A holistic model of dynamic capabilities and environment management system towards eco-product innovation and sustainability in automobile firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samer Al-Shami ◽  
Nurulizwa Rashid
Keyword(s):  
Automotive Industry ◽  
Firm Value ◽  
Product Innovation ◽  
Management System ◽  
Social Impact ◽  
Dynamic Capabilities ◽  
Future Research ◽  
Content Type ◽  
Auto Parts ◽  
Micro Level

Purpose Environmental pollution has emerged as a major concern in the 21st century following the introduction of sustainable development (SD) by the year 2030, whereby one of the predominant goals is related to the manufacturing industry. In Malaysia, the automotive industry is acknowledged as the backbone driving for economic growth and recognised as a source of environmental deterioration. Therefore, eco-innovation is, thus, introduced as one of the efforts for minimised environmental effects, reduced social impact and firm value sustenance. In particular, eco-product innovation is one of the renowned environmental innovation dimensions and displays high adoption and diffusion rates in developed countries due to green awareness and government financial assistance. However, developing countries such as Malaysia show relatively low adoption of such practices amongst companies, whereby most of the efforts are driven by the governments, supplier and customer demands. Therefore, this paper aims to delineate the factors of voluntary initiatives undertaken by the Malaysian automotive and auto parts industry towards eco-product innovation. Design/methodology/approach The research drew from the micro-level perspective, thus using dynamic capabilities (DC) constructs and environmental management system (EMS) strategy variables. The constructs included technology collaboration, green human resources and eco-culture, while the variables denoted formal EMS and top management support. Survey data were obtained from 242 entities within the Malaysian automotive and auto parts industry, which were subjected to analysis via confirmatory factor analysis and structural equation modelling. Findings The findings revealed the moderating role played by eco-product innovation for the association linking EMS strategy and sustainability development, while no moderator effects were observed between DC and sustainability development. Thus, future research can be performed in the meso and macro-level areas by using qualitative research across different sectors. Originality/value This paper explicates novel literature content, particularly for the field of eco-product innovation; it positions an empirical analysis from the micro-level perspective regarding the antecedence of DC and environmental strategy towards eco-product innovation and SD, mainly in the automotive industry.

Re-thinking and re-operationalizing product innovation capability

2018 ◽  
Vol 30 (4) ◽  
pp. 374-397 ◽  
Author(s):  
Sumeet Om Sharma ◽  
Angela Martin
Keyword(s):  
Empirical Research ◽  
Product Innovation ◽  
Dynamic Capabilities ◽  
Process Management ◽  
A Priori ◽  
Dynamic Capability ◽  
Future Research ◽  
Innovation Capability ◽  
Content Type ◽  
Measurement Models

Purpose This paper aims to enhance the understanding of the essence of product innovation capability (PIC) as a dynamic capability by systematically assessing its conceptualization and construct validity. The paper answers the call by numerous researchers to undertake research efforts to better understand and operationalize dynamic capability constructs. Design/methodology/approach A priori and scholarly contentions based on complementarities between the tenets of three prominent frameworks (Dynamic Capability View, Process Management and Organizational Ambidexterity) were utilized for conducting a theoretical triangulation, as presented in the paper. Established approaches to explication and measurement of multi-dimensional latent constructs were used for guiding this paper. Findings This paper enhances the conceptualization of dynamic capabilities and identifies a lacuna in frequently adopted PIC operationalization approaches that is pertinent to other dynamic capabilities. It presents substantive and specific prescriptions for enabling the development of superior capability (both dynamic and operational) measurement models in empirical research. Research limitations/implications The diverse implications for research and practice are discussed in the paper alongside suggestions for future research. Originality/value This paper guides future theoretical and empirical research by reviewing the conception and validity of PIC. It presents a comprehensive conception of dynamic capabilities by extending the dynamic capability definition to address the identified problems. The arguments presented have wide-ranging applications and broad generalizability across multiple research fields.

Quality and innovation as drivers for manufacturing competitiveness of automotive parts suppliers

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
pp. 00-00
Author(s):  
Luz María Valdez-de la Rosa ◽  
Luis Alberto Villarreal-Villarreal ◽  
Gustavo Alarcón-Martínez
Keyword(s):  
Automotive Industry ◽  
Product Innovation ◽  
Manufacturing Sector ◽  
The State ◽  
Causal Relationships ◽  
Content Type ◽  
Tier 1 ◽  
Automotive Parts ◽  
Auto Parts ◽  
Parts Suppliers

PurposeThe purpose of this paper is to identify the causal relationship between the independent variables such as process quality and product innovation in regard to the dependent variable of competitiveness, in the manufacturing sector of the automotive industry, specifically for Tier 1 auto parts manufacturing companies in the state of Nuevo León, México.Design/methodology/approachBased on a thorough review of the literature, an instrument was designed to measure the competitiveness of automotive industry manufacturing; it was applied to Tier 1 suppliers of automotive parts in the state of Nuevo León, México. Various statistical analysis tests were applied to the results; first, Cronbach's alpha to determine the reliability of the instrument, and next, a factor analysis to measure construct validity. In addition, a multiple linear regression analysis was carried out to identify the causal relationships between the variables analysed.FindingsThis study found that process quality as well as product innovation have independent and positive causal relationships with respect to competitiveness in automotive manufacturing.Research limitations/implicationsThe limitations of this paper are its focus on a single manufacturing sector, application in a single country and small sample size.Practical implicationsCompanies that supply automotive parts will be able to invest in the key elements of quality and innovation while focusing their efforts on reinforcing their competitiveness.Originality/valueAuto parts suppliers will be able to perform specific actions to improve their quality processes through lean manufacturing and quality assurance practices and by designing new and innovative products that will enhance their competitiveness.

Assessing dynamic capabilities of incumbents in the face of unprecedented industry transformation: the case of the automotive industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fabian Hoeft
Keyword(s):  
Automotive Industry ◽  
Dynamic Capabilities ◽  
Holistic Approach ◽  
Strategic Decision ◽  
Annual Reports ◽  
Future Research ◽  
Structured Interviews ◽  
Time Dimension ◽  
Two Phase ◽  
Content Type

PurposeThe purpose of this paper is to develop a holistic approach to the assessment of dynamic capabilities (DCs). Holistic refers to incorporating all DCs of an organisation relevant for determining and executing the firm's strategy.Design/methodology/approachA two-phase study was conducted. First, secondary sources, such as media, industry and annual reports, are being used to initially assess CASE (connected, autonomous, shared and electric) and implications for incumbent car manufacturers in a structured way. Second, semi-structured interviews with automotive managers and further automotive stakeholders offer in-depth insights into CASE, as well as incumbents' strategies and the underlying rationale.FindingsThe proposed framework for assessing DCs offers a holistic approach and provides new angles of analysis. First, the time dimension is considered using scenarios since timing is vital in strategy and implementation. Second, capabilities are broken down into technological and non-technological, sharpening strategic decision-making of automakers. Third, the analysis considers external VUCA (volatility, uncertainty, complexity and ambiguity) as they interplay with internal DCs.Research limitations/implicationsFurther testing of the proposed DC assessment approach offers a promising opportunity for future research. This paper focuses on the automotive industry, but it is worth investigating the extent to which the approach can be used in other dynamic industries, such as finance or retail.Originality/valueThe approach proposed highlights the importance and nuances of considering external perspectives in the DC assessment and the relevance of non-technological capabilities in the automotive industry. Thereby, it contributes to the literature on capability assessments and the operationalisability of the DC lens.

Recent developments in China’s biopharmaceutical industry (2012-2017)

2019 ◽  
Vol 10 (3) ◽  
pp. 686-707
Author(s):  
Marcus Conlé
Keyword(s):  
Product Innovation ◽  
Academic Research ◽  
Domestic Market ◽  
Growth Strategy ◽  
Future Research ◽  
Biopharmaceutical Industry ◽  
Content Type ◽  
Drug Regulator ◽  
Recent Developments ◽  
Product Portfolios

Purpose The paper aims to take stock of China’s recent biopharmaceutical industry development by analyzing product innovation and changes in the firms’ product portfolios during the five-year period between 2012 and 2017. Design/methodology/approach The paper introduces a classification of biopharmaceutical products. By applying the classification to the product data of China’s drug regulator, the CFDA, it becomes possible to trace the developments within the sector by looking at changes in the number of firms within each subgroup and changes in the number of subgroups in which each firm is involved. The classification allows an evaluation of the latest product innovation achievements. Findings The paper demonstrates a mild shakeout of firms in the relatively long-existing domestic market segments, a trend toward more specialized product portfolios and an enduring prevalence of innovation strategies aimed at exploiting relatively unpopulated domestic market niches instead of pioneering entirely new products. Especially the capability of upgrading to second-generation protein therapeutics has become a key criterion for separating the wheat and the chaff in China’s domestic sector. The paper moreover points out the relevance of acquisitions as a corporate growth strategy. Research limitations/implications The research does not consider complementary indicators, product pipelines in particular. Future research should compare patterns across emerging economies. Originality/value The paper is unique in using the CFDA database for systematic academic research on (bio)pharmaceutical innovation and in introducing a biopharmaceutical product classification to trace innovative activities and changes in corporate product portfolios over time.

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.

Dynamic capabilities vs. innovation capability: are they related?

2014 ◽  
Vol 21 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Lidija Breznik ◽  
Robert D. Hisrich
Keyword(s):  
Literature Review ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Future Research ◽  
Innovation Capability ◽  
New Approach ◽  
Content Type ◽  
New Research ◽  
The Relationship

Purpose – The purpose of this paper is to provide insights into the relationship between dynamic capabilities and innovation capabilities. It links dynamic capability with innovation capability and indicates the ways they can be related. Design/methodology/approach – The relationships between dynamic and innovation capability were investigated through a systematic literature review. Findings – The review indicates that common characteristics exist between of the both fields, which demonstrate six relationships. Additionally, findings show some inconsistencies and even contradictions. Originality/value – In this paper, the authors have compared dynamic capabilities, a relatively new approach in the field of strategic management, with innovation capabilities, a widely recognised crucial domain for sustained competitiveness. Since both areas address issues that are essential to today's environment, future research should seek to clarify both concepts, by undertaking some new research and developing comprehensive and unambiguous framework.

Multiteam systems as integrated networks for engaging ambidexterity as dynamic capabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benjamin P. Dean
Keyword(s):  
Dynamic Capabilities ◽  
Dynamic Environment ◽  
Task Demands ◽  
Organizational Level ◽  
Future Research ◽  
Integrated Networks ◽  
Content Type ◽  
Systems Model ◽  
Near Term

PurposeThis inquiry aims to determine the features and mechanisms that specially enable a multiteam system (MTS) to develop ambidexterity that can deal effectively with rapid changes in dynamic environments. The MTS is an emerging organizational unit comprised of tightly integrated networks of teams that may originate from one or more firms. The inquiry also considered how an MTS can engage those features and mechanisms to maximize ambidexterity as dynamic capabilities for increased innovation and long-term adaptation under complex, volatile conditions.Design/methodology/approachThis conceptual inquiry integrates the emerging research on MTSs with theory and studies relating to ambidexterity and dynamic capabilities. This inquiry focuses on the attributes and linkages that specially characterize an MTS. It analyzes these to determine the key mechanisms and interactions enabling and engaging ambidexterity at MTS unit level.FindingsMTSs can engage powerful mechanisms for ambidexterity functioning as dynamic capabilities at meso-organizational level. The attributes and linkages that distinguish an MTS from other units enable it to deal effectively and efficiently with near-term task demands by simultaneously balancing the essential tasks of exploration and exploitation, and by being able to rapidly adapt by reconfiguring taskwork and reallocating resources as required for sustainable innovation and long-term success within a dynamic environment.Practical implicationsThis inquiry provides valuable insights for designing MTSs that are equipped with selected teams, flexible memberships, specialized skills and permeable interfaces. Autonomy for an MTS allows the unit to span internal and external organizational boundaries to gain access to new discoveries and to exchange information and material resources for increased innovation. Ambidexterity as dynamic capabilities facilitates exploitation of current resources by efficiently reconfiguring taskwork and reallocating materials for adaptation and competitive advantage.Originality/valueThis inquiry appears to represent the most integrative effort to examine the underexplored potential of MTSs for developing and engaging ambidexterity functioning as dynamic capabilities. The inquiry appears to be a first effort at articulating a concept of MTS ambidexterity distinct from organizational ambidexterity. The analysis synthesizes a systems model that guides organizational leaders and opens new opportunities for future research.

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

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

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

Resources, capabilities and competitive advantage of minor export crops farms in Sri Lanka

2018 ◽  
Vol 28 (5) ◽  
pp. 478-502 ◽  
Author(s):  
Vilani Sachitra ◽  
Siong-Choy Chong
Keyword(s):  
Sri Lanka ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Process Management ◽  
Relationship Building ◽  
Future Research ◽  
Content Type ◽  
Resources And Capabilities ◽  
Physical Assets ◽  
Export Crops

Purpose The agribusiness sector has long been acknowledged as a major source of livelihood to many people in developing countries. Hence, determining the resources and capabilities influencing farm-level competitive advantage are vital to better understand and formulate appropriate strategies to increase the competitiveness ofminor export crops farms. This study aims to understand of the link between resources-capabilities-competitive advantage for appropriate measures to be recommended to enhance the competitive position of the smallholding farms. Design/methodology/approach This study adopts the resource-based view in combination with dynamic capabilities. The scope comprises owners of farms who possess experience in commercial cultivation of minor export crops in Sri Lanka. A self-administrated structured questionnaire was used to collect data. Findings Based on the responses from 456 farm owners, results of the multiple regression analysis indicate that variables representing resources such as human assets, physical assets, financial assets, institutional capital, collective action and entrepreneurial identity; and dynamic capabilities such as organisational learning, relationship building, quality management and marketing are significantly associated with competitive advantage of the minor export crops farms. Reputation and farm process management capability are the only two insignificant variables. Taken together, the resources and dynamic capabilities investigated explain 89.3 per cent of the variation in competitive advantage, in which 82 per cent is contributed by resources. Originality/value The findings provide useful insights not only in terms of understanding the link between resources, dynamic capabilities and competitive advantage but also how resources and capabilities can be channelled and leveraged to bring about competitive advantage to the minor export crops farms. Theoretical and practical implications as well as future research directions are provided.

The causes, impact and prevention of employee fraud

2016 ◽  
Vol 23 (4) ◽  
pp. 1012-1027 ◽  
Author(s):  
Mastura Omar ◽  
Anuar Nawawi ◽  
Ahmad Saiful Azlin Puteh Salin
Keyword(s):  
Data Collection ◽  
Low Income ◽  
Automotive Industry ◽  
Document Analysis ◽  
Working Environment ◽  
Future Research ◽  
Content Type ◽  
Financial Pressure ◽  
The Future ◽  
Employee Fraud

Purpose The purpose of this paper is to investigate the causes and impact of employee fraud, focusing on one particular industry, namely, the automotive industry. Design/methodology/approach One company was selected as a case for the study. Qualitative data analysis was used for the study, with two techniques for data collection. First was the content or document analysis on various reports, such as employee fraud reports and records of disciplinary action, and second was a series of interviews with employees from different levels and various departments of the company. Findings This study found that the most popular type of fraud is misappropriation of assets, including theft of cash and inventories. No significant differences were seen in terms of fraudster position, as they can come from both the lower and the executive level. However, majority of the fraudsters come from the operational and sales department. This study also found that majority of the fraudsters in the case study were male, new employees and young adults. Their motivations to commit fraud include lack of understanding about fraud behavior, opportunity to commit fraud and lifestyle and financial pressure. Research limitations/implications The results provide further confirmation of the Fraud Triangle Theory and Fraud Diamond Theory on the causes of the fraud. They are also consistent with much prior research and surveys conducted by global professional firms on fraud and its related causes and implications. This study, however, was conducted on only one company with several series of interviews and three years of document analysis. Future research should collect and analyze data from a higher number of companies with more respondents for interviews and longer period for document analysis to get more accurate results. Practical implications This study provides some recommendations for fraud prevention in the future based on real fraud cases and those that involved managing cases up to and including disciplinary decision. These include closed supervision, fraud awareness training, clearer job descriptions, cultivation of a pleasant working environment and improved security control. Social implications This study found that some of the causes of fraud include social factors like lifestyle and financial pressure due to low income. Policy adjustments, such as an effort to push people beyond the poverty line with higher minimum wages, need to be made to prevent low-income workers from seeing their company as another source of illegal income. Originality/value This study is original, as it focuses on a company that operates in the automotive industry, which is rare in fraud literature, particularly in developing markets. In addition, the company is new, so analysis can be conducted on how the company evolved and learned from the fraud analysis for prevention in the future. Furthermore, this study used two techniques of data collection, so that verification of the findings may be made for better reliability.

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