Strategic Capabilities Research Articles

Artificial intelligence in the workplace – challenges, opportunities and HRM framework: a critical review and research agenda for change

PurposeThis paper specifically aims to examine how (via which activities, methods and capabilities) organizations’ management deploy Artificial Intelligence (AI) systems to address underperformance. Five mitigation strategies/recommendations are introduced to manage the challenges and facilitate greater efficacies in changing organizations.Design/methodology/approachThis paper conceptually synthesizes 47 articles, thematically reports and critically analyzes the AI–HRM–managerial decision-making relationship in changing organizations and discusses the impacts.FindingsThe results highlight three significant challenges and opportunities for changing organizations: (1) job performance challenges, (2) organizational performance challenges and HR and (3) collaborative intelligence opportunities.Originality/valueThe paper’s originality lies in addressing the current lack of a theoretical framework guiding HRM and AI experts on the managerial and strategic capabilities needed to address underperformance and their impacts in facilitating collective efficacies in human–AI collaboration in changing organizations. By further capturing an innovative HR Framework’s (1) human, (2) AI, (3) employees’ well-being, (4) jobs and (5) organizational performance, and its five key managerial recommendations/strategies, this paper develops two concepts: “technological servitization” and “re-ontological in-securitization” to advance theory in Managerial Psychology regarding the unintended/paradoxical consequences of managements’ AI-driven organizational performance interventions, including meaninglessness in organizations.

Strategic Capabilities and Competitive Advantage of Microfinance Institutions in Rwanda: A Case of Duterimbere-IMF Plc

Unique Contribution to Theory, Practice and Policy: The study recommends that Duterimbere Microfinance Institution should continue to refine its marketing strategies and enhance its technological capabilities to stay ahead of competitors. Duterimbere Microfinance institution should continue refining its marketing strategies and investing in technological advancement that enhances operational efficiency, customer satisfaction, and data-driven decision-making to stay ahead of competitors. Technical capabilities like digital platforms, mobile banking, and online marketing tools should also be leveraged to support the efforts in marketing.

EFFECT OF DYNAMIC CAPABILITIES ON PERFORMANCE OF SACCOS IN MANDERA COUNTY, KENYA

Dynamic capabilities are the firm's ability to integrate, build, and reconfigure internal and external competencies to address rapidly changing environments. By developing inspired capabilities that go beyond ordinary strategic capabilities, firms will be in a strong position to achieve a long-lasting competitive advantage. SACCOs play a critical role of savings mobilization for investments as envisioned in the Kenya’s development blueprint, vision 2030. SACCOs have been facing financial challenges leading to closure while others have been put under receivership. The general objective of this study was to determine the effect of dynamic capabilities on performance of SACCOs in Mandera County, Kenya. The specific objectives was to examine the effect of markets technological sensing and effect of innovation and strategic renewal on performance of SACCOs in Mandera County, Kenya. The study was guided by dynamic capabilities theory and diffusion of innovation theory. This study adopted a descriptive research design. The study targeted 39 SACCOs distributed in all constituencies in Mandera. The target included 117 senior management staff of the SACCOs from which 117 senior management staff were subjected to the questionnaires through census. The study used content validity to confirm that the questionnaire would enable the researcher to achieve study objectives. A pilot study was conducted with 10% of the respondents hence 12 management staff in four SACCOs. Reliability was tested using Cronchba Alpha coefficient with a threshold of 0.7. Data was analyzed using descriptive and inferential statistics and presented in Tables. All ethical considerations were strictly adhered to. Findings show that; markets technological sensing has a strong positive significant correlation with performance of SACCOs in Mandera County (r = 0.542, p value =0.000), and innovation and strategic renewal has a strong positive significant correlation with performance of SACCOs in Mandera County (r = 0.842, p value =0.000). The study therefore recommends that; the management should invest in gathering and analyzing market intelligence, and make efforts to ensure that the staff who introduce successful ideas are rewarded.. KEY WORDS: Markets technological sensing, Innovation and strategic renewal , Performance of SACCOs

Situational control and strategic choices during supply chain disruptions: case studies of SME exporters

PurposeMotivated by the severe impact of global supply chain disruptions and the lack of understanding of supply chain resilience from an SME exporter perspective in the international marketing literature, this paper sets out to explore how SME exporters achieve resilience through strategic choices related to sourcing and manufacturing during global disruptions.Design/methodology/approachThe study adopts a qualitative, multiple-case-studies approach to identify the key strategic drivers and contextual factors influencing SME exporters’ supply chain resilience. Our study adopted an SME exporter perspective and featured an unprecedented global supply chain disruption context. New Zealand (NZ) was chosen as the key home country context for the participants of this study. Five NZ SME exporters were selected for our case studies.FindingsThis study redefines buffering, bridging and a mixed strategy for an SME exporter facing global supply chain disruptions. SME exporters with high situational control are likely to pursue a buffering strategy that reduces their resource dependence on foreign suppliers and their reliance on information support from these suppliers. In contrast, when the firm perceives little control over the supply chain, it will decide upon a bridging strategy that aims to build solid relationships with supply chain partners. Exporters opt for a mixed strategy when they do not see themselves clearly in high or low situational control.Research limitations/implicationsAs global disruptions arise and evolve, supply chain uncertainty and exporters’ sense of situational control manifest differently across industries, product lines, markets and sourcing countries. It is essential to understand that firms can choose a mixed strategy based on these supply chain conditions. While our study was fortuitously timed, conducting multi-country studies could provide more comparative insights that transcend national borders. Additionally, our study did not examine organizational and capability-based factors. Future research may benefit from exploring how an SME exporter develops strategic capabilities to achieve resilience over its lifetime.Practical implicationsBusinesses see survival as the most pivotal concern during a global supply chain disruption. Many companies have had to make on-the-spot decisions about whether they should shift or redesign their supply chains in the middle of a global disruption. There is no “best strategy” for an SME exporter to take. Rather, managers should make strategic decisions based on how much control or influence they have over a particular part of their supply chain. The level of control is determined by the SME exporter’s overall resource dependencies and information needs in particular parts of their supply chain.Originality/valueWe adopt resource dependence theory and information processing theory to guide our study and place exporters' situational control in the centre of drivers to firms' strategic choices during global disruptions. We make a novel attempt to incorporate the contextual conditions of the COVID-19 pandemic into the theorization of supply chain resilience. We make managerial recommendations to help SME exporters navigate global supply chain disruption challenges.

Understanding the survival strategies: organization resilience and innovative capabilities in post-pandemic East Asia

ABSTRACT The COVID-19 pandemic has significantly and globally impacted and even disrupted corporate operations to a considerable extent, compelling businesses to confront changing supply chain environments, unstable market demands and internal contradictions. We argue that East Asian enterprises that have survived the pandemic have learned from their experiences, transforming these into key strategic capabilities in innovation, operational efficiency, customer relationships and employee management to ensure resilience in volatile and hostile environments. One universal lesson learned is that the survival of businesses integrates resilience, sustainability and a people-oriented perspective. This special issue focuses on the business organizations and innovation capabilities in the post-pandemic East Asian region, compiling the core viewpoints and hypotheses from the collection on topics such as strategic innovation and adaptive changes, diverse teams and leadership and stakeholder relationship management. These findings enrich our understanding of East Asian enterprises’ comprehensive capability enhancement and business model transformation, especially after the COVID-19 pandemic.

How enterprises in the digital age can “break through the cocoon and become new”: a study based on social media strategic capability

PurposeSocial media is booming in the digital age, and its rich availability provides many opportunities for companies to innovate across borders. In reality, how enterprises use social media to achieve cross-border innovation also faces important challenges such as breaking path dependency.Design/methodology/approachThis paper explores how social media can facilitate cross-border innovation from the perspective of strategic capability, combined with the path dependency theory and attention-based view. Hierarchical regression analysis and bootstrap method are adopted to test the hypotheses based on survey data provided by 173 firms in China.FindingsThe findings show a positive relationship between social media strategic capability and cross-border innovation, with path dependency playing a mediating role. In addition, two internal and external contextual factors, namely customer embeddedness and competitive pressure, play moderating roles, with customer embeddedness negatively moderating the negative relationship between social media strategic capability and path dependency and competitive pressure negatively moderating the negative relationship between path dependency and cross-border innovation.Originality/valueThese findings provide not only new insights into social media and cross-border innovation but also theoretical guidance on how companies can effectively use social media in practice.

Prototyping disruptive self-sufficiency power machines composed by cascaded power units based on thermo-hydraulic actuators

This research focuses on developing a prototype for a disruptive Self-Sustaining Power Machine (SSPM) that consists of cascaded power units (PUs). Each PU integrates thermo-mechanical and thermo-hydraulic actuators to drive hydraulic pumps connected to generators. The prototype's design leverages two thermal cycle types, sVsVs and VsVs, which enable self-sustaining operations by employing several strategic capabilities that challenge the limitations of second-kind perpetual motion machines (PMMs). Therefore, key capabilities include: 1- Performing useful mechanical work through the expansion and contraction of the Thermal Working Fluid (TWF) by adding and removing heat. 2- Utilizing recovered heat through potential superposition techniques, thereby upgrading the heat to a higher grade, which enhances heat recovery strategies. 3- Designing an efficient energy transfer chain from thermal to electrical energy via thermo-mechanical or thermo-hydraulic actuators, a hydraulic energy drive system, and conversion from hydraulic to electrical energy. 4- Configuring the system to achieve more useful work than the heat added to the initial PU downstream. Two main prototype types are proposed to demonstrate these proposed capabilities: 1- Continuous motion using the sVsVs thermal cycle, with volumetric reservoirs for thermal working fluids (TWF) located outside the thermo-mechanical or thermo-hydraulic actuators. 2- Discontinuous motion using the VsVs thermal cycle, with volumetric reservoirs for TWF located inside the active volume of the thermo-mechanical or thermo-hydraulic actuators. The prototypes were evaluated through case studies using air and helium as real TWFs. Results indicate that the SSPM composed of five cascaded PUs operating on an sVsVs cycle achieved a global efficiency of 149.6% (SSI of 49.6%) with helium and 126% (SSI of 26%) with air. In contrast, the VsVs cycle yielded a global efficiency of 183% (SSI of 83%) with helium and 133% (SSI of 33%) with air

Entity and relation extractions for threat intelligence knowledge graphs

Advanced persistent threats (APTs) represent a complex challenge in cybersecurity as they infiltrate networks stealthily to conduct espionage, steal data, and maintain a long-term presence. To combat these threats, security professionals increasingly rely on cyber knowledge graphs (CKGs), which provide scalable solutions to analyze and structure vast amounts of cyber threat intelligence (CTI) from diverse sources in real-time, enabling the automation of proactive security measures. Developing CKGs requires extracting entity and their relationships from unstructured CTI reports. However, existing approaches face significant limitations, such as difficulties with the nuances of cybersecurity language, diverse threat terminologies, and high rates of error propagation, resulting in low accuracy and poor generalizability. This paper introduces a novel Threat Intelligence Knowledge Graph (TiKG) pipeline designed to address these challenges. The TiKG framework leverages SecureBERT, a domain-specific transformer-based model optimized for cybersecurity, and integrates it with an attention-based BiLSTM to capture the context and nuances of security texts, reducing error propagation and improving extraction accuracy. Additionally, the pipeline incorporates a domain-specific ontology and inference model to ensure precise relation mapping in relation extraction. Using three large-scale TI open-source datasets (DNRTI, STUCCO, and CYNER) and a curated CTI dataset, extensive evaluations demonstrate the effectiveness of our framework, showing significant improvements over existing methods in detecting and linking cyber threats. These contributions provide a robust platform for security professionals to analyze and predict potential attacks, develop effective defenses, and enhance the strategic capabilities of cybersecurity operations.

Mastering Business Planning and Strategic Development: Comprehensive Approaches for Achieving Long-Term Success and Competitive Advantage

Mastering company planning and strategy development was essential in today’s dynamic corporate landscape to ensure long-term success and sustain a competitive advantage. This reviewed article consolidates current research and case studies to examine complete strategies that organisations use to improve their strategic capabilities. The research highlighted the significance of incorporating real-time data analytics, adaptable goal-setting frameworks, and new technologies like artificial intelligence and machine learning into strategic planning processes. Agile approaches were crucial for iteratively implementing plans, and promoting the capacity to adapt and respond to changes in the market. Moreover, the study emphasised the need to implement continuous evaluation frameworks that included real-time monitoring and feedback loops to guarantee the continual improvement of strategies. This study also investigated the impact of leadership and organisational culture on promoting strategic agility and continuous improvement. The results indicated that an integrated strategy, in which research, goal-setting, execution, and evaluation activities were interrelated, was crucial for the development of efficient and relevant corporate strategies. By adhering to these suggestions, organisations may more effectively traverse the intricacies of the contemporary industry, guaranteeing long-term success and a strong competitive edge. Keywords: Business planning, Strategic Development, Competitive advantage, Real-time data analytics, Flexible goal-setting.

Competitive advantage and sustainability in Ghanaian microfinance institutions: the mediating role of strategic capabilities

This study explores the effect of competitive advantage on sustainability within Ghanaian microfinance institutions (MFIs), emphasizing the mediating role of strategic capabilities. We conducted a quantitative analysis using survey data from 500 managers representing 150 MFIs in Ghana, analyzed through structural equation modeling. Our findings indicate that competitive advantages and strategic capabilities have a positive significant influence on MFI sustainability. Additionally, strategic capabilities were found to mediate the relationship between competitive advantage and sustainability within Ghanaian MFIs. This study expands the theoretical framework by incorporating cost differentiation, pricing strategy, focus strategy, market strategy, efficient operations and risk management, innovation in product offerings, target market considerations, and client relationship management. We highlight how MFIs can maintain competitiveness through technology, partnerships, training, career development, and knowledge transfer. This mediated relationship underscores the crucial role of strategic capabilities in achieving sustainable operations. The study provides a conceptual framework for understanding MFI sustainability and offers a roadmap to enhance competitive advantage. By integrating elements from the competitive advantage theory and extending the resource-based view theory, this research contributes to the existing knowledge by clarifying the connections between competitive advantage and sustainability in the context of MFIs. Furthermore, the study addresses the dynamics of competitive advantage, strategic capabilities, and sustainability in a context with limited research. It offers practical implications for policymakers and practitioners, providing insights that can inform targeted interventions to enhance capacities and foster sustainability in the microfinance sector.

Trade policy revisited: how government support initiatives affect international performance in SMEs?

PurposeThis paper aims to understand how government support initiatives can enhance the international performance of small and medium-sized enterprises (SMEs). To address the gap of literature, this paper employed three theoretical lenses to examine both of direct and indirect relationships between two main constructs.Design/methodology/approachThis empirical study is based on data collected from Armenian exporter SMEs. The data collection utilized a random sampling approach, resulting in 138 fully completed questionnaires, yielding a response rate of 28.4%, comparable to previous studies in international business research. This sample includes firms from three main sectors: agriculture, manufacturing and services, reflecting the structure of Armenia's international trade. Relationships were examined using Partial Least Squares Structural Equation Modeling (PLS-SEM).FindingsThe results of this study indicate that government support initiatives lack a direct impact on international performance, while positing instead an indirect connection between the two constructs through strategic capability and institutional pressures.Originality/valueThe results of this study contribute to the international business literature in several ways. First, it surpasses the conventional examination of government support on firm performance by delving into both the direct and indirect relationships between these constructs. Second, it reveals that not all theoretical viewpoints hold equal strategic importance in explaining the internationalization of SMEs. From the practical point of view, findings help policymakers to maximize a country's export capacity by implementing tailored initiatives, considering the unique requirements of SMEs.

Leveraging Supply Chain Reaction Time: The Effects of Big Data Analytics Capabilities on Organizational Resilience Enhancement in the Auto-Parts Industry

Big data analytics capabilities (BDACs) are strategic capabilities that expedite decision-making processes, empowering organizations to mitigate the impacts of supply chain disruptions. These capabilities enhance the ability of companies to be more proactive in detecting and predicting disruptive events, increasing their resilience. This study analyzed the effects BDACs have on firms’ reaction time and the effects companies’ reaction time has on their resilience. The research model was assessed with 263 responses from a survey with professionals of auto-parts companies in Brazil. Data were analyzed with the Partial-Least-Squares—Structural Equation Modeling method. Cluster analysis techniques were also applied. This study found that BDACs reduce reaction time, which, in turn, improves firms’ resilience. We also observed greater effects in first-tier and in companies with longer Industry 4.0 journeys, opening further perspectives to investigate the complex mediations of digital readiness, reaction time, and organizational resilience performance of firms and supply chains. Our research builds upon the dynamic capabilities theory and identifies BDACs as dynamic capabilities with the potential to enhance resilience by reducing data, analytical, and decision latencies, which are recognized as core elements of the reaction time concept, which is particularly crucial during disruptive supply chain events.

Research on Impact Mechanism of Organizational Resilience on Sustainable Competitive Advantage of Enterprises

This study is the first to comprehensively investigate the impact mechanism of organizational resilience on the sustainable competitive advantage of enterprises based on dynamic capability theory, social network theory, and resource dependence theory. It systematically analyzes the multidimensional effects of organizational resilience and reveals the moderating effect of the network digital atmosphere and environmental dynamism on strategic capabilities. Herein, six basic hypotheses and 19 sub-hypotheses are proposed. Through the analyses of 386 valid questionnaires in the Yangtze River Delta and Pearl River Delta regions, the results show that organizational resilience has a positive impact on the sustainable competitive advantage of enterprises, and strategic capability plays a mediating role through two dimensions, which are strategic formulation capability and resource integration capability. In addition, the network digital atmosphere and environmental dynamics regulate the relationship between organizational resilience and strategic capability in different dimensions. The research results provide empirical support for strengthening corporate strategic capabilities, responding to environmental changes, maintaining competitive advantages, and achieving the sustainable development of enterprises.

The Role of Strategic Capabilities in Enhancing Sustainable Competitive Advantage an Exploratory Research on the Opinions of a Sample of Department Heads at the University of Dohuk – Iraq

The Role of Strategic Capabilities in Enhancing Sustainable Competitive Advantage an Exploratory Research on the Opinions of a Sample of Department Heads at the University of Dohuk – Iraq

The contingent effects of strategic orientations and strategic capabilities on competitive performance: Evidence from Ethiopian manufacturing enterprises

While there are several studies that examine the performance implications of different strategic orientations, little is known regarding the complex interplay between the two prominent strategic orientations and strategic capabilities in impacting firm performance. Notably, it is ambiguous how a firm's strategic orientations are aligned with different strategic capabilities to maintain competitive performance. To address this gap, the study employs a moderated mediation analysis to investigate the mediating role of strategic capabilities in the relationship between market, technology orientations, and firm performance. It also examines the moderating effect of environmental dynamism in shaping the mediated association between strategic orientations and performance. Based on the survey results of 205 large Ethiopian manufacturing firms, our findings confirm that market orientation exerts a positive and significant influence on both marketing and market-linking capabilities, while only marketing capabilities mediate the relationship between market orientation and firm performance. Likewise, there is a strong association between technology orientation and strategic capabilities (i.e., technology and information technology capabilities), mediating the relationship with firm performance. Meanwhile, environmental dynamism influences the indirect relationship that exists between market, technology, and firm performance through their corresponding strategic capabilities. Our study sheds light on strategic management literature by showing the unique relationship and interdependency between strategic orientations and capabilities in attaining superior performance. This study also forwarded some practical implications of the findings.

Strategic capabilities and their role in achieving the organization’s direction towards strategic sustainability: A descriptive study of the opinions of a sample of individuals working in the general company for the manufacture of pharmaceuticals and medical supplies Samarra and its affiliated factories

Strategic capabilities and their role in achieving the organization’s direction towards strategic sustainability: A descriptive study of the opinions of a sample of individuals working in the general company for the manufacture of pharmaceuticals and medical supplies Samarra and its affiliated factories

Big Data Analytics, Strategic Capabilities, and Innovation Performance: Mediation Approach of Organizational Ambidexterity

Our study explores the critical role played by organizational ambidexterity capabilities in the link between big data analytics, strategic innovation capabilities, and innovation performance. We developed a conceptual framework based on resource-based and dynamic capability views to examine the direct and indirect relationships among main variables. We used a quantitative approach to collect data from 172 Saudi IT and Telecom firms. We then employed structural equation modeling through Smart-PLS to test the study hypotheses. Our findings revealed that big data analytics and strategic innovation capabilities have a significant impact on organizational ambidexterity and then on innovation performance. Ambidexterity capability mediates between big data analytics capabilities and innovation performance and between strategic innovation capabilities and innovation performance. Our study contributes to the literature on big data and innovation. It offers valuable insights into the potential impacts of big data analytics, strategic innovation, and ambidexterity capabilities on innovation performance. It demonstrates how significantly boosting a firm’s capabilities for improved firms’ innovation performance can potentially enhance performance outcomes (e.g., competitiveness and sustainability). These findings provide managers with meaningful implications regarding the innovation performance that can be achieved by leveraging these important resources and capabilities.

An empirical investigation of the impact of marketing analytics capability on SME performance: a resource-based view approach

PurposeThe aim of this study is to empirically investigate the impact of marketing analytics capability on business performance from the perspective of RBV theory.Design/methodology/approachThis study used a survey method to gather information from 225 food processing SMEs registered with the Ghana Enterprise Agency (GEA) in Ghana’s eastern region. A structural equation modeling (SEM) path analysis was used to assess the impact of marketing analytics capability (MAC) on the performance of SMEs.FindingsThe results of the study show that MAC significantly and positively affect the financial performance (FP), customer performance (CF), internal business process performance (IBPP) and learning and growth performance (LGP) of Ghanaian SMEs. The findings of this study also illustrated the significance of MAC determinants, including marketing analytics skills (MAS), data resource management (DRM) and data processing capabilities (DPC), in achieving SME success in Ghana.Originality/valueThe research’s conclusions give RBV theory strong credence. The results of this study also provide credence to previous research finding that SMEs should view MAC and its determinants (i.e. DRM, DPC, MAS) as a crucial strategic capability to improve their performance (i.e. FP, CF, IBPP, LGP). With regard to its contribution, this study broadens the body of knowledge on MAC and SME performance, particularly in the context of an emerging economy.

Innovating Deterrence Strategies in the New Space Age

In recent decades, space has become a crucial arena in international relations, reshaping geopolitical dynamics due to the increased reliance on satellite technology and strategic space assets. Nations globally recognize the economic and strategic advantages of space, leading to cooperation and competition. The expanding use of space for communication, navigation, surveillance, and exploration has become integral to modern societies. The commercial space industry, driven by private entities, contributes significantly to space endeavors. This heightened reliance on space assets necessitates robust space security policies to protect critical systems and maintain technological advantages. Traditionally, deterrence theories focused on terrestrial domains, but the unique characteristics of space demand a paradigm shift. The article introduces a novel perspective on space deterrence, emphasizing strategic capabilities, alliances, and a nuanced understanding of potential aggressors. Core components include denial, resilience, and cost imposition strategies. Military strength, alliances, and space-based nuclear assets play roles in conventional and nuclear space deterrence. Dissuading military aggression involves operational concepts, resilience, and strategic costs. Shaping aggressor thinking requires perception management, confidence-building, and norms. Crafting denial and punishment strategies involves arms control initiatives. Understanding potential aggressors involves assessing motives, aligning interests, and evaluating orbital escalation. The multidimensional nature of space deterrence converges to create a robust framework for dissuading aggression, ensuring a stable and secure celestial environment.

How Latin American firms transition to international markets

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Firms from emerging markets like Latin America can increase their prospects of successful internationalization through focus on developing and enhancing key strategic capabilities. While entrepreneurial orientation and marketing and sales capabilities are especially important in this regard, ambitious firms should likewise seek to develop various other capabilities to some degree Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format