MANAGING INTERINDUSTRY DIFFERENCES THROUGH DYNAMIC CAPABILITIES: THE CASE STUDY OF NOKIA

2005 ◽  
Vol 02 (03) ◽  
pp. 235-257 ◽  
Author(s):  
ARABELLA BHUTTO
Keyword(s):  
Competitive Advantage ◽  
Mobile Communication ◽  
Mobile Networks ◽  
Consumer Goods ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Communication Industry ◽  
Mobile Communication Industry ◽  
The Impact

This paper examines the case of Nokia as a player of the mobile communication industry and provider of mobile communication system: Mobile handsets (consumer goods) and mobile networks (CoPS). Our aim is to analyze the impact of strategic management and dynamic capability developed by a firm of such an industry, which supports the entire system and manages inter-industry differences of consumer goods and CoPS. Recent convergence among technologies has raised competition among firms. Achieving and sustaining competitive advantage in this converging market is therefore possible by identifying threats and then developing strategies and capabilities to resolve them. This article concludes by examining how the firm can achieve its competitive advantage.

Exploring the Role of IS in Dynamic Capabilities

2010 ◽  
Vol 1 (2) ◽  
pp. 19-37 ◽  
Author(s):  
Stephen Duhan ◽  
Margi Levy ◽  
Philip Powell
Keyword(s):  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Recent Literature ◽  
Dynamic Capability ◽  
Sustainable Competitive Advantage ◽  
Capability Development ◽  
Over Time ◽  
Systemic View

Resource-based theory suggests that firms develop idiosyncratic capabilities that contribute to sustainable competitive advantage when they are valuable, rare, inimitable and non-substitutable. The successful use of information systems (IS) and information technology (IT) has been linked to improved firm performance. Recent literature suggests that a deeper understanding of what capability means in practice may be gained from a disaggregation into component competences and resources. A better understanding of the role of IS/IT in business level capability may be achieved through a fuller articulation, both of the capability itself, and the contribution of IS/IT, together with an evaluation of the effectiveness in delivering sustainable competitive advantage. A dynamic capabilities perspective explains the way firms adapt capabilities to changing market environments over time. This paper explores these propositions through an exploratory case study using a framework derived from a resource-based and systemic view of the firm. The analysis suggests a dynamic Capability Development Model through which the implications and potential for IS and IT over time may be understood. The paper addresses three issues. First, it offers a better articulation of what capability concepts mean in practice. Second, it takes a disaggregated understanding of capabilities, and third, it sheds light on the dynamics of capabilities.

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.

Managing Risks in the Innovation Projects in the Services Sector

2016 ◽  
pp. 174-195
Author(s):  
Stelian Stancu
Keyword(s):  
Mobile Communication ◽  
Technical Change ◽  
Service Industry ◽  
Communication Industry ◽  
Services Sector ◽  
Innovation Projects ◽  
Using Data ◽  
Mobile Communication Industry ◽  
Economic Domain

The purpose of this chapter is to provide a review on the similarities and/or the heterogeneity of the innovation taxonomy that could be found in the economic domain highlighting that in the specialized literature different terms are used for the same type of technical change and innovation and the same term is used for different types of innovation. This classification ambiguity represents a challenge when comparing different studies. Schumpeter highlights how technical knowledge is acquired both through invention and innovation. A detailed review of the innovation taxonomy in an economy of innovation will be provided. Taxonomy of innovation in the technology management is also provided. An analysis of the innovation projects characteristics in service industry is presented, as the basis for a proposed framework for managing risks. A case study for the Romanian mobile communication industry using data provided by specialized publications is presented at the end of the chapter.

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.

The Impact of New Scientific Knowledge on Firms’ Routines and Capabilities: The Case of Mechatronics

2015 ◽  
Vol 12 (06) ◽  
pp. 1550030
Author(s):  
Ugo Rizzo ◽  
Daniela Freddi ◽  
Laura Ramaciotti
Keyword(s):  
Organizational Behavior ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Case Study Research ◽  
Policy Implications ◽  
New Graduates ◽  
Body Of Knowledge ◽  
Multiple Case ◽  
The Impact

Routines and capabilities are patterns of actions, entailing both stability and change, according to which organizational behavior is investigated and that rest at the base of firms’ competitive advantage. Research in organizational theory recently started to disentangle the micro-foundations of these collective concepts in order to better grasp the mechanisms by which individuals influence the generation and evolution of routines and capabilities. In the present work we seek to contribute to this literature by investigating how the acquisition of a radical new body of knowledge via recruitment impacts on the evolution of the routines and dynamic capabilities of the firm. By means of a multiple case study research on mechatronics companies located in Northern Italy, the study examines if and how the insertion of graduates in a discipline new to the company modified its routines and the dynamic capabilities. In other words we explored whether the introduction of a new body of knowledge embodied in new graduates produced changes on the organization and functioning of the hosting R&D department and/or it also shaped the overall firm’s development strategies, thus overcoming the expected inertia. The results are important for both managing change to increase the company’s competitive advantage as well for the policy implications which can be derived.

scholarly journals The Impact of Dynamic Capabilities on Sustainable Competitive Advantage in the Pharmaceutical Sector in Egypt

2017 ◽  
Vol 6 (2) ◽  
pp. 1
Author(s):  
Albert Naiem Naguib ◽  
Eahab Elsaid ◽  
Abdel Moneim Elsaid
Keyword(s):  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Secondary Data ◽  
Primary Data ◽  
Sustainable Competitive Advantage ◽  
Firm Characteristics ◽  
Pharmaceutical Sector ◽  
Chi Square ◽  
Pharmaceutical Firms ◽  
The Impact

This study examines the relationship between dynamic capabilities (experience, routine, skills, firm characteristics, knowledge and technology) and competitive advantage sustainability in the Egyptian pharmaceutical sector. The data was collected using primary and secondary data sources. Primary data was collected from questionnaires distributed to 160 top managers in 20 pharmaceutical firms. The secondary data about pharmaceutical firms like rankings, revenues and market share was collected from external sources such as Intercontinental Marketing Service (IMS). The questionnaires examine six independent variables based on a five-scale Likert scale. The methodology used in the study is non-probability sampling (judgmental sampling), Cronbach’s alpha reliability coefficient and Chi-square tests. The results support the notion that there is a significant relationship between four of the six dynamic capabilities (experience, skills, firm characteristics and knowledge) and the competitive advantage sustainability for pharmaceutical firms in Egypt. Designing the questionnaire and formulating the questions to target the required field was challenging, given that the topic is dynamic and the business scene in Egypt has witnessed drastic political changes since January 2011. The study should assist pharmaceutical companies in Egypt in directing their investments properly and in determining the weaknesses in their dynamic capabilities that need to be addressed.

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.

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