Processes, antecedents and outcomes of dynamic capabilities

An Exploratory Study of Dynamic Capabilities and Performance Improvement in Hospitals

GOAL

Recent efforts to push hospitals to provide high-value care have relied on payment incentives. However, evidence indicates that 70% to 90% of performance improvement projects do not achieve their desired goals. Therefore, in addition to managing external industry pressures, hospitals need to develop performance improvement (PI) capabilities that enable them to capitalize on improvement opportunities, effectively develop and adopt solutions, and ensure the sustainability of improvements over time. While operational capabilities enable hospitals to produce and deliver services, more is needed to attain and sustain superior performance. Dynamic capabilities drive changes in operational capabilities to meet environmental demands. Dynamic capabilities also enable hospitals to renew and reconfigure their resources to optimize performance. This paper proposes the dynamic-capabilities framework as an appropriate way to develop and manage PI capabilities in hospitals, and it discusses the implications of shifting to a strategy that is driven by dynamic-capabilities PI.

METHODS

The research team designed a semi-structured interview based on a review of the literature to understand whether hospitals were engaging in the activities outlined in the dynamic-capabilities framework. Nine study participants were recruited from a convenience sample of hospital PI staff at hospitals in Massachusetts and New Hampshire. De-identified transcripts were entered into NVivo12 qualitative data analysis software, and data were thematically indexed and coded following the principles of content analysis.

PRINCIPAL FINDINGS

PI structures, improvement methodologies, and weaknesses did not vary significantly among hospitals. Most hospitals had a PI department and were more likely to adopt PI projects initiated by top management. While PI staff were trained in improvement methodologies, no programs were in place that required the rest of the hospital staff to become familiar with PI methods. Common areas of weakness were PI project selection, communication, coordination, learning from current and former PI projects, and systematic approaches to sustain improvements.

PRACTICAL APPLICATIONS

Dynamic PI capabilities provide an opportunity to systematically identify improvement opportunities, seize on and learn from those opportunities, and renew and reconfigure resources to optimize performance. Ad hoc PI projects are insufficient to enable a hospital to sustain superior performance. Internal and external pressures to deliver high-value patient care and services require hospitals to exceed their current PI efforts. By developing dynamic PI capabilities, hospitals will adopt a more systematic and effective approach to PI, which will likely result in superior performance.

Firms’ dynamic capabilities and supply chain risk management: a B2B perspective

Purpose

This study examines the relationships between collaboration capability (CC) and supply chain risk management (SCRM) and the mediating role of supply chain alignment (SCA) between CC and SCRM. It also investigates the moderating role of data-driven culture (DDC) on the path joining CC and SCA.

Design/methodology/approach

A survey was conducted via a structured questionnaire among the 297 managers of Business-to-business (B2B) firms. The data were analyzed using partial least squares structural equation modeling (PLS-SEM).

Findings

The result found a positive and significant relationship between CC and SCRM, CC and SCA, and SCA and SCRM. The research found a significant mediating role of SCA between CC and SCRM. The study also found a significant moderating role of DBC between CC and SCA.

Practical implications

The outcomes demonstrate the management and societal relevance of the study from the viewpoint of businesses in developing nations. To cope with dynamic shifts, managers and decision makers need to take initiative for collaboration among the supplier, to align with their supply chain operations and enhance preparedness of DDC to overcome supply chain-related risks in the future.

Originality/value

The results of this empirical study have the significant potential to provide valuable guidance and insights about the B2B firms’ CC to develop SCA to enhance SCRM as risk management for the supply chain can aid in loss prevention and provide an edge over competitors. To the best of the authors’ knowledge, these relationships based on the dynamic capability view (DCV) add to existing studies on B2B firms’ supply chains in a novel way.

Explicating the factors influencing firm performance: study of social enterprises in India

Purpose

The purpose of this study was to ascertain organizational factors that impacted the performance of social enterprises.

Design/methodology/approach

For this research study, a structured close-ended survey questionnaire was prepared based upon literature inputs. The data was collected from 370 executives in social enterprises in India. The data was analysed through structural equation modelling.  The data was analysed towards hypothesis development as well as model development explicating the success of social enterprises.

Findings

This research study’s findings developed a model towards explicating firm level performance in social enterprises. The antecedent factors were organizational commitment (OC), organizational orientation (OO), employee empowerment (EE) and top management support (TMS). The factor business innovation capability (BIC) was the mediating variable, whereas the firm performance (FP) of social enterprises was the dependent variable. Business innovation creativity had full mediation effect.

Research limitations/implications

In this research study, the variable influencing the performance of social enterprises were ascertained. TMS and EE were independent organizational variables in any social enterprise along with the two organizational factors of OC as well as OO that did matter for enhancement of BIC of social enterprises. BIC had full mediating effect based upon the mentioned factors of OC, organization orientation, EE and TMS, which subsequently manifested in superior social enterprises FP.

Practical implications

Social enterprises had to balance the twin objectives of social good (doing good for society) as well as earning economic benefits for the enterprise.  Given this challenge, social enterprises had to develop an organizational context in which employees were empowered towards undertaking social issues proactively. Furthermore, top management team must provide support for such causes. When this aspect coupled with the presence of OC and OO then in the social enterprise, BIC got developed.  With the presence of BICs, it became easier for social enterprises to undertake innovation that were also socially oriented and led to superior FP.

Social implications

It has often been observed in developing countries like India that social innovation and entrepreneurial ventures associated with these have become a necessity. However, such ventures often do not to scale up. Hence, its case for business continuance and sustenance have been challenging. This study provided insights regarding the existential aspect of social enterprises in terms of its performance.

Originality/value

This study was one of the first research studies that integrated the factors of OC, OO, EE and TMS in building organizational capability towards innovation in social enterprises. This in turn contributed towards the improvement of FP of social enterprises.

From framework to theory: an evolutionary view of dynamic capabilities and their microfoundations

Dynamic capabilities (DCs) are organizations' ability to integrate, build, and reconfigure competences, on which they draw to adapt to changes. Despite a significant stream of literature exploring DCs, the following question remains: how do dynamic capabilities allow organizations to adapt to changes and succeed? To fill this gap, this paper outlines a theory of DCs, based on an analysis of strategic behavior (micro)formation at the individual and collective levels. This theory conceptualizes an evolutionary paradigm in which the intentions of organizational agents are intertwined with environmental influences. It defines DCs as ‘instruments able to entrepreneurially solve problems of evolutionary fitness of organizations.’ In doing so, it advances theoretical conceptualization of DCs and their microfoundations to provide insights into how an entrepreneurially led organization may confront and solve problems and ultimately prosper.

Tailoring competitive information sources to the sequence of dynamic capabilities

Dynamic capabilities are central to firms' strategic decision-making and have received increasing attention in recent years due, in part, to the development of the information society. This research explores how web-based and human information sources interact and advance the development of dynamic capabilities. We use a mixed-methods approach executed in two studies. Study 1 reports insights gleaned from in-depth interviews with 12 senior managers. Study 2 provides the findings from a survey completed by 139 senior managers. The analysis indicates that the use of web-based and human information sources facilitates all dynamic capabilities types – sensing, seizing, and reconfiguring. Furthermore, sensing mediates the effects of the information sources on seizing and reconfiguring. This research highlights the strategic potential of using business information sources to advance dynamic capabilities while differentiating between the most commonly used information sources and inspecting their individual and synergistic effects on the advancement of dynamic capabilities.

Application of Quality Function Deployment as an Integrative Method to Knowledge Management Implementation

Knowledge Management Implementation (KMI) can be analysed from three perspectives: Knowledge Management System (KMS) implementation, Knowledge Management Processes (KMPs) implementation and Organisational Outcomes (OO). Quality Function Deployment (QFD), conceived within the scope of quality, represents a method capable of bringing significant contributions to the knowledge field of KMI. The QFD method stands out as a comprehensive approach to improve the quality of products and services, focussing on customer requirements. The literature presents a scarcity of studies that discuss the KMI implementation process, addressing these three perspectives. Furthermore, studies that address QFD in the context of KM are more focussed on the KMS implementation perspective. In this context, this research proposes an innovative approach adopting QFD in order to structure the KMI, encompassing the three perspectives presented (KMS implementation, KMP implementation and OO). In this context, QFD is seen as a method of integrating and operationalising KMI activities. To validate this approach, we applied the case study in an academic support department at a Brazilian public university. As a result, it was possible to verify that the QFD helps in the operationalisation of the KMS and KMP and also improves OO. Still, it was observed that the approach to knowledge management seems to be easy to apply in the academic setting and has produced good results in the service offered in the department where it was applied.

The Curvilinear Relationships Between Relational Embeddedness and Dynamic Capabilities: The Mediating Effect of Ambidextrous Learning

Dynamic capabilities are crucial to the survival and development of enterprises in the BOP (Base/Bottom of the Pyramid, hereinafter BOP) market. The research focuses on the double-edged sword impact of relational embeddedness on dynamic capabilities via ambidextrous learning, that is moderate embeddedness facilitates dynamic capabilities while overembeddedness inhibits them. Furthermore, this study investigates whether human capital moderates the relationships between relational embeddedness and ambidextrous learning. Selecting 264 samples for empirical research, firstly, the results show that the relational embeddedness in the BOP cooperation network has an inverted U-shaped influence on ambidextrous learning and dynamic capabilities. Secondly, exploratory learning and exploitative learning play a mediating role in relational embeddedness and dynamic capabilities. Thirdly, prior experience plays a positive moderating role in relational embeddedness and exploitative learning. The conclusions facilitate understanding the antecedents of dynamic capabilities and the black box of “embeddedness paradox,” and provide empirical evidence for adjusting the human capital of enterprises, enhancing the exploratory learning capability and exploitative learning capability, and coping with the overembeddedness effects.

Exploring Innovation Ecosystem of Incumbents in the Face of Technological Discontinuities: Automobile Firms

In recent years, the innovation ecosystem concept has received much attention in the strategy and innovation fields to address radical or discontinuous innovation. This study aims to explore the innovation ecosystem construct of incumbents in the face of technological discontinuities, focusing on the ecosystem actors (that is, incumbents, component providers, and complementors) and their activities for sustainable value creation. First, we conducted a literature review of 34 highly cited and relevant research documents discussing the innovation ecosystem concept to extract key phrases for the innovation ecosystem’s research framework. Then, through the lens of dynamic capabilities, the five core capabilities of incumbent focal firms—collaboration and networking, opportunity sensing, entrepreneurial orientation, knowledge management, and strategic flexibility—are derived as key elements of the research framework. In addition, the following case study conducted by the content analysis of two leading automobile incumbents, Volkswagen and Toyota, supports and concretizes the established research framework. We conclude that as the value chain in the industry is open to diverse emerging experts holding critical technologies in the era of discontinuous innovation, the ecosystem actors are extensively linked beyond existing industry boundaries. Next, incumbents’ proposed five core capabilities are essential for their successful navigation of the complex innovation ecosystem. Finally, the case study also indicates that the traditional automobile giants in the existing ecosystem are heading toward sustainable value creation via technology internalization and dominant platform building to transform themselves into leaders of a new innovation ecosystem in the era of Connected, Autonomous, Shared and Services, and Electric (C.A.S.E.) innovation in the automobile industry.

Strategy for Sustainability of Social Enterprise in Indonesia: A Structural Equation Modeling Approach

Social enterprise (SE) is a significant global phenomenon that occurs when an organization with social concerns can grow concurrently with its commercial activities. However, the factors that influence the sustainability of SE remain relatively understudied. This study argues that innovation is a prerequisite for SE’s sustainability. Therefore, this study aims to find alternatives to SE’s sustainability strategy, considering the need for SE to have dynamic capabilities, to anticipate changes in the ecosystem, and to manage the company’s internal resources to build on SE’s innovation and sustainability. The dataset was obtained from a survey of 187 SEs in Indonesia, which was then processed using SEM. Results indicate that internal factors have no direct significant effect on sustainability, but the ecosystem and innovation have been shown to have a direct and significant positive effect on sustainability. Dynamic capabilities have a significant but negative direct relationship to sustainability. Internal and ecosystem factors cannot be mediated by dynamic capabilities when it comes to sustainability, whereas innovation can only mediate internal factors towards sustainability. Finally, serial mediation of dynamic capabilities and innovation are key elements that contribute to sustainability. It is proven that if dynamic capabilities are directed to foster innovation, it will increase sustainability.

Go for green: green innovation through green dynamic capabilities: accessing the mediating role of green practices and green value co-creation

Increasing business organizations are also damaging the natural infrastructure, and researchers are pressing hard on this issue since several decades. Moreover, the studies relating to business organizations only focus on the establishment, development, and success of businesses and paid less attention to the dark trade business expansions, i.e., lack of green innovation and increase in pollution and environment damages. Keeping in view these issues, this study is aimed at investigating the effect of green dynamic capabilities, green practices, and green value co-creation on green innovation in SMEs (small and medium enterprises). This study also tested the mediating role of value co-creation in the links between green practices-green innovation and green dynamic capability-green innovation. Structural equation modeling (SEM) was used, and the mediation analysis was conducted through Preacher and Hayes Approach (2004, 2008) and through Soble test. Empirical results proved that green dynamic capabilities, green practices, and green value co-creation improve the mechanism of green innovation in SMEs.

Narratives of environmental munificence of 3PL firms on the relationship between dynamic capabilities, strategic management and organizational performance

Purpose

The purpose of this paper is to examine how the mediating effect of strategic management impacts the relationship between dynamic capabilities and firm performance concerning environmental munificence in 3rd party logistics (3PL) firms operating in Turkey.

Design/methodology/approach

Variance-based structural equation modeling algorithm and correlation analysis were applied to survey data obtained from (n = 482) a top manager from 3PL companies.

Findings

Results revealed that dynamic capabilities were a strong predictor for organizational performance, environmental munificence also emerges as a key predictor for dynamic capabilities and strategic management, and strategic management fully mediates the link between dynamic capabilities and organizational performance, suggesting that they function as substitutes in affecting performance outcomes.

Research limitations/implications

This paper provides empirical evidence of the relationship between the dynamic capability adaptation, strategic management, environment and performance of 3PL firms. As a limitation, the results are based on survey research with a limited sample size.

Practical implications

Organizations should manage not only dynamism but also the scarcity of environmental resources found to be significant on both dynamic capabilities and strategic management. Additionally, in the logistics sector, managers should focus on the big picture while they empower and lead capable followers to transform this strategic view into operational-level changes.

Originality/value

Depending on the relationships between constructs, studying environmental munificence is a different topic than the dynamic environment concept in the effectiveness of dynamic capabilities of 3PL firms. As well as dynamic capabilities at the level of individual and strategic management relationship on organization performance are confirmed.

Toward a taxonomy of dynamic capabilities – a systematic literature review

Purpose

This paper aims to categorize and organize dynamic capabilities that have been inductively identified in empirical research into a comprehensive taxonomy. Thus, it addresses calls in the literature for a better understanding of dynamic capabilities and integration of scattered empirical findings into theory.

Design/methodology/approach

A systematic literature review approach was adopted, with a total of 34 articles published between August 2007 and April 2020, from which 240 idiosyncratic dynamic capabilities were identified. The taxonomy was constructed using the Gioia-method.

Findings

The main finding is a three-level taxonomy of dynamic capabilities (DC). Level DC-1 is based on the existing triad of sensing, seizing and transforming. Level DC-2 is newly introduced to the literature by this study, consisting of 19 dynamic sub-capabilities that categorize and organize all 240 idiosyncratic dynamic capabilities in the sample (level DC-3). The taxonomy supports the existing claim that dynamic capabilities are common in key features and idiosyncratic in details. Moreover, theoretical connections to business model innovation and ambidexterity are indicated.

Practical implications

This study integrates scattered empirical findings of specific dynamic capabilities and translates them to a practitioner audience. The taxonomy allows the strategic manager to understand what they specifically are and, thus, assess the dynamic capability endowment of the firm which allows deploying, developing and fostering them.

Originality/value

The taxonomy provides a comprehensive and tangible picture of what dynamic capabilities look like in practice. It improves existing knowledge and understanding by bridging the rigor-relevance gap between rather rigorous conceptual literature and rather relevant empirical research as it integrates them. As such, it can serve as a “map” of dynamic capabilities for scholars and practitioners.

The process of developing dynamic capabilities: The conceptualization attempt and the results of empirical studies

While most researchers interested in the concept of dynamic capabilities focus their attention on analyzing how companies transform their resources to compete in their environment, the process of developing dynamic capabilities is treated as a marginal issue. Although the literature suggests various approaches to developing dynamic capabilities, they are formulated in general terms, and doubts can be raised about the links between actions. There is also a lack of empirical research indicating the links between activities in the process of developing dynamic capabilities and their influence on the effectiveness of an organization. The aim of the study is to formulate a proposal for a model of the process of developing dynamic capabilities aimed at increasing the economic effectiveness of a company and to determine the links between the activities in the model. The theoretical contribution of the paper consists in presenting a model of the process of developing dynamic capabilities aimed at increasing the economic effectiveness of the company. The results presented in the paper refer to an empirical examination of the model of developing dynamic capabilities, covering five activities: searching for opportunities; knowledge management and learning; coordination; configuration and reconfiguration; and organizational adaptation. The study also includes an examination of the possible impact the components of the dynamic capabilities building process have on a company’s performance. The study uses the survey method and data was obtained from top managers. The conclusion, based on data from 471 Polish companies, was made using structural equation modelling. The results of the empirical research suggest that the individual activities in the process of developing dynamic capabilities are interconnected, and through mutual interactions and couplings, they positively affect the economic effectiveness of an enterprise. The results indicate that searching for opportunities is the precursor, and the main factor influencing the other activities in the process, which suggests that managers should focus on improving activities in this area.

Dynamic capabilities: antecedents and implications for firms' performance

Purpose

This paper aims to explore a new causal link between learning, market and entrepreneurial orientations and firms' performance by introducing dynamic capabilities and competitive advantages as mediator variables.

Design/methodology/approach

The mediating role of dynamic capabilities and competitive advantages is tested using a sample of 1,190 Portuguese firms, and structural equation models.

Findings

It is shown that dynamic capabilities mediate the relationship between the three orientations–learning, market and entrepreneurial–and competitive advantages of differentiation and cost leadership, and both competitive advantages lead to firm's performance. It is also shown that learning orientation is an antecedent of market orientation and entrepreneurial orientation.

Practical implications

This research shows that firm's performance depends on the capacity of firms to learn, innovate, be proactive, take risks and collect the best market data. Indeed, by optimizing the internal management and knowledge dissemination, firms will develop a set of capabilities and competitive advantages that lead to an appropriate response to market challenges.

Originality/value

This study tests the relationship between strategic orientations and firm's performance by taking the mediating effects of dynamic capabilities and competitive advantages into account. This research was conducted in Portugal.

Shaping a Circular Economy in the Digital TV Industry: Focusing on Ecopreneurship through the Lens of Dynamic Capability

In this study, we investigate how companies can contribute to achieving a circular economy (CE) in the electronics industry viewed through the lens of dynamic capability. In particular, we examine how companies can contribute through idiosyncratic ecopreneurship according to dynamic capabilities with three points: the dynamic capabilities of established companies, the formation of ecopreneurship according to idiosyncratic dynamic capabilities, and the shaping of a CE through the interplay of ecopreneurship and dynamic capabilities of established companies. We conducted a case study of five leading TV manufacturers (Samsung, LG, Sony, Hisense, and TCL) to verify our conceptual framework, which we derived from a literature review. The case study shows that a company’s contribution to the CE and ecopreneurship type largely depend on a combination of dynamic capabilities and business strategies. Based on the case study results, we derived managerial implications with three points: the approach of leading companies to CE with consideration of business strategies, leveraging ecopreneurship to gain competitiveness in the market, and the influence of micro- and meso-level dynamic capabilities on a company’s contribution to CE.

Influence of middle management on dynamic capabilities

Purpose

The dynamic capabilities (DC) literature focuses primarily on top managers. Although recent studies have drawn attention to middle management's (MM) relevance, these professionals have not been the focus of much attention in the DC literature. The purpose of this paper is to investigate whether and how MM influences DC dimensions.

Design/methodology/approach

Through a qualitative strategy and case-study method, 13 MM professionals from four Brazilian companies embedded in competitive and dynamic contexts were investigated. The “micro-practices” approach was used to operationalize the DC construct.

Findings

The evidence shows that MM influences DC dimensions. This influence appears to emanate from 19 identified and named micro-practices.

Practical implications

By examining how micro-practices (micro-level) influence macro-level DC dimensions, this article raises the significance of including the micro-practices identified herein in management-training programs.

Originality/value

The first relates to the identification of micro-practices within the MM scope. The second relates to the association of micro-practices with management functions. The third relates to the association of micro-practices with DC dimensions. Thereby, this article highlights how DC work in organizations' daily activities. The fourth is the construction of a framework that demonstrates how to integrate the DC micro (micro-practices), meso (managerial functions) and macro (DC dimensions) scopes. Fifth, this paper affirms the emerging research stream that stresses MM's relevance for DC generation.

Microfoundations of firm capabilities in the context of international business

Purpose

This study aims to investigate how employees in export departments help firms develop dynamic capabilities that drive firm performance in global markets. It draws from the previous scholarship in organizational behavior and international business.

Design/methodology/approach

Since microfoundations of firm capabilities have not received adequate attention in the context of international business, a qualitative research was carried out by conducting semistructured interviews with export managers to provide new theoretical and practical insights about the role of export department employees in developing firm capabilities.

Findings

The results show that organizational citizenship behavior and communication skills are the most highlighted characteristics of export department employees that underpin the improvement of firm capabilities, which in turn, boosts export performance. In addition, teamwork emerged as another contributing factor to firm capabilities.

Originality/value

This study addresses the microlevel foundations of firm capabilities within the context of international business by uncovering the characteristics of export department employees and their team-level contributions to the capabilities of exporting firms.

Exploring microfoundations of dynamic capabilities – challenges, barriers and enablers of organizational change

Purpose

The purpose of this study is to identify factors affecting an organization’s dynamic capability and, consequently, its ability to manage organizational change.

Design/methodology/approach

A single case study was conducted to provide a deeper understanding of the situation that the case company experienced during a specific phase of reconfiguration. Data were collected through nine in-depth, semi-structured interviews and analyzed using the Gioia methodology.

Findings

Challenges, barriers and enablers affecting the organization's dynamic capability in the reconfiguration phase were identified.

Originality/value

This study contributes to the theory of dynamic capabilities and to the current investigatory stream regarding microfoundations by presenting practical examples of challenges, barriers and enablers that affect an organization’s ability to succeed during an organizational reconfiguration. These examples are intended to aid in discussions on microfoundations of dynamic capabilities and their impact in practice.

Paradoxical nature of dynamic capabilities research: a content analysis of literature

Purpose

The purpose of the current study is to identify the nature, scope and locus of and to systematize, the conceptual contradictions existing in dynamic capabilities research.

Design/methodology/approach

This paper employs a content analysis literature review of 86 papers on dynamic capabilities published between 1997 and 2019, using two databases – EBSCO and Web of Science/Knowledge databases. To structure the review, Smith and Lewis's (2011) categorization of organizational tensions is adopted.

Findings

First, the findings of this study suggest that DCs not only are shaped by a tension between efficiency and flexibility but also are built upon a large number of contradictory aspects, represented by organizing, performing, belonging and learning paradoxes. Second, the analysis identifies defensive and active responses to these tensions, with the former prevailing in the dynamic capabilities view literature. Both kinds of responses may facilitate or hinder organizational change. Third, it was found that while the literature has focused predominantly on organizing and learning paradoxes, the linkage between these categories remains under-researched.

Originality/value

This study makes three contributions. First, it identifies the scope (i.e. number), locus (analytical level) and nature (paradox categories and sub-categories) of DC-related paradoxes and responses to paradoxical tensions. Second, it shows that the nature and locus of conceptual contradictions are more complex than conceptualized in prior studies, going beyond the contingency and ambidexterity argument of how to deal with DC-related paradoxes. Third, it seeks to extend Di Stefano et al.'s (2014) proposition of integrating paradoxical views on different DC-related aspects. The idea of “audio console” introduced in this study highlights the interrelation of paradoxes between the categories and across analytical levels.

A text mining-based review of the literature on dynamic capabilities perspective in information systems research

Purpose

While the dynamic capabilities perspective is the most cited strategic theory in the information systems field of research, little effort has been made to review and integrate the associate literature of this perspective in the field. Accordingly, this paper aims to systematically analyze the information systems literature on dynamic capabilities and provide a holistic understanding of the topical composition and trend of dynamic capabilities studies in information systems research.

Design/methodology/approach

Using latent Dirichlet allocation as the text analysis algorithm, the author conducted a topic modeling of the dynamic capabilities corpus in the information systems field of research to quantitatively review, summarize and classify the prior literature. The review covered 191 articles published on dynamic capabilities between 1998 and 2018 in pioneering information systems journals and conference proceedings.

Findings

In accordance with the topic modeling results, the topical composition of the dynamic capabilities corpus in information systems research dominantly includes seven themes titled T1. Information systems value, T2. Information systems change, T3. Digitalization, T4. Information systems agility, T5. Big data, T6. Information systems innovation and T7. Information systems alignment. Also, the overall and topical trend of dynamic capabilities studies in the information systems field of research were revealed. The trends indicated that the investigated domain and its prominent sub-domains have generally had positive productivity over the past years.

Originality/value

The current study contributes to the domain by developing knowledge and improving literature on dynamic capabilities in information systems research, discovering the main topics of interest for information systems researchers to deploying the dynamic capabilities perspective in their studies, and prioritizing the future information systems research on dynamic capabilities based on the identified trends of topics.

The Influence of Innovation in Tangible and Intangible Resource Allocation: A Qualitative Multi Case Study

Considering the current turbulent macroeconomic environment, the aim of this research is to explore the influence of innovation in tangible and intangible resource allocation. The literature underlines that organizations are facing a revolution in their business processes. As such, there is a need to understand the value of knowledge resources and to identify ways to manage them. This paper explores the field of resource allocation, namely dynamic capabilities, and highlights the importance of monitoring intangible resources. This research has three specific contributions. The first contribution provides a comprehensive picture of what has occurred in the field of tangible and intangible resource allocation, such as intellectual capital and its importance towards organizational performance. Secondly, it offers evidence about the actual need for performance measurement tools that foster intangible resource monitoring. Organizations devote special attention to market demands which consequently lead managers to adapt their strategies in areas concerning resource allocation. Given this importance, this research, comprising major innovative organizations in Portugal from diverse activity sectors, provides new insights and stresses the importance of tools to follow the overall performance of resource allocation. Managers of innovative organizations recognize the very powerful features of the Balanced Scorecard (BSC) in monitoring and linking strategic resources of both tangible and intangible natures. Thirdly, this research, with a view to enrich the field of intangible natures, points out some aspects for future research areas, bearing in mind the relevance of this research area confirmed by managers of the major innovative organizations. Thus, it provides prominent information for both academia and innovative organizations.

Dynamic capabilities in media management research. A literature review

Purpose

Dynamic capabilities (DCs) help media firms adapt to rapidly changing environments. The purpose of this study is to provide a comprehensive literature review of studies of DCs in strategic management research with a view to understanding its implications for the management of media organizations. Essentially, it fertilizes on the idea that the concept of DC is useful and vital for answering various critical questions regarding the challenges that media organizations are currently facing.

Design/methodology/approach

This study builds on a systematic literature reviewing design as the research methodology. It aims to identify, critically evaluate, and integrate factors, dimensions, and findings on studies of DCs in strategic management research and builds knowledge transfers to the field of strategic management research in the media industry.

Findings

The study shows that the DC framework helps media firms effectively respond to changing environments. The conceptual DC framework has implications for media strategy practice. Results indicate a considerable growth in the number of papers published related to the DCs in media organizations from 2003 to 2018.

Originality/value

The study qualifies the relevance and validity of the DC framework in strategic management research for the field of strategic media management. It explores a research agenda in this domain by precisely explaining the significant trends in the theory of DC to shape managerial strategies in the media industry.

Dynamic capabilities and performance: How has the relationship been assessed?

The contribution of dynamic capabilities (DCs) to firm performance remains unclear and at the centre of debate. Based on a systematic literature review of 92 quantitative articles, the purpose is to explore how the DC–performance relationship have and should be assessed in the future. The most promising approach seems to be indirect, as it appears that DCs primarily causes change and intermediate outcomes, though far from being the most hypothesized relationship. Moreover, investigations employ a continuum of conceptualizations, ranging from very specific DCs to generic sets with theoretical divergences and overlapping. The same applies to the varied performance measures adopted, evidencing that the literature still has a long way to go. Based on a structured synthesis and analysis of existing studies, a conceptual model, recommendations and future avenues are proposed, along with areas of attention, which have both managerial and practical relevance, contributing to advancement within this research stream.

The Impact of Entrepreneurial Business Networks on Firms’ Performance Through a Mediating Role of Dynamic Capabilities

This precise study is the first to perform a focalized investigation on the relationship between entrepreneurial business networks and sustainable performance of small firms. The entrepreneurial business network is a multifaceted business network of business firms, working together to achieve business objectives. Business relationships and firm aggregations are the main categories of entrepreneurial business networks, which help small and medium-sized enterprises to become more dynamic, innovative and competitive. The entrepreneurial business network is a networking, which provides a platform to build business relationships, identify, develop or act upon economic opportunities, share information and seek potential business partners for ventures. However, few studies have sought to understand the association of entrepreneurial business network (EBN) and firms’ sustainable performance in the context of Pakistan. This investigation aims to examine the relationship between EBN and small firms’ sustainable performance by applying the Smart PLS-SEM software V-3.2.8. This study explores how dynamic capabilities mediate the relationship between entrepreneurial business network and sustainable performance of small firms. The data received reports on small firms, manufacturing surgical instruments. The findings indicated that the entrepreneurial business network had a significant positive relationship with dynamic capabilities, which in turn presented a positive relation to a sustainable performance of small firms. By developing sustainable EBN, small firms can achieve sustainable performance by implementing dynamic capabilities in a competitive environment. The results affirmed that highly entrepreneurial firms showed a tendency to create a business network for achieving sustainable performance. The results also revealed that firms using business networks and dynamic capabilities efficiently; achieved their sustainable performance. The findings indicated that the study proposed a holistic and systematic model to achieve sustainable performance through firms’ dynamic capabilities. The generalizability of these findings provides useful insight and direction for future studies in Pakistan.

Absorptive capacity: A process and structure approach

The aim of this study is to understand and explain different dimensions of absorptive capacity and the strategies used in practice to realise it. The theoretical and conceptual contribution of the study lies in the adoption of a dual process and structure approach, aiming at identifying, respectively, how learning takes place and what learning takes place. The study is based upon a case study research design to explore the manifestation of absorptive capacity processes and its relationship to knowledge structures in four company case studies. The findings of the research indicate that knowledge acquisition, transformation and integration involve successive iterations of codification, abstraction and diffusion of knowledge in relation to product concepts, process requirements and problem-solving approaches. This relates to the capability to adopt, simultaneously, different trajectories in terms of knowledge exploration and knowledge exploitation strategies. The combined adoption of these different strategies enables both strategic and operational flexibility and underlies the successful realisation of absorptive capacity.

FIRM FUNCTIONS AND THE NATURE OF COMPETITIVE ADVANTAGE IN INTERNATIONALIZING SMEs

Prior literature suggests that dynamic capabilities enable, on the one hand, firms to respond successfully to the changes in the markets, and on the other hand, to embrace firms’ ability to shape their business environments. However, existing studies have not fully considered how some firms within the same industry are able to shape markets, and why others need to adapt to these changes in a Kirznerian manner. We make an attempt, based on contemporary literature on the microfoundations of dynamic capabilities, to explain how resource allocation between marketing and R&D function — as one of the microfoundations and as a central contributor to innovation — influences the sustainability of competitive advantage and, consequently, a firm’s ability to create or respond to exogenous shocks. Findings from our multiple-case study on internationalizing SMEs indicate that investments in marketing and R&D functions per se are a necessary though not sufficient condition for building dynamic capabilities and competitive advantage. Rather, the extent to which companies are able to follow their own strategies is closely tied to the microfoundations of dynamic capabilities.

The role of human resource-related quality management practices in new product development

Purpose

The purpose of this paper is to adopt the dynamic capability (DC) view as a theoretical framework to empirically investigate the relationships among human resource (HR)-related quality management (QM) practices: new product development (NPD) as a specific DC, learning orientation, knowledge integration, and strategic flexibility. Learning orientation and knowledge integration represent two antecedents of strategic flexibility, and strategic flexibility is the developed ability that facilitates NPD.

Design/methodology/approach

To empirically test the relationships, the authors used data from 236 European firms and performed structural equation modeling.

Findings

Results indicate that HR-related QM practices contribute to creating a learning-oriented company, integrating knowledge, and supporting successful NPD. Furthermore, knowledge integration is positively related to NPD through strategic flexibility.

Practical implications

This study is relevant for practitioners because it identifies key points in QM implementation that enable firms to be more strategically flexible and thus better able to regularly develop new products.

Originality/value

When organizations must sustain their competitive positions by continuously adapting to environmental changes, it is important to study not only how QM implementation is positively related to the firm performance on which a significant portion of the QM literature has focused but also to study whether QM implementation is related to strategic variables and can make a contribution to strategic processes. To fill the void in the HR and QM literature, this study offers an integrated framework with empirical support that identifies the role of HR-related QM practices in learning orientation, knowledge integration, strategic flexibility, and NPD.

Investigating the Transformation and Transition Processes Between Dynamic Capabilities: Evidence from DHL

Understanding the emergence, development, growth, or termination of dynamic capabilities (DCs) remains a critical topic of organizational research. This study contributes to and expands this stream of research by investigating the transformation and transition between two distinct DCs—acquisition-based and innovation-based—within the global logistics provider DHL across four time brackets from 1997 to 2006. Using content analysis of interviews with DHL’s managers and secondary sources, we identify DCs through bundles of underlying routines and track their evolution. Our findings provide evidence that a specific DC undergoes transformation before the company transitions to another DC, following a reactive sequence. These insights contribute to research on capability development by challenging traditional life-cycle explanations.

How was competitive advantage sustained in management consultancies during change

Purpose

The purpose of this paper is to study the process in which dynamic capabilities renewed operational capabilities to sustain competitive advantage in management consulting firms of Iran during a period of drastic environmental changes.

Design/methodology/approach

Using a grounded theory building approach, comparative longitudinal case analyses were conducted in consultancies of Iran. The research was based on a deep study of documents, observations and interviews with managers and employees of 14 consulting firms.

Findings

It was found that during a period of environmental changes there was a relationship between dynamic capabilities and competitive advantage, but this relationship was mediated by the role of marketing and technological capabilities of a firm. It was also found that trust-building capabilities of the consulting firms moderate the relationship between dynamic and operational capabilities. The research explores homogeneity and heterogeneity of dynamic capabilities among consultancies too.

Originality/value

This research shows that under changing environmental conditions, dynamic capabilities of consultancies can become a source of competitive advantage. Moreover, it discusses whether dynamic capabilities are idiosyncratic or are best practices. It also explains the role of trust-building capabilities of consulting firms in moderating the relationship between dynamic and operational capabilities in the particular environment of Iran.

People management and innovation in emerging market multinationals

Purpose

– As the internationalization process dictates the existence of cross-country networks it is essential to explore avenues that allow emerging market multinationals (EMNCs) to share and receive knowledge that can benefit them locally and globally. The purpose of this paper is to explore this conundrum by addressing the significance of creating a global mindset in individuals and across the multinational corporation. In the paper the authors articulate the mechanisms that influence global managers’ abilities to engage effectively with other global managers across borders.

Design/methodology/approach

– This is a conceptual and theoretical piece.

Findings

– The authors argued that global managers engage in reciprocal learning processes to obtain new, innovative knowledge about other countries’ environments and business practices. The authors furthermore suggest that the effectiveness of new knowledge creation is dependent upon the appropriate input, throughput, and output competencies of those involved in the reciprocal learning process.

Originality/value

– Proper people management plays a crucial role in fostering an environment where employees’ commitment will lead to organizational innovation. Propositions foreshadowing in the new, innovative knowledge creation process across cultural and personal levels are articulated.

Effect of intellectual capital on dynamic capabilities

Purpose

– The purpose of this paper is to examine the effects of intellectual capital (human, social and organizational capital) on dynamic capabilities (learning, integration, reconfiguration and alliance management).

Design/methodology/approach

– A methodical review of relevant literature and the theory of resource-based view, knowledge-based view and dynamic capability view serves as a starting-point to develop a framework for linking intellectual capital with dynamic capabilities. A total of 241 managers from the public sector banks in India was selected as sample of study and structural equation modelling was applied to provide strong evidence for the hypothesis.

Findings

– The study established a strong effect of intellectual capital dimensions on dynamic capabilities in the surveyed banking firms. Human and social capital had the most profound effect on learning, integration, reconfiguration and alliance management capabilities. As regards to organizational capital, an unexpected negative effect on reconfiguration and alliance management capabilities was observed.

Originality/value

– The study clarifies the role of knowledge for various capability developments. One of the significant contributions is with reference to the linkages of structural aspects of knowledge and dynamic capabilities, a link that can barely be seen in the existing literature. To the author’s knowledge the present study makes a preliminary effort to broaden the concepts appeal in new geographical boundaries and empirical context, thus making an original contribution to the Indian banking industry and strategic management literature, significantly.