Exploring organizational problem-solving modes: a dynamic capabilities approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Matin Mohaghegh ◽  
Andreas Größler
Keyword(s):  
Problem Solving ◽  
Dynamic Capabilities ◽  
Fundamental Solutions ◽  
Capabilities Approach ◽  
Dynamic Capability ◽  
Learning Mechanisms ◽  
Content Type ◽  
Improvement Programs ◽  
Micro Foundations

PurposeAdopting the dynamic capability perspective, this study aims at exploring which problem-solving capabilities result in fundamental solutions with a potentially low likelihood for problems to recur. This can also shed light on why, despite many attempts, process improvement programs often fail to produce such long-term solutions.Design/methodology/approachA case study is carried out to inductively describe and classify problem-solving in companies and to indicate why problem-solving efforts are typically bounded to short-term solutions. The empirical findings are triangulated with findings from the extant literature.FindingsFirst, the authors propose three problem-solving modes with different characteristics and potential impacts on operational performance: intuitive problem-solving, semi-structured problem-solving and systematic problem-solving. Second, by emphasizing dynamic capabilities' micro-foundations and with the focus on learning mechanisms, the authors show that, among these modes, only systematic problem-solving can serve as a dynamic capability with fundamental solutions. Third, based on insights from the case study, the authors address behavioral and organizational impediments that curb dynamic capabilities and limit systematic problem-solving adoption.Originality/valueThis study is an empirically informed attempt to understand systematic problem-solving as a dynamic capability. The authors uncover the micro-foundations and the learning mechanisms through which systematic problem-solving becomes a dynamic capability. By highlighting problem-solving orientation as a hardly investigated dimension of improvement programs, the authors show that a mixture of a static problem-solving approach and a set of impediments at both individual and organizational levels is the major reason of failures of improvement programs over time.

Sensing opportunities in dynamic markets: how to encourage all employees to take part

2019 ◽  
Vol 40 (3) ◽  
pp. 18-24
Author(s):  
Klavdia Markelova Evans ◽  
Ashley Salaiz
Keyword(s):  
Design Methodology ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Content Type ◽  
Dynamic Markets ◽  
Simple Rules ◽  
Rules Of Thumb ◽  
Micro Foundations ◽  
Practical Implications ◽  
Conceptual Work

Purpose This paper aims to investigate how companies can retain their ability to recognize, seize and maintain opportunities. Design/methodology/approach This conceptual work is built on existing research about an organization’s dynamic capabilities and literature on judgment under uncertainty. Findings This study offers specific ways in which companies can develop the dynamic capability of identifying new opportunities and, most importantly, how firms can maintain this rare dynamic capability for significant periods, so that they can harvest the benefits offered by owning this capability. Practical implications This study’s specific insights equip practitioners with turn-key information on how to build or maintain a firm’s unique ability to sense and capture an opportunity via the enhancement of the firm’s portfolio of simple rules. Originality/value This research introduces a novel idea about micro-foundations of a firm’s dynamic capabilities and theoretically argues that a favorable organizational culture and individuals’ rules of thumb can form a company’s dynamic ability to sense and seize an opportunity in high-velocity markets.

A problem-solving process for developing capabilities: the case of an established firm

2019 ◽  
Vol 23 (4) ◽  
pp. 713-727
Author(s):  
Ei (Emily) Shu
Keyword(s):  
Problem Solving ◽  
New Product Development ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Capability Development ◽  
Unique Problem ◽  
Content Type ◽  
Different Types ◽  
Problem Solving Process ◽  
Development Literature

Purpose Current research has theorized that developing dynamic capability can be viewed as a problem-finding and problem-solving process in terms of a firm’s resource reconfiguration. However, there continues to be a scarcity of empirical research on how firms and managers solve innovation problems to develop capabilities. Building on the theoretical lens of problem-solving perspective (PSP) and dynamic capability literature, the purpose of this paper is to address this gap by examining how a large automobile company developed different types of capabilities (combining capability, replacing capability and evolving capability) and their underlying problem-solving processes. Design/methodology/approach An inductive multi-case design was used to investigate the problem-solving process in different types of capability development in the context of NPD. This methodology has a number of benefits, including accommodation of the rich data used to compare the inferences among cases, thus enabling researchers to extend the emergent theory. Findings The findings of a multi-case study show that managers tend to direct their attentions to searching for solutions among external resources when the problem is framed as a combination of existing capabilities. Conversely, managers direct their attention to facilitating organizational learning when the problem is framed as an extension of an existing capability. However, managers need to direct more attention to gaining legitimacy when the problem is framed as a replacement of existing capabilities. The findings thus respond to increasing calls for more investigations into the microfoundations underlying firms’ capabilities, by revealing different instances of PSP, and their connections with different actions that take to capability development. Originality/value By comparatively examining the unique problem-solving process underlying an established firm’s innovative challenges in developing capabilities, the findings identify different instances of PSP, and their connections with different actions that take to capability development. Thus, the findings respond to increasing calls for more investigation into the microfoundations of dynamic capabilities for organizational outcomes. The findings also add to the new product development literature by examining how a product innovation can be framed differently depending on the attributes of an innovation problem. As PSP is particularly useful in offering guidance to firms’ innovative search, it is important for managers to pay attention to the attribute of each product and its domain of solution in considering the effectiveness of value creation.

Developing dynamic capabilities for learning and internationalization

2016 ◽  
Vol 11 (3) ◽  
pp. 328-347 ◽  
Author(s):  
Margaret Tallott ◽  
Rachel Hilliard
Keyword(s):  
Conceptual Model ◽  
Dynamic Capabilities ◽  
Single Case ◽  
Empirical Work ◽  
Strategic Decision ◽  
Dynamic Capability ◽  
Single Case Study ◽  
Capability Development ◽  
Content Type

Purpose – The purpose of this paper is to examine the development process of dynamic capabilities. Design/methodology/approach – The paper adopts a qualitative, longitudinal participant-observation research design. A single case study firm was observed over a ten-year period of active researcher engagement allowing for the collection of rich data on the development and deployment of dynamic capabilities as they evolved. Findings – Dynamic capabilities can be identified as sensing, seizing and transforming. They are capable of intentional development by managers through strategic decision making and deliberative learning, within a path-dependent evolution. Research limitations/implications – A longitudinal single case study allowed for a close look at the development of dynamic capabilities, exploring the context and conditions that facilitated change and tracing the evolution of the organization’s processes. However, this study remains subject to the limits of a single case approach. Future cross-sectional research would be able to test the conceptual model and allow for generalization of the findings to other populations of firms. Practical implications – The dynamic capability concept has been criticized for being of little practical use to managers. This research shows the process of intentional dynamic capability development, offering insights to practicing managers. Originality/value – This research adds to the relatively scant base of empirical work on dynamic capabilities and offers a conceptual model of dynamic capability development. The paper contributes to the neglected area of dynamic capabilities in SME’s, showing that the dynamic capability concept is relevant to this sector. The paper provides insight for practitioners by showing that intentional dynamic capability development is achievable.

Big data and competitive advantage at Nielsen

2014 ◽  
Vol 52 (3) ◽  
pp. 573-601 ◽  
Author(s):  
Michael E. Prescott
Keyword(s):  
Competitive Advantage ◽  
Business Strategy ◽  
Dynamic Capabilities ◽  
Secondary Data ◽  
Business Environment ◽  
Digital Data ◽  
Dynamic Capability ◽  
Annual Reports ◽  
Content Type

Purpose – The purpose of this paper is to illustrate how an international company, Nielsen Holdings, reacted to changes in their highly competitive industry brought about by advances in technology. This case presents the strategic management decisions that enabled Nielsen to regain its competitive advantage. This case further describes the functioning of the resource-based view (RBV) of strategy, dynamic capabilities framework, and digital data genesis (DDG), in a turbulent business environment. Design/methodology/approach – The case study is based primarily upon secondary data to include annual reports, press releases, company web site, as well as articles. Findings – The case study provides an example of the functioning of a once durable competitive advantage that was eroded due to advances in technology, and the steps the company took to regain that advantage. The paper illustrates the functioning of a capability and a dynamic capability in DDG. Practical implications – This case can be used for the teaching of decision making, business strategy, the RBV of strategy, dynamics capabilities, and DDG. Originality/value – This paper provides an example of the functioning of the capability and dynamic capability of DDG.

A business model approach to supply chain management

2015 ◽  
Vol 20 (6) ◽  
pp. 587-602 ◽  
Author(s):  
Peter Trkman ◽  
Marko Budler ◽  
Aleš Groznik
Keyword(s):  
Business Model ◽  
Dynamic Capabilities ◽  
Business Models ◽  
Single Case ◽  
Secondary Data ◽  
Capabilities Approach ◽  
Model Management ◽  
Content Type ◽  
Strategic Issues

Purpose – This paper aims to extend the topics from a 2007 paper to stimulate debate on strategic issues vital for the long-term success of supply chains (SCs). The authors upgraded from SC process modelling towards SC business model management; from information to knowledge transfer and from the maturity of SC to dynamic capabilities. The paper attempts to identify and connect the elements of SC business model and the key issues for development of dynamic capabilities to enable future redesign of business models. Design/methodology/approach – The paper develops two frameworks showing the elements of an SC business model and the interconnection of those elements and dynamic capabilities. The use of these frameworks is demonstrated in a case study of Post of Slovenia. The case uses both primary and secondary data gathered from interviews, publicly accessible articles and internal reports. Findings – An SC should develop the elements of its business model in such a way that it will be able to continually change its existing or add a new business model from the AS-IS state to a currently unpredictable “TO-BE” state as a response to currently unknown changes in its business model. Research limitations/implications – The selection of the elements in the frameworks is partly arbitrary. A single case study was conducted. Practical implications – SCs should not simply focus on improving the maturity/efficiency of current processes but can use the findings to carefully design their current business model and develop dynamic capabilities for future changes. Originality/value – This paper summarises and extends the recent literature through the dynamic capabilities approach and business model management and proposes two frameworks and identifies topics relevant for future development of the SCM field.

Exploring microfoundations of dynamic capabilities – challenges, barriers and enablers of organizational change

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Catarina Bojesson ◽  
Anders Fundin
Keyword(s):  
Organizational Change ◽  
Dynamic Capabilities ◽  
Single Case ◽  
Dynamic Capability ◽  
Structured Interviews ◽  
Content Type ◽  
Factors Affecting ◽  
Barriers And Enablers ◽  
Specific Phase

PurposeThe purpose of this study is to identify factors affecting an organization’s dynamic capability and, consequently, its ability to manage organizational change.Design/methodology/approachA single case study was conducted to provide a deeper understanding of the situation that the case company experienced during a specific phase of reconfiguration. Data were collected through nine in-depth, semi-structured interviews and analyzed using the Gioia methodology.FindingsChallenges, barriers and enablers affecting the organization's dynamic capability in the reconfiguration phase were identified.Originality/valueThis study contributes to the theory of dynamic capabilities and to the current investigatory stream regarding microfoundations by presenting practical examples of challenges, barriers and enablers that affect an organization’s ability to succeed during an organizational reconfiguration. These examples are intended to aid in discussions on microfoundations of dynamic capabilities and their impact in practice.

Does deliberate learning lead to dynamic capability? The role of organizational schema for Kodak, 1993-2011

2018 ◽  
Vol 11 (1) ◽  
pp. 52-80 ◽  
Author(s):  
Liang Wang ◽  
Eric Ping Hung Li ◽  
Xiaoya (Sara) Ding
Keyword(s):  
Dynamic Capabilities ◽  
Environmental Turbulence ◽  
Dynamic Capability ◽  
Organizational Studies ◽  
Managerial Cognition ◽  
Content Type ◽  
Deliberate Learning ◽  
Entrepreneurial Activities

Purpose The process of building dynamic capabilities remains understudied, although deliberate learning is posited to be the key to developing and maintaining dynamic capabilities in turbulent environments. Based on the case study of Kodak’s responses to the shift from traditional to digital technology in the imaging industry (1993-2011), the purpose of this paper is to examine the role of managerial cognition in building dynamic capabilities. Design/methodology/approach The paper employs case study and qualitative method approach. Findings The results reveal that, when facing environmental turbulence, deliberate learning is subject to routine disruptions through entrepreneurial activities, and these organizational routines and activities are determined by organizational schema. Organizational schema itself is updated as a result of managers’ ongoing interpretation of the organization’s fit with the environment. The study findings contribute to the organizational studies and management literature by highlighting the role of managerial cognition into the microfoundation of dynamic capabilities. Originality/value The results demonstrate managerial cognition, and organizational schema in particular, as a microfoundation of dynamic capability.

scholarly journals Parents’ Learning Mechanisms for Family Firm Succession: An Empirical Analysis in Spain through the Lens of the Dynamic Capabilities Approach

2020 ◽  
Vol 12 (19) ◽  
pp. 8220
Author(s):  
Natalia Martin-Cruz ◽  
Ismael Barros Contreras ◽  
Juan Hernangómez Barahona ◽  
Héctor Pérez Fernández
Keyword(s):  
Dynamic Capabilities ◽  
Family Firms ◽  
Positive Impact ◽  
Family Firm ◽  
Capabilities Approach ◽  
Dynamic Capability ◽  
Learning Mechanisms ◽  
The Family ◽  
Intention To Continue ◽  
The Impact

Succession is a concern for most family firms. The literature has addressed succession in family firms from different perspectives. However, there are still unaddressed questions concerning the microfoundations of succession, and there is a need to secure a better understanding of the succession process and what role parents play therein. Using the dynamic capabilities approach, we shed light on the influence of parents’ behaviors on successors’ intentions. In particular, the paper pursues a twofold aim; first, to analyze the effect of learning mechanisms that parents deliberately use with their children in the family firm on the succession dynamic capability; and second, to explore the impact of this dynamic capability of successor intention to continue in the family firm. We test the model on a sample of potential successors of family firms in Spain. Using partial least squares (PLS) for a sample of 9146 individuals, we confirm the positive impact of the use of parents’ deliberate learning mechanisms on succession dynamic capability and, in turn, the positive effect of the created succession dynamic capability on the successor’s intention to continue the family firm. Furthermore, we find that perceived self-efficacy fails to have any effect on successor intention.

scholarly journals Understanding collaborative innovation from a dynamic capabilities perspective

2018 ◽  
Vol 30 (6) ◽  
pp. 2396-2416 ◽  
Author(s):  
Philip Alford ◽  
Yanqing Duan
Keyword(s):  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Future Research ◽  
Key Factors ◽  
Strong Base ◽  
Content Type ◽  
Collaborative Innovation ◽  
Management Organisation

PurposeThis paper aims to understand the key factors affecting collaborative innovation in a destination management organisation from a dynamic capability perspective.Design/methodology/approachAn in-depth case study was conducted using semi-structured interviews with the CEO and Chairman of the destination management organisation (DMO) and internal DMO documents from 2011 to 2016. Thematic analysis was carried out on the data both deductively, with generic themes identified and informed by theory, and inductively, where detailed subthemes were developed from the data.FindingsThe success of innovation in the context of a DMO depends on having a strong base of microfoundations that underpin the DMO’s capabilities to sense and seize opportunities and reconfigure its assets for competitive advantage. Collaboration with the key players in the sector has been the essential elements of these microfoundations.Research limitations/implicationsThis study has been conducted within a single DMO case study. Future research should test the proposed models in different types of organisations and collaborative contexts.Practical implicationsThe proposed dynamic capability framework helps managers achieve collaborative innovation, leading to competitive advantage through better development of relevant capabilities.Originality/valueThe study represents a first attempt to understand the key factors enabling successful collaborative innovation in the context of DMOs, from a dynamic capability perspective. The unique opportunity of accessing information and witnessing the changes in a DMO over a period of five years enabled the authors to gain in-depth insights and comprehensive understanding as to why and how a UK DMO has been successful in enhancing its business performance through a successful collaborative innovation.

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.

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