Dynamic capabilities for managing racially diverse workforces: Effects on competitive action variety and firm performance

PurposeThis study aims to augment the understanding of dynamic capabilities (DCs) by exploring the interrelations among the DC categories (sensing, seizing, reconfiguring) and the distinct impact of each DC on firm performance under low and high levels of competitive intensity.Design/methodology/approachThe analysis is based on a cross-sectional survey of 139 managers in Israel. The data were collected through Web-based questionnaires using the Qualtrics software. A two-stage data analysis was performed using structural equation modeling (SEM).FindingsThe findings indicate that DCs follow a sequence in which sensing drives seizing, which, in turn, enhances reconfiguring. The effects of sensing are mainly manifested through its direct impact on seizing, with no evidence for an impact of sensing on company performance. Moreover, under low competitive intensity, only seizing appears to impact performance, while under high competitive intensity, reconfiguring joins seizing in improving firm performance.Originality/valueThe study's findings advance the debate on the direct vs sequential nature of DCs by indicating an internal DC sequence. Our research also advocates for a crucial role of sensing in enhancing DCs, regardless of the level of competitive intensity. Furthermore, this research expands the understanding of the consequences of DCs and enables the prioritization of DC categories under low and high competitive intensity.

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Examining the role of logistics 4.0 enabled dynamic capabilities on firm performance

The International Journal of Logistics Management ◽

10.1108/ijlm-11-2019-0311 ◽

2020 ◽

Vol 31 (3) ◽

pp. 607-628 ◽

Cited By ~ 2

Author(s):

Surajit Bag ◽

Shivam Gupta ◽

Zongwei Luo

Keyword(s):

Firm Performance ◽

Operations Management ◽

Structural Equation ◽

Dynamic Capabilities ◽

Organizational Capabilities ◽

Technological Capabilities ◽

Capability Development ◽

Content Type ◽

Questionnaire Online ◽

Survey Responses

PurposeThe study investigates the effect of technological capabilities, organizational capabilities and environmental capabilities on Logistics 4.0 capabilities and also examines the effect of Logistics 4.0 capabilities on firm performance.Design/methodology/approachThe proposed theoretical framework is tested using WarpPLS 6.0 software. We selected samples from the Automotive Component and Allied Manufacturers in South Africa. Initially, we sent the structured questionnaire online using Google forms to 800 potential respondents. After doing follow ups, we received 230 completed survey responses. Further, data preparation is done using established scientific approach and we checked suitability of its use in structural equation modelling. After ensuring all necessary checks are completed, the results are found satisfactory to further proceed with testing of research hypotheses.FindingsIt is observed that technological capabilities, organizational capabilities and environmental capabilities show significant effect on Logistics 4.0 capabilities. However, the outcome of technological capabilities and environmental capabilities on Logistics 4.0 capabilities (ß = 0.27) is found stronger than organizational capabilities. Logistics 4.0 capabilities shows significant effect on firm performance.Practical implicationsIt is important that the sustainability goals are aligned with Logistics 4.0 strategies. Managers need to increase focus towards development of Logistics 4.0 dynamic capabilities that enhance agility and responsiveness in the supply chain. Managers should check the financial performance and market conditions continuously to further review logistics performance as this can influence the overall firm performance.Originality/valueThis study advances the literature on Logistics 4.0 applications in operations management by investigating the key links such as Logistics 4.0 capability development and firm performance.

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Entrepreneurial actions: implications for firm performance

Journal of Small Business and Enterprise Development ◽

10.1108/jsbed-08-2018-0258 ◽

2019 ◽

Vol 26 (5) ◽

pp. 706-725

Author(s):

Curtis Sproul ◽

Kevin Cox ◽

Amanda Ross

Keyword(s):

Human Capital ◽

Firm Performance ◽

Fixed Effects ◽

Dynamic Capabilities ◽

Positive Impact ◽

Competitive Dynamics ◽

Human Capital Development ◽

Content Type ◽

Entrepreneurial Action ◽

Capital Development

Purpose The purpose of this paper is to investigate different types of investment actions undertaken by entrepreneurial firms to determine how these actions influence performance. Specifically, the effects of entrepreneurial action with regards to investments in human capital, the capabilities of the firm and the competitive dynamics of the business relative to other firms are examined. These actions are examined in conjunction with the offering of products, services or both, to determine the benefits of specific actions for firms. Design/methodology/approach The sample is taken from the confidential version of the Kauffman Firm Survey (KFS). The data are analyzed using a fixed effects model. Findings Results show that investment in human capital development actions and capability development actions improve firm performance. Further, investment in human capital development actions is shown to have the largest positive impact on the performance of firms that offer products only. Competitive positions actions have the greatest positive impact on firms that offer products and services. Research limitations/implications Results contribute to multiple theoretical lenses within the context of entrepreneurship and demonstrate applicability of theory related to entrepreneurial action to other established theories. Findings also demonstrate that different entrepreneurial actions benefit firms that offer products or services in different ways. Limitations of the study are those associated with survey research generally, such as self-reported measures, non-response bias and the KFS specifically such as survivorship bias and variance in survey items across years. Originality/value The consideration of firms whose primary focus is the selling of products compared to services and how they moderate specific actions is novel and valuable. Theoretical development tying human capital, competitive dynamics and dynamic capabilities to entrepreneurial action creates new avenues for inquiry.

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Entrepreneurial Orientation and Performance in South Korea: The Mediating Roles of Dynamic Capabilities and Corporate Entrepreneurship

Entrepreneurship Research Journal ◽

10.1515/erj-2016-0075 ◽

2019 ◽

Vol 0 (0) ◽

Author(s):

Euncheon Lim ◽

Dohyeon Kim

Keyword(s):

Firm Performance ◽

South Korea ◽

Entrepreneurial Orientation ◽

Dynamic Capabilities ◽

Corporate Entrepreneurship ◽

The South ◽

Empirical Results ◽

South Korean ◽

And Performance ◽

The Relationship

Abstract Although a cumulative body of literature explains entrepreneurial orientation (EO) and firm performance, there remain differing views on the mechanisms underlying this relationship. The purpose of this study is to investigate the effect of EO on firm performance by considering the roles of dynamic capabilities (DC) and corporate entrepreneurship (CE). We propose that DC and CE mediate the relationship between EO and firm performance, and our empirical results support these propositions. This study fills a gap in the literature on the EO–performance relationship by considering the linkages among disposition, capabilities, and activities in the South Korean context.

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Development of Dynamic Capabilities for Automotive Industry Performance under Disruptive Innovation

Journal of Open Innovation Technology Market and Complexity ◽

10.3390/joitmc6040097 ◽

2020 ◽

Vol 6 (4) ◽

pp. 97

Author(s):

Atichat Rotjanakorn ◽

Pornrat Sadangharn ◽

Khahan Na-Nan

Keyword(s):

Firm Performance ◽

Dynamic Capabilities ◽

Dynamic Environment ◽

Past Research ◽

Disruptive Innovation ◽

Dynamic Capability ◽

Competitive Advantages ◽

Cross Sectional ◽

Innovative Firm ◽

Short Period

Dynamic capabilities are creating dramatic change for the industry around the world. Resource-Based View (RBV) theory and Operational capability theory are the basic capabilities of an organization under a normal changing environment. This creates a competitive advantage and organizational success in a relatively short period of time, in which the dynamic environment is not sufficient to cope with this change. Dynamic capability is a concept for managing change under this dynamic environment. Past research supports a direct positive relationship between dynamic capability and firm performance but it did not focus on the mediator variables. This research emphasizes the influences of competitive advantages and innovation capabilities as mediators of dynamic capabilities and firm performance were investigated. A cross-sectional design study was utilised and questionnaires were submitted to 326 firms to test the proposed relationships. IBM SPSS Statistics Base 26, IBM SPSS AMOS 21, and PROCESS macro 3.6 were used for statistical analysis. Results revealed that competitive advantages and innovation capabilities were partially mediated by dynamic capabilities and firm performance. Findings contribute to the literature on empowering leadership and innovative firm performance by highlighting that competitive advantages and innovation capabilities act as mediators to improve dynamic capabilities and enhance innovative firm performance.

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THE MODERATING EFFECTS OF ADAPTIVE AND INTELLECTUAL RESOURCE CAPABILITIES ON THE RELATIONSHIP BETWEEN ENTREPRENEURIAL ORIENTATION AND FINANCIAL PERFORMANCE

International Journal of Innovation Management ◽

10.1142/s1363919618500263 ◽

2018 ◽

Vol 22 (03) ◽

pp. 1850026 ◽

Cited By ~ 2

Author(s):

SAMUEL ADOMAKO

Keyword(s):

Firm Performance ◽

Financial Performance ◽

Entrepreneurial Orientation ◽

Dynamic Capabilities ◽

Primary Data ◽

Moderating Effects ◽

Resource Based View ◽

Intellectual Resource ◽

The Relationship

Extant entrepreneurial orientation (EO) literature suggests that EO positively affects firm performance, but several factors influence the potency of this relationship. However, the influence of adaptive and intellectual resource capabilities on the EO–performance linkage lacks theoretical clarity. Accordingly, deriving insights from the resource-based view and dynamic capabilities framework, this paper argues that variations in financial performance are a function of degree of EO and levels of adaptive and intellectual resource capabilities. Using primary data gathered from 245 small and medium-sized enterprises (SMEs) operating in Ghana, the study finds that when a firm’s adaptive and intellectual resource capabilities are well developed and deployed, the potency of EO as a driver of financial performance is enhanced.

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