Situating Dynamic Capabilities

2016 ◽  
Author(s):  
Robert M. Grant ◽  
Anjali Bakhru
Keyword(s):  
Empirical Research ◽  
Dynamic Capabilities ◽  
Integrated Approach ◽  
Organizational Capabilities ◽  
Dynamic Capability ◽  
Effect Change ◽  
Distinct Category ◽  
Hierarchical Structuring ◽  
Antecedents And Consequences ◽  
Systemic Nature

Our understanding of dynamic capability has been impeded by lack of consensus over definition and limited empirical investigation. To better understand the nature and role of dynamic capabilities and to guide empirical research into their antecedents and consequences, we emphasize the systemic nature of capabilities. We propose capability architecture as a framework to describe and analyze firms’ capability systems in preference to the hierarchical capability structures presented in the dynamic capabilities literature. Our framework allows us to investigate not only the hierarchical structuring of capabilities but also their linkages to managerial cognition, organizational processes, and organizational structure. Within this framework, dynamic capability—a firm’s “capacity to alter how it makes its living”—emerges not only from the existence of a distinct category of “dynamic” capabilities whose explicit role is to effect change, but also from the flexibility of “ordinary” capabilities and from system-wide changes in the overall capability architecture. This integrated approach to organizational capabilities has the potential to overcome the fruitless debate over delineating dynamic from ordinary capabilities and to foster a closer linkage between conceptual and empirical research into dynamic capability.

Re-thinking and re-operationalizing product innovation capability

2018 ◽  
Vol 30 (4) ◽  
pp. 374-397 ◽  
Author(s):  
Sumeet Om Sharma ◽  
Angela Martin
Keyword(s):  
Empirical Research ◽  
Product Innovation ◽  
Dynamic Capabilities ◽  
Process Management ◽  
A Priori ◽  
Dynamic Capability ◽  
Future Research ◽  
Innovation Capability ◽  
Content Type ◽  
Measurement Models

Purpose This paper aims to enhance the understanding of the essence of product innovation capability (PIC) as a dynamic capability by systematically assessing its conceptualization and construct validity. The paper answers the call by numerous researchers to undertake research efforts to better understand and operationalize dynamic capability constructs. Design/methodology/approach A priori and scholarly contentions based on complementarities between the tenets of three prominent frameworks (Dynamic Capability View, Process Management and Organizational Ambidexterity) were utilized for conducting a theoretical triangulation, as presented in the paper. Established approaches to explication and measurement of multi-dimensional latent constructs were used for guiding this paper. Findings This paper enhances the conceptualization of dynamic capabilities and identifies a lacuna in frequently adopted PIC operationalization approaches that is pertinent to other dynamic capabilities. It presents substantive and specific prescriptions for enabling the development of superior capability (both dynamic and operational) measurement models in empirical research. Research limitations/implications The diverse implications for research and practice are discussed in the paper alongside suggestions for future research. Originality/value This paper guides future theoretical and empirical research by reviewing the conception and validity of PIC. It presents a comprehensive conception of dynamic capabilities by extending the dynamic capability definition to address the identified problems. The arguments presented have wide-ranging applications and broad generalizability across multiple research fields.

The Effect of Dynamic Capability for the Formation of Competitive Advantage to Achieve Firm’s Performance (Empirical Study on Indonesian Credit Co-operatives)

2015 ◽  
Vol 21 (4) ◽  
pp. 809-813 ◽  
Author(s):  
Anna Astrid Susanti ◽  
Muhtosim Arief
Keyword(s):  
Economic Development ◽  
Empirical Study ◽  
Competitive Advantage ◽  
Empirical Research ◽  
Dynamic Capabilities ◽  
Environmental Changes ◽  
Empirical Studies ◽  
Dynamic Capability ◽  
Unique Character ◽  
The Right

The co-operative plays an important role in Indonesia’s economic development since it can improve people’s welfare and support SMEs through its unique character, which is a combination of the economic and social character. As an enterprise, co-operative is not immune to environmental changes. Therefore co-operative must be able to compete with other industries to reach the best performance in globalization era. The capability to cope with environmental pressure is known as dynamic capability. Research on the implementation of dynamic capabilities, however, only focus on conceptual discussions and empirical studies are still limited, especially in co-operatives. This research is proposed to fill the gap by conducting the empirical research, in order to examine the effect of dynamic capabilities for the formation of competitive advantage to achieve co-operatives’ performance in terms of economic and social performances. The result shows that dynamic capability could be implemented in Indonesian credit co-operatives to establish a competitive advantage and ultimately be used to achieve a better firm’s performances. However, dynamic capability cannot be used directly to achieve a better performance. The firms must choose the right and superior capability to compete with their competitors.

Achieving a firm’s competitive advantage through dynamic capability

2016 ◽  
Vol 11 (3) ◽  
pp. 260-285 ◽  
Author(s):  
Chinho Lin ◽  
Hua-Ling Tsai
Keyword(s):  
Competitive Advantage ◽  
Organizational Performance ◽  
Dynamic Capabilities ◽  
Dynamic Environment ◽  
Quantitative Model ◽  
Organizational Capabilities ◽  
Dynamic Capability ◽  
Top Management ◽  
Content Type ◽  
Firm Model

Purpose – The purpose of this paper is to propose a quantitative model to help managers diagnose what dynamic capabilities a firm needs to address the demands of a rapidly changing environment. Design/methodology/approach – A two-firm model based on the VRIO framework is built using quantitative techniques to assist top management in formulating and implementing strategies regarding when and how to develop a firm’s dynamic capabilities for achieving a competitive advantage. This model is developed by considering both internal and external competences, with the former measured by the features of the organizational capabilities of the focal firm and latter evaluated by comparing the relative utilities of the dynamic capabilities of the two competing firms. Findings – Three resource allocation strategies are introduced to guide a firm to leverage dynamic capability that generates strong organizational performance. The first two strategies are, respectively, synergy oriented, focussing on acquiring various knowledge or experiences of a capability, and uniqueness oriented, emphasizing the depth of knowledge and technology of the capabilities. The third one is a hybrid of the first two strategies. Originality/value – The proposed model is useful to help top management determine how and when to renew, bundle, and leverage resources and capabilities in a dynamic environment. It enables decision makers to detect changes in the competitive environment and take corrective action in a timely and appropriate manner.

scholarly journals The Project-Based Firm: A Theoretical Framework for Building Dynamic Capabilities

2020 ◽  
Vol 12 (16) ◽  
pp. 6639
Author(s):  
Víctor Hermano ◽  
Natalia Martín-Cruz
Keyword(s):  
Dynamic Capabilities ◽  
Dynamic Environments ◽  
Theoretical Framework ◽  
Project Performance ◽  
Organizational Capabilities ◽  
Dynamic Capability ◽  
Organizational Goals ◽  
Individual Project

The problem of achieving individual project performance has been replaced by the problem of achieving organizational goals through project performance. Only project-based firms able to learn and build project capabilities can successfully compete in today’s dynamic environments. The purpose of this paper is to present a dynamic capability-based framework that sheds light on how project and organizational dynamic capabilities are built and how these dynamic capabilities allow project-based firms to perform in dynamic environments. Our theoretical framework unpacks the processes of building dynamic capabilities inside a project-based firm, discussing the routines and procedures that are useful to manage projects in unstable and dynamic environments and to build and reconfigure organizational capabilities from project-led knowledge.

scholarly journals Entrepreneurial initiatives as a microfoundation of dynamic capabilities

2018 ◽  
Vol 14 (1) ◽  
pp. 61-79 ◽  
Author(s):  
Christian A. Mahringer ◽  
Birgit Renzl
Keyword(s):  
Empirical Research ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Corporate Entrepreneurship ◽  
Dynamic Environments ◽  
Dynamic Capability ◽  
Group Level ◽  
Environmental Dynamism ◽  
Content Type

Purpose The purpose of this paper is to show how entrepreneurial initiatives in organizations serve as a microfoundation of dynamic capabilities and, thus, foster change in organizations. Design/methodology/approach This paper revises and applies conceptual and empirical research on dynamic capabilities, their microfoundations and corporate entrepreneurship. In addition, it develops a model of how entrepreneurial initiatives, operative routines and capabilities interact. Findings The paper develops a model of how entrepreneurial initiatives in organizations represent a microfoundation of dynamic capabilities. First, the model shows that environmental dynamism reduces fit of operative routines and capabilities. Second, the model states that entrepreneurial initiatives are triggered by operative routines and capabilities with respect to environmental dynamism. Third, the model suggests that entrepreneurial initiatives disrupt operative routines and capabilities and, thus, restore their fit in dynamic environments. The paper contributes to current research on dynamic capabilities, their microfoundations and corporate entrepreneurship. Originality/value This paper addresses the tension between routinization and the entrepreneurial nature of dynamic capabilities. Considering entrepreneurial initiatives as a microfoundation shows that dynamic capabilities might be entrepreneurial, but still preserve their patterned nature enabling repeated execution. This approach provides a way to reconcile the two sub-streams in dynamic capability research and preserve their ontological assumptions. Moreover, this paper extends the literature on dynamic capabilities by ascertaining how individual and group level entrepreneurial initiatives operate within a broader context.

Toward a taxonomy of dynamic capabilities – a systematic literature review

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niklaus Leemann ◽  
Dominik K. Kanbach
Keyword(s):  
Literature Review ◽  
Empirical Research ◽  
Systematic Literature Review ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Business Model Innovation ◽  
Dynamic Capability ◽  
Content Type ◽  
Strategic Manager ◽  
Practical Implications

Purpose This paper aims to categorize and organize dynamic capabilities that have been inductively identified in empirical research into a comprehensive taxonomy. Thus, it addresses calls in the literature for a better understanding of dynamic capabilities and integration of scattered empirical findings into theory. Design/methodology/approach A systematic literature review approach was adopted, with a total of 34 articles published between August 2007 and April 2020, from which 240 idiosyncratic dynamic capabilities were identified. The taxonomy was constructed using the Gioia-method. Findings The main finding is a three-level taxonomy of dynamic capabilities (DC). Level DC-1 is based on the existing triad of sensing, seizing and transforming. Level DC-2 is newly introduced to the literature by this study, consisting of 19 dynamic sub-capabilities that categorize and organize all 240 idiosyncratic dynamic capabilities in the sample (level DC-3). The taxonomy supports the existing claim that dynamic capabilities are common in key features and idiosyncratic in details. Moreover, theoretical connections to business model innovation and ambidexterity are indicated. Practical implications This study integrates scattered empirical findings of specific dynamic capabilities and translates them to a practitioner audience. The taxonomy allows the strategic manager to understand what they specifically are and, thus, assess the dynamic capability endowment of the firm which allows deploying, developing and fostering them. Originality/value The taxonomy provides a comprehensive and tangible picture of what dynamic capabilities look like in practice. It improves existing knowledge and understanding by bridging the rigor-relevance gap between rather rigorous conceptual literature and rather relevant empirical research as it integrates them. As such, it can serve as a “map” of dynamic capabilities for scholars and practitioners.

Safety of medical activities as an integrated problem

2019 ◽  
Vol 2019 (6) ◽  
pp. 30-35
Author(s):  
Алан Карсанов ◽  
Alan Karsanov ◽  
Наталья Полунина ◽  
Natal'ya Polunina
Keyword(s):  
Integrated Approach ◽  
Complex Problem ◽  
Healthcare Organization ◽  
Structural Components ◽  
Medical Activity ◽  
Staff Motivation ◽  
Medical Technologies ◽  
Systemic Nature ◽  
Clinical Risks

The combined nature of the factors that threaten the patient and the complex subordination of many clinical risks are the basis of the authors' perception of the safety of medical activity (SMA) as a complex problem, the solution of which should be sought in improving managerial measures of a systemic nature. As structural components of an integrated approach to providing SMA, measures should be implemented aimed at increasing staff motivation, at increasing the level of medical communications, at introducing modern diagnostic and medical technologies, at improving the control and administrative component based on the industrial model of healthcare organization.

scholarly journals The Effects of External and Internal Factors on Competitive Advantage—Moderation of Market Dynamism and Mediation of Customer Relationship Building

2021 ◽  
Vol 13 (7) ◽  
pp. 4066
Author(s):  
Romina Cheraghalizadeh ◽  
Hossein Olya ◽  
Mustafa Tumer
Keyword(s):  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Capabilities Approach ◽  
Relationship Building ◽  
Customer Relationship ◽  
Mediation Effect ◽  
Organizational Capabilities ◽  
Validity And Reliability ◽  
Internal And External Factors ◽  
The Relationship

Using a resource-based view and dynamic capabilities approach, this study investigates both the internal and external factors influencing competitive advantage in the hotel industry. For this purpose, we examine how organizational capabilities may lead to customer relationship building and in turn to competitive advantage. We further test the moderation role of market dynamism on the relationship between organizational capabilities and customer relationship building, and also investigate the mediation effect of customer relationship building on the association between organizational capabilities and competitive advantage. A questionnaire-based study was conducted among hotel employees in Northern Cyprus to test the conceptual model. A set of approaches was applied to detect common method bias and test the validity and reliability of the questionnaire. Correlation and regression analyses were conducted to evaluate the relationships between the variables, and bootstrapping analysis was applied to assess the mediation and moderation effects. The results revealed that organizational capabilities enhance customer relationship building and competitive advantage. Market dynamism as an external factor moderates the relationship between organizational capabilities and customer relationship building. There is also an indirect association between organizational capabilities and competitive advantage through the mediation of customer relationship building. The theoretical and practical implications of the findings are discussed.

Dynamic capabilities vs. innovation capability: are they related?

2014 ◽  
Vol 21 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Lidija Breznik ◽  
Robert D. Hisrich
Keyword(s):  
Literature Review ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Future Research ◽  
Innovation Capability ◽  
New Approach ◽  
Content Type ◽  
New Research ◽  
The Relationship

Purpose – The purpose of this paper is to provide insights into the relationship between dynamic capabilities and innovation capabilities. It links dynamic capability with innovation capability and indicates the ways they can be related. Design/methodology/approach – The relationships between dynamic and innovation capability were investigated through a systematic literature review. Findings – The review indicates that common characteristics exist between of the both fields, which demonstrate six relationships. Additionally, findings show some inconsistencies and even contradictions. Originality/value – In this paper, the authors have compared dynamic capabilities, a relatively new approach in the field of strategic management, with innovation capabilities, a widely recognised crucial domain for sustained competitiveness. Since both areas address issues that are essential to today's environment, future research should seek to clarify both concepts, by undertaking some new research and developing comprehensive and unambiguous framework.

Exploring organizational problem-solving modes: a dynamic capabilities approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Matin Mohaghegh ◽  
Andreas Größler
Keyword(s):  
Problem Solving ◽  
Dynamic Capabilities ◽  
Fundamental Solutions ◽  
Capabilities Approach ◽  
Dynamic Capability ◽  
Learning Mechanisms ◽  
Content Type ◽  
Improvement Programs ◽  
Micro Foundations

PurposeAdopting the dynamic capability perspective, this study aims at exploring which problem-solving capabilities result in fundamental solutions with a potentially low likelihood for problems to recur. This can also shed light on why, despite many attempts, process improvement programs often fail to produce such long-term solutions.Design/methodology/approachA case study is carried out to inductively describe and classify problem-solving in companies and to indicate why problem-solving efforts are typically bounded to short-term solutions. The empirical findings are triangulated with findings from the extant literature.FindingsFirst, the authors propose three problem-solving modes with different characteristics and potential impacts on operational performance: intuitive problem-solving, semi-structured problem-solving and systematic problem-solving. Second, by emphasizing dynamic capabilities' micro-foundations and with the focus on learning mechanisms, the authors show that, among these modes, only systematic problem-solving can serve as a dynamic capability with fundamental solutions. Third, based on insights from the case study, the authors address behavioral and organizational impediments that curb dynamic capabilities and limit systematic problem-solving adoption.Originality/valueThis study is an empirically informed attempt to understand systematic problem-solving as a dynamic capability. The authors uncover the micro-foundations and the learning mechanisms through which systematic problem-solving becomes a dynamic capability. By highlighting problem-solving orientation as a hardly investigated dimension of improvement programs, the authors show that a mixture of a static problem-solving approach and a set of impediments at both individual and organizational levels is the major reason of failures of improvement programs over time.

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