Dynamic managerial capabilities, organisational capacity for change and organisational performance: the moderating effect of attitude towards change in a public service organisation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sunu Widianto ◽  
Yetty Dwi Lestari ◽  
Beta Embriyono Adna ◽  
Badri Munir Sukoco ◽  
Mohammad Nasih

PurposeThe aim of this study is to explore dynamic managerial capabilities (DMCs) and their effect on public organisational performance. While the previous research has focused on how leadership style impacts on organisational performance, the authors have investigated how the dynamic managerial capabilities of middle managers and their organisational capacity for change as well as their attitude towards the change are linked to organisational performance.Design/methodology/approachThe dataset was gathered during the field research carried out in a large public Indonesian government institution. In total, 313 managers and their direct followers participated in this study. The authors have employed structural equation modelling to test the hypotheses.FindingsThe results of this study demonstrate the role of the dynamic capabilities of the middle managers associated with organisational performance. The results show that dynamic managerial capabilities and organisational performance are mediated by the organisational capacity for change.Practical implicationsMiddle managers should equip and develop their capabilities in order to embrace change in the organisation through the communication between the different staff levels, uniting the vision and mission with the organisational members. Further, the organisation should empower the role of the middle managers by increasing their authority and participation in the policy-making that is part of the change process. In addition, the workplace could implement interventions to optimise the dynamic managerial capabilities held by the middle manager and employees through assessments and mentoring. Finally, particular training programmes could be implemented to boost the employees' skills and flexibility, thereby keeping them agile in the context of the changes in the work environment.Originality/valueThe role of the dynamic managerial capabilities of the middle manager is a prominent factor when facilitating a high level of organisational performance in a public organisation. However, the role of dynamic managerial capabilities does not have a direct effect on organisational performance if the organisation does not have the capacity to change, particularly in the Indonesian context.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siddharth Gaurav Majhi ◽  
Arindam Mukherjee ◽  
Ambuj Anand

Purpose The purpose of this conceptual paper is to explicate the role played by information technology (IT) in enabling managerial dynamic capabilities. By doing so, this paper seeks to address a critical theoretical gap regarding IT’s role in enabling dynamic capabilities (DCs). DCs are knowledge-intensive and information-intensive processes and play a crucial role in facilitating strategic renewal of firms operating in volatile, uncertain, complex and ambiguous business environments. Although managers play a central role in the DCs framework, extant research has only focused on the role of IT in enabling firm-level and process-level DCs. Design/methodology/approach This conceptual paper uses the literatures on dynamic managerial capabilities, individual-level information system use, social capital, human capital, managerial cognition and technology-enabled learning to build propositions that link managerial IT use with the enablement of dynamic managerial capabilities. Findings This paper introduces a new construct called individual IT leveraging capability (IILC) and provides theoretically grounded arguments that link IILC with managerial social capital, managerial cognition and managerial human capital. It also explicates the relationships between managerial social capital, managerial cognition and managerial human capital and the dynamic managerial capabilities of sensing, seizing and reconfiguring. Research limitations/implications The establishment of the linkage between IT and dynamic managerial capabilities extends the literature on the business value of IT. This work also adds to the literature on dynamic managerial capabilities by providing a theoretically grounded argument that IT can act as an antecedent of such capabilities. Originality/value To the best of the authors’ knowledge, this paper is arguably the first to theorize the role of IT in enabling managerial DC and thus addresses a critical gap in academic research literature.



2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Badri Munir Sukoco ◽  
Yetty Dwi Lestari ◽  
Ely Susanto ◽  
Reza Ashari Nasution ◽  
Indrianawati Usman

PurposeThis study aims to investigate the mechanism that transforms middle manager capabilities (MMCs) into organisational performance (OP). This study proposes that organisational capacity for change (OCC) might mediate the relationship between MMCs and OP.Design/methodology/approachThe proposed hypotheses were tested using data derived from a survey distributed to 89 heads of department of 34 subjects from the 11 top universities in Indonesia.FindingsThe findings indicate that MMCs positively influence OCC and OP and that OCC positively influences the OP. Furthermore, the authors found that OCC mediates the positive effect of MMCs on OP.Originality/valueThe authors empirically investigated the hypothesis that MMCs, in the context of higher education, play a crucial role in determining OCC and OP. Furthermore, the capacity of organisations to adapt to the changing environment mediates the capabilities of the middle managers in relation to OP. In addition, the authors empirically investigated OCC in three dimensions (learning, process and context) that were previously only proposed and discussed conceptually.



2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kashif Ullah Khan ◽  
Fouzia Atlas ◽  
Usman Ghani ◽  
Sadia Akhtar ◽  
Farhan Khan

PurposeThe purpose of this paper is to examine the important role of intangible resources under resource based view (RBV) such as dominant logic (information filter and learning/routines) and dynamic managerial capabilities (managerial human capital, HC; social capital, SC and managerial cognition, MC) in small and medium sized enterprises (SMEs) innovation performance in Hefei, Anhui province China.Design/methodology/approachAn empirical study was conducted while distributing 498 questionnaires among different SMEs in Hefei, of which around 429 responses were received. Structural equation modeling (SEM) was employed to test the proposed hypotheses.FindingsThis research study is an endeavor to fill the missing link in the existing literature, and empirical analysis of this research supports all the hypotheses confirming that dominant logic and dynamic managerial capabilities are valuable intangible resources and positively and significantly influence the SMEs innovation performance. Results also indicate that managerial human capital, social capital and managerial cognition (dynamic managerial capabilities) play a significant mediating role between dominant logic and SMEs innovation performance.Research limitations/implicationsThe findings suggest that those SMEs which are lacking tangible resources should build and nurture their top management capabilities and dominant logic and SMEs effectively utilizing these intangible resources can enhance their innovation performance.Practical implicationsThe findings suggest that SMEs lacking tangible resources should build and nurture their top management capabilities and dominant logic and SMEs effectively utilizing these intangible resources can enhance their innovation performance.Originality/valueThis paper argues theoretically (under RBV and dynamic capabilities view-DCV) and demonstrates empirically that in an emerging economy, i.e. China characterized by highly volatile, dynamic and uncertain competitive environments, SMEs lack tangible resources; therefore, intangible resources (e.g. dominant logic-DL and dynamic managerial capabilities-DMC) are vital for SMEs innovation performance and competitive advantage.



2020 ◽  
Vol 12 (3) ◽  
pp. 229-245
Author(s):  
Alvaro Lleo ◽  
Elisabeth Viles ◽  
Daniel Jurburg ◽  
Javier Santos

Purpose This paper aims to identify key middle manager trustworthy behaviours that encourage employees’ participation in continuous improvement activities in industrial contexts. Design/methodology/approach The list of behaviours has been developed in two different phases. First, the authors conducted two concept mappings with operators and middle managers and, subsequently, the authors combined and integrated both points of view. Second, the authors developed an expert panel with researchers, consultants and experienced practitioners of industrial management for debugging and reducing the results, presenting the final list of behaviours. Findings This work presents 55 different middle manager trustworthy behaviours divided into four different categories: human qualities; training and development; technical and managerial competencies; and team building. Research limitations/implications This paper contributes to existing literature about sustainable continuous improvement systems highlighting the role of middle managers and proposes a set of specific middle manager trustworthy behaviours for increasing supervisors’ influence on operator participation. Originality/value After extracting the knowledge of different stakeholders, the list of behaviours identified can serve as a useful tool for recruiting, training, evaluating and developing a supervisors’ managerial style that enhances operator participation in continuous improvement activities.



Author(s):  
Véronique Ambrosini ◽  
Gulsun Altintas

Dynamic managerial capabilities are a form of dynamic capabilities. They are concerned with the role of managers in refreshing and transforming the resource base of the firm so that it maintains and develops its competitive advantage and performance. To do so, managers must develop entrepreneurial activities. These activities consist of sensing and seizing opportunities and transforming the resource base. While most studies focus on the role of top managers and CEOs, entrepreneurial activities can occur throughout the organization. Mid- and lower-level managers can also sense opportunities emanating from the market. Managerial human capital, managerial social capital, and managerial cognition are the three main antecedents to dynamic managerial capabilities.



2020 ◽  
Vol 15 (5) ◽  
pp. 707-726
Author(s):  
Neringa Gerulaitiene ◽  
Asta Pundziene ◽  
Egle Vaiciukynaite

PurposeThe purpose of this paper is to investigate the effect of the dynamic managerial capabilities (DMC) of the spouse (either working or non-working) of a family firm owner on firm innovativeness. This paper assesses the role of three elements of the DMC of owners' spouses (emotion regulation, conflict resolution and networking capabilities) that are bridged by familiness on family firm innovativeness.Design/methodology/approachThis paper presents the results of a multiple case study. Twelve cases were selected: six innovative and six non-innovative family firms in Lithuania. The study design enabled a comparison not only of innovative and non-innovative family firms but also of non-working and working spouses of family firm owners.FindingsThe findings show that family firm owners' spouses contribute to firm innovativeness through their DMC in terms of emotion regulation, conflict resolution and networking capabilities.Research limitations/implicationsThis research focused on a sample of firms in Lithuania. Future studies should broaden the research to other countries.Originality/valueThis research provides empirical evidence of the hidden role of the DMC of family firm owners' spouses and their contribution to firm innovativeness. This paper extends the application of DMC to family business research.



Author(s):  
Alex Kevill ◽  
Kiran Trehan ◽  
Shelley Harrington ◽  
Selen Kars-Unluoglu

This article analyses how dynamic capabilities are enacted in micro-enterprises and what role different parties and managerial time allocation play in this enactment. Drawing upon three in-depth case studies of micro-enterprises, we make three theoretical contributions. First, after arguing that micro-enterprises are likely to enact individual- or group-level dynamic managerial capabilities rather than organisation-level dynamic capabilities, we counter Teece’s warnings about the vulnerable nature of dynamic managerial capabilities. Second, we identify that how managers allocate their own time, is a core micro-foundation of dynamic managerial capabilities; we illustrate that failure to allocate time to capability enactment can lead to capability vulnerability. Finally, we introduce the notion of ‘self-damaging dynamic managerial capabilities’ – these being capabilities that damage established micro-foundations.



2020 ◽  
Vol 27 (3) ◽  
pp. 285-315
Author(s):  
Lauri Haapanen ◽  
Pia Hurmelinna-Laukkanen ◽  
Kaisu Puumalainen

PurposeIn this study, the authors explore how sensing and seizing of market opportunities, asset reconfiguration and top management team (TMT) consensus on these elements jointly relate to a firm's international expansion. By doing this, the authors contribute to the existing literature by addressing dynamic managerial capabilities at the TMT level instead of considering them as individual executives' traits. The authors use the qualitative comparative analysis (QCA) method to analyze our data from 261 TMT executives in 63 firms. The findings indicate that sensing, seizing and reconfiguration capabilities are highly relevant for internationalization but in different configurations for specific stages and elements of international business. Presence of sensing as a part of configurations is observable, especially in connection to a firm having foreign customers and explicit internationalization strategies, while configurations where seizing and reconfiguration emerge are connected to firms showing continuity in the international markets. The authors’ results also indicate that a lack of TMT consensus in connection to dynamic managerial capabilities is a driving force that allows the firm not to stagnate with regards to internationalization. Yet, lack of TMT consensus combined with low reconfiguration capabilities seems to generate negative results, which suggests that different views are not helpful if the firm is incapable of changing its approaches.Design/methodology/approachThis study uses data gathered with a questionnaire where the executives select either “yes” or “no” in response to statements describing the firm situation with regard different managerial aspects and progress of international growth. The authors analyze these data from 261 TMT executives from 63 firms using the QCA method.FindingsThe findings indicate that sensing, seizing and reconfiguration capabilities are highly relevant for internationalization but to different extents for specific elements of international business; generally, while sensing is needed, in particular, for having foreign customers and internationalization strategies in the first place, seizing and reconfiguration became relevant for continuity in the international markets. Consensus or rather lack of it on these elements also plays a role. It seems that some disagreement is a driving force that allows the firm not to stagnate with regards to internationalization. However, TMT disagreement combined with low reconfiguration capabilities seems to generate negative results, which suggests that different views are not helpful if the firm is incapable of changing its approaches.Research limitations/implicationsThe findings contribute to existing knowledge by exploring how managerial capabilities influence firm-level dynamic capabilities from the point of view of the TMT. The authors also add to existing research that has often focused on the relationships between TMT executives' demographic traits and TMT consensus and, further, the (subsequent) firm performance by looking at different configuration rather than linear linkages. Together, these notions further mean that the authors change the point of view on diversity. The authors consider the consensus on existing managerial dynamic capabilities rather than evaluate the functional diversity or the TMT executives' agreement on strategic moves.Practical implicationsAll capabilities are important. TMT does not need to agree on everything, as long as they acknowledge where their problem areas are, and they can capture at least some of the relevant trends and opportunities. In fact, having some lack of consensus seems to be a driving force that allows capabilities to be questioned and potentially keeps (false) under-appreciation of existing capabilities from becoming a barrier to international expansion.Originality/valueUnlike previous studies that have focused on the relationship between the TMT executives' demographic characteristics and firm performance or the relationship of the demographics and TMT strategic consensus at a general level – or studies that have explained international performance with TMT consensus (or with dynamic managerial capabilities), this study brings forth how the dynamic managerial capabilities and the TMT executives' strategic consensus with regard to these capabilities influence the firm's international expansion. Here, the authors consider internationalization widely, looking at whether the firm has foreign customers or international expansion strategy in place, and whether there this activity is sustained and continuous (with repeated trading and long-term international contracts, in particular). To our knowledge, there is no research on TMT strategic consensus that explains how the unanimity among executives on dynamic managerial capabilities connects to the firm's international expansion.



2021 ◽  
Vol 2 (1) ◽  
pp. 74-86
Author(s):  
Seare Asfaha Sebhatu ◽  

This research seeks to address small and medium-sized enterprises (SMEs)’ performance problems by linking dynamic managerial capabilities to firm performance. In today’s dynamic market environment, it is vitally important for managers/owners of SMEs to possess dynamic capabilities. This study limited its focus to three managerial capabilities namely networking, sensing, and innovation with the moderating role of market dynamism. The data collection process and analysis provided findings that revealed that Chinese SME managers/owners effectively employ managerial capabilities in managing their firms. The hypotheses tests resulted in significant positive relationship between the main variables and performance. The moderating variable, however, had a significant effect only on moderating the relationship between sensing capabilities and performance. The findings from this study suggest that SMEs need to improve their knowledge and application of managerial capabilities in transforming their business performance thereby contributing to the national economy. This study contributes to the dynamic capabilities’ literature by adding to the existing research on the subject. It also provides an understanding of how dynamic capabilities are deployed to build up a solid and sustainable firm performance that resists the waves of market upheavals and it is expected to greatly benefit theory, policy and practice.



2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Muneeb Mehta ◽  
Syed Ahmad Ali

Purpose Managerial capabilities are one of the primary resources in every organisation that have peculiar strategic objectives to fulfil. The purpose of this paper is an effort to dig out how managerial cognition, human capital and social capital as underpinnings of dynamic managerial capabilities (both separate and composite) affect sustainable strategic market creation (SMC) in nascent industries. Moreover, this study unfolds the role of dynamic managerial capabilities (sensing, seizing and reconfiguring) as a key mechanism through which these underpinnings lead to SMC. Design/methodology/approach For this purpose, a sample of 497 respondents was collected from top and middle-level managers of insurance companies in Pakistan. Structural equation modelling was used to test a set of direct, indirect and moderation hypotheses. Findings Findings revealed that DMC underpinnings have a direct positive impact on marketing and research and development competence dimensions of SMC. Results also confirmed significant mediation paths and substantial moderation of aforementioned organisational climate factors between dynamic managerial capabilities (DMC) and its underpinnings. Originality/value It offers a first examination of the possible moderation impact of innovation, flexibility and outward focus between DMC and its underpinnings as essential organisational climate factors.



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