Dynamic capabilities and competitive advantages as mediator variables between market orientation and business performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ricardo Jorge Correia ◽  
José G. Dias ◽  
Mário Sérgio Teixeira
Keyword(s):  
Market Orientation ◽  
Structural Equation ◽  
Business Performance ◽  
Dynamic Capabilities ◽  
Causal Link ◽  
Equation Model ◽  
Competitive Advantages ◽  
Content Type ◽  
And Performance ◽  
The Relationship

PurposeThis paper aims to explore a new causal link between market orientation and business performance by introducing dynamic capabilities as a mediator of the relationship between market orientation and competitive advantages, which ultimately determine business performance.Design/methodology/approachThe mediating roles of dynamic capabilities and competitive advantages are tested with a sample of 1,190 Portuguese firms using a structural equation model.FindingsThe results confirm the hypotheses regarding the mediating roles of the competitive advantages (differentiation and cost leadership) in the relationship between dynamic capabilities and business performance. Additionally, dynamic capabilities also mediate the relationship between market orientation and competitive advantages.Practical implicationsThis study shows that business performance depends on the capacity of firms to collect the best market information on customers and competitors, to disseminate this information throughout their internal structure and ultimately optimize its use to respond appropriately to market challenges and trends. These will provide firms with a set of capabilities and a competitive advantage.Originality/valueThis study provides empirical evidence on the understanding of the relationship between market orientation and performance, through the mediating effects of both dynamic capabilities and competitive advantages.

Dynamic capabilities: antecedents and implications for firms' performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ricardo Jorge Correia ◽  
Mário Sérgio Teixeira ◽  
José G. Dias
Keyword(s):  
Structural Equation ◽  
Dynamic Capabilities ◽  
Structural Equation Models ◽  
Causal Link ◽  
Competitive Advantages ◽  
Content Type ◽  
Mediating Role ◽  
Strategic Orientations ◽  
The Relationship

PurposeThis paper aims to explore a new causal link between learning, market and entrepreneurial orientations and firms' performance by introducing dynamic capabilities and competitive advantages as mediator variables.Design/methodology/approachThe mediating role of dynamic capabilities and competitive advantages is tested using a sample of 1,190 Portuguese firms, and structural equation models.FindingsIt is shown that dynamic capabilities mediate the relationship between the three orientations–learning, market and entrepreneurial–and competitive advantages of differentiation and cost leadership, and both competitive advantages lead to firm's performance. It is also shown that learning orientation is an antecedent of market orientation and entrepreneurial orientation.Practical implicationsThis research shows that firm's performance depends on the capacity of firms to learn, innovate, be proactive, take risks and collect the best market data. Indeed, by optimizing the internal management and knowledge dissemination, firms will develop a set of capabilities and competitive advantages that lead to an appropriate response to market challenges.Originality/valueThis study tests the relationship between strategic orientations and firm's performance by taking the mediating effects of dynamic capabilities and competitive advantages into account. This research was conducted in Portugal.

scholarly journals The Holy Grail

2015 ◽  
Vol 27 (5) ◽  
pp. 714-738 ◽  
Author(s):  
Jorge Pereira-Moliner ◽  
Xavier Font ◽  
Juan José Tarí ◽  
Jose F. Molina-Azorin ◽  
Maria D. Lopez-Gamero ◽  
...  
Keyword(s):  
Environmental Management ◽  
Business Performance ◽  
Competitive Advantages ◽  
Performance Levels ◽  
Content Type ◽  
Reference Measure ◽  
Environmental Capability ◽  
And Performance ◽  
Hotel Managers ◽  
The Relationship

Purpose – This paper aims to analyse the influence of environmental proactivity on cost and differentiation competitive advantages, and to explore the double relationship between environmental proactivity and business performance. Design/methodology/approach – The population consists of all three- to five-star hotels in Spain. A sample of 350 hotels was classified according to environmental proactivity and performance levels, employing a two-step cluster analysis. Significant differences between groups were examined. Findings – The results show two types of environmental behaviour (reactive and proactive), with proactive hotels developing significantly better on both cost and differentiation competitive advantage and achieving significantly higher performance levels. Hotels which achieve above average business performance levels are significantly more environmentally proactive. Research limitations/implications – The present paper demonstrates that environmental management is related to competitive advantages and business performance. Environmental management systems are more developed in higher category, chain-affiliated and larger hotels. This could be due to having more resources to develop their environmental capability. The environmental proactivity scale employed in this study is presented as a reference measure for hotel managers to benchmark their current practices and implement environmental improvements. Originality/value – First, measuring environmental proactivity using four managerial systems (operative, information, strategic and technical) is innovative and provides a more detailed approach to measuring environmental proactivity. Second, demonstrating a double association between environmental proactivity and performance provides fresh insights into the relationship between these variables.

scholarly journals Dynamic supply chain capabilities

2018 ◽  
Vol 38 (12) ◽  
pp. 2266-2285 ◽  
Author(s):  
Haris Aslam ◽  
Constantin Blome ◽  
Samuel Roscoe ◽  
Tashfeen M. Azhar
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Equation Model ◽  
Dynamic Capability ◽  
Content Type ◽  
Supply Chain Agility ◽  
Light Supply ◽  
The Relationship

Purpose This paper positions market sensing, supply chain agility and supply chain adaptability as a coherent cluster of dynamic supply chain capabilities. The purpose of this paper is to understand how dynamic supply chain capabilities interrelate and their effect on supply chain ambidexterity. Design/methodology/approach Based on a survey of Pakistani manufacturing firms, a theoretically-derived model was tested in a structural equation model. Findings The results of the study show that a market-sensing capability is an antecedent of supply chain agility and supply chain adaptability. Furthermore, supply chain agility, directly, and supply chain adaptability, indirectly, affect supply chain ambidexterity. Supply chain agility, therefore, mediates the relationship between supply chain adaptability and supply chain ambidexterity. Originality/value The contribution of this study lies in: first, identifying dynamic capability clusters relevant for achieving supply chain ambidexterity; second, evaluating performance implications of dynamic capabilities in the supply chain, specifically supply chain agility and adaptability; and third, proposing a unique measurement of supply chain ambidexterity in the light supply chain theory, and empirically evaluating the relationship between dynamic capabilities and supply chain ambidexterity.

The link between intellectual capital and business performance: a mediation chain approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Susana Campos ◽  
José G. Dias ◽  
Mário Sérgio Teixeira ◽  
Ricardo Jorge Correia
Keyword(s):  
Intellectual Capital ◽  
Structural Equation ◽  
Business Performance ◽  
Dynamic Capabilities ◽  
Equation Model ◽  
Innovation Performance ◽  
Technological Capabilities ◽  
Content Type ◽  
Mediating Role ◽  
Network Competence

PurposeThis study focuses on intellectual capital (IC) as a driver of better business performance. Recent studies suggest that a set of variables may mediate this relationship. This research discusses the mediating role of dynamic capabilities, network competence, technological capabilities, absorptive capabilities and innovation performance between intellectual capital and business performance.Design/methodology/approachThe conceptual model is tested using a sample of 533 Portuguese firms by means of a structural equation model.FindingsIt confirms that intellectual capital impacts business performance. Moreover, this only happens indirectly through the mediating chain defined by the variables dynamic capabilities, network competence, technological capabilities, absorptive capabilities and innovation performance.Originality/valueThis study analyzes new mediator variables between the dimensions of the intellectual capital and Portuguese business performance.

scholarly journals Digital transforming capability and performance: a microfoundational perspective

2020 ◽  
Vol 40 (7/8) ◽  
pp. 1095-1128
Author(s):  
Thayla Tavares Sousa-Zomer ◽  
Andy Neely ◽  
Veronica Martinez
Keyword(s):  
Structural Equation ◽  
Dynamic Capabilities ◽  
Digital Transformation ◽  
Content Type ◽  
Performance Effects ◽  
Order Construct ◽  
And Performance ◽  
Using Data ◽  
The Relationship

PurposeDrawing on the literature on dynamic capabilities and digital transformation, this paper conceptualises and investigates the relevant antecedents of an essential capability for digital transformation – the digital transforming capability – and its effect on the competitive advantage of firms.Design/methodology/approachA framework with individual and organisational microfoundations of the digital transforming capability is proposed based on previous research. The digital transforming capability is conceptualised as a second-order construct. The model is tested using data from a broad spectrum of large US companies. Structural equation modelling (SEM) is applied to test the proposed framework.FindingsThe study identifies three main microfoundations that, when combined, build a digital transforming capability (digital-savvy skills, digital intensity and context for action and interaction); in addition, the study tests the relationship between digital transforming capability and firm performance. The results validate the proposed theoretical framework. In addition to proposing relevant microfoundations of the digital transforming capability, we advance knowledge on the performance effects of those microfoundations.Originality/valueThe paper contributes to advancing the understanding of the digital transformation phenomenon by revealing the role of the primary components underlying the digital transforming capability. Yet the mechanisms by which the micro-level aspects are important for digital transformation and organisational outcomes are only suggested by anecdotal evidence. The paper also contributes to ongoing calls for further investigation to extend the understanding of the microfoundations of dynamic capabilities. Finally, by drawing on archival data, this study also contributes to calls to broaden the toolkit used in dynamic capabilities research.

The impacts of customer involvement on the relationship between relationship quality and performance

2019 ◽  
Vol 35 (2) ◽  
pp. 270-283 ◽  
Author(s):  
Yi Li ◽  
Ying Zhang ◽  
Jinpeng Xu ◽  
Taiwen Feng
Keyword(s):  
Relationship Quality ◽  
Structural Equation ◽  
Equation Model ◽  
Customer Relationship ◽  
Content Type ◽  
Customer Involvement ◽  
Positive Effects ◽  
Order Construct ◽  
And Performance ◽  
The Relationship

Purpose This paper aims to determine whether relationship quality should be measured as a disaggregated or as a composite construct, and investigate the causal relationship between relationship quality and customer involvement. The authors also explore the role of customer involvement in relationship quality-performance linkage in B2B settings. Design/methodology/approach This study is based on 214 Chinese manufacturers and uses the structural equation model to examine this conceptual model and hypotheses. Findings As a reflective second-order construct, relationship quality not only has positive effects on performance but also positively affects customer involvement. More importantly, customer involvement partially mediates the relationship between relationship quality and performance. Research limitations/implications This study only focuses on customer relationship, but neglects the supplier relationship. Practical implications When assessing the relationship quality with customers, suppliers must consider trust, commitment and investment dimensions simultaneously. In addition, to increase performance, suppliers must involve customers who are trusted and invested in training and logistics facility and then cooperate with them in new product design. Originality/value These findings contribute to this understanding on the relationship quality in B2B settings and provide theoretical contributions and managerial insights for both academics and practitioners.

Business leaders’ views on the importance of strategic and dynamic capabilities for successful financial and non-financial business performance

2015 ◽  
Vol 64 (7) ◽  
pp. 908-931 ◽  
Author(s):  
Alan Simon ◽  
Chloe Bartle ◽  
Gary Stockport ◽  
Brett Smith ◽  
Jane E. Klobas ◽  
...  
Keyword(s):  
Business Performance ◽  
Dynamic Capabilities ◽  
Business Success ◽  
Organisational Performance ◽  
Content Type ◽  
Financial Measures ◽  
Big Picture ◽  
Strategic Capabilities ◽  
And Performance ◽  
The Relationship

Purpose – The purpose of this paper is to report on research that identifies the relationships that senior managers believe exist between capabilities and business success. In doing so, it addresses the need for more empirical research about the role of strategic and dynamic capabilities in organisational performance. It also highlights the critical strategic and dynamic capabilities that are most valuable for practising managers. Design/methodology/approach – A multi-method study was conducted. Eight types of strategic capability and ten types of dynamic capability commonly found in organisations were identified through consecutive literature review, web site content analysis and interviews with senior executives. A questionnaire survey was then used to ask senior officers of publicly listed Australian firms about the importance of each capability and financial and non-financial performance indicators. The relationship between capabilities and performance was measured by regression modelling. Findings – Good leadership with an innovative vision and selection and retention of good staff and developing their skills and capabilities were the stand out strategic capabilities. Strategic thinking about the big picture and the long-term and flexible leaders who can lead and manage adaptation to change were considered to be the most important dynamic capabilities. Strategic capabilities were more often associated with indicators of financial success, and dynamic capabilities were more often associated with non-financial measures of organisational performance. Originality/value – This is the first study to make a distinction between strategic and dynamic capabilities in examining the relationship between capabilities and business success. The results demonstrate that the distinction has both theoretical and practical value.

scholarly journals Innovation capabilities and performance: are they truly linked in SMEs?

2019 ◽  
Vol 11 (1) ◽  
pp. 48-62 ◽  
Author(s):  
Gonzalo Maldonado-Guzmán ◽  
Jose Arturo Garza-Reyes ◽  
Sandra Yesenia Pinzón-Castro ◽  
Vikas Kumar
Keyword(s):  
Structural Equation ◽  
Business Performance ◽  
Design Methodology ◽  
The Body ◽  
Innovation Capability ◽  
Content Type ◽  
Body Of Knowledge ◽  
Equation Modelling ◽  
And Performance ◽  
The Relationship

Purpose In an environment where business uncertainty is the norm, developing innovation capability in an organisation is increasingly important. The purpose of this paper is to investigate the effects that innovation capabilities have on the business performance of small- and medium-sized enterprises (SMEs) within the context of a regional developing and emerging economy of Mexico, in this case, Aguascalientes. Design/methodology/approach The approach of this study is quantitative. Four research hypotheses were formulated and tested using structural equation modelling (SEM). Data were collected through a questionnaire survey responded by 308 SMEs located in the Aguascalientes state of Mexico. Findings The results obtained show that innovation in products, processes, marketing and management has a positive and significant effect on the business return of Mexican SMEs. Originality/value The paper complements the limited body of knowledge currently existent in the SMEs innovation literature, particularly when compared to that of large organisations. Similar works in other settings have provided mixed results in regards to the effects that innovation capabilities have on the business performance of SMEs. Thus, this paper offers a refined understanding and validation of the relationship between innovation capabilities and business performance, especially within the context of SMEs, and insights into some of the innovation aspects that managers may consider when formulating the strategies of their organisations. Finally, it enables such relationship to be understood within a particular situation, contributing in this manner to expand the body of knowledge in the innovation field.

Business intelligence competence, agile capabilities, and agile performance in supply chain

2015 ◽  
Vol 26 (2) ◽  
pp. 356-380 ◽  
Author(s):  
Mohamad Sadegh Sangari ◽  
Jafar Razmi
Keyword(s):  
Supply Chain ◽  
Business Intelligence ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Equation Modeling ◽  
Content Type ◽  
Supply Chain Agility ◽  
And Performance ◽  
The Relationship

Purpose – The purpose of this paper is to study the role of business intelligence (BI) in achieving agility in supply chain context by examining the relationship between BI competence, agile capabilities, and agile performance of the supply chain. Design/methodology/approach – A theoretical framework is developed drawing on the resource-based view, the dynamic capabilities perspective, and the competence-capability relationship paradigm, as well as an extensive review of the literature. Structural equation modeling is employed to analyze the data collected from Iranian manufacturers in the automotive industry. Findings – The empirical results support the conceptualization of supply chain BI competence as a multi-dimensional construct comprising managerial, technical, and cultural competence, and confirm that it is a key enabler of supply chain agility in terms of both agile capabilities and agile performance. The results also provide support for partial mediation of agile capabilities on the relationship between BI competence and agile performance of the supply chain. Originality/value – This paper provides a response to the identified need for empirical evidence on the benefits derived from BI, especially in the supply chain context. It also contributes to the existing supply chain agility literature by providing insight into the value and role of BI in enhancing agile capabilities and performance in the inter-organizational supply chain.

scholarly journals Supply chain drivers, partnerships and performance of high-tech SMEs

2018 ◽  
Vol 67 (4) ◽  
pp. 629-653 ◽  
Author(s):  
Jafar Rezaei ◽  
Roland Ortt ◽  
Paul Trott
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Business Performance ◽  
Functional Performance ◽  
High Tech ◽  
Content Type ◽  
Business Function ◽  
Business Functions ◽  
And Performance ◽  
The Relationship

Purpose The purpose of this paper is to examine high-tech small-to-medium-sized enterprises (SMEs) supply chain partnerships. Partnerships are considered at the level of business function rather than the entire organisation. Second, the drivers of SMEs to engage in partnerships are assessed to see whether functions engage in partnerships for different reasons. Third, performance per function is assessed to see the differential effect of partnerships on the function’s performance. Design/methodology/approach In this study, the relationship between the drivers of SMEs to engage in partnerships, four types of partnerships (marketing and sales, research and development (R&D), purchasing and logistics, and production) and four types of functional performances of firms (marketing and sales, R&D, purchasing and logistics, and production) are examined. The data have been collected from 279 SMEs. The proposed hypotheses are tested using structural equation modelling. Findings The results indicate that there are considerable differences between business functions in terms of the degree of involvement in partnerships and the effect of partnerships on the performance of these functions. This paper contributes to research by explaining the contradictory results of partnerships on SMEs performance. Practical implications This study helps firms understand which type of partnership should be established based on the firm’s drivers to engage in supply chain partnership; and which partnership has a significant effect on which type of business performance of the firm. Originality/value The originality of this study is to investigate the relationship between different drivers to engage in supply chain partnership and different types of partnerships and different functional performance of firm in a single model.

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