Structural process model of organizational innovativeness types for sustainability: a dynamic capability perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kumar Verma Bhupendra ◽  
Shirish Sangle
Keyword(s):  
Business Process ◽  
Process Model ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Measurement Scale ◽  
Equation Modeling ◽  
Product Innovativeness ◽  
Content Type ◽  
Structural Process ◽  
Organizational Innovativeness

Purpose This paper aims to present an empirical test to analyze a structural process model based on constructs of organizational innovativeness types considering sustainability aspects. It explores interdependency among constructs of organizational innovativeness identified as product, process, behavioral, market, strategic and risk innovativeness. It integrates a dynamic capability perspective to strengthen the existing literature. Design/methodology/approach Sample for data analysis covers 389 managers of firms demonstrating some traits of sustainability orientation and operating in a developing economy like India. Structural equation modeling is applied to test the causal model. Findings Study reveals that risk innovativeness along with strategic innovativeness leads to behavioral innovativeness which further causes product innovativeness and business process innovativeness. Business process innovativeness supports product innovativeness leading to market innovativeness of a firm. Characteristics of organizational innovativeness linked with the risk-taking ability of top management can be a critical differentiating factor between conventional and sustainability-oriented firms. Research limitations/implications The factor of risk innovativeness was applied as per the existing measurement scale and has a scope for further exploration. It also offers an opportunity to reassess organizational innovativeness processes considering sustainability aspects. Practical implications The study may help organizations to develop a systemic approach to evolve and develop business processes linked to organizational innovativeness considering sustainability challenges and uncertain market conditions. Social implications Development of organizational innovativeness considering sustainability aspects may lead to innovative and disruptive products/services leading to mitigate climate change issues, thus helping global societies in long run. Originality/value The study offers common ground linked to the bodies of research related to dynamic capabilities, micro-foundations of dynamic capabilities, innovative capability and sustainability.

Structural process model of absorptive capacity for stakeholder’s integration in decision-making: dynamic capability perspective

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kumar Verma Bhupendra ◽  
Shirish Sangle
Keyword(s):  
Decision Making ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Process Model ◽  
Empirical Test ◽  
Formal System ◽  
Dynamic Capability ◽  
Content Type ◽  
Structural Process ◽  
New Knowledge

Purpose This paper aims to present empirical test to analyse a structural process model based on the constructs of absorptive capacity considering sustainability aspects. It integrates dynamic capability perspective to strengthen the existing literature. Findings of the study may help organisations to renovate business processes related to absorptive capacity and improve decision-making considering sustainability attributes. Design/methodology/approach Sample for data analysis covers 389 managers of firms demonstrating some traits of sustainability orientation and operating in a developing economy like India. Structural equation modelling is applied to test a casual model. Findings Result of this study reveals that a formal system that drives knowledge sharing, storing and exploitation of knowledge, a structured way to appropriate and reward intellectual property rights can be fundamental to development of absorptive capacity. Such a system conducive to knowledge exploration and acquisition must lead to exploration of new knowledge sources and new knowledge. A firm’s knowledge acquisition system shall be able to deliver to acquire external as well as internal knowledge spread across departments. Research limitations/implications This study considers commercial output as an aspect of innovative capability, so this attribute is not included in absorptive capacity. Practical implications The study may help organisations to develop a systemic approach to evolve decision-making and develop suitable processes linked to absorptive capacity considering sustainability challenges and uncertain market conditions. Social implications The study presents a comprehensive view of absorptive capacity considering societal stakeholder’s knowledge in addition to technological and market knowledge. Originality/value There are hardly any research articles which link absorptive capacity, dynamic capability and sustainability strategies.

Orchestrating internal and external resources to achieve agility and performance: the centrality of market orientation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Randy Kurniawan ◽  
Adler Haymans Manurung ◽  
Mohammad Hamsal ◽  
Wibowo Kosasih
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Business Process ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Business Environment ◽  
Equation Modeling ◽  
Content Type ◽  
Telecommunication Technology ◽  
Bargaining Position

PurposeThis study examines the collaborative impact of networking capability and balanced agile project management (APM) on firm performance through the mediating role of market orientation and business process agility of medium and large telecommunication technology providers in Indonesia.Design/methodology/approachResearch data were collected from the executive management of telecommunication technology providers in Indonesia via a questionnaire survey to obtain 150 valid questionnaires for analysis. This study analyzed the overall model fit and causal relationship using confirmatory factor analysis (CFA) and structural equation modeling (SEM).FindingsThe results indicate that market orientation fully mediates the link between networking capability-business process agility and balanced APM-business process agility. Furthermore, business process agility mediates the relationship between market orientation and firm performance.Research limitations/implicationsThis study is based on a cross-sectional nature and might fail to capture the dynamic of the studied variables over an extended period.Originality/valueThe study extends the knowledge that dynamic capabilities, represented by networking capability and balanced APM, must be framed by market orientation to create customer value and improve bargaining position. However, market orientation alone is not enough in a highly dynamic business environment. Organization also requires business process agility, responsiveness and adaptability to timely address customers' needs and requirements.

scholarly journals The role of strategic purchasing in dynamic capability development and deployment

2018 ◽  
Vol 38 (2) ◽  
pp. 446-473 ◽  
Author(s):  
Alistair Brandon-Jones ◽  
Desiree Knoppen
Keyword(s):  
Operations Management ◽  
Dynamic Capabilities ◽  
Positive Impact ◽  
Innovation Performance ◽  
Dynamic Capability ◽  
Equation Modeling ◽  
Capability Development ◽  
Content Type ◽  
Strategic Purchasing ◽  
The Impact

Purpose The purpose of this paper is to report on research into the impact of two sequential dimensions of strategic purchasing – purchasing recognition and purchasing involvement – on the development and deployment of dynamic capabilities. The authors also examine how such dynamic capabilities impact on both cost and innovation performance, and how their effects differ for service as opposed to manufacturing firms. Design/methodology/approach The authors test hypotheses using structural equation modeling of survey data from 309 manufacturing and service firms. Findings From a dynamic capability perspective, the analysis supports the positive relationships between purchasing recognition, purchasing involvement, and dynamic capability in the form of knowledge scanning. The authors also find support for the positive impact of knowledge scanning on both cost and innovation performance. From a contingency perspective, data supports hypothesized differences caused by industry, whereby service-based firms experience stronger positive linkages in our model than manufacturing-based firms. Finally, emerging from the data, the authors explore a re-enforcing effect from cost performance to purchasing involvement, something that is in line with the dynamic capabilities perspective but not typically addressed in operations management (OM) research. Originality/value The research offers a number of theoretical and managerial contributions, including being one of a relative few examples of empirical assessment of dynamic capability development and deployment; examining the enablers of dynamic capability in addition to the more commonly addressed performance effect; assessing the contingency effect of firm type for dynamic capabilities; and uncovering a return (re-enforcing) effect between performance and enablers of dynamic capabilities.

Analyzing dynamic capability in teamwork

2019 ◽  
Vol 23 (6) ◽  
pp. 1196-1217 ◽  
Author(s):  
Rodrigo Valio Dominguez Gonzalez ◽  
Tatiana Massaroli Melo
Keyword(s):  
Service Provision ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Service Providers ◽  
Positive Impact ◽  
Knowledge Generation ◽  
Dynamic Capability ◽  
Equation Modeling ◽  
Content Type ◽  
Industrial Service

Purpose This study aims to analyze the relationship between the intrinsic characteristics of the teams that perform specialized industrial services in multi-units and dynamic capability. Design/methodology/approach This study was developed from a survey conducted in 188 multi-unit industrial service providers and data were analyzed using the structural equation modeling technique of partial least squares. Findings The results indicate the two constructs act differently on dynamic capability. While the infrastructural construct influences the capability of knowledge absorption, generation and adaptation, the construct related to the willingness to share and integrate knowledge has a positive impact on the capability of knowledge generation and storage. Research limitations/implications This research is limited by the choice of only one industrial sector – in the case of this study, the service industry. Future studies will include other industries and a more diverse sample of firms. Originality/value This research analyzes the process of dynamic capability development in the context of multi-unit service provision. The context of multi-unit industrial service provision is peculiar when compared to other organizations. In the context, knowledge is absorbed, generated and adapted by individuals organized into teams that work in customer’s units. Service providers play a key role in the development of dynamic capabilities regarding knowledge storage, acting as knowledge repositories.

Mediation effect of dynamic capability in the relationship between knowledge management and strategic leadership on organizational performance accountability

2018 ◽  
Vol 60 (2) ◽  
pp. 517-529 ◽  
Author(s):  
Kamariah Najmi ◽  
Abdul Rahman Kadir ◽  
Muh. Isa Ansari Kadir
Keyword(s):  
Knowledge Management ◽  
Organizational Performance ◽  
Dynamic Capabilities ◽  
Hospital Performance ◽  
Mediating Effect ◽  
Dynamic Capability ◽  
Equation Modeling ◽  
Strategic Leadership ◽  
Content Type ◽  
The Relationship

Purpose This study aims to examine and assess the effect of knowledge management and strategic leadership on performance of hospitals by using variables’ mediating effect of dynamic capability. Design/methodology/approach The population included in this study are all the elements of leadership, i.e. both structural and functional leaders at the four hospitals in Makassar [the central government (Dr Wahidin Sudiro Husodo), Regional General Hospital belonging to the Provincial Government of South Sulawesi (Hospital Labuang Baji and hospitals Hajj) and government hospitals (hospitals belonging Makassar City Government)]. The sample size resulting from the analysis tools included approximately 100 respondents. This research used both structural, i.e. structural equation modeling (SEM), and Sobel tests for assessing the mediation effects. Findings First, dynamic capabilities as a mediation variable in relationship between the knowledge management and performance of hospitals, indicates that higher knowledge management will result in improved hospital performance, if the mediated dynamic capability was also higher. Second, dynamic capabilities as the mediation in the relationship between strategic leadership and hospital performance indicates that a higher strategic leadership will lead to improved hospital performance, if the mediated dynamic capability was also higher. Originality/value The results of previous studies on knowledge management in public sector organizations were not sufficiently clear. Moreover, the study of knowledge management in the health services industry also received less attention from previous researchers. This research attempts to fill the gap further by examining the influence of knowledge management on organizational dynamic capability and organizational performance of hospitals. The presence of the mediating variable dynamic capability also differentiates this study from previous studies.

scholarly journals Insurers' risk management as a business process: a prospective competitive advantage or not?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Danish Ahmed ◽  
Xie Yuantao ◽  
Umair Saeed Bhutta
Keyword(s):  
Risk Management ◽  
Competitive Advantage ◽  
Business Process ◽  
Dynamic Capabilities ◽  
Discriminant Validity ◽  
Insurance Industry ◽  
Insurance Companies ◽  
Equation Modeling ◽  
Content Type ◽  
Convergent And Discriminant Validity

PurposeInsurance companies exist to manage the risk of others, which is why they are perceived to be competitive in risk management (RM). Considering this, we investigate how different RM capabilities make insurers effective in RM. These capabilities include understanding risk and risk management (URRM), risk identification (RI), risk assessment and analysis (RAA) and risk monitoring (RMON) activities in insurance companies. In addition, the authors probe how these capabilities can jointly yield a competitive advantage for the insurance industry under the resource-based view (RBV) and dynamic capabilities perspective (DCP).Design/methodology/approachThe authors present a latent variable RM model for the insurance industry and employ structural equation modeling (SEM) to test the hypotheses. Furthermore, the authors also conduct confirmatory factor analysis (CFA) and convergent and discriminant validity analysis for model fit and invariance testing, respectively.FindingsThe results show that insurers who investigated RM-related capabilities directly influence their risk management practices (RMPs). Moreover, improving these capabilities will make insurers more effective in managing the risks of others. Thus, RM as a business process will yield a competitive advantage for the insurance sector. The findings are supported by the theoretical insights presented by the RBV and DCP. Furthermore, the model also adheres to the convergent and discriminant validity cut-off values.Originality/valueTo the best of the authors’ knowledge, this is the first study examining insurers' RM practices as a source of a competitive advantage.

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.

Comprehending a knowledge framework as a source of dynamic capabilities in IJVs through PLS-SEM

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madhavi Kapoor ◽  
Vijita Aggarwal
Keyword(s):  
Knowledge Transfer ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Global Market ◽  
Innovation Performance ◽  
International Joint Ventures ◽  
Mediation Effect ◽  
Equation Modeling ◽  
Content Type

Purpose This study aims to investigate the relationship among knowledge transfer enablers, knowledge transfer process, absorptive capacity and innovation performance in the context of Indian international joint ventures (IJVs). These elements are woven with the thread of dynamic capabilities theory (DCT) into an integrated framework. Design/methodology/approach Data analysis is conducted on a quantitative survey of 196 IJVs with partial least squares structural equation modeling as the statistical technique. Findings Co-learning strategy, collaborative trust culture, information technology-based resources and systems and organizational structural design are found to be significant knowledge transfer enablers. Absorptive capacity has a complementary partial mediation effect on the positive relationship between knowledge transfer and innovation performance of Indian IJVs. Research limitations/implications The study has pioneered in explicating the criticality of IJV’s internal dynamics to cope with the global market dynamism in a much needed Indian context. Practitioners must focus on building dynamic capabilities in IJVs to make them sustainably competitive, as proposed and evaluated by this study. Further, IJV managers need to strategize their resources, routines and structure dynamically to foster knowledge transfer and innovativeness. Originality/value The comprehensive model on DCT offered by this study is rare to match in literature with a completely new context, which is the need of the hour.

Effect of social capital on agribusiness diversification intention in the emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Dang Lang ◽  
Abhishek Behl ◽  
Nguyen Trung Dong ◽  
Yama Temouri ◽  
Nguyen Hong Thu
Keyword(s):  
Social Capital ◽  
Global Economy ◽  
Structural Equation ◽  
Emerging Market ◽  
Measurement Scale ◽  
Equation Modeling ◽  
Group Discussions ◽  
Content Type ◽  
Depth Interviews

PurposeCoronavirus disease 2019 (COVID-19) has seriously affected the global economy. How agribusinessmen are overcoming this crisis is being noticed in emerging markets. Using social capital to diversify agribusiness for getting more customers is a useful solution for the growth of agribusiness. However, there is a lack of evidence on the aggregate measurement scale of social capital and the influence of behavioral goals on the intention toward agribusiness diversification. Therefore, this study aims to develop an integrated measurement of social capital and investigate its effect on agribusiness diversification intention using the expanded theory of planned behavior (TPB).Design/methodology/approachA mixed-methods approach is used, including four in-depth interviews, three focus group discussions and two surveys. Structural equation modeling is applied to a sample of 484 respondents to test the proposed hypotheses.FindingsThe study shows the role of social capital in influencing the intention to diversify agribusiness under the premises of the resource-based view (RBV). The scale of social capital is also developed, which is the first integrated measurement of this asset. The findings contribute significantly to the existing knowledge of social capital, the TPB and diversifying agribusiness.Originality/valueThis is the first study to explore the comprehensive effect of the facets of social capital on behavioral intention through behavioral goals and determinants of the TPB under the premises of the RBV. The findings will help emerging economies, for example, Vietnam, where most farmers are family business owners or microscaled entrepreneurs in agriculture.

Bifurcating the dynamic dominant logic: technical and evolutionary patterns of action

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chandra Dwipayana ◽  
Ruslan Prijadi ◽  
Mohammad Hamsal
Keyword(s):  
Structural Equation ◽  
Dynamic Capabilities ◽  
Digital Transformation ◽  
Superior Performance ◽  
Integrative Model ◽  
Equation Modeling ◽  
Content Type ◽  
Dominant Logic ◽  
Term Performance ◽  
Evolutionary Fitness

PurposeThis study proposed the integrative model of dynamic dominant logic (DL) with exploitation (EP) and exploration (ER) as a pattern of actions in endeavoring firm performance (FP). This study also intended to explain the multiple patterns of DL in creating technical and evolutionary fitness simultaneously.Design/methodology/approachThis study used a cross-sectional quantitative analysis of the Indonesian commercial banking population facing digital transformation and was analyzed using covariance-based structural equation modeling through parceling.FindingsThe model confirmed that DL positively affects EP and ER. It also revealed that DL indirectly impacts FP through EP, indicating changes in the traditional banking business through the strong acceptance of “new realities” in adapting to the rapid growth of technology. Hence, this study discovered that during the recent banking digital transformation, the beneficial inertia of the technical pattern of action might lose effectiveness in creating superior performance.Practical implicationsDL is vital in locking short-term performance while maintaining long-term performance opportunities through EP and ER to promote digital transformation. Accordingly, it induced banks to adopt new technology for value creation and fortifying competitive advantage.Originality/valueThis study provided a theory about how DL links the firm's decision-making process by promoting multiple patterns of action in achieving technical and evolutionary fitness. It highlighted the DL as a resource conceptualization that promotes resource development through EP and ER as microfoundation of dynamic capabilities during the tension of institutionalization and digital transformation.

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