Personnel Movement and the Development of Dynamic Capabilities

Author(s):  
Erin Fahrenkopf ◽  
Linda Argote

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.

2020 ◽  
pp. 105960112096363
Author(s):  
Vijaya Sunder M ◽  
L S Ganesh

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.


Author(s):  
Vilani Sachitra ◽  
Siong-Choy Chong

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.


2011 ◽  
pp. 259-273
Author(s):  
Carlos D. Santos ◽  
Márcio A. Gonçalves ◽  
Fabio Kon

Open source communities such as the ones responsible for Linux and Apache became well known for producing, with volunteer labor innovating over the Internet, high-quality software that has been widely adopted by organizations. In the web server market, Apache has dominated in terms of market share for over 15 years, outperforming corporations and research institutions. The resource-based view (RBV) of firms posits that an organization outperforms its competitors because it has valuable, rare, imperfectly imitable, and non-substitutable resources. Accordingly, one concludes that Apache possesses such resources to sustain its competitive advantage. However, one does not know what those resources are. This chapter is an effort to locate them, answering the question: “What resources enable Apache to outperform its for-profit competitors consistently?” This research draws on the RBV to develop a series of propositions about Apache’s internal resources and organizational capabilities. For each proposition developed, methods for their empirical validation are proposed, and future research directions are provided.


Author(s):  
Linda Argote ◽  
Sunkee Lee ◽  
Jisoo Park

We trace the evolution of research on organizational learning. As organizations acquire experience, their performance typically improves at a decreasing rate. Although this learning-curve pattern is found in many industries, organizations vary in the rate at which they learn. In order to understand this variation, we separate organizational learning into four processes: search, knowledge creation, knowledge retention, and knowledge transfer. Within each process, we present research on how dimensions of experience and of the organizational context affect learning processes and outcomes. Our goals are to describe major findings and to identify opportunities for future research. The article concludes with a discussion of research directions that are likely to be productive in the future. These directions include investigating how new technological and organizational developments are likely to affect organizational learning. This paper was accepted by David Simchi-Levi, finance.


Author(s):  
R. Daniel Wadhwani ◽  
Geoffrey Jones

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.


2010 ◽  
Vol 16 (5) ◽  
pp. 677-699 ◽  
Author(s):  
Hai Ming Chen ◽  
Wen Yen Chang

AbstractPrevious scholars considered competence a ‘fuzzy concept’ and addressed confusions such as ‘competency vs. competence’ and ‘competence vs. core competence’. However, the issue ‘What is the essence of employee competence?’ remains unclear. By inference, the essence of competence is addressed in adoption of an organization's sustained competitive advantage viewpoint different from the traditional viewpoint of enhancing individual employability. This paper contends that employee competence is strategically driven by organizational core competence. Psychologically, employee competence and organizational core competence are similar and linked in terms of person–organization fit and person–job fit. A contextual competence framework is established enlightening the essence of employee competence and redefines competence as a ‘temporary asset’ rooted in the interactively organizational context. Contextual variables including shared values, mutual trust and mutual investment bolster the alignment between employee competence and organizational core competence and develop employee competence as firm-specific, thus becoming a source for sustained organizational competitive advantage.


2011 ◽  
Vol 42 (4) ◽  
pp. 439-446 ◽  
Author(s):  
Linda Argote

The article provides a brief overview of past research on organizational learning. Current research themes are identified, including taking a fine-grained approach to characterizing organizational experience, understanding the role of the organizational context in organizational learning, and analyzing processes and outcomes of knowledge creation, retention and transfer. The article concludes with a discussion of future research that is likely to advance our understanding of organizational learning.


1998 ◽  
Vol 24 (4) ◽  
pp. 489-509 ◽  
Author(s):  
Augustine A. Lado ◽  
Michael J. Zhang

In this paper, we propose a resource-based model to explain how expert systems generate sustained competitive advantage for a firm. Speciftcally, we analyze the extent to which expert systems (ESs) exhibit the attributes of value, rareness, imperfect imitability, and non substitutability associated with a rent-generating resource (e.g., Barney, 1991). Then, we discuss how expert systems yield sustainable competitive advantage through fostering organizational knowledge development and utilization. Finally, we examine the role of ESs in engenden’ng a reciprocal, mutually enhancing relationship with organizational competencies, leading to sustained competitive advantage. Propositions are ofleered to facilitate future research.


2016 ◽  
Vol 34 (5) ◽  
pp. 671-691 ◽  
Author(s):  
S. M. Riad Shams

Purpose – Capacity building is a crucial antecedent for socio-economic development. However, an enhanced capacity that is difficult to develop could quickly be eroded, because of rapid changes in competitive forces in industries and markets. Therefore, this paper intends to analyse the extant strategic management and relationship marketing (RM) literature that deal with competition. Eventually, the purpose of this paper is to develop an alternative route for capacity building process that could sustain competitive advantage in a market or industry, which encounters rapid changes in business competition. Design/methodology/approach – An inductive constructivist approach is followed to support arguments, in order to develop a synthesis from the relevant literature to reinforce the current understandings on capacity building and sustained competitive advantage. Findings – An influence of RM on strategic organisational dynamic capabilities (DCs) is recognised, which appears as significant to sustain DCs and subsequent competitive advantage. Based on this influence, this paper proposes a conceptual framework of capacity building that could survive through the “valuable, rare, inimitability and non-substitutability” test, which is fundamental to sustain competitive advantage. Some empirical insights are developed, in support of this conceptual framework. Practical implications – For research and practice, these insights will be useful to focus on specific attributes in capacity building to sustain the enhanced capacity’s competitive advantage over time, across industries and markets. Social implications – Similarly, the insights will be instrumental to sustain the benefit of capacity building to underpin socio-economic progress. Originality/value – The paper proposes a much needed initial conceptual framework for capacity building to sustain competitive advantage of a hard-earned capacity for socio-economic development.


2020 ◽  
Vol 46 (1) ◽  
pp. 26-35
Author(s):  
S. M. Riad Shams ◽  
Demetris Vrontis ◽  
Alkis Thrassou ◽  
Christos Themistocleous ◽  
Michael Christofi

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.


Sign in / Sign up

Export Citation Format

Share Document