Specific Dynamic Capabilities Research Articles

Supply chain transformative capabilities and their microfoundations for circular economy transition: A qualitative study in Made in Italy sectors

AbstractIn today's rapidly evolving landscape, supply chains must develop specific dynamic capabilities for initiating and successfully governing their transformations toward new configurations to withstand pressures arising from competitions and global changes. Differently from dynamic capabilities that enable adaptation, supply chain transformative capabilities include four core dimensions: triggering, envisioning, navigating, and stabilizing capabilities. By using a multiple‐case study approach involving six Italian companies related to fashion and furniture sectors, we investigate these concepts and identify the microfoundations of supply chain transformative capabilities for circularity. They are classified with reference to individuals, processes, and structures. Our findings illustrate how supply chains can facilitate and effectively govern their circular transformation by developing the transformative capabilities and their microfoundations. This paper provides valuable theoretical insights and managerial perspectives, advancing the concept of transformative supply chain management.

Exploring Dynamic Capability Drivers of Green Innovation at Different Digital Transformation Stages: Evidence from Listed Companies in China

Digital transformation has emerged as a pivotal catalyst for corporate green innovation, specifically in the context of the green development of the manufacturing industry. Nevertheless, it is evident that there are significant disparities in the various stages of corporate digital transformation. Furthermore, the precise dynamic capabilities required to propel corporate green innovation at distinct stages of this transformation, along with their underlying influencing mechanisms, remain ambiguous. Drawing on dynamic capabilities, this paper delves into the inherent mechanism of corporate green innovation based on the data of listed companies in the Chinese manufacturing industry. The study reaches the following conclusions: (1) The driving process of digital transformation in green innovation exhibits distinct stage characteristics. Digital transformation significantly enhances the quantity of green innovation in the steering period and has a significant impact on both the quantity and quality of green innovation in the shaping and upgrading periods. Moreover, the shaping period has a stronger impact on quantity, while the upgrading period has a stronger impact on quality. (2) There is an evident evolution and upgrading of dynamic capabilities as digital transformation progresses. Among these capabilities, adaptive capability plays a mediating role in the steering period, and innovative capability plays a mediating role in the upgrading period. (3) Top management teams’ environmental attention plays a positive moderating role in digital-transformation-driven green innovation by strengthening absorptive and innovative capabilities. This study reveals the cascading evolution of dynamic capabilities in the digital transformation stage, explores the synergistic effect of top management teams’ environmental attention and specific dynamic capabilities, and provides management strategies for the “quantitative growth and qualitative enhancement” of corporate green innovation.

The 4Ps Marketing Strategy as a Driver of Dynamic Capabilities: Path to Consumer/Voter Satisfaction

Abstract Despite the importance of the 4Ps of Marketing in an organization’s growth strategy, limited research was found to examine the 4Ps’ impact on a politician’s capabilities and consumer/voter satisfaction. On the contrary, much attention has been given to the resource-based view tool (RBV); a tool that utilizes a firm’s valuable resources and dynamic capabilities to strengthen performance and achieve customer satisfaction. Via an online questionnaire, this research collected data from U.S. elected politicians. Using principal components regression, the researchers aim to apply specific dynamic capabilities in politics via the 4Ps Marketing Strategy. Important implications are drawn from this study, and suggestions for future studies are provided.

Dynamic capabilities for a "circular accounting" and material flows in a circular economy

Tools as material flows cost accounting contribute to the introduction of the circular economy in companies, but praxis of these tools adapted to circular environments are scarce and the lack of accounting references makes its application difficult, particularly in SMEs. In addition, the circular economy requires of specific dynamic capabilities for environmental accounting practices to reflect the different alternatives for closing materials, stocks, and resources loops. To address the dimensioning of circular flows and their relative costs, this study offers a simplified application at a small scale of material flows cost accounting methodology based on the results of an agri-food case study in Spain using a dual approach, Ultimately, the accounting implications derived from the introduction of circular models are defined in this study to analyze firms' specific circular accounting capabilities applied by small companies to less complex processes than those usually studied in the previous literature.

How does intellectual capital drive firm performance via dynamic capabilities: evidence from India

PurposeThis study examines how intellectual capital (IC) drives firm performance via the lens of dynamic capabilities (DCs). Drawing on resource-based view (RBV) and dynamic capability view (DCV), the authors elaborate the mediating role of learning, integration and reconfiguration DC in the Indian banking context.Design/methodology/approachA sample of 358 top- and middle-level managers from the Indian banking sector was administered with structured questionnaires for data collection. Structural equation modeling (SEM) and Sobel test were used to analyze the data and test the hypothesized mediating effect.FindingsThe findings reveal that learning and integration DCs are key mediators in IC and banks' performance relationships in an emerging economy context. In contrast, the analysis revealed partial mediating role of reconfiguration DC. Furthermore, the learning DC has been identified as the primary mediating mechanism for transforming bank's IC into performance benefits.Practical implicationsThis study provides an important implication for the IC and DC link by empirically developing and validating a model in the Indian banking sector and making a several contributions to the related literature. This sector needs to incorporate and strengthen their IC and DCs to attain enhanced performance in today's dynamic environment. Bank managers can use these findings to bring their knowledge-related activities to channelize specific DCs to transform banks' IC when seeking to improve overall performance. Theoretically, this study extends previous research by outlining a set of organizational elements that tend to influence firm performances with the help of IC, learning, integration and reconfigurations DCs.Originality/valueAlthough several studies have investigated the links between IC, DC and firm performance, studies on emerging economies are scarce. This study is one of the most in-depth investigations of the relationship between IC, learning, integration and reconfiguration DCs and firm performance in an integrated framework, with a particular focus on the banking sector of an emerging economy.

“Stay home, save SMEs”? The impact of a unique strict COVID-19 lockdown on small businesses

PurposeIn exploring how small and medium-sized enterprises (SMEs) overcame COVID-19 restrictions by deploying their specific dynamic capabilities to pivot their business models, this article explains the novel approaches that SMEs take and how they have responded to the financial challenges that arose from the pandemic.Design/methodology/approachThe article adopts a dynamic capabilities lens to explain: (1) the specific financial effects of the relatively “short” (seven week) COVID-19 lockdown during March and April 2020 on SMEs; (2) the barriers they faced; and (3) how they overcame these barriers. The data were collected via semi-structured interviews with the owner-manager or a senior manager in each surveyed SME. The interview data were analysed using NVivo.FindingsAnalysis of the findings revealed five key factors: (1) the capability of SMEs to access external resources, especially entrepreneurial finance; (2) their ability to reconfigure resources and plan for the longer term, yet retain flexibility; (3) how entrepreneurial learning provided the capability to deal with the “unplanned” events/uncertainty; (4) the importance of networking and sources of information; and (5) the remarkable optimism for a future recovery, despite the difficulties of the trading period.Originality/valueThis research fills a unique niche, as no previous studies have examined the resilience and dynamic capabilities of SMEs during a complete lockdown and business shutdown of this magnitude. This context, unprecedented in the history of modern economies, offers a new lens through which to understand the mechanisms of business survival and adaptation in times of severe disruptions. No previous studies have been conducted in unique circumstances during a time when SMEs were faced with such a strict lockdown with travel and business completely shut down.

Export-Related Dynamic Capabilities and Export Success: Absorptive Capacity Moderated Mediating Effect of Ambidexterity

The success of exporting SMEs depends on their distinctive export-related dynamic capabilities that enable them to survive and grow in international environment. Since these capabilities are knowledge-based, they provide a great advantage for resource-constrained SMEs even with very small investments. This study investigates these specific export-related dynamic capabilities and their effect on export performance in SMEs of an emerging economy. A survey was conducted to 427 exporting SMEs in all over Turkey to test the hypothesis concerning the relations between international orientation, export market orientation, ambidexterity, absorptive capacity and export performance. The results showed that ambidexterity is a mediator between orientations (international orientation, export market orientation) and export performance. Besides, absorptive capacity has a moderating effect on the relationship between ambidexterity and export performance.

Dynamic Capability Model of Village Unit Cooperatives

This study aimed to describe the level of dynamic capability models in Village Unit Cooperatives in all Village Unit Cooperatives consisting of ten districts/cities in the districts of Kediri and Madiun, East Java Province. Data collection through direct observation and surveys. The measurement uses seven Likert scales as a basis for describing dynamic capability characteristics. The results showed a dynamic capability models in Village Unit Cooperatives are still not optimal. A measurement model on specific dynamic capabilities (acquiring, developing, creating, and combining knowledge) in Village Unit Cooperatives. Managers with regard to dynamic capabilities are the right choice to understand the fast changing business environment. The limitations of this study are only two of the seven residencies in the province of East Java, Indonesia. Keywords: dynamic capabilities, village unit cooperatives

Sustainable Business Model Design: A Multi-Case Approach Exploring Generic Strategies and Dynamic Capabilities on the Example of German Wine Estates

Business model design needs to encounter increasing and highly dynamic challenges due to counter-caesural environmental changes. Empirical research on strategic sustainability is expected to provide guidance for needed dynamic transformation and sustainability. The reported research builds on a multi-case research of four German wine estates. The cases each represent a specific generic strategic grouping and distinct business models and are thereby suited to analyse sustainability by leaning on the concept of dynamic capabilities. Sustainability was examined as a strategic vehicle for innovation in the wine industry and a nuanced view of dynamic capabilities. Premium strategist turned out to strongly engage and profile in sustainability with aligned dynamic capabilities as a building block to generate premium products. Quality leadership also leverages product quality with comprehensive dynamic capabilities aiming for sustainability by building on size and a professional structure but less on environmental profiling. The price–value strategy approaches sustainability primarily from a market-based and circular economy view. Niche strategist’s dynamic capabilities in the analysed population illustrated an entrepreneurial and effectuation-based approach with specific dynamic capabilities fine-tuned to exploit market opportunities. The multi-case analyses thereby allowed us to identify strategy-specific and business-model-suiting capabilities.

Dynamically adapting to the new normal: unpacking SMEs’ adoption of social media during COVID-19 outbreaks

PurposeThis paper aims to investigate small and medium enterprises’ (SMEs) adoption of social media platforms and how they integrated them within their marketing strategies during the COVID-19 outbreaks. Dynamic capabilities – observed as the interplay between sensing, seizing and reconfiguration capabilities – represent the principal theoretical framework used in this research to explain challenges in social media adoption and their effects on these businesses.Design/methodology/approachThis study adopts the grounded theory approach to analyze semistructured interviews with 19 key informants from Italian SMEs belonging to diversified industries.FindingsThe findings of this research are summarized in a holistic framework that explores three types of capabilities (i.e. sensing, seizing and reconfiguration capabilities) and the marketing outcomes of social media adoption among SMEs.Originality/valueThis study attempts to unpack the specific dynamic capabilities that allowed SMEs to be successful in social media adoption during COVID-19 outbreaks.

A Review of Research on the Impact of Digital Capabilities on Business Model Innovation

As a specific dynamic capability of enterprises in the digital environment, digital capability can help enterprises quickly respond to environmental changes and develop new products, creatively improve management processes and reconfigure the resource structure of enterprises, thus driving them to carry out innovative activities. Whether an enterprise can successfully develop digital products and innovate business models is highly dependent on its own digital capability, which is a key factor for enterprises to survive and compete in the digital environment and a micro-foundation for business model innovation. This paper systematically reviews the literature on digital capabilities and business model innovation, clarifies the development status of digital capabilities and business model innovation in terms of their connotations, antecedent variables and outcome variables, and proposes future research directions.

Dynamic capabilities and ICT utilization in public organizations: An Empirical testing in local government

This paper explores whether the dynamic capabilities view (DCV), a popular strategic management approach in private firms, can be applied in public sector organizations. Existing frameworks in the public sector mainly focus either on exogenous sources of dynamism or public managers' critical role in driving strategic initiatives, failing to explore the internal processes of organizational change. Against this backdrop, the paper creates and tests – through a survey in 255 out of the 325 Greek municipalities - a conceptual framework shedding light on i) the dynamic capabilities (DCs) necessary to enhance information and communication technologies (ICT) utilization in the public sector, ii) the mechanisms through which DCs lead to performance improvement, and iii) the antecedent organizational resources to these DCs. Our contribution is fourfold. First, we prove that key resources and respective dynamic and operational capabilities should be built for creating more efficient and effective interfaces with individual citizens and businesses. Second, we operationalize and measure specific DCs, exploring their antecedent resources and explaining how DCs can, directly and indirectly, influence performance improvement. Third, we respond to the need of the DCV for empirical studies tailored in specific and underexplored settings unveiling a more comprehensive picture of DC's role and impact. Fourth, we offer policy implications favoring agile and user-centric eGovernment practices at the individual public organizations and central policy entities level.

Building dynamic capability through sequential ambidexterity: a case study of the transformation of a latecomer firm in China

AbstractSequential ambidexterity is a specific dynamic capability which can play an important role in the technological catch-up of latecomer firms with limited knowledge and resources. Through a longitudinal case study, the trajectory of a latecomer firm's transformation from a generic technology manufacturer to a world-class innovator is analysed. This paper finds that sequential ambidexterity can be the basis of building dynamic capability, which enabled a latecomer to become a market leader through three major transitions. It shows how the building of dynamic capability through sequential ambidexterity is dependent on four mechanisms: senior manager cognition of the environment; organization learning orientation; organization structure design; and process reconfiguration. Building dynamic capability is also dependent on alignment between these mechanisms within the firm. Theoretically, the paper enhances understanding of the micro-foundations of developing dynamic capability through sequential ambidexterity. It also suggests that three contingent dimensions in determining the optimal approach to ambidexterity are: (i) industry leading versus catch-up firms, (ii) the scale of the firm, and (iii) the diversity of the downstream market. Furthermore, the paper provides practical insights for latecomer firms seeking to catch-up with industry leaders.

Engaged scholarship in project organizing research: The case of UK infrastructure

We present how rigor and relevance in project organizing research can be achieved by adopting the principles of engaged scholarship. We established a research collaboratory between scholars and practitioners to address a real-world practical problem in the UK infrastructure sector and supported the development of practitioner thinking on the leadership of major projects. We identify six specific dynamic capabilities required of UK infrastructure owners and operators and advance theory in owner capabilities for infrastructure development. By adopting this approach we revealed the potential of an engaged scholarship method to address real-world practical problems and advance theoretical knowledge thereby retaining rigor and achieving relevance.

Linking organization design to supply chain responsiveness: the role of dynamic managerial capabilities

PurposeThe purpose of this study is to investigate how managers' abilities to design and implement organizational change initiatives affects supply chain (SC) responsiveness. Extant research focuses on specific process and resource options to address responsiveness, with only limited reference to managers' capabilities in adapting to new organization designs that organize processes and resources. Consequently, organizational theory that characterizes the implications of developing and implementing various designs is ignored. The study directly leverages organization adaption, organization design and the dynamic managerial capabilities literature to address the question of how to improve SC responsiveness.Design/methodology/approachQualitative data are used to identify specific dynamic managerial capability constructs, as well as the expected relationships depicted in our conceptual model. The authors test these relationships using quantitative survey data collected from 199 SC leaders.FindingsThe authors find that capabilities in organization design, functional leader negotiations and workforce communications foster SC responsiveness via improved structural adaptability (SA). The findings explain how and when organization design actions impact SA and responsiveness, and more importantly, why managers should invest in developing a workforce communication capability as the foundation for organizational adaptability.Originality/valueBy applying organization adaption, organization design and dynamic managerial capabilities concepts, the research expands the existing study of responsiveness in the SC organizational context.

How digital platform leaders can foster dynamic capabilities through innovation processes: the case of taobao

ABSTRACT Although enterprises can promote dynamic capabilities by managing their innovation processes, the specific innovation processes and ways to encourage such capabilities have been under-researched. This exploratory research illuminates the relationship between dynamic capabilities and innovation processes through a case study of the largest Chinese e-commerce platform, Taobao, a vast and complex digital platform with various actors and interactions with numerous related platforms. Based on previous research, interviews with ten management personnel at Alibaba from April 2019 to August 2021, and secondary data, we found six innovation processes specific to this digital platform. Furthermore, we found that each of these innovation processes relates to specific dynamic capabilities and, therefore, a platform leader can improve its dynamic capabilities by organising its innovation processes in the digital platform ecosystem. The presented findings show important implications for strategic management and information systems by connecting dynamic capabilities and innovation management theories. In particular, our findings enable us to describe how the innovation processes management induces strong dynamic capabilities, such as environmental scanning and sensing capability, innovation capability, and integrative capability.

UNDERSTANDING THE DRIVERS OF RADICAL AND INCREMENTAL INNOVATION PERFORMANCE: THE ROLE OF A FIRM’S KNOWLEDGE-BASED CAPITAL AND ORGANISATIONAL AGILITY

Organisational agility, a specific dynamic capability, constitutes a key success factor in today’s dynamic business environments. However, it is unclear whether and how firms’ knowledge-based capital enables organisational agility. Moreover, mechanisms through which organisational agility translates knowledge-based capital into innovation performance are poorly understood. This study fills these gaps by investigating direct effects of knowledge-based capital (i.e., human, social, and organisational capital) on organisational agility and, in turn, indirect effects on radical and incremental innovation performance. Leveraging survey data from 385 German firms, this study contributes to the organisational agility and the strategic innovation management literature. First, our analysis validates human and social capital as antecedents of organisational agility, yielding evidence for the premises of the knowledge-based view in a novel context. Second, it substantiates the dynamic capability view as a pivotal theoretical lens for explaining the mechanisms underlying the relationships between firms’ knowledge-based capital, organisational agility, and incremental innovation performance.

Toward a taxonomy of dynamic capabilities – a systematic literature review

PurposeThis paper aims to categorize and organize dynamic capabilities that have been inductively identified in empirical research into a comprehensive taxonomy. Thus, it addresses calls in the literature for a better understanding of dynamic capabilities and integration of scattered empirical findings into theory.Design/methodology/approachA systematic literature review approach was adopted, with a total of 34 articles published between August 2007 and April 2020, from which 240 idiosyncratic dynamic capabilities were identified. The taxonomy was constructed using the Gioia-method.FindingsThe main finding is a three-level taxonomy of dynamic capabilities (DC). Level DC-1 is based on the existing triad of sensing, seizing and transforming. Level DC-2 is newly introduced to the literature by this study, consisting of 19 dynamic sub-capabilities that categorize and organize all 240 idiosyncratic dynamic capabilities in the sample (level DC-3). The taxonomy supports the existing claim that dynamic capabilities are common in key features and idiosyncratic in details. Moreover, theoretical connections to business model innovation and ambidexterity are indicated.Practical implicationsThis study integrates scattered empirical findings of specific dynamic capabilities and translates them to a practitioner audience. The taxonomy allows the strategic manager to understand what they specifically are and, thus, assess the dynamic capability endowment of the firm which allows deploying, developing and fostering them.Originality/valueThe taxonomy provides a comprehensive and tangible picture of what dynamic capabilities look like in practice. It improves existing knowledge and understanding by bridging the rigor-relevance gap between rather rigorous conceptual literature and rather relevant empirical research as it integrates them. As such, it can serve as a “map” of dynamic capabilities for scholars and practitioners.

Opportunity Exploitation in Times of the COVID-19 Pandemic – The Importance of Dynamic Capabilities and the Entrepreneur’s Characteristics

Purpose: The purpose of the paper is to answer the question of how entrepreneurs can take advantage of and exploit the conditions and opportunities resulting from the COVID-19 pandemic. Methodology: In the paper, we apply the conceptual review method in order to review extant knowledge, identifying important research gaps, and propose a conceptual framework for the research. Findings: We propose a conceptual framework of the recognition and exploitation of business opportunities during the COVID-19 pandemic. The framework assumes the influence of specific dynamic capabilities (strategic foresight – at the strategic level and innovation, self-structured and relational capabilities – at the operational level) and the entrepreneur’s key characteristics (being intuitive, having the ability to learn – especially in the field of crisis management, being innovative, having leadership competencies and having the ability to use advanced digital technologies) on the identification, creation and exploitation of opportunities during the COVID-19 pandemic. Research limitations: The main limitation results from the dynamism of the pandemic situation. Therefore, our results need further empirical verification. Practical implications: The model provides managerial implications for entrepreneurs responsible for decisions and actions during the pandemic crisis. We underline the importance of the development of entrepreneurs’ own competencies as well as the development of the competencies of their employees in the context of crisis management. We especially suggest that managers develop leadership competencies which relate to the competence of how to delegate powers and build empowerment in order to take advantage of the opportunities resulting from the effects of the COVID-19 pandemic. To exploit opportunities effectively, they should be recognized early, and therefore entrepreneurs should consider the benefits of using intuition in this area. Value: The special value of the paper can be seen in the context of the analysis. There is a shortage of studies identifying the impact of dynamic capabilities and the entrepreneur’s characteristics on the exploitation of opportunities during the specific situation of the COVID-19 pandemic.

Dynamic capabilities for the creation of logistics flexibility – a conceptual framework

PurposeThe purpose of this research is to develop a conceptual framework in which dynamic capabilities (DCs) for the creation of logistics flexibility are outlined, and elaborate it further based on empirical data from a case study at a Swedish fast fashion retailer.Design/methodology/approachA conceptual framework that aims to delineate the relationship between generic classes of DCs and logistics flexibility is proposed. Thereafter, based on a theory elaboration approach, empirical data from a case study at a Swedish fast fashion retailer is used to identify more specific DCs and further outline the characteristics of the DCs classes.FindingsThe proposed framework draws on the three DC classes of sensing, seizing and reconfiguring, and how they underscore logistics range and logistics response flexibility. The framework also distinguishes between DC classes and logistics flexibility that occur at operational, structural and strategic levels. DCs for the creation of logistics flexibility at a Swedish fast fashion retailer have also been identified and described as a means to further elaborate the characteristics of the DC classes.Research limitations/implicationsCurrent empirical data is limited to one specific company context.Practical implicationsThe research presents a systematic and comprehensive map of different DCs that underscore logistics flexibility, a useful tool supporting logistics development efforts regarding flexibility.Originality/valueThe establishment of a more detailed DC lens, in which different classes of DCs are included, means that an improved understanding for how flexibility is created can be achieved. It helps the research to move beyond the “here and now” existence of logistics flexibility to instead focus on how logistics flexibility can be created.