Indonesia. Contribution: Through the AHP framework, based on the results of the interview, a hierarchical structure of evaluation criteria in selecting vendors was established, including expertise, past performance, laboratory and field facilities, timely delivery, in conducting bio-efficacy trials, and vendor responsiveness in communicating.