The Microfoundations of Dynamic Capabilities for Incremental and Radical Innovation in Knowledge‐Intensive Businesses

Author(s):  
Maura Sheehan ◽  
Thomas N. Garavan ◽  
Michael J. Morley
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vijita S. Aggarwal ◽  
Madhavi Kapoor

PurposeThe study purports at investigating the effect of organizational factors (strategy, culture, information technology and structure) on knowledge transfer and innovation performance in the context of Indian International joint ventures (IJVs) of varied ages and industries. All the variables are woven together in the framework of dynamic capabilities theory.Design/methodology/approachPLS-SEM was used to analyze the primary data collected from IJVs. The disjoint two-stage approach was applied to check the mediation in the model. The multigroup technique was deployed to test group-differences in the sample.FindingsThe four organizational factors, combined as a construct, are seen to have a positive impact on knowledge transfer, which facilitates innovation performance. But mediation analysis revealed the insignificant indirect relationship of organizational factors with innovation through knowledge transfer for the total sample. In-depth group analysis revealed that these results differ between young and mature IJVs and knowledge-intensive and non-knowledge intensive industries.Research limitations/implicationsThe number of organizational factors is limited to four, which can be further increased. Longitudinal studies for investigating the formation of dynamic capabilities can be the future research direction.Originality/valueThe research has provided hierarchical analysis for organizational factors, knowledge transfer and innovation performance with multigroup industrial and age-wise analysis of Indian IJVs, which is still unplumbed in international business literature.


2011 ◽  
Vol 08 (04) ◽  
pp. 501-520 ◽  
Author(s):  
YONG CAO ◽  
AKIO NAGAHIRA ◽  
SHUO SHE

Dealing with knowledge intensive business services (KIBS) has become an important strategy for many firms. Services that heavily rely on professional knowledge are needed by Japanese manufacturing corporations (JMCs) for solving different problems. This article explores the impact of the utilization of KIBS on the innovation of JMCs in Japan. The goal of the paper is threefold: first, we focus on the different divisions of JMCs that have dealt with KIBS and analyze the impact of KIBS on their innovation respectively; second, we separate the types of innovation into radical innovation and incremental innovation and then analyze what and how the service delivery method contributes to each type of innovation; and finally we discuss in more depth the details of an efficient service delivery method. The results show that first, KIBS contribute more to the radical innovation of a client rather than incremental innovation and second, face-to-face is the most efficient method of service delivery from KIBS to the JMCs.


2014 ◽  
Vol 6 (3) ◽  
pp. 223-242 ◽  
Author(s):  
Nishant Kumar ◽  
Ali Yakhlef

Purpose – The aim of this paper to examine the mechanism through which the capabilities related to internationalisation emerge and are acquired as firms internationalise. Design/methodology/approach – This study draws on existing literature on born global firms and dynamic capabilities to develop a tentative framework and then use that to examine a longitudinal case study of an Indian firm operating within knowledge-intensive services industry. The role played by these capabilities in the survival and sustained international growth of born global firms has been probed. Findings – The study establishes a link between firm’s ability to develop such capabilities for global service delivery and its growth and survival. It is suggested that dynamic capabilities emerge as the result of a mix of experiential and deliberate learning processes, being in a constant change in rhythm with changes in domestic and in international business environments. Research limitations/implications – This study is based on a single case study from knowledge-intensive service industry in India with its own particular characteristics. Thus, the findings of this study may not be generalised across other emerging markets or industry. Practical implications – Entrepreneurs and managers of new ventures can benefit from this study, as this study helps them develop a deeper understanding of the different capability requirements for successful internationalisation. Originality/value – This study contributed to the existing literature on capability evolution in born global firms.


Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali Bonyadi Naeini ◽  
Seyedeh Hoda Jalilian Ahmadkalaei

PurposeThe purpose of this paper is to identify the dynamic capabilities (DCs) affecting the business models (BMs) in knowledge-intensive firms (KIFs). This paper also examines how much these DCs affect the BMs.Design/methodology/approachThe research methodology included examining a research framework based on a literature review followed by a survey of KIFs. A sample of 214 KIFs was obtained and structured equation modeling analysis using two-stage partial least squares–artificial neural network approach was conducted to test the proposed hypotheses.FindingsThis study shows that managerial, innovation, intellectual capital, information technology, integration and knowledge-based DCs influence the BM in KIFs. The results indicate that “the human development” aspect of managerial DC has the most significant impact on the BM efficiency, and innovation DC has the greatest influence on BM innovation.Practical implicationsIdentifying DCs affecting the BM in KIFs provides practical results for managers and researchers in KIFs.Originality/valueThe present research uses for the first time a PLS–ANN approach in identifying the affecting DCs the BM in KIFs; examines its impact on the efficiency and innovation aspects of the BM; and enriches the literature on DCs and the BM, especially in the field of KIF.


2015 ◽  
Vol 8 (2) ◽  
pp. 279-299 ◽  
Author(s):  
Rolf Medina ◽  
Alicia Medina

Purpose – Knowledge-intensive organizations tend to be project intensive having many projects of different size and importance. In this context, competence evolves through projects. The purpose of this paper is to identify the mechanisms that steers competence management in these kinds of organizations and also the factors that are involved in the human capital contribution to competitive advantage in relation to the interaction between parent organizations and projects. Design/methodology/approach – This study has a contingency theory perspective and consists of a literature search in the following domains: project-intensive organizations, knowledge-intensive organizations, competence management, human resource management and dynamic capabilities and learning. Findings – The main contribution of this study is the theoretical framework derived from different domains. The framework is called the competence loop and explains how projects generate competence that the parent organization can either exploit in further activities or use for strategy adjustment. It also explains how an organization can use learning strategies to support competence exploration/exploitation. Another contribution is the description of the relationship between dynamic capabilities and organizational learning in project-intensive organizations. Research limitations/implications – This paper is a conceptual paper intended to create a base for further empirical studies. Originality/value – The paper combines different domains to define a framework that is a new approach to competence management in a project-parent organizational context. The framework includes learning and competence management characteristics and has both theoretical and practical value.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Veronica Scuotto ◽  
Chiara Nespoli ◽  
Rosa Palladino ◽  
Imen Safraou

PurposeBy using the lens of knowledge-based view (KBV) and focusing on individual loci of knowledge, the present study addresses whether marketing knowledge management (MKM) is rooted in individual dynamic capabilities (DCs) and consequently whether it has a close relationship with the three main DCs, namely, the ability to solve a problem (substantive capability); the adaptation to rapid changes (adaptative capability); and the ability to change the way individuals solve problems (change capability).Design/methodology/approachThe present study aimed to examine the effects of MKM (the quantitative variable) on DCs (the quantitative variables). Drawing on the relevant literatures, the researchers have developed a model that defines the subjects of the empirical test. To do this, the authors opted for a hypothetico-deductive approach, which is commonly used in quantitative studies. The empirical analysis involved a linear regression and a sample of 105 managers of Italian companies operating in the knowledge intensive sector.FindingsSubstantive, adaptive and change capabilities were all positively correlated with MKM. The results indicate the significant need for individual DCs to improve business performance in terms of creativity, innovation, and flexibility in response to market changes.Originality/valueThe authors show that individual MKM has a strong relationship with individual DCs when the employees have the capacity to solve problems, adapt, and change. In turn, managers are strategically creative and imagine future possibilities in the international marketing sphere. This includes procedures and routines to learn in local markets. The study also stresses the fact that individuals represent the primary loci of knowledge.


Author(s):  
Iva Atanassova ◽  
Lillian Clark

This chapter identifies the operating and dynamic capabilities interactions that are supported by social media use in small and medium-sized enterprises (SMEs), specifically knowledge-intensive business services (KIBS). The focus on social media market intelligence accumulation and assimilation as an operating capability which enables dynamic marketing capability development in the SME marketing context, complements the prevalent focus in the literature on SME adoption and use of social media, as well as literature on how dynamic capabilities alter operating capability. The chapter presents a case study of a KIBS SME operating in South East England. Data was collected via semi-structured interviews with key actors and social media data, and thematically analysed. The findings suggest that the company develops absorptive capacity at the operating level by absorbing intelligence through social media use, and this learning is captured and transformed at the marketing planning level as a dynamic capability, reconfiguring future marketing operational capabilities.


Author(s):  
Iva Atanassova ◽  
Lillian Clark

This chapter identifies the operating and dynamic capabilities interactions that are supported by social media use in small and medium-sized enterprises (SMEs), specifically knowledge-intensive business services (KIBS). The focus on social media market intelligence accumulation and assimilation as an operating capability which enables dynamic marketing capability development in the SME marketing context, complements the prevalent focus in the literature on SME adoption and use of social media, as well as literature on how dynamic capabilities alter operating capability. The chapter presents a case study of a KIBS SME operating in South East England. Data was collected via semi-structured interviews with key actors and social media data, and thematically analysed. The findings suggest that the company develops absorptive capacity at the operating level by absorbing intelligence through social media use, and this learning is captured and transformed at the marketing planning level as a dynamic capability, reconfiguring future marketing operational capabilities.


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