Leveraging IT-enabled dynamic capabilities to shape business process agility and firm innovative capability: moderating role of turbulent environment

Author(s):  
Aboobucker Ilmudeen
2020 ◽  
Vol 12 (3) ◽  
pp. 255-286
Author(s):  
Jorge Ferreira ◽  
Arnaldo Coelho

Purpose The purpose of this paper is to understand the impact of dynamic capabilities (DC) (in the view of exploration and exploitation) on competitiveness and performance, considering the mediating role the innovation capability (IC) and branding capabilities (BC)on competitive advantage and firm’s performance and the moderating role of entrepreneurial orientation (EO). Design/methodology/approach This investigation proposes a theoretical model tested using structural equation modelling (SEM). Multi-group analysis was performed to understand the moderating role of. A questionnaire survey was developed to explore the relations between DC and innovation variable. For this study, 387 valid questionnaires were collected from a sample of Portugal SME’ firms. A 90-item questionnaire which consists to study the relationships among all the variables. Findings The results show that exists a positive direct and indirect influence of DC on competitive advantage and performance variables and mediating impact the IC and BC. Research limitations/implications This study has some methodological limitations affecting its potential contributions. As a cross-sectional study that captures one image in time, its ability to identify strict causality between variables is limited. Furthermore, the results are based on log collected from a key respondent, rather than broader actual data. The results are restricted to one country, Portugal. Some variables, such as ICs, may play a different role in other countries. Future research should initially target different countries. Such research could then test the generalizability of the results. Practical implications This study has important implications for the managers. It highlights the necessity of firms to develop superior strategic orientation of all their members and to invest in better resources and consequently superior capabilities as a way of achieving high levels of firm performance. Another implication from the study is that the firms should develop their marketing programs by focusing on developing innovativeness. Originality/value This study contributes to the understanding of the indirect and direct impact of exploration and exploitation variables, and the mediating role of ICs and BC on the competitive advantage and performance and the moderating effect of EO.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alejandro Bello-Pintado ◽  
Carlos Bianchi

PurposeDiversity of people, knowledge and resources has been identified as a determinant of firms' growth. This paper focusses on innovation propensity as a critical dimension of firm's growth path, aiming to analyse the effects of the firm's horizontal educational diversity (HED) on the propensity to conduct different technological innovation activities (TIAs). In addition, considering the evidence showing that these effects are neither direct nor linear, the authors analyse the moderating role of the firm's organizational practices oriented to knowledge sharing (KS) on the association between HED and the adoption of TIAs.Design/methodology/approachFollowing the theoretical arguments of the resource-based view (RBV), the evolutionary economics and the dynamic capabilities approach and related empirical evidences, the authors proposed four hypotheses regarding the effect of HED on TIAs and the moderating role of work organization practices oriented to promote KS. Empirically, the authors calculated different HED diversity indexes capturing two basic dimensions: variety and balance. Hence, using instrumental variables and panel data techniques to control endogeneity biases, the authors tested the proposed hypotheses using a data set of Uruguayan manufacturing firms between 2004 and 2015.FindingsIn line with previous evidence, results showed idiosyncratic context effects. The authors found a robust, linear, positive and significant relationship between HED and TIAs, but the effect can only be consistently associated with the adoption of internal or external research and development (R&D) activities. Moreover, the moderating role of work organization practices oriented to promote KS is positive and significant when firms engage in TIAs. For technological innovations that only involve the acquisiton of technology (AT), a positive effect is also observed but always associated to organizational practices oriented to promote KS.Originality/valueThis paper revisits the analysis of workforce diversity for a relatively less explored context. This research contributes to the field by linking HED and work organization practices to understand firm's innovation propensity in a developing context. Moreover, while other studies have focussed only on top management or R&D team diversity, the authors have analysed the whole professional's workforce. It allows the authors to discuss the effects of diversity on innovation propensity in the light of the ongoing debate on the effects of innovation in employment.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Laura Zapata-Cantu

PurposeThe overall aim of this paper is to identify the human capital and organizational factors that facilitate knowledge supporting system to boost innovation in emerging markets. The innovative capability of organizations depends undoubtedly on how successful they are in the generation of knowledge, either via external acquisition or internal creation, and how organizational culture, management support and human capital factors are significant.Design/methodology/approachTo validate this phenomenon, a quantitative explanatory study was designed. Data collection was carried out through a questionnaire completed by 211 respondent of firms located in Mexico. During data analysis, structural equation modeling was implemented with the support of SmartPLS 3.0 to understand the moderating role of organizational factors and human capital between knowledge support system and innovativeness.FindingsThe findings show that it is fundamental to build theories grounded in the particular realities of Latin American countries. For instance, these results suggest that there are two paths of innovation in Mexico in which organizational and human factors play key but differentiated roles. On the one hand, organizational culture, top management support, commitment and openness to innovation are essential to building and maintaining a knowledge support system that enables innovation. Additionally, promoting people-oriented organizations is key to innovation. Human capital factors, such as collaborators' motivation, professional skills and the opportunity to learn, intensify the knowledge support system and innovative capability.Research limitations/implicationsThe main limitations of the study are that only Mexican firms have been analyzed, and it is not possible to generalize the results to other contexts. Additionally, we have not identified whether the organizations that participated in the study originated in Mexico or are global enterprises that operate in Mexico. It could be significant to analyze whether multinationals from other countries that are operating in Mexico are more committed to learning to innovate than Mexican firms and the differences in their knowledge generation activities.Practical implicationsThe results of this study invite: (1) Managers to develop strategic initiatives that systematically promote knowledge generation activities identifying external and internal activities that allow them to build and maintain a knowledge support system, (2) Organizations to promote collaborative spaces in which employees can work in teams and strengthen their social ties, identifying communication physical and virtual spaces to share new ideas, seek new ways of doing things, and explore new processes and activities. This process will be significant in a culture where resistance to change predefines how knowledge translates into innovation.Social implicationsThe improvement of collaborators skills must be accompanied by other policies to enhance the innovation and business environment including the modernization and expansion of infrastructure. It is fundamental that governments firms and universities jointly develop a research agenda that will lead to the identification of significant issues and the effectiveness of solutions to foster innovation in Mexico. Only a holistic approach is likely to help the country move up the value chain and become a knowledge economy. In fact innovation is seen as a social process of public sector organizations that promote knowledge infrastructure such as universities and the government agencies that produce knowledge.Originality/valueThese results suggest that there are two paths of innovation in Mexico in which organizational and human factors play a key but differentiated role. In Mexican firms, innovative capability is possible due to knowledge support systems built on organizational factors, and human capital factors, such as professional skills and motivation for opportunities to learn which intensify innovation.


2015 ◽  
Vol 2 (2) ◽  
pp. 20 ◽  
Author(s):  
Khaliq Ur Rehman ◽  
Zafar Saeed

This study observes the phenomenon of organizational performance with the lens of dynamic capabilities. This study investigates the impact of dynamic capabilities on organizational performance, taking organizational competencies as moderating variable, focusing on a paper industry at Lahore, Pakistan. The measurement of dynamic capabilities is based on the multi-dimensional construct underlying the four main factors which include i.e. Sensing, Learning, strong coordination, and competitive response to the rivals. This will lead to explore relationship of dynamic capabilities with organizational performance. Empirical research posits that dynamic capabilities have a direct impact on the organizational performance of the firm. It also proves that organizational competencies have positive moderating role in relationship of organizational performance and dynamic capabilities. This suggests that the direct relationship between dynamic capabilities and performance is insignificant.


Author(s):  
DHIA NOMAN ◽  
ROHAIDA BASIRUDDIN

The interpretation of managers of environmental changes helps in identifying the gaps between the environment and a firm’s capabilities. This in turn can support a firm’s ability to use dynamic capabilities in an effective way to reconfigure the firm’s resources into new operational capabilities that better match the environment and to exploit environmental opportunities. However, extant studies have ignored the moderating role of managers’ interpretation of environmental changes in the capabilities building paradigm. This study empirically examines the moderating role of environmental interpretation in the relationship between dynamic capabilities and improvement capabilities. To operationalise environmental interpretation to enable the development of a measurable model for this construct, which has yet to be developed, 209 large manufacturing firms were selected as a sample to study the relationship between environmental interpretation and firm’s capabilities. By applying the PLS-SEM technique, this study finds that environmental interpretation moderates the relationship between learning capability, integrating capability and coordinating capability and improvement capability.


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