A problem-solving process for developing capabilities: the case of an established firm

2019 ◽  
Vol 23 (4) ◽  
pp. 713-727
Author(s):  
Ei (Emily) Shu
Keyword(s):  
Problem Solving ◽  
New Product Development ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Capability Development ◽  
Unique Problem ◽  
Content Type ◽  
Different Types ◽  
Problem Solving Process ◽  
Development Literature

Purpose Current research has theorized that developing dynamic capability can be viewed as a problem-finding and problem-solving process in terms of a firm’s resource reconfiguration. However, there continues to be a scarcity of empirical research on how firms and managers solve innovation problems to develop capabilities. Building on the theoretical lens of problem-solving perspective (PSP) and dynamic capability literature, the purpose of this paper is to address this gap by examining how a large automobile company developed different types of capabilities (combining capability, replacing capability and evolving capability) and their underlying problem-solving processes. Design/methodology/approach An inductive multi-case design was used to investigate the problem-solving process in different types of capability development in the context of NPD. This methodology has a number of benefits, including accommodation of the rich data used to compare the inferences among cases, thus enabling researchers to extend the emergent theory. Findings The findings of a multi-case study show that managers tend to direct their attentions to searching for solutions among external resources when the problem is framed as a combination of existing capabilities. Conversely, managers direct their attention to facilitating organizational learning when the problem is framed as an extension of an existing capability. However, managers need to direct more attention to gaining legitimacy when the problem is framed as a replacement of existing capabilities. The findings thus respond to increasing calls for more investigations into the microfoundations underlying firms’ capabilities, by revealing different instances of PSP, and their connections with different actions that take to capability development. Originality/value By comparatively examining the unique problem-solving process underlying an established firm’s innovative challenges in developing capabilities, the findings identify different instances of PSP, and their connections with different actions that take to capability development. Thus, the findings respond to increasing calls for more investigation into the microfoundations of dynamic capabilities for organizational outcomes. The findings also add to the new product development literature by examining how a product innovation can be framed differently depending on the attributes of an innovation problem. As PSP is particularly useful in offering guidance to firms’ innovative search, it is important for managers to pay attention to the attribute of each product and its domain of solution in considering the effectiveness of value creation.

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.

Refining a subsidiary evolution framework: clarifying key concepts

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Johan Jakobsson ◽  
Katarina Lagerström ◽  
Roger Schweizer
Keyword(s):  
Dynamic Capabilities ◽  
Capability Development ◽  
Research Attention ◽  
Resource Based View ◽  
Content Type ◽  
Management Perspective ◽  
Conceptual Paper ◽  
Development Literature ◽  
Subsidiary Evolution ◽  
Point Of Departure

Purpose While the evolution of subsidiaries has received considerable research attention, the framework for understanding it has not evolved much since the late 1990s. The purpose of this paper is to add both clarity and depth to the work on the foundations for – as well as the processes of – capability creation and development as a subsidiary evolves. Design/methodology/approach This conceptual paper takes as its point of departure the micro-foundation literature, with a specific emphasis on the capability development literature. To describe capability creation and development, both the resource-based view and the resource management perspective are used here. Findings The paper adds a conceptual layer to the drivers of subsidiary evolution. To add further clarity regarding how capabilities are actually formed, the resources for capability creation and development are specified herein as entities, abilities and capacity. Arguments are also presented for why capabilities ought to be viewed as patterned behavior to decrease the terminological ambiguity surrounding the concept of capabilities. The process of capability creation and development with an emphasis on learning is brought forward. Further, capability typologies, in terms of substantive, managerial and dynamic capabilities, are presented to add specificity to the kinds of capabilities that are created and developed within a subsidiary. Originality/value Clarifying the concept of capability and how capabilities are formed by using advancements in the literature is important to add precision to the literature on the evolution of subsidiaries.

Developing dynamic capabilities for learning and internationalization

2016 ◽  
Vol 11 (3) ◽  
pp. 328-347 ◽  
Author(s):  
Margaret Tallott ◽  
Rachel Hilliard
Keyword(s):  
Conceptual Model ◽  
Dynamic Capabilities ◽  
Single Case ◽  
Empirical Work ◽  
Strategic Decision ◽  
Dynamic Capability ◽  
Single Case Study ◽  
Capability Development ◽  
Content Type

Purpose – The purpose of this paper is to examine the development process of dynamic capabilities. Design/methodology/approach – The paper adopts a qualitative, longitudinal participant-observation research design. A single case study firm was observed over a ten-year period of active researcher engagement allowing for the collection of rich data on the development and deployment of dynamic capabilities as they evolved. Findings – Dynamic capabilities can be identified as sensing, seizing and transforming. They are capable of intentional development by managers through strategic decision making and deliberative learning, within a path-dependent evolution. Research limitations/implications – A longitudinal single case study allowed for a close look at the development of dynamic capabilities, exploring the context and conditions that facilitated change and tracing the evolution of the organization’s processes. However, this study remains subject to the limits of a single case approach. Future cross-sectional research would be able to test the conceptual model and allow for generalization of the findings to other populations of firms. Practical implications – The dynamic capability concept has been criticized for being of little practical use to managers. This research shows the process of intentional dynamic capability development, offering insights to practicing managers. Originality/value – This research adds to the relatively scant base of empirical work on dynamic capabilities and offers a conceptual model of dynamic capability development. The paper contributes to the neglected area of dynamic capabilities in SME’s, showing that the dynamic capability concept is relevant to this sector. The paper provides insight for practitioners by showing that intentional dynamic capability development is achievable.

Toward dynamic capability views of entrepreneurial growth intention: perspective of floricultures industry in Sri Lanka

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vilani Sachitra ◽  
Chandra Padmini
Keyword(s):  
Sri Lanka ◽  
Dynamic Capabilities ◽  
Institutional Environment ◽  
Target Population ◽  
Dynamic Capability ◽  
Alliance Formation ◽  
Capability Development ◽  
Content Type ◽  
Entrepreneurial Growth ◽  
Structured Questionnaire

PurposeIt is aware that entrepreneurial growth has gained some attention in the literature, yet the debate in respect of the determinants of entrepreneurial growth intention (EGI) is far from being complete. The purpose of this study is to identify the key dynamic capabilities that foster EGI in floriculture industry in Sri Lanka.Design/methodology/approachThe study used quantitative approach. The owners of farms who possess commercial experience in floriculture cultivation in Sri Lanka were selected as a target population. A self-administrated structured questionnaire was used to collect data. Valid and reliable indicators were developed to conceptualize five key capabilities and EGI.FindingsBased on the responses from 206 farm owners, results of the multiple regression analysis indicate that organizational learning, technological and alliance formation capabilities are significantly associated with EGI of floriculture farm owners.Originality/valueThe need for common conceptualization of dynamic capabilities and EGI represents a major gap in the literature. The study expands the current debates on entrepreneurial growth and institutional environment, which allows the mapping out of dynamic capability development.

scholarly journals Unbundling dynamic capabilities for inter-organizational collaboration

2019 ◽  
Vol 26 (3) ◽  
pp. 422-448 ◽  
Author(s):  
Olga Petricevic ◽  
Alain Verbeke
Keyword(s):  
Dynamic Capabilities ◽  
Estimation Method ◽  
Electrical Equipment ◽  
Innovation Performance ◽  
Dynamic Capability ◽  
Content Type ◽  
Organizational Contexts ◽  
Theoretical Perspectives ◽  
Different Types ◽  
Organizational Linkages

Purpose The purpose of this paper is to explore two distinct subsets of dynamic capabilities that need to be deployed when pursuing innovation through inter-organizational activities, respectively, in the contexts of broad networks and specific alliances. The authors draw distinctions and explore potential interdependencies between these two dynamic capability reservoirs, by integrating concepts from the theoretical perspectives they are derived from, but which have until now largely ignored each other – the social network perspective and the dynamic capabilities view. Design/methodology/approach The authors investigate nanotechnology-driven R&D activities in the 1995–2005 period for 76 publicly traded firms in the electronics and electrical equipment industry and in the chemicals and pharmaceuticals industry, that applied for 580 nanotechnology-related patents and engaged in 2,459 alliances during the observation period. The authors used zero-truncated Poisson regression as the estimation method. Findings The findings support conceptualizing dynamic capabilities as four distinct subsets, deployed for sensing or seizing purposes, and across the two different inter-organizational contexts. The findings also suggest potential synergies between these subsets of dynamic capabilities, with two subsets being more macro-oriented (i.e. sensing and seizing opportunities within networks) and the two other ones more micro-oriented (i.e. sensing and seizing opportunities within specific alliances). Practical implications The authors show that firms differ in their subsets of dynamic capabilities for pursuing different types of inter-organizational, boundary-spanning relationships (such as alliances vs broader network relationships), which ultimately affects their innovation performance. Originality/value The authors contribute to the growing body of work on dynamic capabilities and firm-specific advantages by unbundling the dynamic capability subsets, and investigating their complex interdependencies for managing different types of inter-organizational linkages. The main new insight is that the “linear model” of generating more innovations through higher inter-firm collaboration in an emerging field paints an erroneous picture of how high innovation performance is actually achieved.

scholarly journals The role of strategic purchasing in dynamic capability development and deployment

2018 ◽  
Vol 38 (2) ◽  
pp. 446-473 ◽  
Author(s):  
Alistair Brandon-Jones ◽  
Desiree Knoppen
Keyword(s):  
Operations Management ◽  
Dynamic Capabilities ◽  
Positive Impact ◽  
Innovation Performance ◽  
Dynamic Capability ◽  
Equation Modeling ◽  
Capability Development ◽  
Content Type ◽  
Strategic Purchasing ◽  
The Impact

Purpose The purpose of this paper is to report on research into the impact of two sequential dimensions of strategic purchasing – purchasing recognition and purchasing involvement – on the development and deployment of dynamic capabilities. The authors also examine how such dynamic capabilities impact on both cost and innovation performance, and how their effects differ for service as opposed to manufacturing firms. Design/methodology/approach The authors test hypotheses using structural equation modeling of survey data from 309 manufacturing and service firms. Findings From a dynamic capability perspective, the analysis supports the positive relationships between purchasing recognition, purchasing involvement, and dynamic capability in the form of knowledge scanning. The authors also find support for the positive impact of knowledge scanning on both cost and innovation performance. From a contingency perspective, data supports hypothesized differences caused by industry, whereby service-based firms experience stronger positive linkages in our model than manufacturing-based firms. Finally, emerging from the data, the authors explore a re-enforcing effect from cost performance to purchasing involvement, something that is in line with the dynamic capabilities perspective but not typically addressed in operations management (OM) research. Originality/value The research offers a number of theoretical and managerial contributions, including being one of a relative few examples of empirical assessment of dynamic capability development and deployment; examining the enablers of dynamic capability in addition to the more commonly addressed performance effect; assessing the contingency effect of firm type for dynamic capabilities; and uncovering a return (re-enforcing) effect between performance and enablers of dynamic capabilities.

scholarly journals Exploration of capability and role development in an emerging technology network

2018 ◽  
Vol 33 (7) ◽  
pp. 931-944 ◽  
Author(s):  
Fatemeh Salehi ◽  
Judith Zolkiewski ◽  
Helen Perks ◽  
Mohammad Ali Bahreini
Keyword(s):  
New Product Development ◽  
Dynamic Capabilities ◽  
New Product ◽  
Emerging Technology ◽  
Future Research ◽  
Scale Production ◽  
Capability Development ◽  
Case Study Methodology ◽  
Content Type ◽  
Over Time

Purpose The purpose of this study is to investigate the capabilities and roles of three types of actors, specifically technology-based start-ups, incumbent firms and intermediaries, in co-constructing a network for development and commercialization of an emerging technology. In particular, the research aims to understand how the roles played by network actors evolve during the development and commercialization process and what operational and dynamic capabilities are developed by actors through collaboration. Design/methodology/approach A single longitudinal case study methodology was applied to analyse roles and operational and dynamic capabilities developed in a network setting by multiple parties over time. Findings The findings indicate that actors need to take on new roles to be successful when dealing with an emerging technology in a network context and they need to develop certain dynamic capabilities to enact these roles. The study categorizes roles and capabilities of network actors through various stages of collaboration. Actors developed sensing capabilities in the pre-collaboration stage which drove joint new product development. During the collaboration, seizing capabilities were developed where resource commitment and alignment of resources among actors were essential. Capabilities gained through commercialization and large-scale production were predominantly transforming capabilities where actors realigned their structure and had positive impact on capability development in the wider network. Research limitations/implications Using data of a single case data may limit the applicability of the findings, which calls for future research. Practical implications The findings inform managers’’ and policymakers’ strategies related to participation in networks for development and commercialization of emerging technologies. The research provides insights about the role of large and small firms as well as intermediary organizations in development of nanotechnology and highlights that all network actors need to develop and utilize dynamic capabilities in all areas of sensing, seizing and transforming over time to be able to innovate and successfully commercialize a new product. Originality/value The research investigates evolution of operational and dynamic capabilities and roles of multiple actors over time in collaborative networks for development and commercialization of an emerging technology. Building on the dynamic capabilities concept, the study broadens our understanding of the evolution of these capabilities in a network setting and elaborates how capability development is linked to changes in roles.

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.

The combination of different open innovations: a longitudinal case study

2019 ◽  
Vol 13 (2) ◽  
pp. 342-362
Author(s):  
Xiaodong Yuan ◽  
Xiaotao Li
Keyword(s):  
New Product Development ◽  
Open Innovation ◽  
Point Of View ◽  
Longitudinal Case Study ◽  
Key Factors ◽  
Content Type ◽  
Strategic Direction ◽  
Different Types ◽  
Innovation Capacity

Purpose The purpose of this paper is to explore how an organization can combine different types of open innovations and what are the key factors that may influence the combination of different open innovations. Design/methodology/approach The basic methodology of this paper is the longitudinal inductive analysis within the conceptual framework of the open innovation proposed by Dahlander and Gann (2010). In this case study of Xiaomi Tech Inc., the open innovation combination is investigated through examining 25 new products created between August 2010 and December 2016 in terms of four general types: acquiring, sourcing, selling and revealing open innovation. Findings In practice, the combination of different types of open innovations can be realized. A firm may combine different open innovations at three levels: a single product level, a related product cluster level and a company level. In addition, different open innovations can be combined in diverse modes. The purpose of combining different types of open innovations is to overcome the disadvantages of each type and to exploit the advantages of all different types. Many factors may affect a firm’s option of how to combine open innovations. At different development stages, a firm may make and implement corresponding strategic direction based on its innovation capacity and internal resource. For a given strategy, the firm needs to create profits and manage intellectual property in the implementation of open innovations. These factors are interacted each other, rather than isolated. Originality/value The findings of this paper are helpful for better understanding how and why an organization can combine different types of open innovations. From a managerial point of view, an organization may combine different types of open innovations to leverage advantages and avoid disadvantages of each certain type of open innovation. An appropriate combination of different open innovations can effectively improve new product development.

Building (or not building) dynamic capabilities: the case of Italian subsidiaries in China and India

2018 ◽  
Vol 26 (4) ◽  
pp. 337-360 ◽  
Author(s):  
Giuseppe Tattara
Keyword(s):  
Value Chain ◽  
Multinational Enterprises ◽  
Dynamic Capabilities ◽  
Case Study Research ◽  
Business Strategies ◽  
Future Research ◽  
Capability Development ◽  
Regional Effect ◽  
Content Type ◽  
Capability Building

Purpose The purpose of this paper is to examine the process of capability building at subsidiary level and the forces preventing such process. The paper discusses and tests three propositions governing this process. Design/methodology/approach This research is based on multiple case studies. A case study research is most useful when addressing issues about which little prior theory has been developed or empirical evidence collected. Findings Subsidiaries in Asia operate in a way substantially different from those in the West. Specifically what ways do market specificities in Asian economies serve to either inhibit or positively encourage the development of a subsidiary? What are the circumstances which could induce subsidiaries to outsource production? Research limitations/implications Future research should explore the regional effect on MNE subsidiary types and different flexibilities exhibited in the value chain. What are the specific aspects (macro and micro) that explain variations of business strategies at subsidiary levelboth over time and between countries? Practical implications Multinational enterprises (MNEs) should be aware of the strong potential for capability development at the subsidiary level. This increased awareness ought to induce consideration in MNEs about how best to encourage such know capability development and how to leverage these capabilities for a better MNE performance. Social implications Managers who knew the host country languages and culture, and have outward-looking attitudes, are in advantageous positions to learn about new opportunities. Originality/value The paper offers empirical insights into the state and drivers of subsidiary performance in Asia. Specifically it shows how neglect of external conditions can act to open people’s eyes and foster a capability-building process within subsidiaries.

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