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.

A systematic review of innovation in family firms and future research agenda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manzoor Ul Akram ◽  
Koustab Ghosh ◽  
Dheeraj Sharma
Keyword(s):  
Dynamic Capabilities ◽  
Family Firms ◽  
Institutional Environment ◽  
Family Firm ◽  
Strategic Decision ◽  
Future Research ◽  
Research Directions ◽  
Content Type ◽  
Future Research Agenda ◽  
Future Research Directions

PurposeIn this paper, the authors have used a systematic literature review methodology of 147 journal articles published in peer-reviewed journals. The analysis includes studies based on country of origin, the periodic proliferation of studies and the methodological design of the studies. As an outcome of the review, the studies are classified on the innovation in family firms under four broad categories – innovation input, family governance mechanisms, innovation output and the external environment. Some fruitful avenues of research are outlined in this domain.Design/methodology/approachThe literature on innovation in family firms – the most dominant and ubiquitous form of organization across the world – is gaining pace. The influence of family by way controlling ownership, management and governance on, and in interaction with business acts as a complex proposition that shapes the strategic decision-making in the family firm including innovation. The purpose of this paper, therefore, is to advance the understanding of innovation in family firms and provide a list of future research questions of theoretical and practical value.FindingsBased on this review, the authors provide future research directions pertaining to innovation in emerging economy family firms, effect of the institutional environment of family firm innovation as well family firms' innovativeness in the wake of pro-market reforms, different classes of ownership in family firms and innovation, family firm goal heterogeneity and innovation, and family firm dynamic capabilities and innovation.Originality/valueThe review provides a comprehensive understanding, trends and future research directions in the domain of innovation in family firms.

Sharia disclosures

2016 ◽  
Vol 7 (3) ◽  
pp. 237-252 ◽  
Author(s):  
Anna Che Azmi ◽  
Norazlin Ab Aziz ◽  
Normawati Non ◽  
Rusnah Muhamad
Keyword(s):  
Financial Statement ◽  
Annual Reports ◽  
Future Research ◽  
Screening Methods ◽  
Exploratory Research ◽  
Structured Interviews ◽  
Full Disclosure ◽  
Content Type ◽  
Related Information ◽  
Corporate Social

Purpose This paper aims to examine the reasons behind the low level of Sharia-related disclosures, particularly Sharia-compliant companies, to gain an understanding on how these companies disclose Sharia-related information in their annual reports, and how professional users of these reports search for such disclosures. Design/methodology/approach The study is an exploratory research based on structured interviews with individuals involved in the preparation of annual reports of Sharia-compliant companies and professional users of annual reports. Findings Most Sharia-compliant companies and professional users interviewed agree that the most relevant Sharia-related information is most commonly understood as the information found in the financial statement and its notes (accounting-related disclosures). Their responses indicate that there is a disjoint between the conventional disclosure practices on corporate social responsibility items and the Sharia-related information. Research limitations/implications The idea of full disclosure needs to be further understood from the perspectives of Sharia. This study provides insights into the types of Sharia-related information that are important for disclosure. Future research should focus on examining a larger number of companies and interviewing more professional users from different jurisdictions to generate more knowledge about the nature of Sharia information and its disclosure. Practical implications Users of the Sharia screening methods, especially regulators, such as the Securities Commission Malaysia should encourage the disclosure of the required aspects of Sharia in the annual reports of Sharia-compliant companies, as professional users are interested in this type of information. Originality/value This study offers insights into the reasons behind low Sharia disclosures in annual reports of Sharia-compliant companies.

scholarly journals Examining the CSR strategy of MNCs in Bangladesh

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taposh Kumar Roy ◽  
Ahmed Al-Abdin ◽  
Ali Quazi
Keyword(s):  
Core Competencies ◽  
Secondary Data ◽  
Business Strategies ◽  
Annual Reports ◽  
Social Benefits ◽  
Future Research ◽  
Structured Interviews ◽  
Content Type ◽  
Entrepreneurial Spirit ◽  
Strategic Csr

Purpose The paper aims to explore and analyze how multinational companies (MNCs) in Bangladesh define corporate social responsibility (CSR) and how CSR is used by these companies as a strategic tool to improve business and social performances. Design/methodology/approach The authors choose a qualitative case study approach for this study, using multiple semi-structured interviews with 15 CSR managers and secondary data from websites and annual reports. Both primary and secondary data were collected from ten leading MNCs that operate in Bangladesh. Findings The findings indicate that most of the MNCs in Bangladesh are moving toward strategic CSR and away from the conventional altruistic (philanthropic) CSR. It also appears that stakeholder prioritization and one-way communication are key for managing stakeholders. Research limitations/implications The most unavoidable limitation of this research lies in sample selection. A total of ten companies were selected because of lack of accessibility to additional MNCs. To overcome this limitation and increase the credibility of findings, the authors triangulate interview and secondary data from annual reports and websites. Practical implications The findings indicate that MNCs are increasingly recognizing the importance of using their core competencies to generate social benefits. The idea of adopting strategic CSR is predominantly steered by business benefits, which also provide the necessary resources for social and environmental activities Social implications The findings suggest that the shift from philanthropy to strategic postures leads to creating and fostering social benefits such as developing an entrepreneurial spirit and empowering women. Originality/value MNCs operating in Bangladesh are gradually departing from philanthropy and moving toward strategic CSR by aligning business strategies with CSR. Transition from philanthropy to strategic CSR also reflects on MNCs’ CSR definitions, which include various dimensions such as social, stakeholders and sustainability, except philanthropy. In Bangladesh, where CSR was previously viewed as philanthropic activity, the findings make important contributions to the extant literature, particularly international CSR strategic literature, and can be useful for future research in other developing countries.

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.

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.

Why are companies still struggling to reach higher continuous improvement maturity levels? Empirical evidence from high performance companies

2015 ◽  
Vol 27 (3) ◽  
pp. 316-327 ◽  
Author(s):  
Daniel Jurburg ◽  
Elisabeth Viles ◽  
Carmen Jaca ◽  
Martin Tanco
Keyword(s):  
Continuous Improvement ◽  
Measurement System ◽  
High Performance ◽  
Basque Country ◽  
Holistic Approach ◽  
Special Focus ◽  
Structured Interviews ◽  
Northern Spain ◽  
Content Type ◽  
High Performing

Purpose – Continuous improvement (CI) is regarded as a powerful approach to achieve business excellence. However, the implementation is not simple as it involves managing a considerable amount of tangible and intangible factors throughout the whole organization. The purpose of this paper is to fill the gap by presenting first-hand information about how companies really implement and organize their CI processes. Design/methodology/approach – The study was based on semi-structured interviews in ten high performing companies in the Basque Country, a region in northern Spain well known for its business quality. The objective was to analyze the state of their CI processes, putting special focus on how the organizational structure integrates with the CI processes and what are the characteristics of the corresponding measurement system. Findings – The study shows a lack of company-wide focus on CI, little written evidence of previous improvement activities, unclear improvement process owner, and poor use of adequate measurement systems to monitor CI. Practical implications – Managers should understand that is not enough to guarantee their own commitment and provide the structure, since in order to become learning organization, a different holistic approach towards the CI process must be adopted. Originality/value – While most previous work on this field have focused primarily on how to implement different techniques in order to achieve better productive performance, this study presents empirical research from a more holistic approach, assessing the characteristics affecting CI by considering strategy, structure, and the measurement system.

(In)effective leadership? Exploring the interplay of challenges, goals and measures in the context of school improvement

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Susanne Böse ◽  
Stefan Brauckmann-Sajkiewicz
Keyword(s):  
School Improvement ◽  
School Effectiveness ◽  
School Quality ◽  
School Principals ◽  
School Context ◽  
Strategic Decision ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type ◽  
The Government

PurposeThis study aims to explore the extent to which schools principals serving disadvantaged communities in Germany are able to set appropriate goals and choose suitable measures for improving their schools according to the specific challenges they face. The authors determine whether principals are able to identify their schools' challenges or whether they merely follow “universal recipes” of the school effectiveness research paradigm regardless of their particular school context. This effectiveness-driven accountability approach requires an in-depth evaluation of the school and its stakeholders and might lead to a new attitude toward failure that sees it as an essential part of developing effective school improvement plans.Design/methodology/approachThe authors conducted descriptive and correlative analyses as well as exploratory and confirmatory factor analyses using longitudinal data of 164 school principals. Through cross-sectional analyses, the authors investigated the connection among challenges, goals and measures and how they correlated with (self-reported) improvements.FindingsFrom a leadership perspective, priorities for school improvement should be aligned with the school-specific challenges they identify and the goals they set to address them.Research limitations/implicationsThe extent to which legislation concerning individual school quality development programs can translate into feasible and effective actions is unclear. Caution should be taken when interpreting the findings of this study, as they reflect school principals' self-selected evaluation measures and therefore might be biased.Practical implicationsIn future research, emphasis should be placed on school management processes, in particular, the development of strategic decision-making, structuring of target perspectives and derivation of steps in school improvement and instructional development. The authors recommend the government offer school principals appropriate and adequate training and support services to prevent them from overburdening their staff.Originality/valueThis paper contributes to a deeper understanding of processes concerning strategic leadership, as opposed to operative management, of schools by revealing context-sensitive considerations.

Service innovation in the hotel industry: the dynamic capabilities view

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Babak Ziyae ◽  
Hossein Sadeghi ◽  
Maryam Golmohammadi
Keyword(s):  
Dynamic Capabilities ◽  
New Technology ◽  
Hotel Industry ◽  
Service Innovation ◽  
Innovation Process ◽  
Snowball Sampling ◽  
Structured Interviews ◽  
Content Type ◽  
Human Labor ◽  
It Training

Purpose Consistent with the dynamic capabilities view tenets, this paper aims to conceptualize a theoretical framework of service innovation in the hotel industry. Design/methodology/approach This study uses a qualitative method with a content analysis approach. The data were collected using a snowball sampling method and semi-structured interviews with 14 experts in Tehran's hotel industry. Findings The findings demonstrate that the most significant factors are using the new technology, keeping up with it, training human labor, being up-to-date and adopting new infrastructures. Results also reveal that improper management and lack of knowledge are the most critical factors behind service innovation failure in the hotel industry. Regarding the infrastructures needed to develop service innovation in the hotel industry, the results show that adopting the newest technology in diverse aspects, human infrastructure, the capital and appropriate space and place are the key factors. Originality/value This paper contributes to the literature by linking the service innovation perspective to the dynamic capabilities view. It explains how hotels can enhance service innovation to gain a competitive advantage. Therefore, both academicians and hoteliers can develop action plans by selecting and managing the service innovation process.

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.

How do public companies respond to national challenges through sustainability reporting? – The case of Sri Lanka

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dinithi Dissanayake ◽  
Carol A. Tilt ◽  
Wei Qian
Keyword(s):  
Sri Lanka ◽  
Developing Country ◽  
National Level ◽  
National Development ◽  
Sustainability Reporting ◽  
Annual Reports ◽  
Structured Interviews ◽  
Content Type ◽  
Integrative Social Contracts Theory ◽  
Reporting Practices

Purpose The purpose of this paper is to explore how sustainability reporting is shaped by the global influences and particular national context where businesses operate. Design/methodology/approach The paper uses both content analysis of published sustainability information and semi-structured interviews with corporate managers to explore how sustainability reporting is used to address unique social and environmental challenges in a developing country – Sri Lanka. The use of integrative social contracts theory in investigating sustainability reporting offers novel insights into understanding the drivers for sustainability reporting practices in this particular country. Findings The findings reveal that managers’ perceptions about usefulness of sustainability reporting, local contextual challenges and global norms influence the extent to which companies engage in sustainability reporting and the nature of sustainability information reported. In particular, Sri Lankan company managers strive to undertake sustainability projects that are beneficial not only to their companies but also to the development of the country. However, while company managers in Sri Lanka are keen to undertake sustainability reporting, they face different tensions/expectations between global expectations and local contextual factors when undertaking sustainability projects and reporting. This is also showcased in what is ultimately reported in company annual reports, where some aspects of sustainability, e.g. social, tend to focus more on addressing local concerns whereas other disclosures are on issues that may be relevant across many contexts. Research limitations/implications Important insights for government and other regulatory authorities can be drawn from the findings of this study. By capitalising on the strong sense of moral duty felt by company managers, policymakers can involve the business sector more to mitigate the social and environmental issues prevalent in Sri Lanka. The findings can also be used by other developing countries to enable pathways to engage with the corporate sector to contribute to national development agendas through their sustainability initiatives and projects. Originality/value While the usual understanding of developing country’s company managers is that they try to follow global trends, in Sri Lanka, this research shows how managers are trying to align their responsibilities at a national level with global principles regarding sustainability reporting. Therefore, this paper highlights how both hypernorms and microsocial rules can interact to define how company managers undertake sustainability reporting in a developing country.

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