DEVELOPING INNOVATION CAPABILITY IN ORGANISATIONS: A DYNAMIC CAPABILITIES APPROACH

2001 ◽  
Vol 05 (03) ◽  
pp. 377-400 ◽  
Author(s):  
BENN LAWSON ◽  
DANNY SAMSON

This paper draws together knowledge from a variety of fields to propose that innovation management can be viewed as a form of organisational capability. Excellent companies invest and nurture this capability, from which they execute effective innovation processes, leading to innovations in new product, services and processes, and superior business performance results. An extensive review of the literature on innovation management, along with a case study of Cisco Systems, develops a conceptual model of the firm as an innovation engine. This new operating model sees substantial investment in innovation capability as the primary engine for wealth creation, rather than the possession of physical assets. Building on the dynamic capabilities literature, an "innovation capability" construct is proposed with seven elements. These are vision and strategy, harnessing the competence base, organisational intelligence, creativity and idea management, organisational structures and systems, culture and climate, and management of technology.

2019 ◽  
Vol 23 (06) ◽  
pp. 1950053 ◽  
Author(s):  
ARMAND DJOUMESSI ◽  
SHU-LING CHEN ◽  
STEPHEN CAHOON

For almost 20 years, research on firm level innovation have relied upon [Lawson and Samson (2001). Developing innovation capability in organisations: A dynamic capabilities approach. International Journal of Innovation Management, 5(3), 377–400] concept of innovation capability (IC). Of note, these authors stated that this concept needs to be ‘refined, validated and tested using other research methods’ [Lawson and Samson (2001). Developing innovation capability in organisations: A dynamic capabilities approach. International Journal of Innovation Management, 5(3), 377–400], p. 396. To date, empirical studies heeding this call have been challenging to find. By researchers relying on this untested concept, they risk not attaining comprehensive insights into the firm level mechanisms underpinning the transformation idea and knowledge into innovations. This paper proposes a rethinking of the IC concept. The analysis is based on survey data of 69 firms involved in the Australian maritime industry using exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). The results suggest that the IC concept might be refined from seven dimensions, initially conceptualised, to three dimensions. The three dimensions are renamed as institutionalising innovation, implementing innovation and stimulating innovation.


2020 ◽  
Vol 12 (8) ◽  
pp. 3196
Author(s):  
Farah Ameer ◽  
Naveed R. Khan

Scholars have investigated the direct linkage between manager’s age and sustainable corporate performance, however, the mixed results and conflicting findings on the nature of the relationship demand further explanation through the missing constructs. Therefore, the purpose of this paper is to examine the mediating role of sustainable entrepreneurial orientation in the manager’s age and sustainable performance. This study develops a conceptual link by using a dynamic capabilities approach and upper echelon perspective, indicating that younger managers can adopt a more holistic approach towards sustainable practices which can enhance the environmental, social and economic performance of firms. This implies that the relationship between manager’s age and sustainable performance can be explained through sustainable entrepreneurial orientation (SEO) which can play a key role in setting organizational direction towards sustainable development and achieving sustainable business performance. This study contributes to the literature by examining the role of SEO in the relationship between the manager’s age and sustainable performance. This research will help practitioners recognize the importance of minimizing environmental and social problems generating due to organizational production activities. This will lead to profit generation as well as value creation for nature and the local community.


2016 ◽  
Vol 20 (07) ◽  
pp. 1650070
Author(s):  
MICHAEL WANG

The purpose of the paper is to present the empirical evidence of the innovation capability influencing the operation capability and logistics performance in the Australian courier industry. According to resource-based view, firm capabilities including dynamic capabilities and ordinary capabilities play a vital role in a firm to generate competitive advantages. It is important to understand the role of firm capabilities in order to achieve better performance results. Further, innovation capability is one of the dynamic capabilities, which can be deployed to extend, modify or create the ordinary capability in a firm; operation capability is an ordinary capability in the paper. In addition, the logistics performance is critical for courier firms to deliver value and service to customers. This paper, therefore, gives an attempt to investigate the relationships among innovation capability, operation capability and logistics performance. The results show how innovation capability can coordinate with operation capability in order to influence logistics performance. This provides a starting point for understanding of the role of innovation capability in the Australian courier industry. This has important implications for both managers and academics to improve the logistics performance in the logistics and transport firms. Moreover, the paper makes a contribution to strategic management and innovation management literature.


2021 ◽  
Vol 13 (7) ◽  
pp. 4066
Author(s):  
Romina Cheraghalizadeh ◽  
Hossein Olya ◽  
Mustafa Tumer

Using a resource-based view and dynamic capabilities approach, this study investigates both the internal and external factors influencing competitive advantage in the hotel industry. For this purpose, we examine how organizational capabilities may lead to customer relationship building and in turn to competitive advantage. We further test the moderation role of market dynamism on the relationship between organizational capabilities and customer relationship building, and also investigate the mediation effect of customer relationship building on the association between organizational capabilities and competitive advantage. A questionnaire-based study was conducted among hotel employees in Northern Cyprus to test the conceptual model. A set of approaches was applied to detect common method bias and test the validity and reliability of the questionnaire. Correlation and regression analyses were conducted to evaluate the relationships between the variables, and bootstrapping analysis was applied to assess the mediation and moderation effects. The results revealed that organizational capabilities enhance customer relationship building and competitive advantage. Market dynamism as an external factor moderates the relationship between organizational capabilities and customer relationship building. There is also an indirect association between organizational capabilities and competitive advantage through the mediation of customer relationship building. The theoretical and practical implications of the findings are discussed.


2014 ◽  
Vol 21 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Lidija Breznik ◽  
Robert D. Hisrich

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Matin Mohaghegh ◽  
Andreas Größler

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.


2021 ◽  
Vol 42 (04) ◽  
pp. 44-53
Author(s):  
ST HATIDJA ◽  
◽  
Amiruddin TAWE ◽  
Chalid I. MUSA ◽  
La HALISU ◽  
...  

The purpose of this study is to analyze how the capabilities of business performance in creative culinary ventures in Makassar City, Indonesia. Data were obtained from sources using a questionnaire distributed to 1,402 entrepreneurs in the small and medium business category. The sampling method is probability sampling with simple random sampling technique. The number of samples in this study was determined using the Slovin formula of 311 people, totalling 197 respondents who received the questionnaire in full. Data were analyzed using descriptive statistics with structural equation modelling techniques. The research findings explain dynamic capabilities that are important for enhancing innovation and business performance, as well as to assist future researchers to examine other factors that are predictors in improving business performance.


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