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.

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.

Bifurcating the dynamic dominant logic: technical and evolutionary patterns of action

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chandra Dwipayana ◽  
Ruslan Prijadi ◽  
Mohammad Hamsal
Keyword(s):  
Structural Equation ◽  
Dynamic Capabilities ◽  
Digital Transformation ◽  
Superior Performance ◽  
Integrative Model ◽  
Equation Modeling ◽  
Content Type ◽  
Dominant Logic ◽  
Term Performance ◽  
Evolutionary Fitness

PurposeThis study proposed the integrative model of dynamic dominant logic (DL) with exploitation (EP) and exploration (ER) as a pattern of actions in endeavoring firm performance (FP). This study also intended to explain the multiple patterns of DL in creating technical and evolutionary fitness simultaneously.Design/methodology/approachThis study used a cross-sectional quantitative analysis of the Indonesian commercial banking population facing digital transformation and was analyzed using covariance-based structural equation modeling through parceling.FindingsThe model confirmed that DL positively affects EP and ER. It also revealed that DL indirectly impacts FP through EP, indicating changes in the traditional banking business through the strong acceptance of “new realities” in adapting to the rapid growth of technology. Hence, this study discovered that during the recent banking digital transformation, the beneficial inertia of the technical pattern of action might lose effectiveness in creating superior performance.Practical implicationsDL is vital in locking short-term performance while maintaining long-term performance opportunities through EP and ER to promote digital transformation. Accordingly, it induced banks to adopt new technology for value creation and fortifying competitive advantage.Originality/valueThis study provided a theory about how DL links the firm's decision-making process by promoting multiple patterns of action in achieving technical and evolutionary fitness. It highlighted the DL as a resource conceptualization that promotes resource development through EP and ER as microfoundation of dynamic capabilities during the tension of institutionalization and digital transformation.

The contingent effects of coopetition on new product development under dual institutional interactions: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hao Shen ◽  
Yu Gao ◽  
Chuan Liu ◽  
Xiangru Chen
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Structural Equation ◽  
New Product ◽  
Government Support ◽  
Equation Modeling ◽  
Institutional Environments ◽  
Dual Nature ◽  
Content Type ◽  
Business Context

Purpose Integrating the coopetition perspective with institutional theory, this study aims to determine how balanced patterns (BPs) and combinative patterns (CPs) of coopetition impact firms’ new product development (NPD) and how these effects are contingent on the various types of interactions between firms and the institutional environments in which they are embedded. Design/methodology/approach To test the hypotheses, 303 firms in China were surveyed. Based on the responses, the proposed model was estimated using structural equation modeling and hierarchical regression analysis. Findings The findings indicate that CP of coopetition enhances NPD but a BP of coopetition impedes NPD. Further, the results suggest that obtaining government support positively moderates the effect of the CP on NPD but negatively moderates the effect of the BP. Conversely, influencing government policy negatively moderates the effect of the CP but positively moderates that of the BP on NPD. Research limitations/implications The findings indicate that different patterns of inter-firm coopetition may have different effects on NPD, thus, providing a holistic and dynamic understanding of the contingent value of coopetition for NPD. The findings also suggest that the complex effects of coopetition on NPD are influenced by institutional interactions, introducing further contingencies to the process of coopetition-based innovation. Practical implications This study provides guidelines for managers seeking to fully understand and capitalize on the dual nature of coopetition: they should be cautious about the different patterns of competition – cooperation interaction and manage their interactions with institutional environments to increase the benefits and avoid the potential damage that different types of coopetition may bring. Originality/value This study offers direct insights into the balanced nature of coopetition and opens up an avenue for further exploration of the specific effects of cooperation dominance and competition dominance on firm performance in the business-to-business context. Moreover, the proposed contingency model offers a potential interface between institutional and coopetition research on NPD in marketing and strategic fields.

Linking ethical leadership to administrative innovation in Ethiopian banks: the mediating role of knowledge process capabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gedif Tessema Sinshaw ◽  
Atul Shiva ◽  
Manjit Singh
Keyword(s):  
Ethical Leadership ◽  
Structural Equation ◽  
Banking Sector ◽  
Organizational Capabilities ◽  
Equation Modeling ◽  
Mediation Model ◽  
Knowledge Process ◽  
Content Type ◽  
Mediating Role

PurposeThis paper aims to examine the mediating role of knowledge process capability (KPC) between ethical leadership (EL) and administrative innovation (AI) in the banking sector of Ethiopia.Design/methodology/approachThe study was conducted by a standardized questionnaire survey to collect the data from 266 employees of Commercial Bank of Ethiopia in 93 branches. The study employed structural equation modeling approach with Analyzing Moment of Structures 23.0 to test the hypothesized mediation model.FindingsThe results of this investigation disclose that EL has a significant and direct effect on AI and KPC. KPC also influences AI significantly.Originality/valueThe study revealed that KPC plays a partial mediating role in linking EL to AI, which is a new contribution to the existing literature of EL. This dimension can provide new dimensions to design organizational leadership which is based on sustainability paradigm. This can strengthen the organizational capabilities aiming to increasing innovative behaviors in order to have a deep-seated strategy.

Investigate the role of distributed leadership and strategic flexibility in fostering business model innovation

2019 ◽  
Vol 13 (1) ◽  
pp. 93-112 ◽  
Author(s):  
Suqin Liao ◽  
Zhiying Liu ◽  
Lihua Fu ◽  
Peichi Ye
Keyword(s):  
Business Model ◽  
Distributed Leadership ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Business Model Innovation ◽  
Equation Modeling ◽  
High Tech ◽  
Strategic Flexibility ◽  
Environmental Dynamism ◽  
Content Type

PurposeThe purpose of this paper is to examine whether the new distributed leadership patterns is an important driver for innovating business model. By synthesizing insights from the dynamic capabilities perspective, it also explores how and when distributed leadership enhances the business model innovation (BMI) by involving strategic flexibility as a mediator and environmental dynamism as important contingency.Design/methodology/approachA survey via questionnaire was conducted with 262 CEOs and 262 senior managers from Chinese high-tech companies that provided the research data. Structural equation modeling and linear regression analyses were used to test the time-lagged data, and then the main research questions were responded to.FindingsThe analysis reveals that distributed leadership has a significant direct influence on BMI, and that distributed leadership also indirectly affects BMI by enhancing strategic flexibility. Environmental dynamism strengthens the positive effect of distributed leadership on BMI under strategic flexibility.Originality/valueThis paper advances and enriches the emerging stream of BMI research. It presents an innovative conceptual analysis of the antecedents of BMI, and it shows a possible solution for BMI that complements extant research that considers which and how the leadership style of the organizations affects the business model change.

scholarly journals Revisiting the relationship between formal planning process and planning effectiveness

2018 ◽  
Vol 30 (2) ◽  
pp. 1016-1034 ◽  
Author(s):  
Said Elbanna ◽  
Tamer H. Elsharnouby
Keyword(s):  
Decision Making ◽  
United Arab Emirates ◽  
Structural Equation ◽  
Planning Process ◽  
Price Volatility ◽  
Organizational Capabilities ◽  
Equation Modeling ◽  
Content Type ◽  
Tourism Sector ◽  
The Impact

Purpose The purpose of this study is to address a timely research question by clarifying whether formal planning is a worthy approach for hotels. In so doing, the authors developed a theoretical model that extends prior research by exploring how the formal planning process influences organizational capabilities and decision-making style. The model also examines the impact of the three identified factors on planning effectiveness. Design/methodology/approach Data were collected from 175 hotels located in United Arab Emirates (UAE) and Qatar and hypotheses were tested using structural equation modeling (SEM). Findings The study concludes that the practice of formal planning in the tourism sector does matter and both organizational capabilities and decision-making style are important factors in predicting planning effectiveness. Research limitations/implications Generalizations to organizations operating in other sectors, such as manufacturing or government sectors, should be drawn cautiously. Practical implications Taking into account oil price volatility and serious political crises in the region, this study provides several insights to hotel managers into how the formal planning process can influence planning effectiveness. Originality/value The findings enrich the debate on the role of formal planning in the tourism sector, which has been relatively devoid of similar studies.

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.

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.

How FIEs may sustain competitive advantage in China

2013 ◽  
Vol 9 (1) ◽  
pp. 22-46 ◽  
Author(s):  
Xina Yuan ◽  
SangYong Kim ◽  
Wanwen Dai ◽  
Jan Ketil Arnulf
Keyword(s):  
Structural Equation ◽  
Equation Modeling ◽  
Business Culture ◽  
Marketing Capabilities ◽  
Marketing Capability ◽  
Content Type ◽  
Economies In Transition ◽  
Foreign Companies ◽  
Chinese Business ◽  
Practical Implications

Purpose – The purpose of this paper is to show that the Guanxi characteristics in Chinese business culture may add to the understanding of foreign invested enterprise's (FIE) successful marketing in China. Design/methodology/approach – The authors surveyed the entry mode of 296 FIEs in China and examined their way of adapting marketing strategy to local culture. The authors used a conceptual model hypothesizing a system of variables that the authors subsequently tested using structural equation modeling. Findings – Market orientation was insufficient to obtain marketing capability in China. FIE marketing capability in China was dependent on Guanxi and learning orientation, showing the need for contextualization of marketing approaches. Research limitations/implications – This paper enriches previous research on marketing and makes a contribution to the existing literature on practical management in China. It is also relevant for marketing in other markets in transition. Practical implications – FIEs may develop these capabilities on their own or succeed trough partnering in China. The study also points at similar mechanisms in other emerging markets and economies in transition from previous socialist economies. Originality/value – The authors attempt to explore the main factors driving the marketing capabilities of FIEs in China. Few articles have shown how foreign companies may adopt Guanxi orientation to do this, which is the object of the present study.

Enhancing supply chain performance through collaborative planning, forecasting, and replenishment

2019 ◽  
Vol 25 (4) ◽  
pp. 625-646 ◽  
Author(s):  
Hassan Barau Singhry ◽  
Azmawani Abd Rahman
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Collaborative Planning ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Supply Chain Performance ◽  
Innovation Capability ◽  
Manufacturing Companies ◽  
Content Type

Purpose Despite the importance of collaborative planning, forecasting, and replenishment (CPFR), its influence on supply chain innovation capability (SCIC) and supply chain performance (SCP) has not been sufficiently examined. The purpose of this paper is to examine the antecedence of SCP through CPFR and SCIC. Design/methodology/approach Through cluster and stratified random sampling, 286 responses from top managers of 1,574 Nigerian manufacturing companies were analyzed. Data analysis was performed using structural equation modeling with AMOS graphics. Findings The results show that SCIC has a full mediating effect on the relationship between CPFR and SCP. Specifically, CPFR has a significant relationship with both SCP and SCIC, and SCIC also relates significantly to SCP. Practical implications This study offers implications for manufacturers in developing countries in general, and in Nigeria in particular, by providing a guideline on how to improve SCP through CPFR. Originality/value The paper contributes to the limited studies on CPFR and SCP by extending this line of study into the realm of innovation capability and innovation. It integrates the social exchange theory and the dynamic capabilities theory to examine the collaborative processes of CPFR in the supply chain context. This study stressed the importance of boundary theoretical spanning by extending CPFR and SCP into the domain of innovation capability.

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