scholarly journals When strategic consensus matters: dynamic managerial capabilities and firm internationalization as seen by TMT

2020 ◽  
Vol 27 (3) ◽  
pp. 285-315
Author(s):  
Lauri Haapanen ◽  
Pia Hurmelinna-Laukkanen ◽  
Kaisu Puumalainen
Keyword(s):  
Driving Force ◽  
Dynamic Capabilities ◽  
Point Of View ◽  
International Expansion ◽  
Content Type ◽  
Negative Results ◽  
Strategic Consensus ◽  
Internationalization Strategies ◽  
Dynamic Managerial Capabilities ◽  
Managerial Capabilities

PurposeIn this study, the authors explore how sensing and seizing of market opportunities, asset reconfiguration and top management team (TMT) consensus on these elements jointly relate to a firm's international expansion. By doing this, the authors contribute to the existing literature by addressing dynamic managerial capabilities at the TMT level instead of considering them as individual executives' traits. The authors use the qualitative comparative analysis (QCA) method to analyze our data from 261 TMT executives in 63 firms. The findings indicate that sensing, seizing and reconfiguration capabilities are highly relevant for internationalization but in different configurations for specific stages and elements of international business. Presence of sensing as a part of configurations is observable, especially in connection to a firm having foreign customers and explicit internationalization strategies, while configurations where seizing and reconfiguration emerge are connected to firms showing continuity in the international markets. The authors’ results also indicate that a lack of TMT consensus in connection to dynamic managerial capabilities is a driving force that allows the firm not to stagnate with regards to internationalization. Yet, lack of TMT consensus combined with low reconfiguration capabilities seems to generate negative results, which suggests that different views are not helpful if the firm is incapable of changing its approaches.Design/methodology/approachThis study uses data gathered with a questionnaire where the executives select either “yes” or “no” in response to statements describing the firm situation with regard different managerial aspects and progress of international growth. The authors analyze these data from 261 TMT executives from 63 firms using the QCA method.FindingsThe findings indicate that sensing, seizing and reconfiguration capabilities are highly relevant for internationalization but to different extents for specific elements of international business; generally, while sensing is needed, in particular, for having foreign customers and internationalization strategies in the first place, seizing and reconfiguration became relevant for continuity in the international markets. Consensus or rather lack of it on these elements also plays a role. It seems that some disagreement is a driving force that allows the firm not to stagnate with regards to internationalization. However, TMT disagreement combined with low reconfiguration capabilities seems to generate negative results, which suggests that different views are not helpful if the firm is incapable of changing its approaches.Research limitations/implicationsThe findings contribute to existing knowledge by exploring how managerial capabilities influence firm-level dynamic capabilities from the point of view of the TMT. The authors also add to existing research that has often focused on the relationships between TMT executives' demographic traits and TMT consensus and, further, the (subsequent) firm performance by looking at different configuration rather than linear linkages. Together, these notions further mean that the authors change the point of view on diversity. The authors consider the consensus on existing managerial dynamic capabilities rather than evaluate the functional diversity or the TMT executives' agreement on strategic moves.Practical implicationsAll capabilities are important. TMT does not need to agree on everything, as long as they acknowledge where their problem areas are, and they can capture at least some of the relevant trends and opportunities. In fact, having some lack of consensus seems to be a driving force that allows capabilities to be questioned and potentially keeps (false) under-appreciation of existing capabilities from becoming a barrier to international expansion.Originality/valueUnlike previous studies that have focused on the relationship between the TMT executives' demographic characteristics and firm performance or the relationship of the demographics and TMT strategic consensus at a general level – or studies that have explained international performance with TMT consensus (or with dynamic managerial capabilities), this study brings forth how the dynamic managerial capabilities and the TMT executives' strategic consensus with regard to these capabilities influence the firm's international expansion. Here, the authors consider internationalization widely, looking at whether the firm has foreign customers or international expansion strategy in place, and whether there this activity is sustained and continuous (with repeated trading and long-term international contracts, in particular). To our knowledge, there is no research on TMT strategic consensus that explains how the unanimity among executives on dynamic managerial capabilities connects to the firm's international expansion.

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.

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.

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.

Implications of marketing Jordan as a Halal tourism destination

2019 ◽  
Vol 11 (1) ◽  
pp. 97-116 ◽  
Author(s):  
Salem Harahsheh ◽  
Rafa Haddad ◽  
Majd Alshorman
Keyword(s):  
Islamic Law ◽  
Point Of View ◽  
Negative Evaluation ◽  
Tourism Destination ◽  
Chi Square ◽  
Content Type ◽  
Islamic History ◽  
Negative Results ◽  
Two Samples ◽  
Tourism Destinations

Purpose The purpose of this paper is to build a better understanding of the concept of Halal tourism as expressed by Muslim Jordanian tourists who want to comply with the Islamic law. The study also examines Jordan as a Halal tourism destination as perceived by those tourists. Implications of marketing Jordan as a Halal tourism destination are among the research questions. Design/methodology/approach The paper is empirical and quantitative in nature with a survey type. The sample of the study is Muslim Jordanians in the cities of Amman and Irbid. Respondents were chosen randomly in shopping malls, gardens and public places. A self-completion questionnaire was administered to collect the data for the research and 920 questionnaires were returned. The data were analysed using descriptive and reliability and explanatory factor analysis in addition to certain tests such as one sample t test and two samples chi-square tests. Findings Halal tourism in Jordan is established but needs more enhancements and promotion. Jordan was evaluated positively in 14 Halal services and was unsuccessful in ten others. The motives for Jordanian Muslim tourists who want to comply with the Islamic law, to travel to Halal destinations were destinations that offer Halal-friendly services; to know Islamic religious sites; and to learn about Islamic history. Jordanian tourists were knowledgeable of local and international Halal destinations (78.2 and 67%, respectively). More than half of the sample experienced Halal destinations in Jordan and only 26.4% abroad. From a marketing point of view, the results of this study reveal good awareness of potential Jordanian tourists towards Halal tourism and Halal services. The study revealed that Jordanian Muslim tourists who want to comply with the Islamic law showed significant positive motives to travel Halal tourism destinations. In addition, the study showed statistically significant knowledge and experiences in local Halal destinations, but not in foreign Halal destinations. Research limitations/implications The lack of research on Halal tourism in Jordan gives limited in-depth discussion. In addition, the study sample was chosen from two major cities in Jordan; therefore, further research is needed to include a representative sample of the whole country. Practical implications The paper includes marketing implications on Halal tourism in Jordan. The authors suggest marketing strategies should be launched to emphasise the importance of Halal tourism and marketing Jordan as Halal tourism destination. The recommendations of this study provide positive and negative results on Jordan as a Halal tourism destination. The negative evaluation of Jordan in terms of Halal services should be redressed by the Jordanian Government and the Jordanian private tourism and hospitality sectors to build a positive image of Jordan as a potential competitive Halal destination for Muslim tourists who want to comply with the Islamic law. Originality/value The paper is among the first of its kind, which empirically examined the motives of Jordanian Muslims who want to comply with the Islamic law to travel to Halal tourism destinations as well as evaluating Jordan as a Halal tourism destination. This study fills the gap in literature about Halal tourism in Jordan and presents Halal tourism as one of the alternative forms of tourism of high potential for Jordan to compete in this market segment.

Internationalization of Mexican family firms: the cases of Xignux and Grupo Alfa

2017 ◽  
Vol 27 (2) ◽  
pp. 180-198 ◽  
Author(s):  
Juan Velez-Ocampo ◽  
Karthik Govindan ◽  
Maria Alejandra Gonzalez-Perez
Keyword(s):  
Latin American ◽  
Strategic Alliances ◽  
Family Firms ◽  
Organizational Capabilities ◽  
International Expansion ◽  
Theoretical Understanding ◽  
Case Study Methodology ◽  
Content Type ◽  
Internationalization Strategies ◽  
Mexican Family

Purpose This theory testing paper compares and analyzes the internationalization process of two Mexican family-owned firms: Xignux and Grupo Alfa. This paper is intended to offer a theoretical understanding using existing frameworks such as OLI (ownership, location and internationalization), LLL (linkage, leverage and learning) and the Uppsala model. Furthermore, it tests whether the theoretical framework of organizational capabilities and international ventures fits the internationalization of these companies. Design/methodology/approach This paper is based on case study methodology using the companies’ publically available data. Both within-case and cross-case analysis were carried out to identify specific traits in the internationalization pattern of both firms; cases were also compared with literature to identify conflicts and similarities that enable a better understanding of the phenomenon. Findings It was found that not a single theory fully and satisfactorily explains the internationalization of both Xignux and Alfa, instead, issues like internationalization into low psychic distance countries, establishment of strategic alliances and the exploitation of locational-specific advantages contributed in the international expansion of the studied companies. Originality/value There is an increasing amount of available literature regarding internationalization strategies and internationalization theories applied to developing and emerging country firms. However, most of the studies analyze companies from Asia, and there are limited studies on multilatinas (i.e. Latin American multinationals). Furthermore, scholars in the field of international business are still debating whether the existing theories, or an adaptation of them, explain the internationalization of multilatinas.

scholarly journals International strategies of emerging market multinationals: A dynamic capabilities perspective

2018 ◽  
Vol 26 (4) ◽  
pp. 408-425 ◽  
Author(s):  
Ping Deng ◽  
Yang Liu ◽  
Vickie Coleman Gallagher ◽  
Xiaojie Wu
Keyword(s):  
Dynamic Capabilities ◽  
Success Factors ◽  
Emerging Market ◽  
Future Research ◽  
International Expansion ◽  
Strategic Choices ◽  
Exploration And Exploitation ◽  
Emerging Market Multinationals ◽  
Internationalization Strategies ◽  
International Strategies

AbstractThis paper focuses on the importance of dynamic capabilities in shaping the nature of international strategies of emerging market multinationals from mid-range economies. We argue that dynamic capabilities theory provides an insightful approach to understanding the internationalization of emerging market multinationals and their strategic choices. Drawing on dynamic capability theory and unpacking dynamic capabilities into four distinct but related dimensions or facets, we develop a typology of three internationalization strategies available to emerging market multinationals in their international expansion: sequential international ambidexterity (from exploitation to exploration, and vice versa) and structural international ambidexterity (simultaneous exploration and exploitation). Success factors associated with each of the ambidextrous internationalization strategies are also considered. We conclude with a discussion of the implications of the dynamic capabilities framework for theoretical implications and fruitful areas for future research endeavors.

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.

Business, society, and the need for stewardship orientation

2019 ◽  
Vol 32 (1) ◽  
pp. 145-163 ◽  
Author(s):  
Andre Nijhof ◽  
Jaap Schaveling ◽  
Nicolette Zalesky
Keyword(s):  
Multinational Corporations ◽  
Educational Background ◽  
Strategic Orientation ◽  
Business And Society ◽  
Content Type ◽  
Sustainability Performance ◽  
Strategic Orientations ◽  
Template Analysis ◽  
Dynamic Managerial Capabilities ◽  
Managerial Capabilities

PurposeOrganizational change involves optimizing a firm’s sustainability performance. The purpose of this paper is to explore how strategic orientations concerning the interface between business and society influence organizations’ sustainability performance. To explain how different strategic orientations – especially stewardship and instrumental orientations – impact sustainability performance, dynamic managerial capability theory is explored.Design/methodology/approachOurs is an inductive, qualitative study based on the template analysis of interviews conducted among sustainability managers from stock-listed multinational corporations headquartered in the Eurozone.FindingsCorporations with a stewardship orientation develop different dynamic managerial capabilities underlying sustainability performance than corporations that apply a more instrumental orientation. Results also show an “in-between” position: an equidistant orientation.Research limitations/implicationsThis study proves the emergence of different dynamic managerial capabilities that depend on companies’ strategic orientation, but follow-up research based on appreciative inquiry is needed to investigate the development of these capabilities over time.Practical implicationsFor achieving a higher level of sustainability performance, a stewardship orientation offers a stronger foundation than an instrumental orientation. Also companies with an equidistant orientation have a better sustainability performance than companies with an instrumental orientation, but based on a more central corporate level. The strategic orientation must be grounded in the development of fitting dynamic managerial capabilities that include an emphasis on shared cognition of long-term objectives, inclusion of stakeholders and setting objectives. Also strong internal and external ties, leadership of the CEO, educational background and how to deal with lack of knowledge are important aspects of managerial social and human capital.Social implicationsDue to its focus on the sustainability performance of companies and the identification of the supporting dynamic managerial capabilities, this paper is socially highly relevant.Originality/valuePrevious research has focused on strategic orientation, but little to no research has investigated how various strategic orientations toward the interface between business and society impact sustainability performance or what role dynamic managerial capabilities might play in the related change process.

Preparing supply chain for the next disruption beyond COVID-19: managerial antecedents of supply chain resilience

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ethan Nikookar ◽  
Yoshio Yanadori
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Supply Chain ◽  
Critical Role ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Organizational Antecedents ◽  
Dynamic Managerial Capabilities ◽  
Multiple Mediator Model ◽  
Managerial Capabilities

PurposeCOVID-19 once again showed the importance of building resilience in supply chains. Extant research on supply chain resilience management has successfully identified a set of organizational antecedents that contribute to supply chain resilience. However, little is known about the mechanisms by which these antecedents are developed within a firm. Drawing on the dynamic managerial capabilities theory, the current study aims to investigate the critical role that supply chain managers play in developing the organizational antecedents. Specifically, this study shows that supply chain managers' social capital, human capital and cognition are instrumental to the development of three organizational supply chain resilience antecedents: visibility, responsiveness and flexibility, which subsequently enhance the firm's supply chain resilience.Design/methodology/approachThe authors employ survey data collected from 598 manufacturing firms in Australia, and Hayes and Preacher's (2014) parallel multiple mediator model to empirically test the hypotheses.FindingsThe findings of the study establish that supply chain managers' social capital, human capital and cognition indeed have implications for developing supply chain resilience. Furthermore, the mediators through which managers' social capital, human capital and cognition improve supply chain resilience are identified in the current study.Originality/valueThe study contributes to the extant literature on supply chain resilience, investigating the role that supply chain managers play in developing the resilience of their firm.

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