Historical Change and the Competitive Advantage of Firms

2017 ◽  
Author(s):  
R. Daniel Wadhwani ◽  
Geoffrey Jones
Keyword(s):  
Competitive Advantage ◽  
Intellectual Development ◽  
Dynamic Capabilities ◽  
Historical Change ◽  
Historical Research ◽  
Future Research ◽  
Conceptual Language ◽  
Micro Foundations

This chapter aims to deepen the scholarly dialogue between strategy and history. It does so by examining how historical models of change can contribute to theory and research on the competitive advantage of firms during periods of rapid innovation. Focusing on the dynamic capabilities framework, it shows how three models of historical change—evolutionary, dialectical, and constitutive—can be used to extend theory and deepen research about the origins, context, and micro-foundations of dynamic capabilities. We show how each model of historical change shaped the intellectual development of the dynamic capabilities framework, point to historical research that illustrates these processes, and discuss the methodological and conceptual implications for future research. We conclude by suggesting that recognizing and building on these historical models of change can provide a common conceptual language for a deeper dialogue between historians and strategy researchers.

Resources, capabilities and competitive advantage of minor export crops farms in Sri Lanka

2018 ◽  
Vol 28 (5) ◽  
pp. 478-502 ◽  
Author(s):  
Vilani Sachitra ◽  
Siong-Choy Chong
Keyword(s):  
Sri Lanka ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Process Management ◽  
Relationship Building ◽  
Future Research ◽  
Content Type ◽  
Resources And Capabilities ◽  
Physical Assets ◽  
Export Crops

Purpose The agribusiness sector has long been acknowledged as a major source of livelihood to many people in developing countries. Hence, determining the resources and capabilities influencing farm-level competitive advantage are vital to better understand and formulate appropriate strategies to increase the competitiveness ofminor export crops farms. This study aims to understand of the link between resources-capabilities-competitive advantage for appropriate measures to be recommended to enhance the competitive position of the smallholding farms. Design/methodology/approach This study adopts the resource-based view in combination with dynamic capabilities. The scope comprises owners of farms who possess experience in commercial cultivation of minor export crops in Sri Lanka. A self-administrated structured questionnaire was used to collect data. Findings Based on the responses from 456 farm owners, results of the multiple regression analysis indicate that variables representing resources such as human assets, physical assets, financial assets, institutional capital, collective action and entrepreneurial identity; and dynamic capabilities such as organisational learning, relationship building, quality management and marketing are significantly associated with competitive advantage of the minor export crops farms. Reputation and farm process management capability are the only two insignificant variables. Taken together, the resources and dynamic capabilities investigated explain 89.3 per cent of the variation in competitive advantage, in which 82 per cent is contributed by resources. Originality/value The findings provide useful insights not only in terms of understanding the link between resources, dynamic capabilities and competitive advantage but also how resources and capabilities can be channelled and leveraged to bring about competitive advantage to the minor export crops farms. Theoretical and practical implications as well as future research directions are provided.

scholarly journals Assessing dynamic capabilities: Mintzberg’s schools of thought

2011 ◽  
Vol 42 (1) ◽  
pp. 1-8 ◽  
Author(s):  
F. Arndt
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Human Agency ◽  
Dynamic Capability ◽  
Evolutionary Perspective ◽  
Central Source ◽  
Growing Body ◽  
Attention Process ◽  
Micro Foundations

A growing body of research in strategic management has focused on dynamic capabilities as a central source of firms' competitive advantage. The theoretical roots of dynamic capabilities can be found in many of the schools of thought identified by Mintzberg, Ahlstrand and Lampel (1998). In this paper, we identify three aspects of dynamic capabilities that, we believe, require more detailed attention: Process, cognitive and decision-based micro-foundations, and human agency. We explore each of these areas from an evolutionary perspective to emphasize the fact that dynamic capability is essentially an evolutionary construct. By highlighting the evolutionary implications of these areas, we add important detail to the way “evolution” has been used in this field of research.

A Dynamic Ability-Based View of the Organization

2011 ◽  
Vol 7 (2) ◽  
pp. 86-101 ◽  
Author(s):  
Farley Simon Nobre ◽  
David S. Walker
Keyword(s):  
Knowledge Management ◽  
Competitive Advantage ◽  
Dynamic Behavior ◽  
Dynamic Capabilities ◽  
Core Competencies ◽  
Sustainable Competitive Advantage ◽  
Collective Knowledge ◽  
The Core ◽  
Core Ability ◽  
Micro Foundations

This paper investigates theoretical micro-foundations of core competencies in the organization that pursues sustainable competitive advantage. It advocates that there is a lack of literature perspectives which can explain the sources of core competencies of the firm. This research raises questions on: What are the main sources of creation and sustenance of core competencies? What are the abilities which nourish the development of operational and dynamic capabilities? What is the main source of collective knowledge in the organization? This work answers these questions by proposing a dynamic ability-based view of the organization which contributes to explaining the dynamic behavior of the firm in the pursuit of sustainable competitive advantage. Cognition is the core ability which supports individuals, groups, and organizations with intelligence, autonomy, learning, and knowledge management. These concepts form the set of organizational abilities in this research.

Unbundling dynamic capabilities in successful Asian-Pacific shipping companies

2017 ◽  
Vol 11 (2) ◽  
pp. 113-134 ◽  
Author(s):  
Andrejs Čirjevskis
Keyword(s):  
Decision Making ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Illustrative Case ◽  
Competitive Advantages ◽  
Content Type ◽  
Asian Pacific ◽  
Micro Foundations

Purpose This paper aims to add to the understanding of dynamic capabilities (DC) as sources of competitive advantage of successful Asian-Pacific shipping companies by demonstrating that DC development unfolds in three steps, from recognition that the environment has changed, to the decision to deploy DC, to assets re-orchestration. Design/methodology/approach Based on an approach involving two illustrative case studies, the author analyzed DC development of Chinese and Singaporean-based shipping groups in depth. The analysis was centered on DC by investigating how strategic decision-making on vertical integration, diversification and implementation of new technologies can be underpinned by developing DC to create sustained advantages. Findings The author found that strategic components of DC are rooted in strategic decision-making to initiate changes on the corporate and even on an operational level. Research limitations/implications While capability development is thoroughly studied, capability erosion has not been integrated into the research. The exploration of human capital as a firm’s idiosyncratic resource in assets orchestration capabilities can be future work. Practical implications The proposed research contributes to the debate on micro foundations of DC and provides insights for practitioners striving for retaining competitive advantages. Social implications Regarding implications for the society, the research shows how the DC serve to generate competitive advantages. The author has presented a logical structure of the competitive advantage paradigm as a product of DC and business models that can be useful to decision makers. Originality/value The research offers insights into the composition of micro foundations of DC and demonstrates that DC can be unbounded into well-known and concrete strategic and operational management activities.

scholarly journals Dynamic Capabilities and Ambidexterity: How are These Concepts Related?

2018 ◽  
Vol 22 (5) ◽  
pp. 639-660 ◽  
Author(s):  
Silvio Popadiuk ◽  
Aruana Rosa Souza Luz ◽  
Caroline Kretschmer
Keyword(s):  
Conceptual Framework ◽  
Organizational Design ◽  
Dynamic Capabilities ◽  
Future Research ◽  
Design Management ◽  
Sources Of Information ◽  
Organizational Governance ◽  
Scarce Resources ◽  
Top Managers ◽  
Micro Foundations

Abstract The ambidexterity and dynamic capabilities (DCs) literature have contributed to strategic management discussions that seek to explain how firms achieve and sustain competitive advantages. However, few papers are devoted to understanding how they interrelate at Teece’s (2007) micro-foundations of sensing, seizing, and reconfiguring capabilities level. To fill these gaps, we investigate previous works on strategy and organization theories which discuss the ambidexterity-DCs relationship through a systematic literature review complemented by using a snowball technique and then propose a conceptual framework. Review of the literature that integrates the two approaches shows that authors usually understand ambidexterity as a DC. Also, our framework reveals convergent elements between the two kinds of literature, such as learning; sources of information; organizational design; management of scarce resources; increase of resources through outsourcing and alliances; the role of top managers and teams’ participation in decisions; and the relevance of asset specialization and organizational governance. This article aims to contribute to the literature by synthesizing early work relating ambidexterity and DCs; proposing a conceptual framework based on DCs’ micro-foundations; and identifying avenues for future research.

scholarly journals Stakeholder dynamics of contextual ambidextrous capabilities and authenticity: A conceptual synchronisation for competitive advantage

2020 ◽  
Vol 46 (1) ◽  
pp. 26-35
Author(s):  
S. M. Riad Shams ◽  
Demetris Vrontis ◽  
Alkis Thrassou ◽  
Christos Themistocleous ◽  
Michael Christofi
Keyword(s):  
Competitive Advantage ◽  
Conceptual Framework ◽  
Learning Process ◽  
Corporate Reputation ◽  
Dynamic Capabilities ◽  
Mutual Influence ◽  
Future Research ◽  
Brand Positioning ◽  
Communication Management ◽  
Empirical Implications

The combined effect of strategic ambidextrous management (dynamic capabilities and contextual ambidexterity), marketing and brand communication management has been implicitly and explicitly identified as bearing critical implications for competitive advantage. However, the mutual influence of these knowledge streams on competitive advantage as well as its key component of contextual ambidexterity are much under-researched. This article follows an inductive constructivist method to develop a theoretically founded conceptualisation of the means through which the various stakeholder contextual ambidextrous dynamic capabilities can leverage the organisational authenticity learning process in cross-functional management to explore and exploit new competitive advantage scopes. Specifically, this research proposes a theoretically synchronised conceptual framework that focuses on identified key attributes of the knowledge streams, interlinking their individual and combined influences on brand positioning and corporate reputation for the creation of competitive advantage. Scholarly and empirical implications are also presented along with future research avenues.

Identification of the Dynamic Capabilities Ecosystem—A Systems Thinking Perspective

2020 ◽  
pp. 105960112096363
Author(s):  
Vijaya Sunder M ◽  
L S Ganesh
Keyword(s):  
Complex Systems ◽  
Competitive Advantage ◽  
Systems Thinking ◽  
Dynamic Capabilities ◽  
Future Research ◽  
Empirical Methods ◽  
Extant Literature ◽  
Dc System ◽  
Sustained Competitive Advantage ◽  
Managerial Implications

An in-depth look at the extant literature of dynamic capabilities (DCs) shows that the focus has been on the development, justification, and validation of individual DCs through both conceptual and empirical methods. We argue that studying DCs in isolation may not offer a complete practical meaning. Organizations being complex systems, multiple combinations of capabilities and their interrelationships (as a DC system) lead to a sustained competitive advantage, and this effect cannot be attributed to a single DC in isolation. Through this article, we present a system theoretic view of DCs and subsequently propose the concept of a DC ecosystem using a systems thinking perspective. We use the logical reasoning approach of justificationism to present the associated propositions. We conclude with a discussion of managerial implications and suggestions for future research.

scholarly journals The Relations between Dynamic Capabilities and Core Competencies on the Case of Polish Companies

2020 ◽  
Vol 10 (3) ◽  
pp. 48
Author(s):  
Paweł Cegliński
Keyword(s):  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Core Competencies ◽  
Business Environment ◽  
Future Research ◽  
Sustainable Competitive Advantage ◽  
Resource Based View ◽  
End Products ◽  
The Impact ◽  
The Relationship

This article deals with the relationship between dynamic capabilities and core competencies of companies. Both categories extend the resource-based view of the firm. They are difficult to work out, but thanks to their durability and universality they enable to achieve a sustainable competitive advantage. Due to intensive changes in the business environment and increasing difficulty in forecasting them, the importance of adaptability based on both categories increases. The presented results of the research of two leading Polish companies—Panek S.A. and Cukiernia Sowa—are practical examples of the impact of dynamic capabilities on the creation of core competencies and indirectly core and end products and services. The analysis is the basis for improvement of future research.

Personnel Movement and the Development of Dynamic Capabilities

2015 ◽  
Author(s):  
Erin Fahrenkopf ◽  
Linda Argote
Keyword(s):  
Organizational Learning ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Organizational Context ◽  
Future Research ◽  
Sustained Competitive Advantage ◽  
Prior Experiences

We assess the role that organizational learning plays in the development of dynamic capabilities which confer sustained competitive advantage on firms. We argue that learning from the experience of others is a mechanism for developing dynamic capabilities. We examine how firms can learn from the prior experiences of their founders and other employees and identify the conditions under which this learning is most likely to occur. We develop how characteristics of the organizational context and characteristics of the knowledge being transferred condition a firm’s ability to learn from others. The chapter concludes with a set of expectations that we hope will stimulate future research on the important question of how learning from the experience of others enables firms to develop dynamic capabilities.

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