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.

Developing a model for supply chain agility and innovativeness to enhance firms’ competitive advantage

2019 ◽  
Vol 57 (7) ◽  
pp. 1511-1534 ◽  
Author(s):  
Chih-Jou Chen
Keyword(s):  
Supply Chain ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Business Environment ◽  
Structural Equations ◽  
Survey Method ◽  
Content Type ◽  
Supply Chain Agility ◽  
It Integration ◽  
The Impact

Purpose Developing agility and innovativeness as dynamic capabilities are important for firms to sustain their competitive advantage in today’s global economy. The purpose of this paper is to develop and empirically test a framework to investigate how the supply chain agility and innovativeness are achieved through IT integration and trust in members of supply chain and how these, in turn, can enhance firms’ competitive advantage. Design/methodology/approach This research employs a survey method and data are collected from senior managers working in the supply chain or IT area. The model and hypotheses are tested utilizing data from 204 usable Taiwan manufacturing firms via structural equations modeling methodology. Findings The study demonstrates that both IT integration and trust in supply chain members significantly enhance supply chain agility and innovativeness, which in turn positively affect firm’s competitive advantage. The results indicate that IT integration and trust are antecedents and major joint partnership resources for improving supply chain agility and innovativeness. Research limitations/implications Data are collected from manufacturing industry in Taiwan and single respondent from each firm, the generalizability of current findings to other industries or countries should require additional investigation. Practical implications The study suggests that a firm should focus on IT integration and trust in supply chain members to achieve supply chain agility and innovativeness. To take advantage of supply chain agility and innovativeness, through maximizing firm’s competitive advantage, firms should continually adapt to the fast changing business environment and search for creative ways to satisfy new market needs. Originality/value Given the attention paid to supply chain agility and innovativeness in terms of importance to responding to business uncertainty and competitiveness, and more recently, as important capabilities in managing supply chain management, this paper investigates how IT integration and trust can contribute to supply chain agility and innovativeness. Provide evidence regarding the impact of IT integration and trust on agility of supply chains, innovativeness and competitive advantage.

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.

The impact of 3D printing implementation on stock returns

2019 ◽  
Vol 39 (6/7/8) ◽  
pp. 935-961 ◽  
Author(s):  
Hugo K.S. Lam ◽  
Li Ding ◽  
T.C.E. Cheng ◽  
Honggeng Zhou
Keyword(s):  
3D Printing ◽  
Competitive Advantage ◽  
Stock Returns ◽  
Event Study ◽  
Dynamic Capabilities ◽  
Content Type ◽  
Listed Firms ◽  
Operating Environments ◽  
Study Results ◽  
The Impact

Purpose The purpose of this paper is to theoretically hypothesize and empirically test the impact of 3D printing (3DP) implementation on stock returns. It further explores how the stock returns due to 3DP implementation vary across different industry environments. Design/methodology/approach This paper integrates the dynamic capabilities view with contingency theory to provide a contingent dynamic capabilities (CDC) perspective on 3DP implementation. It argues that implementing 3DP enables firms to enhance their manufacturing capabilities and gain a competitive advantage, but the extent to which the competitive advantage can be realized is contingent on the fit between 3DP-enhanced manufacturing capabilities and firms’ operating environments. Those arguments are tested based on an event study of 232 announcements of 3DP implementation made by US publicly listed firms between 2010 and 2017. Findings The event study results show that firms implementing 3DP gain higher stock returns compared with their non-implementation industry peers over two years after the implementation. Such stock returns due to 3DP implementation are more pronounced for firms operating in more munificent, more dynamic and less competitive industry environments. Those findings are consistent with the CDC perspective. Originality/value This is the first research empirically examining the impact of 3DP implementation on stock returns. It provides important implications for managers to implement 3DP to enhance firms’ manufacturing capabilities and for researchers to study 3DP implementation from the CDC perspective.

Cybersecurity: investing for competitive outcomes

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dejan Kosutic ◽  
Federico Pigni
Keyword(s):  
Literature Review ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Extensive Literature ◽  
Structured Interviews ◽  
Content Type ◽  
Extensive Literature Review ◽  
Industry Standards ◽  
Technological Bias ◽  
The Impact

Purpose The purpose of this paper is to help companies address the problem of ever-increasing cybersecurity investment that does not produce tangible business value – this is achieved by explaining the relationship between cybersecurity and competitive advantage. Design/methodology/approach The impact of cybersecurity on competitive advantage was explored through a qualitative research study – the authors conducted an extensive literature review and conducted two rounds of semi-structured interviews with executives and security professionals from companies in four countries, from the financial, IT and security industries. Findings The analysis of the findings enabled the conceptualization of the Cybersecurity Competitive Advantage Model that explains how to build up cybersecurity dynamic capabilities to achieve long-term competitive advantage. Research limitations/implications The research presents the theorization of the model based on an extensive literature review, gathered information, insight from qualified respondents and the authors’ experience in the field. While we controlled for saturation and rigorously collected and analyzed the data, the inductive approach followed may limit the generalizability of the findings. Practical implications The proposed model helps explain to executives how to differentiate their company in a novel way and how to retain that competitive advantage; security professionals can use the model to organize cybersecurity and communicate to their superiors more effectively. Originality/value The presented model differs from existing literature, cybersecurity frameworks and industry standards by presenting a method of avoiding technological bias and for achieving competitive advantage.

scholarly journals Identification of dynamic capabilities in open innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Edson Rodrigues de Aro ◽  
Gilberto Perez
Keyword(s):  
Grounded Theory ◽  
Data Collection ◽  
Strategic Management ◽  
Competitive Advantage ◽  
Open Innovation ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Content Type ◽  
External Knowledge ◽  
Data Collection And Analysis

Purpose This study aims to understand the interaction between capabilities inherent in open innovation and dynamic capabilities (sensing, seizing and transforming) as a source of competitive advantage. Design/methodology/approach Qualitative method and grounded theory were used as guidelines for data collection and analysis. Findings The study identifies a set of capabilities in the practice of open innovation related to dynamic capabilities, which indicates the importance of developing dynamic capability in the strategic management of internal and external knowledge in the company. Research limitations/implications The number of interviewees approached herein do not allow generalizations, but the use of grounded theory through various strategies of data collection in the interviews allowed the triangulation of the data, increasing the credibility, validity and quality of the research. Originality/value This study presents capabilities identified in open innovation and their relationship with dynamic capabilities, identifying the importance of the dynamic capability in the strategic management of internal and external knowledge in the company as a source of competitive advantage.

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.

scholarly journals The applicability of Grant’s framework in the dynamic digital age

2015 ◽  
Vol 27 (6) ◽  
pp. 656-678 ◽  
Author(s):  
Mona Rashidirad ◽  
Ebrahim Soltani ◽  
Hamid Salimian ◽  
Yingying Liao
Keyword(s):  
Competitive Advantage ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Theoretical Foundation ◽  
Dynamic Environment ◽  
Digital Age ◽  
Internal Factors ◽  
Resource Based View ◽  
Content Type ◽  
Strategic Resources

Purpose – This paper aims to investigate the applicability of Grant’s framework in the current changing and dynamic environment. Design/methodology/approach – In this paper, a critical review of Grant’s paper was conducted to identify the limitations and weaknesses of the framework, which prevent its effective application in the current digital age. Findings – As a result, this paper presented a modified framework and four propositions to consider dynamic capabilities in the new turbulent environment and extend the relationships between a firm’s resources, capabilities, dynamic capabilities, competitive advantage and competitive strategy. Findings tied to this initiative will provide important contributions to research. Originality/value – Rooted in resource-based view (RBV), the proposed framework puts forward a valid theoretical foundation on how to create a competitive advantage from a firm’s internal factors, including strategic resources, capabilities and dynamic capabilities. Furthermore, it contributes to RBV literature by considering dynamic capabilities, as the firms’ most crucial factors in the current dynamic digital market.

scholarly journals The Impact of Dynamic Capabilities on Sustainable Competitive Advantage in the Pharmaceutical Sector in Egypt

2017 ◽  
Vol 6 (2) ◽  
pp. 1
Author(s):  
Albert Naiem Naguib ◽  
Eahab Elsaid ◽  
Abdel Moneim Elsaid
Keyword(s):  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Secondary Data ◽  
Primary Data ◽  
Sustainable Competitive Advantage ◽  
Firm Characteristics ◽  
Pharmaceutical Sector ◽  
Chi Square ◽  
Pharmaceutical Firms ◽  
The Impact

This study examines the relationship between dynamic capabilities (experience, routine, skills, firm characteristics, knowledge and technology) and competitive advantage sustainability in the Egyptian pharmaceutical sector. The data was collected using primary and secondary data sources. Primary data was collected from questionnaires distributed to 160 top managers in 20 pharmaceutical firms. The secondary data about pharmaceutical firms like rankings, revenues and market share was collected from external sources such as Intercontinental Marketing Service (IMS). The questionnaires examine six independent variables based on a five-scale Likert scale. The methodology used in the study is non-probability sampling (judgmental sampling), Cronbach’s alpha reliability coefficient and Chi-square tests. The results support the notion that there is a significant relationship between four of the six dynamic capabilities (experience, skills, firm characteristics and knowledge) and the competitive advantage sustainability for pharmaceutical firms in Egypt. Designing the questionnaire and formulating the questions to target the required field was challenging, given that the topic is dynamic and the business scene in Egypt has witnessed drastic political changes since January 2011. The study should assist pharmaceutical companies in Egypt in directing their investments properly and in determining the weaknesses in their dynamic capabilities that need to be addressed.

The role of innovation in building competitive advantages: an empirical investigation

2018 ◽  
Vol 21 (1) ◽  
pp. 44-69 ◽  
Author(s):  
Prodromos Chatzoglou ◽  
Dimitrios Chatzoudes
Keyword(s):  
Competitive Advantage ◽  
Conceptual Framework ◽  
Empirical Investigation ◽  
Primary Data ◽  
Empirical Literature ◽  
Competitive Advantages ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact ◽  
Structured Questionnaire

Purpose Nowadays, innovation appears as one of the main driving forces of organisational success. Despite the above fact, its impact on the propensity of an organisation to develop and sustain a competitive advantage has not yet received sufficient empirical investigation. The purpose of this paper is to enhance the existing empirical literature by focusing on the antecedents of innovation and its impact on competitive advantage. It proposes a newly developed conceptual framework that adopts a three-step approach, highlighting areas that have rarely been simultaneously examined before. Design/methodology/approach The examination of the proposed conceptual framework was performed with the use of a newly developed structured questionnaire that was distributed to a group of Greek manufacturing companies. The questionnaire has been successfully completed by chief executive officers (CEOs) from 189 different companies. CEOs were used as key respondents due to their knowledge and experience. The reliability and the validity of the questionnaire were thoroughly examined. Empirical data were analysed using the structural equation modelling technique. The study is empirical (based on primary data), explanatory (examines cause and effect relationships), deductive (tests research hypotheses) and quantitative (includes the analysis of quantitative data collected with the use of a structured questionnaire). Findings Results indicate that knowledge management, intellectual capital, organisational capabilities and organisational culture have significant direct and indirect effects on innovation, underlining the importance of their simultaneous enhancement. Finally, the positive effect of innovation on the creation of competitive advantages is empirically validated, bridging the gap in the relevant literature and offering avenues for additional future research. Originality/value The causal relationship between innovation and competitive advantage, despite its significant theoretical support, has not been empirically validated. The present paper aspires to bridge this gap, investigating the impact of innovation on the development of competitive advantages. Moreover, the present study adopts a multidimensional approach that has never been explored in the existing innovation literature, making the examination of the proposed conceptual framework an interesting research topic.

Integrating wearable technology products and big data analytics in business strategy

2019 ◽  
Vol 21 (2) ◽  
pp. 255-275 ◽  
Author(s):  
Bishwajit Nayak ◽  
Som Sekhar Bhattacharyya ◽  
Bala Krishnamoorthy
Keyword(s):  
Health Insurance ◽  
Technology Adoption ◽  
Competitive Advantage ◽  
Customer Service ◽  
Product Innovation ◽  
Dynamic Capabilities ◽  
Technology Policy ◽  
Wearable Technology ◽  
Content Type ◽  
Technology Products

Purpose This study aims to explore the impact of the adoption of wearable technology products for Indian health insurance firms. It identifies the key dynamic capabilities that health insurance firms should build to manage big data generated by wearable technology so as to attain a competitive advantage. Design/methodology/approach A qualitative exploratory study using in-depth personal interviews with 53 Indian health insurance experts was conducted with a semi-structured questionnaire. The data were coded using holistic and pattern codes and then analyzed using the content analysis technique. The findings were based on the thematic and relational intensity analysis of the codes. Findings An empirical model was established where all the propositions were strongly established except for the moderate relationship between wearable technology adoption and product innovation. The study established the nature of the interaction of variables on technology policy, organizational culture, strategic philosophy, product innovation, knowledge management and customer service quality with wearable technology adoption and also ascertained its influence on firm performance and competitive advantage. Research limitations/implications From a dynamic capabilities perspective, this study deliberates on wearable technology adoption in the health insurance context. It also explicates the relationship between the variables on technology policy, organizational culture, strategic philosophy, product innovation, knowledge management and customer service quality with wearable technology adoption on firm performance. Originality/value This study is one of the first studies to add the context of wearable technology and health insurance to the existing body of knowledge on dynamic capabilities and sustainable competitive advantage for the service sector. It would help existing and prospective players in adopting or setting up appropriate business models.

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