Organizational Dynamic Capabilities Research Articles

디지털 트랜스포메이션 리더십이 조직구성원의 혁신행동에 미치는 영향

This study demonstrates the leadership and capabilities that corporate leaders must possess for the sustainable growth of the organization amidst unprecedented changes in the business environment, such as the 4th Industrial Revolution and digital transformation, which have recently emerged as corporate management issues. To this end, this study targeted 350 employees of domestic IT companies to demonstrate the impact of a leader's digital transformation leadership on employees' innovation behavior, and to determine whether the organization's dynamic capabilities and managers' coaching behavior influence the innovation behavior of organizational members in the digital era. The research results showed that the leader's digital transformation leadership had a positive effect on the innovation behavior of organizational members. In addition, the dynamic capability of the organization had a mediating effect on the leader's digital transformation leadership and the innovation behavior of organizational members, and the leader's managerial coaching behavior had a moderating effect. In particular, the organization's dynamic capabilities and the leader's managerial coaching behavior suggest a new direction of leadership to corporate leaders and managers who must create organizational performance through digital innovation. The significance of this study is that it has been demonstrated that in the future, leaders of organizations in the digital era will need distributed leadership that emphasizes the capabilities of each member of the organization and is based on agile-centered dynamic capabilities, rather than focused leadership that is exercised based on individual characteristics or capabilities.

Exploring the impact of partner match on business model innovation: the mediating role of interfirm dynamic capabilities-based on ecosystem orchestration perspective

PurposeWithin the context of an open innovation business environment, the frequent interaction and coordination activities among heterogeneous partners have a significant impact on enterprises' business model. Nevertheless, fewer empirical research has been made to explore how to match external partners and update organizational dynamic capabilities at an ecosystem level. Therefore, this paper attempts not only to investigate the direct impact of partner match on different business model innovation (BMI) themes (efficiency-centered BMI and novelty-centered BMI) but only to shed light on the pivotal mediating role of interfirm dynamic capabilities.Design/methodology/approachThis paper utilized the methodology of Partial Least Squares Structural Equation Modeling (PLS-SEM) to investigate the impact of diverse partner selection criteria and interfirm dynamic capabilities on two distinctive themes of BMI. More than 20 industry clusters with multiple industries were selected as representatives of the creative ecosystem, predominantly from the Yangtze River Delta region. Valid data were collected from 254 managers by both online questionnaires and offline interviews.FindingsThe findings of the study show that different partner match criteria have distinct direct impacts on BMI themes. Partner complementary and partner synergy, deriving from the “task-related criteria”, are significantly correlated with both EBMI and NBMI. Conversely, partner compatibility, deriving from “Partnering-related Criteria”, shows a positive correlation with EBMI but not NBMI. Furthermore, compare the indirect effect on EBMI, the paper’ results demonstrate interfirm dynamic capabilities as mediator can more maximize external benefits to promote NBMI.Practical implicationsThe study findings effectively help enterprises implement different BMI themes. From a management perspective, whether pursuing EBMI or NBMI, enterprises should consciously seek partners who can provide complementary support or share mutual goals across diverse industries. This strategic approach can significantly enhance the opportunities for sustainable and innovative business development. Furthermore, to successfully accomplish NBMI, enterprises must cultivate interfirm dynamic capabilities encompassing a comprehensive range of cross-organizational innovation capacities, such as bolstering organizational learning capability, establishing interactive network platforms to enhance coordination capabilities and engaging in integrative activities to foster a collective mindset.Originality/valueThis paper contributes to the match theory by introducing three critical matching criteria, enabling enterprises to discern partners based on diverse organizational characteristics. Additionally, this paper broadens the scope of the dynamic capability literature by adopting a network perspective to strengthen interaction and relationship mechanisms. The authors primarily elucidate the concept of interfirm dynamic capabilities as a formative higher-order model formed by three sub-capabilities (absorptive capacity, coordination capability and collective mind). Finally, this paper combines matching theory with dynamic capacity theory to the field of BMI, which adds depth and complexity to the existing ecosystem innovation research.

KNOWLEDGE ABSORPTIVE CAPACITY: CONTEMPORARY TRENDS AND NEW CONCEPTUALIZATION IN THE CONTEXT OF FUNDAMENTAL TRANSITION PROJECTS

Knowledge absorptive capacity (ACAP) is a dynamic organizational capability that enables the appropriation of valuable external knowledge to generate superior performance. This article discusses the following questions: Is ACAP still worth new conceptualizations? Moreover, if this is the case, what are the opportunities for additional studies to deepen the theoretical and empirical framework of this topic? To this end, we drew on the discussion of the most influential research papers and a comparative analysis between three young colleges in preparation for the first program accreditation. The theoretical discussion and the empirical results allowed the proposal of an integrative model of the ACAP processes, antecedents, and outcomes suitable for fundamental transition projects. It highlights many issues that have been understudied or ignored in the existing literature, such as the transformative and interactive nature of ACAP, the desired ACAP processes at the interface between potential and realized absorptive capacities, the necessity of a discriminative study of the antecedents and outcomes of ACAP; the ACAP-organizational learning link; the combined effects surrounding ACAP; and the role of ACAP ecosystem, organization maturity, and project maturity. In addition, the model suggests five ACAP key performance indicators: the relevance, depth, exhaustiveness, pervasion, and sustainability of knowledge. Considering these crucial issues, along with the diverse spectrum of organizations, sectors, and countries, paves the way for more in-depth research on ACAP and helps to reduce the ambiguity that still characterizes this domain.

Sustainable by design: An organizational design tool for sustainable business model innovation

When firms want to meet ambitious sustainability targets, they often fail to deliver on more radical innovation at the level of the business model. They often struggle to design and successfully implement new, sustainable business models in practice. While sustainability tools might help bridge the design-implementation gap in business, they often lack a grounding in both theory and practice. In this study, we build on empirical research that recognises the importance of dynamic capabilities to develop sustainable business models, and the barriers and drivers that might exist at the organizational level. We investigate the following research question: How can firms address organizational design issues in order to develop the dynamic capabilities necessary for sustainable business model innovation? The research method consists of four stages derived from the iterative, user-involved method of design science research: 1) identifying the problem and defining objectives for a solution; 2) design and development; 3) demonstration; and 4) evaluation. The work results in the “Sustainable By Design” tool which was used in a workshop setting with two large multinational companies seen as sustainability leaders in their sectors: DSM and IKEA Retail (Ingka Group). The work makes two contributions. First, we contribute the Sustainable By Design tool which practitioners can use to evaluate their current organizational design, identify barriers and drivers for sustainable business model innovation, and develop strategic interventions to engage in organizational transformation. Second, we elucidate the theoretical connections between organizational design, dynamic capabilities, and sustainable business model innovation, and suggest directions for future research.

The consequences of innovation failure: An innovation capabilities and dynamic capabilities perspective

Organizations engage with innovation by leveraging their innovation capabilities and dynamic capabilities. In this study, we examined how organizational innovation capabilities and dynamic capabilities can influence organizational performance, taking into account cases when innovation projects do not yield beneficial outcomes to organizations. Building on the dynamic capability view and the notion of innovation capability, we developed a conceptual model and subsequently validated it by conducting a survey on a sample of organizations across multiple manufacturing and service industries that are based in India. By applying PLS-SEM, we found that different contextual factors including commercial viability and technological feasibility play a critical role towards innovation failure and success. In its turn, innovation failure negatively influences organizational performance.

Organizational Change Capability and Performance A Social Entreprise At Lazismu Cilacap

This research analyses how the Learning and Innovation Capability and Managerial Cognitive Capability affect Organizational Change Capability and how Organizational Change Capability affects Financial Performance at Lazismu Cilacap. Based on the report on the realization of the zakat collection by Lazismu Nasional, which was recorded in 2019 until mid-2020, it was IDR 239.003 billion. Of the total 2020 national zakat potential of IDR 233.84 trillion, only IDR 8 trillion or 3.5 percent has been collected. OCC at Lazismu Cilacap represents a broad and dynamic organizational capability that allows companies to adapt legacy capabilities to new threats and opportunities to create new capabilities. This research uses a quantitative approach using a survey. Data was collected by conducting a questionnaire to 31 amil at Lazismu Cilacap and analyzed by SPSS 26. The results showed that Learning, Innovation Capability and Managerial Cognitive Capabilities significantly affect organizational change capability. Future research is expected to be able to reach a wider social enterprise not only at the Lazismu Cilacap institution but can expand coverage to the province and national level.

Organizational resilience, dynamic capability and business innovation: Inputs to continuous development model of tourism SMEs

Organizational resilience, dynamic capability and business innovation: Inputs to continuous development model of tourism SMEs

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.

Organizational structure and dynamic capabilities on business model innovation in project-driven enterprises: evidence from the construction industry

PurposeFlexibility and efficiency are dual attributes of the organizational structure that are crucial for project-driven enterprises to achieve sustainable development in a dynamic environment. However, there is a lack of research on the patterns by which the dual attributes of a project-driven enterprise’s organizational structure affect business model innovation. Employing organizational theory, this study aims to assess the mediating mechanisms and dynamic capabilities through which the dual attributes of the organizational structure influence business model innovation in project-driven enterprises.Design/methodology/approachData were collected from 242 employees from four project-driven companies across 26 cities (e.g. Beijing, Tianjin, Guangzhou and Shenzhen) in China. Structural equation modeling revealed the relationship between organizational structure’s dual attributes and business model innovation.FindingsThe findings show that the dual attributes (flexibility and efficiency) of the organizational structure have positive impacts on business model innovation. Moreover, dynamic capabilities mediate the relationship between the dual attributes and business model innovation in project-driven enterprises.Originality/valueThis study provides contributions to innovation research in the context of project-driven enterprises by revealing the influence of organizational structure on business model innovation through the firms’ dynamic capabilities. Such knowledge can enable managers of project-driven enterprises to develop effective interventions to promote business model innovation.

From Managerial to Organizational Dynamic Capabilities: Enabling Adaptability in Turbulent Times

From Managerial to Organizational Dynamic Capabilities: Enabling Adaptability in Turbulent Times

Organizational resilience as a key property of enterprise risk management in response to novel and severe crisis events

AbstractThe COVID‐19 pandemic represented a novel risk event. Research on similar past crises identified risk culture and leadership as properties of effective enterprise risk management to enable companies to respond “like a rubber ball” to such events. The focus of this paper is on the question of how enterprise risk management (ERM) can develop such resilience. A comprehensive literature review was undertaken to enrich the ERM framework with insights from organizational resilience theory, resource and dynamic capability theory and system psychodynamic thinking, addressing the human dynamics at play when coping with such a crisis. It was complemented by a global empirical study among C‐level executives in insurance on the management of the COVID‐19 pandemic. Some key insights were identified: a learning culture, a strong system permeability, a clear purpose, strong leadership to ensure alignment and autonomy of teams and a culture of trust, where employees feel safe, but also dare to take courageous steps to benefit from the crisis. While the newly developed organizational resilience framework identifies the key themes, the organizational resilience map provides guidance on how to develop organizational resilience. This paper enables researchers and practitioners to identify key themes to render a company more resilient to unforeseen risk events.

The internationalization performance of Indonesian SMEs during COVID-19 pandemic: exploring a mediation model

PurposeSmall and medium enterprises (SMEs) in emerging economies face significant challenges in formulating effective strategies to enter international markets, particularly amid uncertain conditions such as the COVID-19 pandemic. Consequently, there is a pressing need to examine the performance of these SMEs and evaluate their internationalization process. This study aims to examine the effects of international entrepreneurial orientation on the internationalization performance of SMEs and the mediating effects of organizational dynamic capability and organizational culture in Indonesia.Design/methodology/approachThis study used a quantitative method with a survey approach by distributing questionnaires to 206 SMEs in Indonesia that have implemented internationalization practices. Partial least squares-structural equation modeling (PLS-SEM) was used to predict and estimate relationships.FindingsThis study finds that one of the SMEs’ strategies to encounter the new normal era of COVID-19 is to improve their internationalization performance, especially by actively participating in international markets. The empirical results show that organizational dynamic capabilities and organizational culture are proven to fully mediate the relationship between international entrepreneurial orientation and the internationalization performance of SMEs. Meanwhile, international entrepreneurial orientation does not directly affect SMEs’ internationalization performance. This study confirms the mediating role of organizational dynamic capabilities and organizational culture in dynamic capabilities theory and their relevance to internationalization.Originality/valueThis study provides valuable insights and encourages owner-managers and policy-makers in emerging economies, particularly Indonesia, to develop organizational dynamic capabilities and organizational culture that align with the demands of internationalization.

Analysis of Quality Cycles on Performance of Tea Processing Firms in Kenya

Aim of Study: The aim of the study was to assess how quality cycles impact the performance of tea processing companies in Kenya. The research was guided by Deming's quality improvement theory. Pragmatism research philosophy was employed in this research.
 Study Design: Further, explanatory research design was deemed appropriate for the research.
 Methodology: The study population under consideration was 66 operations managers of all the tea producing companies. A census of all the 66 operations managers was conducted. Utilizing structured questionnaires, both quantitative and qualitative data was gathered for analysis. Data analysis was undertaken utilizing SPSS Version 23.0.
 Results: The findings revealed that quality cycles had positive and significant relationship with performance of tea processing firms in Kenya where (β =.335) and p=.011). The study concludes that quality cycles are critically important in the production of tea. Tea processing firms need to cultivate culture of team work among their workers by emphasizing virtues of unity and togetherness. The study recommends for periodic diagnostic and maintenance of firm machines and equipment through well trained firm personnel. Thus, training of personnel on the maintenance of tea production equipment is essentially important in ensuring that costs arising from breakdowns are minimized. Organizational dynamic capability moderates the relationship between Kaizen Systems and performance of tea processing firms. Also, tea processing firms should invest in research and development, training, networking capability and innovation since it affects performance positively.

The Dynamics of Innovation on Firm Performance: Empirical Analysis of Pharmaceutical Manufacturing Firms in Sindh Pakistan

Innovation is defined as the process of producing developing new products and services for significant positive change, innovation is a crucial driver of economic growth and societal progress. Aim of this paper is to analyze the direct, indirect, and total effects of exogenous variables product innovation, process innovation, and organizational innovation, with the mediating effects of organizational innovation capability and dynamic capability on endogenous variable firm performance. In the context of Resource Based view theory organizational achievement is defined with reference to utilization resources, proficiencies to achieve competitive advantage, sustainable and viable. In the framework of this concepts, innovation which leads to shape resources capabilities for better performance in pharmaceutical manufacturing firms of Sindh. Path analysis approach is incorporated for analyzing multivariate causal effect, a five-point Likert scale, and a pretested, closed ended questionnaire was used for feedback of responses. Cluster sampling technique is incorporated for compilation of data, by using SPSS 25 version software for demographic statistics, and PLS 3.5.V for inferential statistics. Direct, indirect, and total effects is significantly positive, except PI > to DC > is insignificantly associated with firm performance. Partial mediation is established by the, product innovation, and organizational innovation through organization innovation capability and dynamic capability with firm performance.The limitation only cover the pharmaceutical manufacturing firms al so limitations are expelled various variables of firm performance because of limited time. Beside these limitations, this study provides direction to top management and policymakers for enhancing of performance of manufacturing firms of Sindh.

Organizational Capability of Jasinga District, Bogor Regency in Development of Village Administration

ABSTRACT The study aimed to analyze the organizational capabilities of the Jasinga District, Bogor Regency, in fostering the administration of village government with a broader scope of tasks and extensive budget management. The method is a descriptive qualitative approach with data collection techniques using interviews, observation, and literature studies. The analytical knife used is the concept of organizational capability put forward by Neo and Chan. The study's results stated that there were obstacles in the aspects of able people and agile processes, including limited staff, barriers to competency development, team member recruitment that could have used the merit system, substandard educational qualifications, and limited resources. This condition results in flawed thinking ahead, thinking again, and thinking across, which must be developed within the organization. The recommendations proposed are improving able people and agile processes by increasing educational qualifications, competency development programs, and merit system-based recruitment. Districts must also apply thinking ahead, thinking again, and thinking across in building dynamic organizational capabilities. Meanwhile, in the context of optimizing the development of village government administration, it is necessary to develop competence in the field of village administration for sub-district officials.

The Influence of Organizational Structure on the Dynamic Capability of Enterprises: The Regulating Effect of Technological Innovation

How to optimize the organizational structure from the perspective of technological innovation and form the dynamic ability of enterprises is a highly concerned issue of the academia and the industry. In this paper, we analyze the internal mechanism of the influence of organizational structure selection on dynamic capability from the perspective of technological innovative enterprises. This paper constructs a model of the influence of organizational structure innovation on the formation of enterprise dynamic capability based on technology innovation, Using SPSS21.0 and referring to the maturity scale of organizational structure, dynamic capability and technological innovation, 211 valid sample data are empirically tested. The results show that the change of organizational structure has a significant effect on the dynamic capability of enterprises, that is, the flat organizational structure will positively affect the absorptive capacity, integration capability and innovation capability. Organizational structure virtualization positively affects absorption capability, integration capability, and innovation capability. Technological innovation has a positive moderating effect on the positive relationship between organizational structure and dynamic capability. The research conclusion can help enterprises to attach importance to the innovation of organizational structure and technology innovation, and improve the continuous competitive advantage of enterprises.

Unlocking supply chain product and process innovation through the development of supply chain learning capabilities under technological turbulence: Evidence from Egyptian SMEs

PurposeIn light of the current challenges in the business environment, firms, particularly those involved in supply chains, must foster innovation. In this context, the current study employs the theory of dynamic organizational capabilities (DOCs) to track supply chain learning capabilities (SCLCs) and independently uncover their relationship to innovation at both the product and process levels. Similarly, the study intends to investigate the influence of technological turbulence (TT) on these relationships as a moderating variable.Design/methodology/approachThe data were gathered using in-person interviews with 189 CEOs with some supply chain management proficiency from small and medium-sized enterprises (SMEs) in the industrial zones of eastern Egypt. The study used a survey approach to collect data, and the SEM-PLS technique was utilized to analyze the data.FindingsStudy findings revealed that SCLCs positively affect product and process innovation. In addition, TT positively moderates the relationship between SCLCs and product and process innovation, except for risk-taking capability. Further theoretical and practical implications are derived from the study findings.Originality/valueThis research adds to the knowledge of the dynamic capabilities theory (DCT), which affects how firms interact with their external environment. Studying learning capabilities are employed as essential competencies to counterbalance high levels of TT in the external environment in terms of innovative performance and vice versa if firms do not attempt to strengthen their dynamic learning capabilities in supply chains. In addition, this study contributes to the literature by studying learning capabilities from the external perspective, where SCLCs are being developed as a new variable to improve innovation.

Modelling Digital Transformation Within the Financial Sector

Digital transformation is a socioeconomic change across organizations, individuals, societies, and ecosystems formed by the utilization and adoption of digital technologies. This study modeled the factors that drive the degree of digital transformation in the financial services sector in South Africa. Data from 350 participants was modeled in terms of seven factors: organizational IT application portfolios; organizational culture; organizational structure; organizational dynamic capabilities; leadership; employee roles and skills; and ethics. The analysis showed that organizational culture predicted 81.7% of the digital transformation.

Integrating knowledge management and orientation dynamics for organization transition from eco-innovation to circular economy

PurposeThis study focuses on establishing relations with some important but underestimated elements of knowledge dynamics and firm orientations to characterize organizational circular economy activities through eco-innovation (EIN). The advent of the circular economy (CE) in this post-pandemic era has brought unpredictable sustainable challenges for the manufacturing industries. This research paper aims to bring more clarity to the extant literature on the relationship between environmental innovation (EI) and CE.Design/methodology/approachIn this study, a systematic literature review methodology was used to research the determinants of EI in the knowledge environment that drives the implementation of a CE.FindingsThis paper proposes a framework that articulates organizational learning and orientation dynamics and offers a new set of internal knowledge resources for a corporate CE. It is found that change toward CE requires connection with EI. However, successful CE growth largely depends on leveraging knowledge resources and orientation dynamics (stakeholder orientation, sustainability orientation, organization learning orientation and entrepreneurial orientation). CE techniques are still in their early phases of adoption and their implementation is still in its development. Circular knowledge economy (CKE) has the potential to be a useful alternative to achieving thriving CE to achieve sustainability in local and global businesses operations.Practical implicationsThis study helps companies to understand the organizational learning and different orientation dynamics for achieving CE principles. The research findings imply that EI is critical in establishing a sustainable transition toward CE through organizational learning and orientation dynamics and has garnered significant attention from academics, public policymakers and practitioners. The proposed framework can guide managers to develop sustainable policies related to the CE. This research recognizes that firm-level CKE is important in shaping how knowledge resources relate to CE within transition management literature.Originality/valueThis paper abridges the knowledge gap in identifying key drivers and presents the current eminence, challenges and prognostications of sustainable EI parameters in the changing climate of CE. This study builds a framework that combines insights from different viewpoints and disciplines and extends one’s understanding of the relationship between EI and CE. From a theoretical perspective, this study explains the knowledge management complexity links between EI and CE. It builds a theoretical bridge between EI and CE to illustrate how firms transition toward CE following the recommendations. Thus, researchers should continue to support their research with appropriate theories that have the potential to explain EI and CE relationship phenomena, with a particular emphasis on some promising but underutilized theories such as organizational learning, dynamic capabilities and stakeholder theories.

Nexus Among ICT Support for Core Competencies, Competitive Advantage and Firm Performance: A Managerial Phenomenology Approach

This study analysed the nexus among ICT support for core competencies, competitive advantage and firm performance using data obtained from managers of firms in Harare, Zimbabwe. The qualitative phenomenological approach focused on the manufacturing and service sub-sectors that informed the analysis. The study used purposive sampling to select a sample of 10 participants, five business managers and five ICT experts. In-depth interviews with chosen ICT experts from business organisations in Harare, Zimbabwe, were conducted to gather qualitative data. The study's findings were from using within-case and cross-case qualitative data analysis. Key results from the study indicate that ICT support for management talent is perceived to impact business performance and competitive advantage positively. ICT support for core competencies gives businesses a competitive advantage that positively impacts operational performance. When ICT investments combine with ICT management skills, a company's value maximises. For ICT-enabled core competencies to influence firm performance, firms need complementary managerial and strategic capabilities. This study is distinctive because it addresses the dynamic organisational capabilities and resource-based perspective as the base theories. The methodology goes against the innovation adoption theories of comparable earlier studies on ICT acceptability. Thus, this study contributes to the growing body of ICT literature by demonstrating that ICT-enabled core competencies are insufficient to establish and maintain a competitive advantage and singularly influence firm performance. It made it even more essential for a firm to consider how to meet better customer needs and capture value by having a well-thought-out ICT-embedded business model, business strategy, and innovation alignment