Dynamic Capabilities View Research Articles

Enhancing supply chain resilience: The role of SC-ambidexterity and SC-agility

This research aims to explore the significance of supply chain (SC) resilience by integrating SC-Resilience and SC-Ambidexterity concepts. SC-Ambidexterity refers to the simultaneous application of SC-Adaptability and SC-Alignment capabilities within the supply chain. In line with the dynamic capabilities view (DCV) of the firm, this research adopts a quantitative approach to investigate the relationship between variables in the context of manufacturing and production companies in Pakistan, specifically in Karachi. The results of this case study have revealed a strong positive impact of SC-Ambidexterity on SC-Resilience, confirming the significance of adopting concurrent and synchronized supply chain capabilities. Furthermore, the analysis indicated that SC-Agility plays a crucial role as a mediator in the relationship between SC-Ambidexterity and SC-Resilience. The findings suggest that organizations that proactively invest in developing both ambidextrous capabilities and agility are more likely to achieve a higher level of supply chain resilience, enabling them to effectively navigate turbulent business environments.

The Impact of ERP Assimilation on Mass Customization Capability: A Dynamic Capabilities View

The Impact of ERP Assimilation on Mass Customization Capability: A Dynamic Capabilities View

Blockchain Technology and Its Relationship With Supply Chain Resilience: A Dynamic Capability Perspective

Blockchain technology (BCT) as a disruptive innovation has chains (SCs) to effectively deal with severe disruptions, such as those accompanied by COVID-19. To this end, this study explores BCT's role in minimizing the negative impact of such SC disruptions and improving SC resilience. Our study employs semistructured interviews interwoven with thematic analysis to identify the capabilities deployable by BCT at each stage of disruption. Our study reveals key issues associated with contemporary SC networks and the capabilities that can be enhanced by blockchain-enabled SCs to mitigate such issues. Our study further proposes a conceptual framework highlighting the relationships among various phases of disruption, blockchain capabilities, and SC resilience capabilities through the theoretical lens of the dynamic capabilities view. The proposed framework underscores that for a firm operating in a dynamic and rapidly changing environment, BCT can enhance the ability to sense, ability to seize, and ability to maintain.

Applications of Industry 4.0 for Pandemic Responses and Business Continuity: A TOE-DCV Integrated Approach

The fourth industrial revolution, also known as Industry 4.0, covers a broad range of technologies. The applications of Industry 4.0 help in interconnectivity as well as automation process and support seamless operations. Not many studies have taken place to examine how different applications of Industry 4.0 could help in turbulent situations or in crises like COVID-19 pandemic. Thus, there is a research gap. In such background, the aim of this study is to investigate how different applications of Industry 4.0 could help to respond to such turbulent situation and help in business continuity and sustainability of operations. The present study develops a theoretical model combining technology–organization–environment framework and dynamic capability view to examine the role of Industry 4.0 applications for business continuity and sustainability of business operations especially for managing any turbulent situation like COVID-19 pandemic. The theoretical model was validated using partial least square structural equation modeling technique considering 338 respondents from different industries. The study found that there is a greater need to adopt Industry 4.0 applications for managing business operations during any turbulent situation. The study also found that there is a significant moderating impact of corporate governance in adopting Industry 4.0 applications to manage business operations especially during crisis.

Examining the Dimensions of Adopting Natural Language Processing and Big Data Analytics Applications in Firms

Big data analytics (BDA) is an advanced analytic technique used with very large and diverse sets of data from different sources. Natural language processing (NLP) is a technology that interfaces with different fields such as computer science, linguistics, and human-computer interactions. Over the past few years, there is a growing number of firms, which are using different BDA and NLP applications in their businesses. Only a few of the research have investigated different dimensions of NLP and BDA and their impacts on the overall organizational performance. There is a growing interest among researchers and practitioners in understanding the consequences for firms that adopt BDA and NLP applications. In this context, the aim of this article is to determine the factors for the usage of BDA and NLP applications in business. With the help of dynamic capability view theory and existing literature, a theoretical model was developed conceptually. Later, the model was validated using structural equation modeling approach considering 1287 samples from 23 firms, primarily based in Asia and Europe, which use NLP and BDA applications. The article finds that NLP and BDA applications help the firms to improve their operational efficiency, which in turn improves the overall firm performance.

Exploring the Impacts of Knowledge Infrastructure, Dynamic Capability, and Customer Relationship Management Ability on Business Value of a Firm

The dynamic capability of a firm is the ability to combine, develop, and reconfigure the external as well as internal expertise to respond to the changing business environment in a faster manner. A firm's knowledge infrastructure capability includes structural ability, technological ability, and human resource ability to meet the changing business requirements for the firm to manage its knowledge base. Also, the customer relationship management (CRM) ability of a firm helps it to engage with customers to meet their dynamically changing requirements. Studies show how these capabilities can enhance business value. But there is no study which investigated the combined impacts of a firm's knowledge infrastructure, dynamic capability, and CRM capability on creating business value. Therefore, this study aims to close this gap. With the help of dynamic capability view and resource-based view theory along with literature, we prepared a theoretical model. Later, we validated the model using partial least square structural equation modeling technique with 317 responses from India. The study finds that there is a significant and positive combined impact of a firm's knowledge infrastructure, dynamic capability, and CRM capability on the value creation for the firm, which in turn significantly and positively impacts firm performance.

The Role of Big Data Analytics Capability to Achieve Competitive Advantage with the Mediation of Business Model Innovation: A Dynamic Capability View

The research aims to identify the function of big data analytics to attain competitive advantage through the mediation of business model innovation.260 samples were taken from experts in Pakistan's manufacturing & service sectors. Data analysis was done using (Smart PLS). The findings demonstrate that big data analysis capability (BDAC) has a considerable impact on competitive advantage. By using big data, companies can make rational, data-driven decisions to satisfy customers, sustain and resilient supply chain management, low production costs, and efficient and effective business operations. Similar to how BC affects competitive advantage, business model innovation partially mediates this effect. Additionally, the influence of BDAC on both competitive advantages & new business model innovation is moderated by organizational IT infrastructure. This research presents a unique scenario of big data analytics in which firms use bid data inside to innovate their established business models, resulting in considerable competitive advantage in emerging countries like Pakistan.

Dynamic Capabilities and Firm Performance: Moderating Effect of Environmental Dynamism

This paper, therefore, conducts much detail with regard to the moderating role of environmental dynamism between dynamic capabilities and firm performance, with special reference to Small and Medium Enterprises (SMEs) of Pakistan. The conceptual framework leans on the proposition by Teece, Pisano, and Shuen (1997) that dynamic capabilities allow reconfiguration of resources for the changing market demand and hence the source of competitive advantage to the firm. It is theoretically possible that empirical studies on the moderating effect of environmental dynamism are possible, and still scarce within this domain—an even more rare context in the case of Pakistani SMEs. Thereby, this research intends to fill that gap by empirically examining how the influence of environmental dynamism plays out at the dynamic capabilities-performance nexus in Pakistani SMEs—a sector pivotal for the economic growth of the nation but also challenged by a unique blend of local business conditions. Understanding how firms can benefit from their dynamic capabilities in relation to their performance in volatile markets has become important within this fast-changing business environment. This paper, therefore, through an intensive review of the literature, traces the development of the dynamic capability theory in highlighting its relevance for firm performance and the critical roles environmental dynamism has played as one of the most emphasized contextual factors in firm performance. Quantitative research design will be used for data collection from a broad base of industries under the SME sector of Pakistan, and it will be collected through cross-sectional surveys to explore the proposed relationships. Findings have revealed an environmental dynamism-relevant moderating effect on the relationship between dynamic capabilities and performance. That is to say, in the most volatile environments, SME performance will be more dependent on dynamic capabilities, and that dependence will imply that the strategic value of the capabilities would become contingent on the level of environmental dynamism. This is congruent with the resource-based view (RBV) theory of strategy: the strategic value of resources and capabilities depends on the fit that such resources will have with the external environment. Implications for managers and policymakers, therefore, could be said to be very pragmatic, since SMEs operating within such dynamic markets would have a crying need to develop and deploy dynamic capabilities in a strategic way to effectively steer through the environment. First, these findings contribute to theoretical development in that they draw and support from the dynamic capability view (DCV) and RBV literature in verifying the contingent value of the dynamic capability with respect to environmental dynamism. It not only adds some fertile insights into the dynamic capabilities framework within an emerging market context like Pakistan but also substantiates some interesting facets for SMEs to gain an edge on their competitive advantage within the fast-changing global business environment.

Assessing the influence of artificial intelligence on agri-food supply chain performance: the mediating effect of distribution network efficiency

The urge for greater agri-food supply chain efficiency (AFSCE) has been gaining in prominence increasingly, spurred on by escalating logistics costs and advances in industry 4.0 technologies (e.g artificial intelligence AI). The latter significant contributions in logistics have led academics to point their attention more to AI utility in operations management. Drawing on dynamic capability view (DCV) and organizational information-processing theories, this study aims to examine the effect of AI based technologies on reducing wastes and minimizing afri-food supply chain costs, hence increasing organization profitability. It also analyzes how outbound logistics and distribution network efficiency (DNE) (warehousing, transportation, packaging, etc.) mediates the relationship between AI and AFSCE. This research investigates the moderating impact of AI adoption impediments (AIAI) on the mediating correlation between AI, DNE and AFSCE as well. Using Partial Least Square-Structural Equation Modeling (PLS-SEM) approach, conceptual model and hypothesis were analyzed and tested with 348 responses collected from executives and managers in the Moroccan agri-food industry. As a novel result, distribution network efficiency and by way of mediation AFSCE and organization performance are found to be directly and positively affected by AI integration. The researchers find also that with more AIAI, the relationship between the aforementioned variables weakens.

Does digital transformation curb the formation of zombie firms? A machine learning approach

ABSTRACT Based on the dynamic capability view theory, we examined the impact of digital transformation (DT) on zombie firm formation using a sample of listed Chinese firms. Through textual analysis of firms’ annual reports, we categorized DT into three dimensions: strategy, technology (i.e. artificial intelligence, blockchain, cloud computing, and big data), and application. Then, we employed 11 machine learning algorithms to detect zombie firms, compared the prediction performance, and calculated the contribution of each DT indicator. The results show that DT can effectively curb the formation of zombie firms. Specifically, big data contributes the most to suppressing the prevalence of zombie firms, followed by artificial intelligence, cloud computing, and DT application. Nevertheless, DT strategy and blockchain cannot reduce zombie likelihood. Finally, our research offers valuable insights for policymakers to address the issues of zombie firms.

Do knowledge sharing and big data analytics capabilities matter for green absorptive capacity and green entrepreneurship orientation? Implications for green innovation

PurposeThis study is the first to examine how big data analytics (BDA) capabilities affect green absorptive capacity (GAC) and green entrepreneurship orientation (GEO). It uses the dynamic capability view, BDA and knowledge-sharing literature. There is a lack of studies addressing the BDA–GAC and BDA–GEO relationships and their potential impact on green innovation. Continuing the ongoing research discussion, a few studies examined the vital implications of knowledge sharing (KS) on GAC, GEO and green innovation.Design/methodology/approachThe study used a cross-sectional and stratified random sampling technique to collect data through self-administered surveys among Chinese manufacturing firm employees. The study applied SmartPLS to analyze the obtained data.FindingsThe findings revealed that BDA capabilities positively influence GAC and GEO. In addition, GEO and KS positively impact green innovation. The KS recorded a positive impact on GAC and GEO. Furthermore, GAC and GEO recorded a partial mediating effect.Practical implicationsThe study acknowledges that GAC is the backbone of a firm green entrepreneurial orientation, which needs to be aligned with BDA capabilities to anticipate future green business trends. GAC's help drives GEO's green business agenda. KS plays a strategic role in developing GAC, fostering GEO and improving green innovation.Originality/valueThe study highlights the necessity of aligning BDA capabilities to fit firms' GEO green business agendas. This study focuses on the role of BDA capabilities in developing firms' green dynamics capabilities (e.g. GAC), which helps GEO drive superior green business growth. KS develops GAC and boosts GEO to enhance green innovation.

Assessing the significance of employee flexibility and organization policy for survival of organizations during turbulent conditions

Purpose The purpose of this study is to assess the significance of employee work flexibility and the policy of the organization for survival during any crisis. This study also investigates the moderating role of leadership support (LS) during such turbulent conditions. Design/methodology/approach This study has used literature from the fields of organization performance, human resources and organization policy (OP), along with the theories of resource-based view (RBV) and dynamic capability view (DCV) to develop a conceptual model. Later, the conceptual model is validated using the structural equation modeling technique. The study used a survey method with a sample of 311 participants. These participants are employed as human resource managers (HRM) and other supportive workforce at different levels in the organizations. Findings The study shows that innovativeness and employee flexibility (EFL) are critical toward organizations’ survival during any crisis. Also, the study highlights the importance of OP and LS for the survival of organizations during and after any turbulent condition. Research limitations/implications This study provides valuable inputs to the leadership teams of organizations, especially HRM. This research also provides food for thought for policymakers and researchers in the field of organizational performance. This study also contributes to the overall body of literature on organization analysis and extends the literature on RBV and DCV. Originality/value The study adds value to the overall body of literature on organization performance and capabilities along with human resource management. Few studies have nurtured issues on EFL during turbulent conditions. Also, there are limited studies in the areas of OP such as favorable and unfavorable policies toward employees. Thus, this study can be considered unique. Moreover, the study investigates the moderating role of LS which adds value toward the body of literature on organizational leadership capability.

Business model innovation and international performance of emerging market international businesses

This article is set to examine the effects of foreign market conditions – i.e. foreign market customer demandingness and foreign market stakeholder engagement – on business model innovation of emerging market international businesses (EMIBs) during the COVID-19 pandemic. First, it examines the impact of foreign market customer demandingness and foreign market stakeholder engagement on business model innovation of EMIBs. Second, it tests the moderating roles of international marketing agility and entrepreneurial bricolage on these relationships and third, it looks into the (direct and indirect) impact of business model innovation on EMIBs' international performance. We use the COVID-19 pandemic as a context and the dynamic capabilities view to formulate and test our hypotheses using longitudinal survey data between March and December 2020, on 211 Vietnamese manufacturing businesses engaged in cross-border activities. The results provide robust empirical support for all our hypotheses. Our findings suggest that foreign customer demandingness and foreign market stakeholder engagement can determine the adoption of new business models by EMIBs'. We also provide evidence on the mediating role of EMIBs' business model innovation in the relationship between foreign market conditions and international performance during the COVID-19 pandemic. Additionally, while international marketing agility can moderate positively the relationship between local market exposure and business model innovation by international businesses, entrepreneurial bricolage was found to moderate negatively this relationship. Our findings have important theoretical and practical implications for both international businesses and EMIBs.

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.

Developing resilience of MNEs: From global value chain (GVC) capability and performance perspectives

External shocks create various risks for enterprises. Multinational enterprises (MNEs) work to develop resilience and improve their global risk management capability. The COVID-19 pandemic has compelled MNEs to improve their global value chain (GVC) capability to enhance their global risk management and operational performance, which could eventually impact their overall performance. Developing GVC capability is a challenge for MNEs. This study aims to examine the influence of global risk management capability on MNEs’ GVC capability to become more resilient to withstand such crises and further enhance their performance. Building on the resource-based view (RBV), dynamic capability view (DCV), and the existing literature, a conceptual research model was prepared. The model was then validated using the PLS-SEM technique to analyze the responses of the 323 managers at different MNEs. The study found a significant positive impact of global risk management capability on GVC capability, which eventually impacted MNE performance.

Understanding the relationship between marketing analytics, customer agility, and customer satisfaction: A longitudinal perspective.

Shifting towards a more data-driven culture is a key antecedent of business success in today's digital era. Previous research has paid attention to exploring the influence of marketing analytics on business performance, and rarely examined how the use of marketing analytics influences customer agility and satisfaction. According to the dynamic capabilities view and using previous studies, we developed a conceptual framework to explore the effect of marketing analytics use on customer agility and customer satisfaction. In Study 1, we utilised cross-sectional data collected from 468 managers from various industries. In study 2, we employed longitudinal data in a three-wave longitudinal utilising a cross-lagged panel model. Study 1 indicated that data acquisition and tool acquisition are key drivers in adopting marketing analytics. Marketing analytics use has stronger effect on customer agility when market turbulence is high. They also revealed that the influence of customer agility on customer satisfaction in such conditions is stronger. Study 2 revealed that marketing analytics use at time point T1 has a significant and positive influence on customer agility at time point T2, while customer agility at time point T2 has a significant and positive influence on customer satisfaction at time point T3. These findings indicate strong temporal effects between marketing analytics use, customer agility, and customer satisfaction. The findings suggest that researchers should look beyond direct effects of marketing analytics use and shift their attention on how a marketing analytics can be leveraged to enable and support dynamic capabilities and customer satisfaction.

External environment and internal dynamics of “born global”: strategic and operational firm performance

Purpose“Born global firms” are those organizations which, from their inception and by nature, adopt an essentially global-scale entrepreneurial functional and attitudinal strategy for growth. They seek to gain significant competitive advantage by utilizing their internal resources while leveraging external environment potentialities, to sell their outputs internationally. The aim of this research is to investigate the influence of the external business environment and the dynamic capabilities of born global firms, on their strategic and operational performance, as well as the role of leadership vision on their internationalization performance.Design/methodology/approachInitially and resting on extant literature with pertinent foci, including the absorptive capacity and the dynamic capability view theories, a conceptual model is proposed. Subsequently, the model is validated through the partial least square structural equation modeling technique, based on 417 respondents from Indian firms.FindingsThe study concludes that the external business environment and internal dynamic capabilities of born global firms have a significant and positive impact on their strategic, as well as operational performance; with leadership vision playing a significant moderating role to this relationship. The study finally presents the executive implications of the findings and identifies the avenues for further scientific research.Originality/valueThis is a unique study on the topic, both in relation to resources/capabilities versus performance and with regards to the leadership vision's role. It moreover focuses on a primary business force, India, which comprises prime examples of global entrepreneurship. The research constituting a significant contribution to knowledge, as research on how small firms can strategically grow so rapidly and effectively, is still far from conclusive, particularly under the present evolutions that incessantly redefine the contextual business forces upon which strategy is drawn.

Technological innovation under trade disputes: how does product market competition matter?

PurposeThis study investigates firms' innovation behaviour under environmental change. Therefore, it examines the effect of trade disputes on corporate technological innovation and how product market competition moderates this relationship.Design/methodology/approachThis research tests the hypotheses using the fixed effects model based on panel data of publicly listed enterprises in China from 2007–2020.FindingsThe empirical results validate the positive association between trade disputes and corporate research and development (R&D) intensity as well as the U-shaped relationship between trade disputes and radical innovation. Additionally, the moderating effect of product market competition is verified: a concentrated market with less competition flattens the U-shaped curve of radical innovation induced by trade disputes; as the market becomes more concentrated and less competitive, the U-shaped relationship eventually turns into an inverted U.Originality/valueFirst, this study contributes to the corporate innovation and trade dispute literature by expanding the environmental antecedents of technological innovation and the firm-level consequences of trade disputes. Second, this study enriches the theoretical framework of the environment–innovation link through an integrated perspective of contingency theory and dynamic capabilities view. Third, instead of the traditional linear mindset which had led to contradictory results, this study explores a curvilinear effect in the environment–innovation relationship.

Product lifecycle management system implementation and market responsiveness: the role of partner management capability

ABSTRACT This study contributes to clarifying how the implementation of product lifecycle management systems allow firms to improve market responsiveness due to the lack of understanding the mediating mechanisms. Empirical research that studies the mechanisms underlying the impact of product lifecycle management systems on market responsiveness has been scarce. To address the research issues, this study draws on dynamic capability view and the notion of information technology – business capability – organizational performance links to develop a theoretical model and employs empirical research methods to evaluate the model. The research results reveal that product lifecycle management system implementation allows firms to increase market responsiveness through the two enhanced partner management capabilities, namely relationship-building capability and coordination capability. By clearly identifying the underlying mechanism of product lifecycle management system-enabled market responsiveness, this study advances the current understanding of how product lifecycle management system implementation enables firms to improve market responsiveness.

Does circular economy entrepreneurship drive technical capabilities for circular economy performance? The moderating role of environmental dynamism

Purpose Drawing on the resource-based view (RBV) and the dynamic capabilities view (DCV), this study investigates how circular economy entrepreneurship (CEE) drives technical capabilities (TC) in achieving greater circular economy (CE) performance for small and medium-sized enterprises (SMEs) under the moderating influence of environmental dynamism. SMEs, facing resource constraints, need to promote CE due to growing stakeholder pressures. Thus, the authors recommend that SMEs via CEE can identify CE opportunities and then develop specific TC to exploit opportunities in the business environment to achieve CE performance. However, in doing so SMEs should pay attention to the varying degrees of environmental dynamism.Design/methodology/approach The RBV and DCV are used as a theoretical lens to investigate the direct and moderation effects between CEE, TC, CE performance and environmental dynamism tested via partial least square structural equation modeling (PLS-SEM) using survey data from 152 managers of SMEs in Nepal.Findings The study results show that CEE directly has a positive and significant effect on the development of TC and CE performance. Similarly, the development of TC drives SMEs to achieve improved CE performance, as evidenced by the positive and significant effect. Interestingly, the results suggest that environmental dynamism significantly improves the relationship between TC and CE performance, but this effect is strongest at high levels of environmental dynamism rather than at low and moderate levels. Additionally, the findings reveal that while environmental dynamism has a positive effect on the relationship between CEE and TC, this effect is insignificant.Originality/value Based on the arguments of the RBV and the DCV, this study explores how environmental dynamism can reduce and amplify SMEs' ability to use CEE to develop TC and improve CEP. First, this study integrates the circular economy and entrepreneurship domains to suggest essential CEP and TC benefits for SMEs via CEE. Second, this study suggests that at low levels of environmental dynamism, CEE has less effect on the SMEs’ development of TC, compared to high levels. Third, this study is conducted in the novel institutional context of Nepal, providing insights regarding how SMEs' CE entrepreneurship impacts TC and CEP.