The relationship between dynamic capabilities and firm competitive advantage

2016 ◽  
Vol 28 (4) ◽  
pp. 431-448 ◽  
Author(s):  
Lolita Jurksiene ◽  
Asta Pundziene
Keyword(s):  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Theoretical Explanation ◽  
Research Literature ◽  
Organizational Ambidexterity ◽  
Content Type ◽  
Mediating Role ◽  
Conceptual Paper ◽  
New Perspective ◽  
The Relationship

Purpose Dynamic capabilities and organizational ambidexterity are closely related concepts. Unfortunately, there is still a lack of understanding about the relation between the two. This paper aims to offer a theoretical explanation of the relationship between dynamic capabilities, organizational ambidexterity and firm competitive advantage. The authors find that organizational ambidexterity may be considered as a mediator in the relationship between dynamic capabilities and firm competitive advantage. Therefore, this paper contributes theoretically to the authors’ understanding of the relationship between organizational ambidexterity and dynamic capabilities with regard to firm competitive advantage. Design/methodology/approach In this conceptual paper, the review of research literature on dynamic capabilities and organizational ambidexterity is presented. Theoretical analysis is followed by theoretical prepositions that should be subsequently tested empirically. Findings By considering dynamic capabilities and organizational ambidexterity related to competitive advantage, this paper provides a new perspective on concepts’ relationship. The theoretical findings described in this paper suggest that organizational ambidexterity plays a mediating role in the relationship between dynamic capabilities and firm competitive advantage. Research limitations/implications Further research are required to develop organizational ambidexterity and dynamic capabilities theories, focusing more on the relation to competitive advantage. Additional testing is necessary to empirically validate the propositions given in this paper. Originality/value Based on theoretical findings, this paper clarifies the relationship between dynamic capabilities and organizational ambidexterity concepts. Theoretical findings described in this paper also determine the guidelines for further theoretical and empirical research within the fields.

Challenge-hindrance stressors and career initiative: a moderated mediation model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yan Liu ◽  
Lei Ren
Keyword(s):  
Positive Affect ◽  
Job Autonomy ◽  
Content Type ◽  
Mba Students ◽  
Mediating Role ◽  
Moderated Mediation Model ◽  
Part Time ◽  
New Perspective ◽  
The Relationship

PurposeThe purpose of this paper is to explore the relationship between challenge-hindrance stressors and employees’ career initiative while incorporating the mediating role of positive affect and the moderating role of job autonomy.Design/methodology/approachFive proposed hypotheses were tested using path analysis with two waves of data collected from 136 part-time MBA students.FindingsThe findings show that challenge stressors indirectly facilitate career initiative, whereas hindrance stressors indirectly inhibit career initiative, both with positive affect as mediators. Job autonomy enhances the direct relationship between positive affect and career initiative, as well as the indirect relationships among challenge/hindrance stressors, positive affect and career initiative.Originality/valueThe study brings a new perspective to understanding why an employee conducts career initiative, thereby widening the scope of the antecedents of career initiative. The study discloses positive affect as the mediator that transmits the opposite effects from challenge-hindrance stressors to career initiative. It also identifies job autonomy as an important boundary condition for positive affect to exert its influence on career initiative, as well as challenge-hindrance stressors that influence career initiative via positive affect.

Dynamic capabilities: antecedents and implications for firms' performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ricardo Jorge Correia ◽  
Mário Sérgio Teixeira ◽  
José G. Dias
Keyword(s):  
Structural Equation ◽  
Dynamic Capabilities ◽  
Structural Equation Models ◽  
Causal Link ◽  
Competitive Advantages ◽  
Content Type ◽  
Mediating Role ◽  
Strategic Orientations ◽  
The Relationship

PurposeThis paper aims to explore a new causal link between learning, market and entrepreneurial orientations and firms' performance by introducing dynamic capabilities and competitive advantages as mediator variables.Design/methodology/approachThe mediating role of dynamic capabilities and competitive advantages is tested using a sample of 1,190 Portuguese firms, and structural equation models.FindingsIt is shown that dynamic capabilities mediate the relationship between the three orientations–learning, market and entrepreneurial–and competitive advantages of differentiation and cost leadership, and both competitive advantages lead to firm's performance. It is also shown that learning orientation is an antecedent of market orientation and entrepreneurial orientation.Practical implicationsThis research shows that firm's performance depends on the capacity of firms to learn, innovate, be proactive, take risks and collect the best market data. Indeed, by optimizing the internal management and knowledge dissemination, firms will develop a set of capabilities and competitive advantages that lead to an appropriate response to market challenges.Originality/valueThis study tests the relationship between strategic orientations and firm's performance by taking the mediating effects of dynamic capabilities and competitive advantages into account. This research was conducted in Portugal.

Dynamic capabilities, innovation and branding capabilities and their impact on competitive advantage and SME's performance in Portugal: the moderating effects of entrepreneurial orientation

2020 ◽  
Vol 12 (3) ◽  
pp. 255-286
Author(s):  
Jorge Ferreira ◽  
Arnaldo Coelho
Keyword(s):  
Competitive Advantage ◽  
Entrepreneurial Orientation ◽  
Dynamic Capabilities ◽  
Exploration And Exploitation ◽  
Content Type ◽  
Mediating Role ◽  
And Performance ◽  
Positive Direct ◽  
Moderating Role

Purpose The purpose of this paper is to understand the impact of dynamic capabilities (DC) (in the view of exploration and exploitation) on competitiveness and performance, considering the mediating role the innovation capability (IC) and branding capabilities (BC)on competitive advantage and firm’s performance and the moderating role of entrepreneurial orientation (EO). Design/methodology/approach This investigation proposes a theoretical model tested using structural equation modelling (SEM). Multi-group analysis was performed to understand the moderating role of. A questionnaire survey was developed to explore the relations between DC and innovation variable. For this study, 387 valid questionnaires were collected from a sample of Portugal SME’ firms. A 90-item questionnaire which consists to study the relationships among all the variables. Findings The results show that exists a positive direct and indirect influence of DC on competitive advantage and performance variables and mediating impact the IC and BC. Research limitations/implications This study has some methodological limitations affecting its potential contributions. As a cross-sectional study that captures one image in time, its ability to identify strict causality between variables is limited. Furthermore, the results are based on log collected from a key respondent, rather than broader actual data. The results are restricted to one country, Portugal. Some variables, such as ICs, may play a different role in other countries. Future research should initially target different countries. Such research could then test the generalizability of the results. Practical implications This study has important implications for the managers. It highlights the necessity of firms to develop superior strategic orientation of all their members and to invest in better resources and consequently superior capabilities as a way of achieving high levels of firm performance. Another implication from the study is that the firms should develop their marketing programs by focusing on developing innovativeness. Originality/value This study contributes to the understanding of the indirect and direct impact of exploration and exploitation variables, and the mediating role of ICs and BC on the competitive advantage and performance and the moderating effect of EO.

scholarly journals The interrelatedness of organizational ambidexterity, dynamic capabilities and open innovation: a conceptual model towards a competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Johannes W.F.C. van Lieshout ◽  
Jeroen M. van der Velden ◽  
Robert J. Blomme ◽  
Pascale Peters
Keyword(s):  
Competitive Advantage ◽  
Conceptual Model ◽  
Open Innovation ◽  
Dynamic Capabilities ◽  
Dynamic Environment ◽  
Organizational Ambidexterity ◽  
Organization Studies ◽  
Content Type ◽  
Research Fields ◽  
The Impact

PurposeEstablishing a competitive advantage in today's dynamic environment involves optimizing an organization's exploration and exploitation strategy. This paper aims to explore how an open innovation strategy complements the organization's ambidextrous strategy in attaining a competitive advantage. Organizational ambidexterity and dynamic capability theories are also explored to investigate the impact of open innovation on the organization's ambidextrous strategy and competitive advantage – especially inbound and outbound open innovation.Design/methodology/approachThe authors conducted a systematic literature review using Boolean search techniques, which was focused on the research fields of the sub-areas of general management, strategy, innovation, organization studies, information management, entrepreneurship, international business, marketing, and economics, supplemented by the snowball technique.FindingsOrganizations that combine their ambidextrous strategy with open innovation attributes achieve a competitive advantage through developing their dynamic capabilities by which organizations change their value proposition. This study also shows that an ambidextrous strategy should no longer be viewed as a structural solution implemented by management, but also as a bottom-up intervention. Additionally, the authors found that the organization's dynamic capabilities establish a feedback loop, which changes the organization's ambidextrous strategy to resolve the efficiency–agility paradox.Originality/valuePrevious research has focused on strategic orientation; however, hardly any research has investigated how the interrelatedness of open innovation, organizational ambidexterity and dynamic capabilities support a competitive advantage. The authors present a conceptual model that inspires new research avenues.

Linking strategic entrepreneurship to business growth in Iranian IoT-based companies

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Babak Ziyae ◽  
Majid Vagharmousavi
Keyword(s):  
Competitive Advantage ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Business Strategies ◽  
Equation Modeling ◽  
Continuous Change ◽  
Business Growth ◽  
Content Type ◽  
Strategic Entrepreneurship ◽  
The Relationship

Purpose Strategic entrepreneurship (SE) is effective in the formation of business strategies that involve simultaneous opportunity-seeking and advantage-seeking behaviors. SE revitalizes firms to achieve competitive advantage in the current turbulent markets. The purpose of this paper is to understand in more detail how SE influences business growth (BG) through the lens of dynamic capabilities (DC) theory. Design/methodology/approach Using a quantitative research method and structural equation modeling technique, the measurement and structural models were developed to test the research hypotheses. For this purpose, a survey was conducted among 159 internet of thing (IoT)-based companies in Iran. Findings The findings show that DC theory provides the theoretical underpinning to describe the effect of SE and its dimensions on entrepreneurial opportunity recognition (EOR). Results also reveal that EOR mediates the relationship between SE and BG. Furthermore, this research empirically verifies that organizational entrepreneurship and value creation moderate the relationship between EOR and BG. Originality/value IoT identifies a pathway for continuous change that helps to improve firms’ competitiveness and innovation. This paper provides a new insight into how Iranian IoT-based companies can enhance their SE to recognize entrepreneurial opportunities and gain competitive advantage. Mainly, this study singles out and discusses the variegated features that characterize the implementation of SE by Iranian IoT-based companies having different characteristics.

Exploring the mediating role of intellectual capital and competitive advantage on the relation between CSR and financial performance in SMEs

2017 ◽  
Vol 13 (1) ◽  
pp. 1-23 ◽  
Author(s):  
Priyanka Jain ◽  
Vishal Vyas ◽  
Ankur Roy
Keyword(s):  
Financial Performance ◽  
Competitive Advantage ◽  
Intellectual Capital ◽  
Geographical Area ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose The relationship between corporate social responsibility (CSR) and financial performance (FP) is a much-researched topic in academic arena. Recent studies disclosed that intellectual capital (IC) significantly impacts the success and survival of organizations. Moreover, theoretical assertions confirm that competitive advantage (CA) mediates the association between IC and FP. This has opened up new dimensions for the study. Therefore, this study aims to develop a theoretical model, first, to specify these relations and, second, to explore the mediating role of IC and CA on the relation between CSR and FP in the context of small- and medium-sized enterprises (SMEs). Design/methodology/approach Hypotheses are tested through a survey conducted on 384 SMEs in Rajasthan state. A structured questionnaire having 38 variables was used, and collected data are subjected to confirmatory factor analysis. Structural equation modeling was used to validate the measurement model and to test the mediating effect. Findings The findings indicate a weak positive relation between CSR and FP. The empirical data provide supportive evidence that IC has a profound impact on CSR and FP relationship. Specifically, it was noticed that the mediating role of CA on this relationship was not as reflective as described in the literature. Research limitations/implications The limitation of this study is that it is limited to one country, more specific to one geographical area of a country; therefore, findings of the study cannot be generalized in terms of its implications to other regions and countries. Originality/value Very few empirical studies have analyzed the mediating role of IC and CA on the relationship between CSR and FP. This study is expected to enable scholars and practitioners to have a more definite and direct understanding of the implication of IC and CA in association between CSR and FP.

Implications of green HRM on the firm's green competitive advantage: the mediating role of enablers of green culture

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Paul Muisyo ◽  
Qin Su ◽  
Thu Hau Ho ◽  
Mercy Muthoni Julius ◽  
Muhammad Shahjahan Usmani
Keyword(s):  
Competitive Advantage ◽  
Large Scale ◽  
Peer Involvement ◽  
Manufacturing Firm ◽  
Content Type ◽  
Mediating Role ◽  
Large Scale Survey ◽  
Green Human Resource Management ◽  
The Relationship

PurposeThe available literature demonstrates that green human resource management (GHRM) practices enhance the firm's green performance. However, the studies fail to show how GHRM practices give rise to green culture and how such green culture influences the green competitiveness of a firm. Anchored on the Ability Motivation Opportunity (AMO) theory, this study investigates how firms can build green competitive advantage from GHRM. The study focuses on four enablers of green culture (EGC): leadership emphasis, message credibility, peer involvement and employee empowerment. The study tests the mediating role of each EGC in the relationship between GHRM and green competitive advantage (GCA). The study findings provide managers with a deeper understanding of how GHRM supports the development of the EGC and how they explain the firm's GCA.Design/methodology/approachData was collected from a large-scale survey of Malaysia's manufacturing firm. We managed to collect 96 valid and useable questionnaires.FindingsWe find that GHRM practices give rise to EGC and the EGC mediate the relationship between GHRM and GCA.Originality/valueThe study presents the EGC in the green competitiveness context and goes further to test its mediating role in the GHRM–GCA relationship. We also develop a novel conceptual framework that manufacturing firms can deploy to attain green competitive advantage.

scholarly journals Mediating effect of strategy on competitive pressure, stakeholder pressure and strategic performance management (SPM): evidence from HEIs in Indonesia

2020 ◽  
Vol 27 (6) ◽  
pp. 1743-1764 ◽  
Author(s):  
Noorlailie Soewarno ◽  
Bambang Tjahjadi
Keyword(s):  
Higher Education ◽  
Competitive Advantage ◽  
Global Competition ◽  
Competitive Pressure ◽  
Content Type ◽  
Future Studies ◽  
Mediating Role ◽  
Stakeholder Pressure ◽  
The Relationship

PurposeThis study aims to explore the mediating role of strategy. First, we examine whether strategy mediates the relationship between competitive pressure and SPM. Second, we examine whether the strategy mediates the relationship between stakeholder pressure and SPM.Design/methodology/approachThis study is designed as a quantitative study by utilizing partial least squares structural equation modeling (PLS-SEM) in order to test the hypotheses. A mediation model for the research framework was developed to investigate the mediating role of strategy.FindingsUsing a sample of 546 managers from higher education institutions (HEIs) in Indonesia, the results show that both competitive pressure and stakeholder pressure have a positive direct effect on SPM. Strategy fully mediates the relationship between competitive pressure and SPM and strategy also partially mediates the relationship between stakeholder pressure and SPM. The findings suggest that the management of the HEIs in Indonesia needs to accommodate the dynamic trends in the competitive environment and the stakeholder’s interests when they develop the strategy used. They need to build a reliable SPM to effectively execute the strategy.Research limitations/implicationsThis study has the following limitations: (1) the use of PLS-SEM may raise the issue of causality; (2) this study focuses only on the antecedents of the SPM, and therefore future studies should investigate the consequences of the SPM on other variables; (3) this study is context-specific for Indonesia and caution should be used when generalizing it to other countries; (5) this study employs the primary data that may raise the issue of perception bias, and therefore future studies should try to develop proxies of variables using secondary data.Practical implicationsThis research provides a comprehensive understanding of the management of HEIs who wants to enhance their SPM. This suggests that management needs to verify the role of strategy. In the era of global competition in higher education, management needs to start from the dynamics of competitive intensity and stakeholder interest. Competition and cooperation need to be considered in their strategies if they want to survive in the higher education industry. Finally, management must be aware that they are now assessed using quantitative indicators, standardized processes, and algorithms, and therefore they need to have a more reliable SPM.Social implicationsAs the global competition increases in higher education, this research provides a model on how to improve the good university governance involving the strategy and the SPM. Higher education plays an extremely important role in society. This study provides a model that can be used by society to have better control of the HEIs by demanding improved good governance. This research provides empirical evidence of the importance of the strategy and the SPM. The society will get more benefits in terms of improved transparency, accountability, fairness, and responsibility of the HEIs.Originality/valueThis is the first study that explores the links between competitive pressure, stakeholder pressure, strategy and SPM in Indonesian HEIs. It provides empirical evidence in the HEIs research setting for the industry/organization (I/O) theory of competitive advantage which focuses on the external factors. It also supports the resource-based view (RBV) model of competitive advantage which focuses on internal factors.

The 5S organizational agility framework: a dynamic capabilities perspective

2018 ◽  
Vol 26 (2) ◽  
pp. 331-342 ◽  
Author(s):  
Saša Baškarada ◽  
Andy Koronios
Keyword(s):  
Competitive Advantage ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Evolutionary Adaptation ◽  
Organizational Agility ◽  
Content Type ◽  
Sustained Competitive Advantage ◽  
Widespread Agreement ◽  
Conceptual Paper ◽  
High Level

Purpose Although there is widespread agreement that organizational agility is increasingly becoming critical to achieving sustained competitive advantage, there is little consensus on what exactly constitutes organizational agility, or how it may be assessed and improved. The purpose of this paper is to contribute toward operationalization of the organizational agility construct through a high-level conceptual framework grounded in dynamic capabilities. Design/methodology/approach This is a conceptual paper that presents a new organizational agility framework, which draws from, and builds on, the existing literature. Findings This paper defines organizational agility as rapid, continuous and systematic evolutionary adaptation and entrepreneurial innovation directed at gaining and/or maintaining competitive advantage. The 5S Organizational Agility Framework proposes five dynamic capabilities (sensing, searching, seizing, shifting and shaping) underpinning organizational agility. Originality/value The framework presented in this paper contributes toward operationalization of the organizational agility construct.

scholarly journals The nexus between dynamic capabilities and competitive firm performance: the mediating role of open innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asta Pundziene ◽  
Shahrokh Nikou ◽  
Harry Bouwman
Keyword(s):  
Firm Performance ◽  
Open Innovation ◽  
Dynamic Capabilities ◽  
Competitive Performance ◽  
Content Type ◽  
Mediating Role ◽  
Competitive Firm ◽  
The Relationship ◽  
Practical Implications

PurposePrior research has reported the indirect implications of firm's dynamic capabilities on their competitive firm performance. Our attention now turns to open innovation since it has been confirmed to be an influential factor contributing to the superior performance of technological firms. So far there has been little research on assessing the relationship between a firm's dynamic capabilities as an antecedent of the competitive performance of the firm or investigations into the mediating role of open innovation in this relationship.Design/methodology/approachDrawing on the theory of dynamic capabilities, we developed a framework as a way to better understand the role of open innovation, which could then help to better explain the relationship between firms' dynamics capabilities and their competitive firm performance. Based on the empirical data of 465 firms operating in innovative and non-innovative industries, we employed structural equation modelling (SEM) to examine the research hypotheses and the path relationships in the proposed model.FindingsThe SEM analysis revealed that a firm's dynamic capabilities significantly impact its open innovation performance and that open innovation, consequently, impacts the competitive performance of the firm. Moreover, the results show that the path between dynamic capabilities and competitive firm performance is partially mediated through open innovation.Practical implicationsThe findings provide practical implications and draw managerial attention to the importance of: (1) investing in innovation, (2) engaging customers in the innovation process and (3) maintaining innovation management excellence as significant antecedent factors in increasing competitive firm performance.Originality/valueConsidering the lack of empirical research in the literature on the links between dynamic capabilities and open innovation, this paper contributes to the dynamic capabilities and open innovation literature by confirming that open innovation not only mediates the relationship between these two aspects but also strengthens the effect the dynamic capabilities have on competitive firm performance. Besides, due to the significant impact of dynamic capabilities on open innovation, dynamic capabilities might be regarded as an antecedent of open innovation.

Sign in / Sign up

Export Citation Format

Share Document