Examining the role of logistics 4.0 enabled dynamic capabilities on firm performance

2020 ◽  
Vol 31 (3) ◽  
pp. 607-628 ◽  
Author(s):  
Surajit Bag ◽  
Shivam Gupta ◽  
Zongwei Luo
Keyword(s):  
Firm Performance ◽  
Operations Management ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Organizational Capabilities ◽  
Technological Capabilities ◽  
Capability Development ◽  
Content Type ◽  
Questionnaire Online ◽  
Survey Responses

PurposeThe study investigates the effect of technological capabilities, organizational capabilities and environmental capabilities on Logistics 4.0 capabilities and also examines the effect of Logistics 4.0 capabilities on firm performance.Design/methodology/approachThe proposed theoretical framework is tested using WarpPLS 6.0 software. We selected samples from the Automotive Component and Allied Manufacturers in South Africa. Initially, we sent the structured questionnaire online using Google forms to 800 potential respondents. After doing follow ups, we received 230 completed survey responses. Further, data preparation is done using established scientific approach and we checked suitability of its use in structural equation modelling. After ensuring all necessary checks are completed, the results are found satisfactory to further proceed with testing of research hypotheses.FindingsIt is observed that technological capabilities, organizational capabilities and environmental capabilities show significant effect on Logistics 4.0 capabilities. However, the outcome of technological capabilities and environmental capabilities on Logistics 4.0 capabilities (ß = 0.27) is found stronger than organizational capabilities. Logistics 4.0 capabilities shows significant effect on firm performance.Practical implicationsIt is important that the sustainability goals are aligned with Logistics 4.0 strategies. Managers need to increase focus towards development of Logistics 4.0 dynamic capabilities that enhance agility and responsiveness in the supply chain. Managers should check the financial performance and market conditions continuously to further review logistics performance as this can influence the overall firm performance.Originality/valueThis study advances the literature on Logistics 4.0 applications in operations management by investigating the key links such as Logistics 4.0 capability development and firm performance.

Dynamic capabilities: interrelations and distinct effects on performance in low and high competitive intensity environments

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amiram Markovich ◽  
Kalanit Efrat ◽  
Daphne R. Raban
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Equation Modeling ◽  
Company Performance ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Competitive Intensity ◽  
Content Type ◽  
Impact Performance

PurposeThis study aims to augment the understanding of dynamic capabilities (DCs) by exploring the interrelations among the DC categories (sensing, seizing, reconfiguring) and the distinct impact of each DC on firm performance under low and high levels of competitive intensity.Design/methodology/approachThe analysis is based on a cross-sectional survey of 139 managers in Israel. The data were collected through Web-based questionnaires using the Qualtrics software. A two-stage data analysis was performed using structural equation modeling (SEM).FindingsThe findings indicate that DCs follow a sequence in which sensing drives seizing, which, in turn, enhances reconfiguring. The effects of sensing are mainly manifested through its direct impact on seizing, with no evidence for an impact of sensing on company performance. Moreover, under low competitive intensity, only seizing appears to impact performance, while under high competitive intensity, reconfiguring joins seizing in improving firm performance.Originality/valueThe study's findings advance the debate on the direct vs sequential nature of DCs by indicating an internal DC sequence. Our research also advocates for a crucial role of sensing in enhancing DCs, regardless of the level of competitive intensity. Furthermore, this research expands the understanding of the consequences of DCs and enables the prioritization of DC categories under low and high competitive intensity.

Dynamic capabilities of logistics service providers: antecedents and performance implications

2019 ◽  
Vol 31 (4) ◽  
pp. 1058-1075 ◽  
Author(s):  
Ivy S.N. Chen ◽  
Patrick K.O. Fung ◽  
Simon S.M. Yuen
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Service Providers ◽  
Equation Modeling ◽  
Service Firms ◽  
Content Type ◽  
Logistics Service ◽  
The Relationship

Purpose Dynamic capabilities (DC) have been linked to firm competitive advantage, but the ways in which firms can create and build these DC are still not clear. The purpose of this paper is to propose a model with organizational learning (OL) and supply chain orientation (SCO) as antecedents of dynamic logistics capabilities and firm performance as the outcome. The study tests this model on a sample of logistics service firms. Design/methodology/approach Partial least squares structural equation modeling was used to analyze the data collected from 103 logistics firms drawn from the Chartered Institute of Logistics and Transportation of Hong Kong. Findings Results show that OL directly enhances DC and indirectly through SCO. The relationship between OL and SCO is stronger than the relationship between OL and DC. DC are positively related to logistics firm performance. Research limitations/implications The study relied on perceptual and self-reported data from senior management. Relationships among variables may also be inflated by common method variance but efforts were taken to reduce this threat. Practical implications Logistics firms should promote a learning culture in the organization. Organization learning enhances a firm’s willingness to change and innovate. It also helps employees to gain a better understanding of clients’ supply chains and possibilities. SCO helps the firm to direct its reconfiguration and renewal efforts where the returns are the highest. Originality/value There is scant empirical research on the antecedents of DC outside of manufacturing and knowledge-intensive services. The study focused on the logistics services industry. SCO, a necessary strategic orientation for firms in the supply chain, has not been empirically investigated in the previous research. This study addressed these gaps in the literature and contributes to the understanding of the factors giving rise to DC.

The link between intellectual capital and business performance: a mediation chain approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Susana Campos ◽  
José G. Dias ◽  
Mário Sérgio Teixeira ◽  
Ricardo Jorge Correia
Keyword(s):  
Intellectual Capital ◽  
Structural Equation ◽  
Business Performance ◽  
Dynamic Capabilities ◽  
Equation Model ◽  
Innovation Performance ◽  
Technological Capabilities ◽  
Content Type ◽  
Mediating Role ◽  
Network Competence

PurposeThis study focuses on intellectual capital (IC) as a driver of better business performance. Recent studies suggest that a set of variables may mediate this relationship. This research discusses the mediating role of dynamic capabilities, network competence, technological capabilities, absorptive capabilities and innovation performance between intellectual capital and business performance.Design/methodology/approachThe conceptual model is tested using a sample of 533 Portuguese firms by means of a structural equation model.FindingsIt confirms that intellectual capital impacts business performance. Moreover, this only happens indirectly through the mediating chain defined by the variables dynamic capabilities, network competence, technological capabilities, absorptive capabilities and innovation performance.Originality/valueThis study analyzes new mediator variables between the dimensions of the intellectual capital and Portuguese business performance.

Orchestrating internal and external resources to achieve agility and performance: the centrality of market orientation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Randy Kurniawan ◽  
Adler Haymans Manurung ◽  
Mohammad Hamsal ◽  
Wibowo Kosasih
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Business Process ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Business Environment ◽  
Equation Modeling ◽  
Content Type ◽  
Telecommunication Technology ◽  
Bargaining Position

PurposeThis study examines the collaborative impact of networking capability and balanced agile project management (APM) on firm performance through the mediating role of market orientation and business process agility of medium and large telecommunication technology providers in Indonesia.Design/methodology/approachResearch data were collected from the executive management of telecommunication technology providers in Indonesia via a questionnaire survey to obtain 150 valid questionnaires for analysis. This study analyzed the overall model fit and causal relationship using confirmatory factor analysis (CFA) and structural equation modeling (SEM).FindingsThe results indicate that market orientation fully mediates the link between networking capability-business process agility and balanced APM-business process agility. Furthermore, business process agility mediates the relationship between market orientation and firm performance.Research limitations/implicationsThis study is based on a cross-sectional nature and might fail to capture the dynamic of the studied variables over an extended period.Originality/valueThe study extends the knowledge that dynamic capabilities, represented by networking capability and balanced APM, must be framed by market orientation to create customer value and improve bargaining position. However, market orientation alone is not enough in a highly dynamic business environment. Organization also requires business process agility, responsiveness and adaptability to timely address customers' needs and requirements.

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.

Service-dominant orientation, dynamic capabilities and firm performance

2017 ◽  
Vol 27 (4) ◽  
pp. 808-832 ◽  
Author(s):  
Ralf Wilden ◽  
Siegfried Gudergan
Keyword(s):  
Firm Performance ◽  
Dynamic Capabilities ◽  
Longitudinal Research ◽  
Equation Modeling ◽  
Marginal Effect ◽  
Technological Capabilities ◽  
Marketing Capabilities ◽  
Content Type ◽  
Dominant Orientation ◽  
The Impact

Purpose The purpose of this paper is to investigate the effects of a firm’s service-dominant orientation on marketing and technological capabilities, and its performance. It outlines how a service-dominant orientation offers guidance for the development and deployment of ordinary capabilities, and indirectly affects performance. Additionally, it delineates how dynamic capabilities affect the impact of a service-dominant orientation on ordinary capabilities. Design/methodology/approach Partial least squares structural equation modeling drawing on data from 228 firms serves to assess hypotheses relating service-dominant orientation and dynamic capabilities with firm performance. Findings The results indicate that marketing and technological capabilities fully mediate the relationship between a firm’s service-dominant orientation and firm performance. Furthermore, the positive marginal effect of a firm’s service-dominant orientation on its marketing capabilities increases with the firm displaying a stronger service-dominant orientation. In addition, the positive effect of service-dominant orientation on marketing capabilities reduces the more the firm deploys dynamic capabilities. Research limitations/implications Because of the cross-sectional sample, future studies could adopt longitudinal research designs to explore the impact of a service-dominant orientation on ordinary capabilities and performance, or investigate the applicability of the findings in other contexts. Practical implications The findings imply that implementing a service-dominant orientation can be beneficial for firms. However, because the impact of such an orientation weakens the greater a firm’s dynamic capabilities, managers need to be mindful of this trade-off. Originality/value The study is the first to establish a link between the dynamic capability view, originating from strategy research, and service-dominant logic, stemming from marketing thinking.

The interplay between digital manufacturing and dynamic capabilities: an empirical examination of direct and indirect effects on firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marco Savastano ◽  
Nicola Cucari ◽  
Francesco Dentale ◽  
Ari Ginsberg
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Dynamic Capabilities ◽  
Manufacturing Sector ◽  
Disruptive Innovation ◽  
Equation Modeling ◽  
Digital Manufacturing ◽  
Empirical Examination ◽  
Content Type

PurposeThe purpose of this paper is to identify and empirically examine the dynamic capabilities (DC) that drive the development of digital manufacturing capabilities (DMC) and the role of DMC in mediating their influence on firm performance.Design/methodology/approachBased on the dynamic capabilities view (DCV) of the firm, the authors develop a set of hypotheses that are tested through a survey of 110 managers in the manufacturing sector. The hypothesized model is tested through structural equation modeling.FindingsThe results indicate that although higher-order DC (HODC) have a strong influence on firm performance, their effects are partially mediated by the DMC that they generate, by positively affecting the extended production process.Practical implicationsThe analysis contributes to a better understanding of the interplay between levels of the DC hierarchy by finding that DMC play an important role in translating HODC into enhanced firm performance.Originality/valueBy complementing the DCV with the disruptive innovation theory in a specific fast changing context, this study introduces a new construct (DMC) providing an original and considerable contribution to the literature. To the best of the authors’ knowledge, it is the first empirical study that includes and assesses all these elements together in the context of the manufacturing industry.

Dynamic marketing capability – refining the concept and applying it to company innovations

2019 ◽  
Vol 35 (2) ◽  
pp. 193-203
Author(s):  
Maciej Mitręga
Keyword(s):  
New Product Development ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Empirical Test ◽  
Organizational Capabilities ◽  
Equation Modeling ◽  
Marketing Theory ◽  
Marketing Capability ◽  
Content Type ◽  
Product Innovations

Purpose This paper aims to introduce dynamic marketing capability (DMC) as a construct relevant for business research and business practice, and to test its validity in relation to company product innovations and company agility. Design/methodology/approach This study tests a hypothesized model using partial least squares structural equation modeling on data from a survey conducted with 155 companies based in Poland. Findings This study provides evidence that DMC facilitates company innovations in terms of their speed and market success. Thus, DMC complements other organizational capabilities that were previously found effective for new product development (NPD) with regard to intra- and inter-organizational processes. However, the influence of DMC on company innovation success is stronger in the case of companies that operate without the pressure to customize. Thus, this approach is more relevant for companies that provide standardized offerings and which target various customer segments, rather than companies that operate in customer niches or when their NPD processes are strongly orchestrated by their customers, e.g. in B2B sales within hierarchical supply chains. Research limitations/implications This study is limited by the cross-sectional empirical setting in that one country is used to test the research hypotheses. Further studies may focus on the combined effects of DMC and other important organizational capabilities, for example, flexible manufacturing, and may provide a detailed picture of DMC development by applying a longitudinal approach and case studies. Practical implications Generally, managers can use this research to rethink their corporate strategies. The study proposes a specific strategic approach to corporate innovativeness: companies may acquire meaningful market benefits through systematic reconfiguration of their marketing assets, combined with the introduction of new products. However, managers should analyze their business model and industrial setting to verify to what extent their companies operate in a context relevant for reconfiguring marketing resources. If the pressure for strong customization is high in the existing customer base, investing in DMC may not be relevant, as new offerings are rather customer tailored, i.e. designed by “big fish” buyers. On the other hand, many companies may leverage their innovations with DMC in both B2B and B2C settings, as long as they can provide standard solutions as their market offerings. Originality/value The study contributes to marketing theory in three ways. Firstly, the study conceptualizes DMC as a distinct dynamic capability aligned with dynamic capabilities view (from which DMC logically originates), and proposes how DMC is linked nomologically with company innovativeness and agility. Secondly, a measurement instrument for DMC and an empirical test for the model are both provided. Thirdly, the paper presents evidence that the link between DMC and product innovations becomes restricted in the presence of certain contingencies, specifically with regard to the so-called customization norm.

Platform ecological circle for cold chain logistics enterprises: the value co-creation analysis

2020 ◽  
Vol 120 (4) ◽  
pp. 675-691 ◽  
Author(s):  
Benhong Peng ◽  
Yuanyuan Wang ◽  
Sardar Zahid ◽  
Guo Wei ◽  
Ehsan Elahi
Keyword(s):  
Influencing Factors ◽  
Resource Sharing ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Positive Influence ◽  
Cold Chain ◽  
Enterprise Performance ◽  
Logistics Industry ◽  
Content Type ◽  
Logistics Enterprises

Purpose The purpose of this paper is to propose a framework of value co-creation in platform ecological circle for cold chain logistics enterprises to guide the transformation and development of cold chain logistics industry. Design/methodology/approach This paper establishes a conceptual framework for the research on the platform ecological circle in cold chain logistics, utilizes a structural equation model to investigate the influencing factors of the value co-creation of the platform ecological circle in the cold chain logistics enterprises and elaborates the internal relations between different influencing factors regarding the value co-creation and enterprises’ performance. Findings Results show that resource sharing in logistics platform ecological circle can stimulate the interaction among enterprises and this produces a positive influence on their dynamic capabilities, which, in turn, affects the they to work together to plan, implement and solve problems, so as to achieve the goal of improving enterprise performance. Practical implications The shared resources and value co-creation activities in the platform ecological circle are very important for the transformation and development of cold chain logistics enterprises. Therefore, enterprises should promote value co-creation through realizing resource sharing and creating a win-win cooperation mechanism. Originality/value This paper targets at incorporating the resource sharing in platform ecological circle for cold chain logistics enterprises, explores from an empirical perspective the role of the resource sharing in cold chain logistics enterprises in enhancing the dynamic capabilities of enterprises, thereby encouraging the value co-creation behavior, and ultimately boosts enterprise performance and stimulates business development.

Comprehending a knowledge framework as a source of dynamic capabilities in IJVs through PLS-SEM

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madhavi Kapoor ◽  
Vijita Aggarwal
Keyword(s):  
Knowledge Transfer ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Global Market ◽  
Innovation Performance ◽  
International Joint Ventures ◽  
Mediation Effect ◽  
Equation Modeling ◽  
Content Type

Purpose This study aims to investigate the relationship among knowledge transfer enablers, knowledge transfer process, absorptive capacity and innovation performance in the context of Indian international joint ventures (IJVs). These elements are woven with the thread of dynamic capabilities theory (DCT) into an integrated framework. Design/methodology/approach Data analysis is conducted on a quantitative survey of 196 IJVs with partial least squares structural equation modeling as the statistical technique. Findings Co-learning strategy, collaborative trust culture, information technology-based resources and systems and organizational structural design are found to be significant knowledge transfer enablers. Absorptive capacity has a complementary partial mediation effect on the positive relationship between knowledge transfer and innovation performance of Indian IJVs. Research limitations/implications The study has pioneered in explicating the criticality of IJV’s internal dynamics to cope with the global market dynamism in a much needed Indian context. Practitioners must focus on building dynamic capabilities in IJVs to make them sustainably competitive, as proposed and evaluated by this study. Further, IJV managers need to strategize their resources, routines and structure dynamically to foster knowledge transfer and innovativeness. Originality/value The comprehensive model on DCT offered by this study is rare to match in literature with a completely new context, which is the need of the hour.

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