Dynamic Managerial Capabilities

2019 ◽  
Author(s):  
Véronique Ambrosini ◽  
Gulsun Altintas
Keyword(s):  
Social Capital ◽  
Dynamic Capabilities ◽  
Resource Base ◽  
Top Managers ◽  
And Performance ◽  
Dynamic Managerial Capabilities ◽  
Entrepreneurial Activities ◽  
Managerial Capabilities ◽  
Do So

Dynamic managerial capabilities are a form of dynamic capabilities. They are concerned with the role of managers in refreshing and transforming the resource base of the firm so that it maintains and develops its competitive advantage and performance. To do so, managers must develop entrepreneurial activities. These activities consist of sensing and seizing opportunities and transforming the resource base. While most studies focus on the role of top managers and CEOs, entrepreneurial activities can occur throughout the organization. Mid- and lower-level managers can also sense opportunities emanating from the market. Managerial human capital, managerial social capital, and managerial cognition are the three main antecedents to dynamic managerial capabilities.

Role of information technology in enabling managerial dynamic capabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siddharth Gaurav Majhi ◽  
Arindam Mukherjee ◽  
Ambuj Anand
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Dynamic Capabilities ◽  
Managerial Cognition ◽  
Content Type ◽  
Conceptual Paper ◽  
Dynamic Managerial Capabilities ◽  
Role Of It ◽  
Managerial Capabilities

Purpose The purpose of this conceptual paper is to explicate the role played by information technology (IT) in enabling managerial dynamic capabilities. By doing so, this paper seeks to address a critical theoretical gap regarding IT’s role in enabling dynamic capabilities (DCs). DCs are knowledge-intensive and information-intensive processes and play a crucial role in facilitating strategic renewal of firms operating in volatile, uncertain, complex and ambiguous business environments. Although managers play a central role in the DCs framework, extant research has only focused on the role of IT in enabling firm-level and process-level DCs. Design/methodology/approach This conceptual paper uses the literatures on dynamic managerial capabilities, individual-level information system use, social capital, human capital, managerial cognition and technology-enabled learning to build propositions that link managerial IT use with the enablement of dynamic managerial capabilities. Findings This paper introduces a new construct called individual IT leveraging capability (IILC) and provides theoretically grounded arguments that link IILC with managerial social capital, managerial cognition and managerial human capital. It also explicates the relationships between managerial social capital, managerial cognition and managerial human capital and the dynamic managerial capabilities of sensing, seizing and reconfiguring. Research limitations/implications The establishment of the linkage between IT and dynamic managerial capabilities extends the literature on the business value of IT. This work also adds to the literature on dynamic managerial capabilities by providing a theoretically grounded argument that IT can act as an antecedent of such capabilities. Originality/value To the best of the authors’ knowledge, this paper is arguably the first to theorize the role of IT in enabling managerial DC and thus addresses a critical gap in academic research literature.

scholarly journals Managerial capabilities and firms' sustainable performance: Evidence from Chinese manufacturing small and medium-sized enterprises

2021 ◽  
Vol 2 (1) ◽  
pp. 74-86
Author(s):  
Seare Asfaha Sebhatu ◽  
Keyword(s):  
Firm Performance ◽  
Business Performance ◽  
Dynamic Capabilities ◽  
Policy And Practice ◽  
Sustainable Performance ◽  
Data Collection Process ◽  
And Performance ◽  
Dynamic Managerial Capabilities ◽  
Managerial Capabilities

This research seeks to address small and medium-sized enterprises (SMEs)’ performance problems by linking dynamic managerial capabilities to firm performance. In today’s dynamic market environment, it is vitally important for managers/owners of SMEs to possess dynamic capabilities. This study limited its focus to three managerial capabilities namely networking, sensing, and innovation with the moderating role of market dynamism. The data collection process and analysis provided findings that revealed that Chinese SME managers/owners effectively employ managerial capabilities in managing their firms. The hypotheses tests resulted in significant positive relationship between the main variables and performance. The moderating variable, however, had a significant effect only on moderating the relationship between sensing capabilities and performance. The findings from this study suggest that SMEs need to improve their knowledge and application of managerial capabilities in transforming their business performance thereby contributing to the national economy. This study contributes to the dynamic capabilities’ literature by adding to the existing research on the subject. It also provides an understanding of how dynamic capabilities are deployed to build up a solid and sustainable firm performance that resists the waves of market upheavals and it is expected to greatly benefit theory, policy and practice.

Dynamic managerial capabilities, organisational capacity for change and organisational performance: the moderating effect of attitude towards change in a public service organisation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sunu Widianto ◽  
Yetty Dwi Lestari ◽  
Beta Embriyono Adna ◽  
Badri Munir Sukoco ◽  
Mohammad Nasih
Keyword(s):  
Dynamic Capabilities ◽  
Middle Managers ◽  
Middle Manager ◽  
Organisational Performance ◽  
Content Type ◽  
Organisational Capacity ◽  
Dynamic Managerial Capabilities ◽  
Managerial Capabilities ◽  
Capacity For Change

PurposeThe aim of this study is to explore dynamic managerial capabilities (DMCs) and their effect on public organisational performance. While the previous research has focused on how leadership style impacts on organisational performance, the authors have investigated how the dynamic managerial capabilities of middle managers and their organisational capacity for change as well as their attitude towards the change are linked to organisational performance.Design/methodology/approachThe dataset was gathered during the field research carried out in a large public Indonesian government institution. In total, 313 managers and their direct followers participated in this study. The authors have employed structural equation modelling to test the hypotheses.FindingsThe results of this study demonstrate the role of the dynamic capabilities of the middle managers associated with organisational performance. The results show that dynamic managerial capabilities and organisational performance are mediated by the organisational capacity for change.Practical implicationsMiddle managers should equip and develop their capabilities in order to embrace change in the organisation through the communication between the different staff levels, uniting the vision and mission with the organisational members. Further, the organisation should empower the role of the middle managers by increasing their authority and participation in the policy-making that is part of the change process. In addition, the workplace could implement interventions to optimise the dynamic managerial capabilities held by the middle manager and employees through assessments and mentoring. Finally, particular training programmes could be implemented to boost the employees' skills and flexibility, thereby keeping them agile in the context of the changes in the work environment.Originality/valueThe role of the dynamic managerial capabilities of the middle manager is a prominent factor when facilitating a high level of organisational performance in a public organisation. However, the role of dynamic managerial capabilities does not have a direct effect on organisational performance if the organisation does not have the capacity to change, particularly in the Indonesian context.

Impact of intangible resources (dominant logic) on SMEs innovation performance, the mediating role of dynamic managerial capabilities: evidence from China

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kashif Ullah Khan ◽  
Fouzia Atlas ◽  
Usman Ghani ◽  
Sadia Akhtar ◽  
Farhan Khan
Keyword(s):  
Social Capital ◽  
Innovation Performance ◽  
Content Type ◽  
Dominant Logic ◽  
Mediating Role ◽  
Intangible Resources ◽  
Dynamic Managerial Capabilities ◽  
Managerial Capabilities ◽  
Management Capabilities

PurposeThe purpose of this paper is to examine the important role of intangible resources under resource based view (RBV) such as dominant logic (information filter and learning/routines) and dynamic managerial capabilities (managerial human capital, HC; social capital, SC and managerial cognition, MC) in small and medium sized enterprises (SMEs) innovation performance in Hefei, Anhui province China.Design/methodology/approachAn empirical study was conducted while distributing 498 questionnaires among different SMEs in Hefei, of which around 429 responses were received. Structural equation modeling (SEM) was employed to test the proposed hypotheses.FindingsThis research study is an endeavor to fill the missing link in the existing literature, and empirical analysis of this research supports all the hypotheses confirming that dominant logic and dynamic managerial capabilities are valuable intangible resources and positively and significantly influence the SMEs innovation performance. Results also indicate that managerial human capital, social capital and managerial cognition (dynamic managerial capabilities) play a significant mediating role between dominant logic and SMEs innovation performance.Research limitations/implicationsThe findings suggest that those SMEs which are lacking tangible resources should build and nurture their top management capabilities and dominant logic and SMEs effectively utilizing these intangible resources can enhance their innovation performance.Practical implicationsThe findings suggest that SMEs lacking tangible resources should build and nurture their top management capabilities and dominant logic and SMEs effectively utilizing these intangible resources can enhance their innovation performance.Originality/valueThis paper argues theoretically (under RBV and dynamic capabilities view-DCV) and demonstrates empirically that in an emerging economy, i.e. China characterized by highly volatile, dynamic and uncertain competitive environments, SMEs lack tangible resources; therefore, intangible resources (e.g. dominant logic-DL and dynamic managerial capabilities-DMC) are vital for SMEs innovation performance and competitive advantage.

scholarly journals The relationship between dynamic capabilities, the firm’s resource base and performance in a post-disaster environment

2016 ◽  
Vol 35 (1) ◽  
pp. 78-98 ◽  
Author(s):  
Martina Battisti ◽  
David Deakins
Keyword(s):  
New Zealand ◽  
Small Firms ◽  
Dynamic Capabilities ◽  
Resource Base ◽  
High Volatility ◽  
And Performance ◽  
The Relationship ◽  
Post Disaster ◽  
Practical Implications

This article draws on quantitative survey evidence to explore the role of dynamic capabilities in a post-disaster environment, that of Christchurch in New Zealand after the 2010 and 2011 series of major earthquakes. We develop a model to examine the relationship between dynamic capabilities, disaster-related changes to the firm’s resource base and its performance. The hypotheses are tested using a sample of 545 small firms that have been affected by the earthquakes. Results highlight the importance of a firm’s proactive posture and capability to integrate resources in recognising new opportunities in an environment characterised by high volatility and increased uncertainty. These findings offer important theoretical and practical implications.

scholarly journals Dynamic managerial capabilities in micro-enterprises: Stability, vulnerability and the role of managerial time allocation

2020 ◽  
pp. 026624262097047
Author(s):  
Alex Kevill ◽  
Kiran Trehan ◽  
Shelley Harrington ◽  
Selen Kars-Unluoglu
Keyword(s):  
Case Studies ◽  
Time Allocation ◽  
Dynamic Capabilities ◽  
Group Level ◽  
Dynamic Managerial Capabilities ◽  
Managerial Capabilities ◽  
Micro Foundations ◽  
Micro Enterprises

This article analyses how dynamic capabilities are enacted in micro-enterprises and what role different parties and managerial time allocation play in this enactment. Drawing upon three in-depth case studies of micro-enterprises, we make three theoretical contributions. First, after arguing that micro-enterprises are likely to enact individual- or group-level dynamic managerial capabilities rather than organisation-level dynamic capabilities, we counter Teece’s warnings about the vulnerable nature of dynamic managerial capabilities. Second, we identify that how managers allocate their own time, is a core micro-foundation of dynamic managerial capabilities; we illustrate that failure to allocate time to capability enactment can lead to capability vulnerability. Finally, we introduce the notion of ‘self-damaging dynamic managerial capabilities’ – these being capabilities that damage established micro-foundations.

scholarly journals The Role of R&D Leverage as a Dynamic Capability in Performance Creation: Evidence from SMEs in Taiwan

2019 ◽  
Vol 2 (2) ◽  
Author(s):  
Tung-Shan Liao
Keyword(s):  
Dynamic Capabilities ◽  
Resource Dependence ◽  
Sampling Technique ◽  
Dynamic Capability ◽  
High Resource ◽  
And Performance ◽  
Moderating Role ◽  
Do So ◽  
Performance Creation

This study addresses the role of R&D leverage in SMEs’ performance creation. The authors do so by considering SMEs’ high resource dependence due to isomorphism. We propose that R&D leverage, with a presence of dynamic capabilities, plays a moderating role in the relation between resource investments and performance. This study, which focused on Taiwan’s SMEs, conducts a questionnaire survey using the hierarchical sampling technique, across various industries and geographic areas in Taiwan. The empirical findings reveal that R&D leverage as an essential leveler in resource management enhances resource advantages.

scholarly journals Dynamic managerial capabilities: lessons from non-profits in highly dynamic environments

2017 ◽  
Vol 25 (1) ◽  
pp. 24
Author(s):  
Moritz Martin Botts
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Dynamic Capabilities ◽  
Dynamic Environment ◽  
The Body ◽  
Future Research ◽  
Managerial Cognition ◽  
Non Profit ◽  
Dynamic Managerial Capabilities ◽  
Managerial Capabilities

Purpose. Drawing on the concept of dynamic managerial capabilities, to propose a model that incorporates managerial human and social capital, and managerial cognition in the dynamic capabilities framework. Design/Method/Approach. The study is an empirical in the context of the current conflict in the eastern Ukraine and is an analysis a non-profit field with an extremely high dynamic environment. The data was collected using a quantitative survey with 70 private corps, non-commissioned officers, and higher-ranked officers. Findings. The model provides a direct relationship between dynamic capabilities and dynamic managerial capabilities, whereby the latter is constituted by the perceived manager’s competence (manager’s human capital), manager’s team (manager’s social capital), and manager’s goal congruence towards the goals of the organization (managerial cognition). Theoretical implications. This paper expanded the body of research on dynamic managerial capabilities by developing the following arguments: (1) dynamic managerial capabilities directly influence organizational dynamic capabilities; (2) managerial social capital mediates relationships between managerial human capital and organizational dynamic capabilities; (3) managerial social capital mediates relationships between managerial cognition and organizational dynamic capabilities. Originality/value. This research not only shows how a non-profit organization can act efficiently, it is also an example of an application of strategic management theory to a practical field with life or death consequences. Research limitations/Future research. This research opens avenues for future research on dynamic capabilities in non-profit organizations.  Paper type – empirical.

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