Strategic Management Capabilities Research Articles

The multinational enterprise, capabilities, and digitalization: governance and growth with world disorder

Abstract This essay revisits my 2014 JIBS article about the potential for integrating international business internalization theory with a strategic management capabilities perspective. It recaps the capabilities framework with an emphasis on the learning required of emerging market multinationals and illustrates this with the case of Hyundai Motor Company’s internationalization and growth. It also discusses two aspects of the global economy that have become more prominent since 2014 in shaping international business: geopolitical uncertainty and digitalization. A rise in geopolitical tensions appears to be rebalancing the relationships between multinationals and home/host governments. Digitalization facilitates international business; but it adds new vulnerabilities by (further) accelerating competition, enabling new rivals, and introducing systemic risks into digital supply chains. Implications for managers, board members, and international business scholars are drawn.

Leveraging business intelligence and analytics for strategic success in the hospitality industry: Insights from hotels

This research strives to offer valuable insights into business intelligence and analytics utilization. Besides, its expansion encompasses essential success factors for business intelligence and strategic management in the hospitality industry. The study's sample comprises 387 hotel managers from the Jordanian hospitality industry. Data collected to support the research goal was examined using multiple regression analysis through SPSS, with the assistance of PROCESS Macro v3.5. The results of this study reveal that business intelligence and analytics can serve as a bridge to connect crucial success factors for business intelligence and strategic management. These findings have implications for existing literature and stakeholders. Hotels that have integrated business intelligence and analytics acknowledge the advantages of enhancing their strategic management capabilities and decision-making processes.

Strategic Resource Management and Workforce Training and Development of Indigenous Oil and Gas Service Firms in Nigeria

Purpose: The study aimed to examine the influence of strategic resource management on workforce training and development of indigenous oil and gas service firms in Nigeria. Methodology: The study which adopted survey research design at the organisational unit of analysis used a self-developed five-point Likert scale questionnaire as instrument of primary data collection from management level respondents. The population of the study was 1827 indigenous oil and gas service firms in four randomly selected South-South States of Nigeria with sample size of 328 determined with Taro Yamane’s formula and proportionally allocated with Bowley’s formula. The scale of measurement reliability was determined with Cronbach’s Alpha and its construct validity tests were with Pearson’s r, Kaiser-Meyer-Olkin (KMO) measure of sample adequacy and Bartlett’s Test of Sphericity. The collected data were analysed using descriptive and inferential statistics in Microsoft Excel Software Package version 2016 and IBM Statistical Package for the Social Sciences (SPSS) version 29 software application tools respectively and the research hypothesis tested with simple regression analytical techniques. Results: The results of regression analysis showed that strategic resource management significantly and positively influenced workforce training and development of indigenous oil and gas service firms in Nigeria. Therefore, the study concludes that strategic resource management has significant and positive influence on workforce training and development of indigenous oil and gas service firms in Nigeria. Unique contribution to theory, policy and practice: Based on the results, the study recommended that owners/managers of indigenous oil and gas service firms in Nigeria and other parts of world should continuously invest in their strategic resource management capabilities with special attention to human capacity development in technical skills and talent acquisitions and retention.

Integrating Circular Economy Principles in the Electric Motor Industry: A Comprehensive Framework and Case Study for Sustainable Supply Chain Management

AbstractThis study develops and validates an innovative assessment framework designed to integrate circular economy principles into the operations and supply chain of the electric motor industry. Given the rising demand for electric motors across various sectors, effective end-of-life management has become critical for enhancing sustainability. The primary objective of the proposed framework is to create a holistic approach that improves motor sustainability by addressing all stages of the product life cycle, from material sourcing and production to utilization and end-of-life management. The study employs a case study methodology, focusing on an electric motor company, to validate the framework’s applicability and effectiveness. Key findings reveal that emphasizing motor recovery significantly prolongs product lifecycles, reducing waste and conserving resources. The framework’s adaptability suggests its potential application across various business contexts, though it requires customization to fit specific production, logistics, and resource allocation needs. Recommendations include further research to refine the framework for other industries and the potential for policy changes that support circular economy practices. The article provides practical insights into overcoming barriers to CE adoption, emphasizing the need for strategic management capabilities, policy support, and industry-specific customization. This comprehensive approach not only addresses current sustainability challenges within the electric motor industry but also serves as a model for other sectors seeking to implement circular economy principles.

Entrepreneurial orientation and product innovation performance: developing the linkages through strategic human resource management and technology capability

Purpose The optimization of product innovation performance (PIP) is paramount to achieving sustained profitability in the face of current organizational challenges. In this study, as researchers, the authors investigate within the context of Saudi Arabian manufacturing firms’ entrepreneurial orientation (EO) direct impact on PIP and its indirect influence mediated by strategic human resource management (SHRM) and technology capability (TC). Design/methodology/approach This co-relational study used cross-sectional data. The authors collected the data from the manufacturing firms’ top management team, chief executive officers and other staff members, including human resource (HR) managers and chief information officers. This study’s conclusions are based on 307 cases. Findings Using SmartPLS4, this study’s findings demonstrate that EO exerts a positive and significant impact on SHRM, PIP and TC. SHRM has a positive and significant effect on PIP. In addition, TC is a positive and significant predictor of SHRM but not PIP. Turning to the mediating impacts, SHRM plays a positive mediating role between TC and PIP and a negative role between EO and PIP. Finally, TC reinforces the negative connections between EO and PIP. Practical implications This study's insights offer valuable guidance to firms and policymakers. They underscore the importance of investing in TC to reinforce SHRM and drive innovation. Moreover, these findings emphasize the need for firms to adopt a dynamic approach that comprises continuous monitoring, adaptation and tailored HR strategies supported by performance metrics. This proactive stance ensures that innovation remains a consistent and impactful element of their long-term strategy. Originality/value This study stands out by addressing existing gaps through its innovative integration of EO, SHRM, TC and PIP within a unified framework. It does so within the specific context of Saudi Arabian manufacturing firms and provides a unique and contextually relevant perspective that contributes to the knowledge body of the area.

Navigating COVID-19 Pandemic: Empowering Sustainable Supply Chains Performance through Leadership Capability, Knowledge Sharing Capability, and Strategic Management Capability amid COVID-19 Disruptions

Navigating COVID-19 Pandemic: Empowering Sustainable Supply Chains Performance through Leadership Capability, Knowledge Sharing Capability, and Strategic Management Capability amid COVID-19 Disruptions

Comprehensive Evaluation of Digital Strategies and Its Impact on Company Performance

Digitalization and digital transformation have garnered sustained interest and fascination among academics and business practitioners alike. The recent surge in the adoption of digital technologies and innovations across diverse organizations has elevated these topics to the forefront of discussions surrounding strategy, organizational dynamics, and the management of digital platforms. This rapid adoption has empowered fashion companies to enhance operational efficiency while nurturing environmental consciousness. To address existing research gaps, this study extends its scope to underexplored fashion industry, encompassing companies of varying sizes, both local and multinational, and under different ownership structures. The overarching objective is to provide a comprehensive evaluation of the implementation of digital strategies and their subsequent impact on company performance. This research constructs an integrated model that combines insights from strategic management and organizational capability disciplines, drawing inspiration from the Unified Theory of Acceptance and Use of Technology (UTAUT) and the Resource-Based View theory. The proposed research model aims to offer a cohesive, efficient, and structured framework that transcends fragmentation, facilitating the development of digital platforms. By embracing diverse contextual settings, this study endeavors to provide nuanced and universally relevant insights, thereby enriching the practical implications for businesses across diverse sectors. As organizations navigate the complex landscape of digital transformation, these insights hold potential for guiding effective strategy formulation and implementation.

Formation of manufacturers' supply management capability: The knowledge‐based view

AbstractAcknowledging the pivotal strategic importance of external suppliers in obtaining competitive advantages underscores the necessity for manufacturers to bolster their supply management capabilities. This involves meticulously structuring, developing, and efficiently managing the supply base to ensure alignment of suppliers with the manufacturing processes and business objectives, consequently generating value and enhancing market competitiveness. The processes of acquiring, assimilating, transforming, and exploiting pertinent supply chain knowledge are vital for continuously bridging the gap between the current knowledge and the complex requirements of supply management, consequently strengthening the purchasing department's supply management capabilities. Strategic purchasing orientation commits more strategic resources to the purchasing department, allowing manufacturers to access and assimilate a broader spectrum of knowledge within the supply network. Grounded in the knowledge‐based view, our research delves into the development process of supply management capabilities, examining the influence of strategic purchasing orientation and absorptive capacity. Through hierarchical regression analysis of data from 395 manufacturers, our findings reveal that a pronounced strategic purchasing orientation significantly enhances absorptive capacity, thereby facilitating the development of supply management capabilities. Additionally, our study identifies distinct mediating roles of potential and realized absorptive capacities in the relationship between strategic purchasing orientation and supply management capability. This research offers a novel perspective on the development of supply management capabilities, providing valuable insights for manufacturers to address the complexities of supply management by narrowing the knowledge gap. Key words: supply management capability; absorptive capacity; strategic purchasing orientation.

Technology isn't enough for Industry 4.0: on SMEs and hindrances to digital transformation

Despite a general lack of examples showcasing seamless implementation of industry 4.0, talks of a human-centric, resilient, and sustainable industry 5.0 have already begun. But are the managers and workers of manufacturing enterprises today even ready for that? Digital transformation is still slow-going, especially within small- and medium-sized companies. Supported by an existing framework and interpretive structural model for digitalisation, we argue that a big part of digital transformation depends on the workers' competencies. Guided by the research question: How can the approach to competence development in SMEs explain patterns of slow digital transformation?, we investigate 30 manufacturing SMEs pursuing digitalisation. While manufacturing companies are aware of the need for additional competencies, few are actively working towards obtaining them. We expand on a theoretical model for smart manufacturing determinants and argue how a scaffold is needed to support SMEs in the early stages of digitalisation to increase understanding of core concepts, i.e. Industry 4.0 concepts and available technologies, data handling, integration capability, upskilling and training, and strategic management capabilities. We propose that a scaffolding approach to competence development can enable knowledge acquisition and the formation of digital transformation strategies.

Workplace Spirituality as Intangible Resource and Capabilities: As Seen in the Evidence of a Telco Company in the Disruptive Era

Previous research had analyzed the positive impact of spirit at work and spiritual leadership separately as independent variables toward organizational commitment and job satisfaction but had not examined it all at once through the strategic management resource-based view framework. This quantitative study, using SEM PLS, examined the spiritual leadership intangible resources (Vision, Hope-Faith, Altruistic Love, Meaning Calling, and Membership) as the factors to develop spirit at work capabilities, which positively influence Job Satisfaction and Organizational Commitment as the performance proxies. Based on a survey of the data taken from the biggest Telco company in Indonesia, going through volatile, uncertain, complex, and ambiguous (VUCA) phase, this research shows that spirituality matters in the resource-based view of strategic management framework, where resources and capabilities are intertwined in supporting performance. All hypotheses were significant, implying the criticality of embedding spiritual values in creating a greater purpose for all employees. Further qualitative research in this area would enrich workplace spirituality research.

The Practice and Application of Enterprise Leadership Strategic Management Based on Fuzzy Decision Model

Abstract This paper gives a pseudo metric between any two hesitation fuzzy elements based on the closeness of the hesitation fuzzy elements; based on the hesitation fuzzy pseudo metric, a hesitation fuzzy multi-attribute decision-making method based on the pseudo metric closeness is proposed. Understanding the level of strategic management ability and enterprise leaders’ ability level can be achieved by measuring the size of fuzzy weighted closeness. From the perspective of group consistency analysis, a hesitation fuzzy attribute weight optimization model based on group consistency index maximization is established, and a hesitation fuzzy multi-attribute decision-making method based on group consistency and grey correlation analysis is proposed in combination with grey correlation analysis. Enterprise leaders’ strategic management abilities are assessed during the application stage using the hesitation fuzzy multi-attribute decision-making method. Analyzing the relationship between the strategic stage and the match between different types of strategic styles of business leaders and business performance is done using cross-linkage. The analysis results show that the distance value between the comprehensive fuzzy assessment value of each level of the leader’s strategic management capability and the semantic variable of each assessment value is at least 0.052, which is consistent with the overall assessment results of the five experts on the leader’s strategic management capability. The match between the strategic style of the business leader and the strategic stage in which the enterprise is located has a significant interaction effect on the performance indicators of the enterprise P=0.007<0.01. The results verify the accuracy of the evaluation method of this paper and the existence of a correlation between the strategic leadership of the business leader and the performance of the enterprise.

Innovation and Exploration of Human Resource Management in Pharmaceutical Enterprises of the 21st Century

Purpose - The 21st century marks an era of rapid advancements in digitization, informatization and globalization. Amidst a fast-evolving market economy, the lag in Human Resource Management (HRM) within pharmaceutical companies significantly hampers corporate growth. The primary objective of this paper is to explore the issue of HRM lag.
 Design/Methodology/Approach - Grounded in corporate management theory, this paper conducts a literature review coupled with HRM theory, taking a particular pharmaceutical company as a case study. It identifies six major issues present in pharmaceutical HRM: unclear functional positioning of the HRM department, insufficient staffing in the HR department, be short of effective talent cultivation mechanisms, incomplete salary management system, outdated performance incentive policies, and absence of modern information technology platform support. Therefore, six recommendations are proposed.
 Findings - Engaging professional HRM consultants for HR transformation, redefining the HR department’s functions, enhancing the professionalism of HR practitioners, establishing competitive salary and incentive mechanisms, advancing the application of modern information technology, and developing modern talent management models are innovations that can significantly bolster the comprehensive management capability of the enterprise.
 Research Implications - This study contributes to elevating the strategic positioning and management capability of the HR department, playing a pivotal role in shaping a high-value talent empowerment platform. It also provides a foundation for subsequent research by other scholars in this field.

Navigating global markets: The role of enterprise risk management and human resource management in SME international expansions

Research background: Since SMEs lack the financial and human resources required for internationalization, they face more obstacles than large firms. In this regard, their internal/controllable risk management capabilities based on the Resource-based View (RBV) theory might help them overcome internationalization barriers. Purpose of the article: This study aims to investigate the positive impact of internal/controllable risk management capabilities, such as strategic, operational, and personnel risk capabilities, on the export intention of SMEs. Moreover, this paper finds out whether the impacts of these risk management capabilities on export intention differ depending on the countries where SMEs operate. Methods: This research uses a random sampling method and shares an online questionnaire with survey respondents. It includes research samples from Czech, Slovakian, and Hungarian SMEs. The researchers analyze the effects of enterprise risk management capabilities on export by performing Binary Logistic Regression analyses. Findings & value added: While personnel risk management does not affect the export intention of SMEs, strategic risk management and operational risk management positively affect the export intention of SMEs, depending on the countries where SMEs are located. For this reason, there are international differences in the impacts of strategic and operational risk management capabilities on the export intention of SMEs. This paper provides a more holistic approach to managing internal/controllable risk factors and investigates this construct’s effect on internationalization. A country comparison in this specific effect has been only performed in this study. Moreover, the construct of managing internal/controllable risk factors is also linked with the dynamic capability of RBV only in this paper.

A Decision Support System Based on the Integration of a Theory of Constraints and Strategic Management Tools for the Selection of Product Mixes

The selection of products to be offered on the market is a critical decision-making process encountered in all industry sectors. It is not just a matter of maximizing profit or optimizing the utilization of corporate resources but also specifically concerns determining a product portfolio that is most suitably aligned to corporate strengths and that appeals to the most attractive and emerging markets. Hence, corporate competencies such as strategic management and production capabilities must be taken into account concurrently. Starting from this point of view, a twofold decision support system (DSS) has been developed. On the one hand, a theory of constraints (TOC)-based analytic hierarchy process (AHP) approach, including a taboo search algorithm, has been developed in order to derive the right product mix for maximizing the total profit amount by considering the bottleneck problem. On the other hand, a GE/McKinsey screen matrix is added to this consolidated approach to support decision-makers in the formulation of product portfolio strategies. The DSS provides a platform to compare outputs coming from the preceding two processes, which allows for the refinement of the solution. The proposed DSS is executed with a problem dataset from the industry to test its accuracy and reliability.

Exploring the Coupling Relationship Between Dynamic Marketing Capability, Strategic Information Management, and International Startup Performance

The ever-changing environment in a highly competitive marketplace presents unlimited business opportunities and endless challenges for international startups. To explore the coupled relationship between dynamic marketing capabilities, strategic information management, and international startup performance. For the first time, this study adopts a dynamic analysis and survey methodology and establishes a scoring and analysis model under a dynamic system. A questionnaire study with real data was conducted through 500 international startups in Hebei, China, and the data were processed and analyzed with the help of analytical software. The study discusses the coupling relationship between dynamic marketing capability, strategic information management capability, and enterprise performance, and reveals the intrinsic influence law of the three from multiple dimensions. Specifically, the three dimensions of dynamic marketing capabilities, namely, market knowledge management capabilities, interface synergy capabilities, and customer relationship management capabilities, can all positively affect the performance of enterprises, only the overall effect of the three dimensions on the performance is different, in which the market knowledge management capabilities can significantly improve the performance of enterprises. The strategic information management innovation of internationalized startups has a mediating effect between dynamic marketing capabilities and corporate performance, playing an indirect positive feedback role. The above study contributes to the future marketing management and performance improvement of internationalized startups.

Strategies for Successful Entrepreneurship in a Dynamic Business Landscape

The purpose of this study is to explore the multifaceted nature of successful entrepreneurship within a dynamic business landscape by examining the interplay between strategic orientation, resource orchestration, and organizational agility. Adopting a multi-perspective approach, the research design involves a comprehensive review of literature from diverse disciplines, including strategic management, entrepreneurship, organizational theory, and complexity science. Through synthesizing key findings and discussions from the literature, this study elucidates the fundamental determinants of entrepreneurial success and offers insights into the mechanisms underlying strategic entrepreneurship. The findings underscore the paramount importance of strategic agility, resourcefulness, and a holistic approach to entrepreneurship in navigating the complexities of the modern business environment. Implications of this research extend to both theory and practice, highlighting the need for entrepreneurs to integrate strategic vision, resource management, and dynamic capabilities to achieve sustainable competitive advantage. Furthermore, the study emphasizes the value of adopting an interdisciplinary approach to entrepreneurship research, integrating insights from diverse disciplines and methodologies to inform theory, practice, and policy in the field of entrepreneurship.

Scaling strategies, organizational capabilities and scaling social impact: An investigation of social enterprises in China

AbstractMost social enterprises (SEs) face constant challenges to scale up their social impact, especially for those in transforming societies such as China, where the ecosystem of SEs is still immature. Previous literature has examined how and why SEs select specific scaling strategies; however, the scaling performance of different scaling strategies has rarely been empirically explored. Therefore, this study takes a hypothesis‐testing quantitative approach, for the first time, to investigate how different scaling strategies contribute divergently to scaling performance and how their contributions are subject to the moderating role of SEs’ organizational capabilities. The findings show that the three types of scaling strategies positively contribute to scaling performance, and the magnitude and significance of their influences descend from knowledge dissemination, through organizational growth, to contractual partnerships. Meanwhile, when SEs have a higher level of stakeholder engagement capabilities or strategic management capabilities, knowledge dissemination has a stronger effect on scaling performance. Conversely, when SEs have a lower level of marketing capabilities or strategic management capabilities, organizational growth has a stronger effect on scaling performance. These results offer practical implications, suggesting that SEs selecting knowledge dissemination as a scaling strategy should prioritize advancing their stakeholder engagement capabilities and strategic management capabilities.

Direct investment characteristics, problems and countermeasures of Chinese enterprises in countries along the Belt and Road

The Belt and Road Initiative is a major strategy proposed by the Chinese government to strengthen economic ties with countries along the route and promote mutually beneficial cooperation. As an important practice of the Belt and Road Initiative, Chinese enterprises' direct investment in countries along the route shows some general characteristics, while Chinese enterprises also face various problems such as high investment risks, cultural differences, and social responsibility issues in the process of direct investment. This paper aims to conduct in-depth research on these issues and propose corresponding countermeasures to promote the investment activities of Chinese enterprises in countries along the Belt and Road. First of all, risk management measures should be adopted, a comprehensive assessment of political, economic, cultural and other factors in countries along the Belt and Road, scientific and reasonable investment plans should be formulated, and the supervision and risk control of investment projects should be strengthened. Second, we should pay attention to technical cooperation and personnel training, improve the technological level of countries along the Belt and Road through technology transfer and technological innovation, and promote economic development and regional cooperation. In addition, we need to pay attention to the social responsibility awareness of enterprises in the process of direct investment, pay attention to environmental protection, etc., and establish a good corporate image and reputation, so as to promote the realization of the "Belt and Road" initiative and jointly promote economic development and prosperity. Finally, this paper concludes that in the face of many problems and challenges, Chinese enterprises need to have a high degree of strategic vision, cultural understanding and risk management capabilities, while focusing on innovation and development, and are committed to achieving mutual benefit and win-win results and achieving common prosperity.

Strategic Management Capabilities and Performance of County Government of Kakamega, Kenya

Strategic Management Capabilities and Performance of County Government of Kakamega, Kenya

Strategic Management Capabilities and Performance of Commercial Banks in Kenya

Strategic Management Capabilities and Performance of Commercial Banks in Kenya