Assessment of organizational agility in response to disruptive innovation: a case of an engineering services firm

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Perinbanathan Vasanthan ◽  
M. Suresh
Keyword(s):  
Dynamic Capabilities ◽  
Gap Analysis ◽  
Controller Design ◽  
Research Work ◽  
Disruptive Innovation ◽  
Project Team ◽  
Organizational Agility ◽  
Engineering Project ◽  
Content Type ◽  
Engineering Services

Purpose The purpose of this paper is to develop a framework to manage the strategy to counter disruptive innovation by identifying stronger attributes and key strategic areas for improvements in an engineering services context with less freedom to orchestrate product innovation. The authors also validate the combined use of multi-grade fuzzy, Importance-Performance Analysis (IPA) and gap analysis in developing the strategy to mitigate turbulence. Design/methodology/approach The paper presents a framework using a combination of Dynamic Capabilities and Organizational Agility to develop the strategy. The study uses data gathered from a 60-member engineering project team working on an Aircraft Engine Controller design to identify 50 attributes and the related importance and performance ratings. The research study is designed using a three-tier approach. First, multi-grade fuzzy is utilized to measure the overall firm response agility index. In the second step, the IPA is used to analyze the strength and weaknesses of the firm and to identify the attributes where the firm needs to focus. In the past step, gap analysis is used to prioritize the identified attributes. The findings are validated by panel discussions with a different group of experts from the project team and action points were arrived at. Findings This research work finds that the firms’ response agility index of 6.97 is comparable to that of the Original Equipment Manufacturers (OEMs) from previous literature, but still needs a better agility score to effectively counter turbulence from disruptive innovations. It also identifies seven key areas for improvement and their relative priority to effectively improve the response agility by utilizing the least number of resources, the reasons for the gap and the mitigation strategy to close the gap. The findings highlight a few key differences between an engineering services firm in comparison to OEMs and Software Services firms. Practical implications The findings help the practitioners with a comparative agility score of an engineering services firm, and an effective way of measuring agility, identify key focus areas and prioritize the actions using a simple set of data that could be collected regularly to keep track of the improvements. The provided strategic framework to improve the agility score can be used for continuous improvement. Originality/value This paper contributes to the existing literature by developing a framework for outsourcing services companies to cope with the turbulence by using dynamic capabilities and organizational agility. It also adds to the literature by extending the validity of IPA and gap analysis in making strategic decisions in an industrial set-up.

Impact of genomics on biopharmaceutical industry: rare diseases as disruptive innovation

2019 ◽  
Vol 11 (2) ◽  
pp. 241-260 ◽  
Author(s):  
Mark J. Ahn ◽  
Amir Shaygan ◽  
Charles Weber
Keyword(s):  
Rare Disease ◽  
Rare Diseases ◽  
Dynamic Capabilities ◽  
Disruptive Innovation ◽  
Increasing Returns ◽  
Biopharmaceutical Industry ◽  
Content Type ◽  
Enterprise Value ◽  
The Impact ◽  
Value Growth

Purpose Using a dynamic capabilities lens, this paper aims to study the impact of genomics generally and gene therapy specifically on the rare disease sector of the biopharmaceutical industry. Design/methodology/approach In this study, 24 genomics-based, rare disease-focused biopharma companies were studied and several variables were tested with respect to enterprise value growth. The companies were analyzed as a group of rare disease firms, as well as by size. Findings The authors found that number of employees, revenues, number of pipeline and marketed products and retained earnings are strongly correlated (in that order) with enterprise value in rare disease focused biopharma companies. These correlations seem to be weaker as a company’s market capitalization size decreases, indicating that there tends to be increasing returns to scale. Research limitations/implications This study found that increasing rates of cumulative returns to enterprise value growth depends on accumulating knowledge-based employees and expanding product portfolios of disruptive genomics-based technologies for treating rare diseases. Aggregating skilled and innovative employees (especially in bigger companies) can be seen as a cumulative bolstering factor in leveraging dynamic capabilities which can be recognized, understood and transformed into commercial success (i.e. increasing returns in enterprise value). In other words, technology managers’ job is to manage not only the financial aspects of the technology but also human resources, asset configuration and strategic alliances efficiently toward faster and better innovation. Strong dynamic capabilities can be formed with the accumulation of experience, articulation and codification of knowledge and an adaptive ability to change the way they solve problems as their environment transforms. Originality/value This is the first study to demonstrate and measure a relationship between dynamic capabilities and enterprise value in genomics-based rare disease firms. Further, this study highlights the importance of building the capability and capacity to absorb expertise and accumulate knowledge for new product innovations and sustainable competitive advantage in industries characterized by disruptive innovation.

The challenges of organizational agility (part 1)

2017 ◽  
Vol 49 (1) ◽  
pp. 6-14 ◽  
Author(s):  
Steven H. Appelbaum ◽  
Rafael Calla ◽  
Dany Desautels ◽  
Lisa Hasan
Keyword(s):  
Competitive Advantage ◽  
Organizational Performance ◽  
High Speed ◽  
Dynamic Capabilities ◽  
Environmental Changes ◽  
Continuous Change ◽  
Organizational Agility ◽  
Content Type ◽  
Operational Activities ◽  
Traditional Structures

Purpose Planned episodic change programs, rigid processes and traditional structures, optimized for efficiency rather than agility, are no longer appropriate in a context where competitive advantage is fueled by high-speed innovation, supported by a more entrepreneurial mindset. The purpose of this two part paper is to offer a review of relevant research to provide an informed case for continuous strategic transformation facilitated by enhanced organizational agility. The concept of agility is explored, defined and a framework for categorizing agility-enhancing capabilities is presented. Specific aspects of this agility framework are examined to better understand how these interrelated competencies contribute to overall corporate performance in this fast-paced world. Design/methodology/approach A range of published empirical and practitioner research articles were reviewed to study the concepts of organizational agility and transformation as critical factors contributing to sustained competitive advantage, organizational performance and survival in the increasingly competitive global context. This literature review explores how organizations are overcoming the challenges imposed by their traditional structures, cultures and leadership models and identifies dynamic competencies to be developed to achieve a greater level of corporate agility. Findings Increased organizational agility increases the ability to respond proactively to unexpected environmental changes. The commitment to continuous transformation and agile strategies implies changes at all levels of the organization from its structure, through its leadership and decision-making dynamics, down to the skills and interpersonal relationships of the individuals implementing the agile mission. Research limitations/implications There is a gap in the literature with respect to agility, namely, that most research focuses on the characteristics of agile organizations, with little attention given to how to develop agile capabilities and embed the commitment to continuous change deep into the corporate DNA, beyond the process level, into the psyche of the people driving the organization. Practical implications Managers should consider agility as an overarching principle guiding strategic and operational activities. Fostering agility-enhancing capabilities will be paramount in ensuring the successful integration of agility as a performance enhancing paradigm. Social implications For small- and medium-sized companies with limited resources, this reality makes staying relevant an uphill battle but also opens windows of opportunity. The challenge of the next century for large organizations will be to rekindle their innovative agile beginnings and for start-ups to continue to foster their dynamic capabilities as they grow. Originality/value The paper provides practical and empirical evidence of the importance of enterprise agility and specific dynamic capabilities on firm performance.

The challenges of organizational agility: part 2

2017 ◽  
Vol 49 (2) ◽  
pp. 69-74 ◽  
Author(s):  
Steven H. Appelbaum ◽  
Rafael Calla ◽  
Dany Desautels ◽  
Lisa N. Hasan
Keyword(s):  
Competitive Advantage ◽  
Organizational Performance ◽  
High Speed ◽  
Dynamic Capabilities ◽  
Environmental Changes ◽  
Continuous Change ◽  
Organizational Agility ◽  
Content Type ◽  
Operational Activities ◽  
Traditional Structures

Purpose Planned episodic change programs, rigid processes and traditional structures, optimized for efficiency rather than agility, are no longer appropriate in a context where competitive advantage is fueled by high-speed innovation, supported by a more entrepreneurial mindset. The purpose of this paper is to offer a review of relevant research to provide an informed case for continuous strategic transformation facilitated by enhanced organizational agility. The concept of agility is explored, defined and a framework for categorizing agility-enhancing capabilities is presented. Specific aspects of this agility framework are examined to better understand how these interrelated competencies contribute to overall corporate performance in this fast-paced world. Design/methodology/approach A range of published empirical and practitioner research articles were reviewed to study the concepts of organizational agility and transformation as critical factors contributing to sustained competitive advantage, organizational performance and survival in the increasingly competitive global context. This literature review explores how organizations are overcoming the challenges imposed by their traditional structures, cultures and leadership models and identifies dynamic competencies to be developed to achieve a greater level of corporate agility. Findings Increased organizational agility increases the ability to respond proactively to unexpected environmental changes. The commitment to continuous transformation and agile strategies implies changes at all levels of the organization from its structure, through its leadership and decision-making dynamics, down to the skills and interpersonal relationships of the individuals implementing the agile mission. Research limitations/implications There is a gap in the literature with respect to agility, namely that most research focuses on the characteristics of agile organizations, with little attention given to how to develop agile capabilities and embed the commitment to continuous change deep into the corporate DNA, beyond the process level, into the psyche of the people driving the organization. Practical implications Managers should consider agility as an overarching principle guiding strategic and operational activities. Fostering agility-enhancing capabilities will be paramount in ensuring the successful integration of agility as a performance enhancing paradigm. Social implications For small- and medium-sized companies with limited resources, this reality makes staying relevant an uphill battle but also opens windows of opportunity. The challenge of the next century for large organizations will be to rekindle their innovative agile beginnings and for start-ups to continue to foster their dynamic capabilities as they grow. Originality/value The paper provides practical and empirical evidence of the importance of enterprise agility and specific dynamic capabilities on firm performance.

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.

Competitive service quality benchmarking in airline industry using AHP

2016 ◽  
Vol 23 (4) ◽  
pp. 768-791 ◽  
Author(s):  
Alok Kumar Singh
Keyword(s):  
Service Quality ◽  
Competitive Advantage ◽  
Airline Industry ◽  
Gap Analysis ◽  
Research Work ◽  
Aviation Industry ◽  
Extensive Literature ◽  
Competitive Strategies ◽  
Content Type ◽  
Five Dimensions

Purpose – The purpose of this paper is to measure competitive service quality (SQ) performances of domestic full service airlines in India by providing a framework based on analytic hierarchy process (AHP), in order to benchmark their SQ thus, enhancing competitiveness and gaining competitive advantage. Design/methodology/approach – The present study has used the AHP methodology to benchmark the SQ of airlines in India. Subsequently, competitive SQ gap analysis is performed to evaluate and compare strength and weakness of focal firm (Airline “B”) against its competitors. Findings – In this research work, total of 23 SQ attributes and five dimensions have been identified based on extensive literature review, focus group brainstorming and experts opinion from the Indian airline industry. The study reveals that air travelers rate assurance as the most important criteria and safety as the most important sub criteria followed by on time performance, performing the services right, the first time and remedial process for delayed or missing baggage. Furthermore, based on AHP methodology, the result shows that Airline “A” has emerged as a market leader and is considered as a benchmark airline. Practical implications – This framework will help airline management and policy makers to identify area of service improvements and identify SQ gaps with respect to the benchmark airline. This will help in formulating suitable competitive strategies for SQ improvements, thus gaining competitive advantage. Originality/value – In this research work, AHP-based SQ framework have been applied in Indian domestic aviation industry for competitive SQ benchmarking which is a novel contribution, thus widening the existing knowledge base in aviation SQ literature.

Operational coordination and mass customization capability: the double-edged sword effect of customer need diversity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongyan Sheng ◽  
Taiwen Feng ◽  
Lucheng Chen ◽  
Dianhui Chu
Keyword(s):  
Mass Customization ◽  
Dynamic Capabilities ◽  
Hierarchical Regression ◽  
Organizational Agility ◽  
Competitive Intensity ◽  
Content Type ◽  
Customer Needs ◽  
Service Oriented ◽  
The Relationship ◽  
Customer Need

PurposeThis study aims to explore how operational coordination affects mass customization capability (MCC) via organizational agility, the double-edged sword effect of customer need diversity and the moderating effect of competitive intensity based on dynamic capabilities perspective.Design/methodology/approachThis study examines the research hypotheses using hierarchical regression analysis by collecting data from 277 Chinese firms.FindingsThe results reveal that organizational agility partially mediates the impacts of operational coordination on product-oriented and service-oriented MCC. Customer need diversity is positively related to operational coordination, whereas negatively moderates the relationship between operational coordination and organizational agility. Moreover, competitive intensity negatively moderates the relationship between organizational agility and service-oriented MCC.Research limitations/implicationsThis study mainly used perceptual scales to measure organizational agility. There is a need to measure agility through Agility Index which consists of features' combination that enables agility.Practical implicationsManagers would thus do well to integrate business activities with supply chain partners and strive to foster an agile organization. Additionally, managers should take the leadership to assess the customer need and invest time and resources to respond to it when needed even though the response may be difficult.Originality/valueAlthough the importance of MCC in meeting personalized customer needs has been recognized, whether and how customer need diversity affects MCC remains unclear. This study provides a framework to study the relationships between customer need diversity and MCC, which deepens our understanding of how to enhance MCC to respond to diverse customer needs.

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.

Leveraging frugal innovation in micro- and small enterprises at the base of the pyramid in Brazil: an analysis through the lens of dynamic capabilities

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Miriam Borchardt ◽  
Giancarlo Pereira ◽  
Alexandre Rodrigues Ferreira ◽  
Marcela Soares ◽  
Josiano Sousa ◽  
...  
Keyword(s):  
Middle Class ◽  
Low Income ◽  
Dynamic Capabilities ◽  
Disruptive Innovation ◽  
Target Market ◽  
Small Enterprises ◽  
Base Of The Pyramid ◽  
Frugal Innovation ◽  
Content Type ◽  
Micro And Small Enterprises

Purpose This paper aims to analyse the factors that influence frugal innovation (FI) in micro- and small enterprises (MSEs) at the base of the pyramid (BOP) through the theoretical lens of dynamic capabilities. The input–process–output (I-P-O) framework was used as a tool to support the analysis of FI as a process. Design/methodology/approach A multiple case study was performed with 25 MSEs at the BOP in Brazil, all of which were in the food industry. Findings This study indicates that dynamic capabilities are present in enterprises that are migrating to low income and middle-class consumers, which influences their FI practices. To analyse FI in the context of MSEs at the BOP, the I-P-O framework was adapted. Enterprises that have focussed on extremely poor and subsistence markets develop more disruptive innovation, aiming to reduce the final prices they charge consumers. The primary focus of these enterprises is on maintaining ordinary capabilities. Enterprises that have focussed on low income and middle-class customers have implemented incremental innovation, adding value based on colonial tastes and close relationships with their consumers. Such a strategy demands changes in the physical facilities, use of social media and investment in quality control of these enterprises. Considerations for policymakers and institutions are also presented. Originality/value The use of a dynamic capabilities lens in such a context is a new approach and provides a relevant basis for further studies. The study has identified different approaches to FI and different sets of barriers and successful practices, both related to the target market segment, that could leverage FI. This study contributes to case studies from Brazil, spreading the research context beyond Asia.

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.

Zn diffusion and reflow behaviour of Sn-9Zn and Sn-8.5Zn-0.5Ag-0.01Al-0.1Ga solders on a Ni/Cu substrate under IR reflow

2014 ◽  
Vol 26 (2) ◽  
pp. 87-95 ◽  
Author(s):  
J. Mittal ◽  
K.L. Lin
Keyword(s):  
Theoretical Calculations ◽  
Research Work ◽  
Content Type ◽  
Diffusion Behavior ◽  
Zn Diffusion ◽  
Cu Substrate ◽  
Practical Applications ◽  
Substrate Interface ◽  
Solder Balls ◽  
Practical Implications

Purpose – This paper aims to compare the reflow and Zn diffusion behaviors in Sn-Zn and Sn-8.5Zn-0.5Ag-0.01Al-0.1Ga (5E) solders during soldering on a Ni/Cu substrate under infrared (IR) reflow. The study proposes a model on the effect of various elements particularly Zn diffusion behavior in the solders on the formation of intermetallic compounds (IMCs). Design/methodology/approach – The melting activities of two solders near their melting points on copper substrates are visualized in an IR reflow furnace. Reflowed solder joints were analyzed using scanning electron microscope and energy dispersive X-ray spectroscopy. Findings – Reflow behaviors of the solders are similar. During melting, solder balls are first merged into each other and then reflow on the substrate from top to bottom. Both solders show a reduced amount of Zn in the solder. Theoretical calculations demonstrate a higher Zn diffusion in the 5E solder; however, the amount of Zn actually observed at the solder/substrate interface is lower than Sn-9Zn solder due to the formation of ZnAg3 in the solder. A thinner IMC layer is formed at the interface in the 5E solder than the Sn-Zn solder. Research limitations/implications – The present work compares the 5E solder only with Sn-Zn solder. Additional research work may be required to compare 5E solder with other solders like Sn-Ag, SnAgCu, etc. to further establish its practical applications. Practical implications – The study ascertains the advantages of 5E solder over Sn-Zn solder for all practical applications. Originality/value – The significance of this paper is the understanding of the relation between reflow behavior of solders and reactivity of different elements in the solder alloys and substrate to form various IMCs and their influence on the formation of IMC layer at solder/substrate interface. Emphasis is provided for the diffusion behavior of Zn during reflow and respective reaction mechanisms.

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