THE MODERATING ROLE OF ENVIRONMENTAL INTERPRETATION BETWEEN DYNAMIC CAPABILITIES AND FIRM CONTINUOUS IMPROVEMENTS

Author(s):  
DHIA NOMAN ◽  
ROHAIDA BASIRUDDIN

The interpretation of managers of environmental changes helps in identifying the gaps between the environment and a firm’s capabilities. This in turn can support a firm’s ability to use dynamic capabilities in an effective way to reconfigure the firm’s resources into new operational capabilities that better match the environment and to exploit environmental opportunities. However, extant studies have ignored the moderating role of managers’ interpretation of environmental changes in the capabilities building paradigm. This study empirically examines the moderating role of environmental interpretation in the relationship between dynamic capabilities and improvement capabilities. To operationalise environmental interpretation to enable the development of a measurable model for this construct, which has yet to be developed, 209 large manufacturing firms were selected as a sample to study the relationship between environmental interpretation and firm’s capabilities. By applying the PLS-SEM technique, this study finds that environmental interpretation moderates the relationship between learning capability, integrating capability and coordinating capability and improvement capability.

2016 ◽  
Vol 29 (5) ◽  
pp. 661-685 ◽  
Author(s):  
Nader Seyed Kalali ◽  
Ali Heidari

Purpose The purpose of this paper is to study the process in which dynamic capabilities renewed operational capabilities to sustain competitive advantage in management consulting firms of Iran during a period of drastic environmental changes. Design/methodology/approach Using a grounded theory building approach, comparative longitudinal case analyses were conducted in consultancies of Iran. The research was based on a deep study of documents, observations and interviews with managers and employees of 14 consulting firms. Findings It was found that during a period of environmental changes there was a relationship between dynamic capabilities and competitive advantage, but this relationship was mediated by the role of marketing and technological capabilities of a firm. It was also found that trust-building capabilities of the consulting firms moderate the relationship between dynamic and operational capabilities. The research explores homogeneity and heterogeneity of dynamic capabilities among consultancies too. Originality/value This research shows that under changing environmental conditions, dynamic capabilities of consultancies can become a source of competitive advantage. Moreover, it discusses whether dynamic capabilities are idiosyncratic or are best practices. It also explains the role of trust-building capabilities of consulting firms in moderating the relationship between dynamic and operational capabilities in the particular environment of Iran.


2015 ◽  
Vol 115 (8) ◽  
pp. 1388-1411 ◽  
Author(s):  
Vanesa Barrales-Molina ◽  
Francisco Javier Llorens Montes ◽  
Leopoldo J Gutierrez-Gutierrez

Purpose – The purpose of this paper is to explain the outcomes and role of dynamic capabilities (DCs). To explain the outcomes, the authors study the relationship between new product development (NPD) (an example of DCs) and metaflexibility. To explain the role of DCs, the authors study how human resources and operating routines moderate the role of DCs in achieving adaptation in the firm. Design/methodology/approach – Using data from 200 managers of Spanish firms, the authors apply regression analysis to test the moderating role of human resources and operating routines in the relationship between NPD and metaflexibility. Findings – The results demonstrate that highly qualified and committed workers enhance the effectiveness of NPD, while high frequency in repetition of operating routines significantly damages such effectiveness. Research limitations/implications – This study is limited to analysing a unique DC (NPD), but future research could explore contributions on other consolidated DCs (e.g. alliance management capability) and compare results. Also, the database on managerial perceptions rather than objective measures. Practical implications – Managers who must address environmental changes should connect generation of DCs to complementary functional strategies, especially human resources strategy. Originality/value – This paper suggests additional outcomes derived from DCs, such as metaflexibility. It attempts to understand the complex process by which DCs interact to modify operating routines in order to respond to environmental changes.


2021 ◽  
Vol 4 (1) ◽  
pp. 20-29
Author(s):  
Adra Rida Mahila ◽  
Rosaly Franksiska

During the Covid-19 pandemic, many governments require companies to promote a work from home policy. However, many occupations cannot be done at home, putting the employees at increased health risk and increasing job stress. The purpose of this study is to examine whether job stress negatively affects job performance. Furthermore, we also examine the moderating effect of Covid-19 information on the relationship between job stress and job performance. Our respondents are employees who work in manufacturing firms in Salatiga and still have to work from the office during the pandemic. The data were collected using an online questionnaire, and the total number of respondents is 105. Our analysis using moderated regression analysis founds that job stress negatively influences job performance. We also found that Covid-19 information moderates the relationship between job stress and job performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Innocent Otache ◽  
Obal Usang Edet Usang

PurposeDrawing on the dynamic capabilities theory, the purpose of this study is to empirically explore the moderating role of government support (GS) in the relationship between innovation capability (IC) and small and medium-sized enterprise (SME) performance in times of economic crisis.Design/methodology/approachThe study adopted a descriptive research design and collected data from 234 SMEs drawn from the six geopolitical zones of Nigeria using a self-reported questionnaire. PLS-SEM was performed to test the hypotheses.FindingsThe results showed that IC was positively associated with SME performance. Further analysis indicated that GS had a strong positive impact on SME performance and positively moderated the relationship between IC and SME performance.Originality/valueThere is a paucity of studies that specifically explore the moderating role of GS in the relationship between IC and SME performance. This study contributes to the literature on SMEs by demonstrating the moderating effect of GS on the relationship between IC and SME performance in times of economic crisis. The study offers valuable insights into the vital role played by IC and GS in times of economic crisis.


2020 ◽  
Vol 12 (3(J)) ◽  
pp. 53-64
Author(s):  
Richard Akisimire ◽  
Ernest Abaho ◽  
Maureen Tweyongyere

This paper tests the moderating role of firm age on the relationship between Chief Executive Officer (CEO) duality and financial performance among manufacturing firms in Uganda. A cross section survey was adopted using 78 manufacturing firms in Uganda. Data was analyzed using descriptive statistics, correlation and hierarchical regression. Modgraph software was also used to ascertain the validity of the set hypothesis. Results reveal that whether the CEO doubles as chairman of board or not, this does not significantly affect firm Financial Performance. However, as the firms grow older, the role of CEO-Board Chairman duality phenomenon gains significance in determining financial performance. Therefore, as firms grow in age, the CEOs should not be the same as Board chairpersons if firms have to perform well financially. Since only a single research methodological approach was employed in this study, future research can undertake to use a mixed methods approach to provide more detailed insights. Further, a longitudinal approach can also be employed to study financial performance trends among manufacturing firms over years. Entrepreneurs of these firms should put emphasis on proper segregation of the CEO role and those of the board chairman especially as firms grow in age. A moderating role of firm age on the relationship between CEO duality and financial performance was tested among manufacturing firms; previous studies have tended to test the direct or mediating effects.


2020 ◽  
pp. 102-113

The current study examinesthe impact of human capital development (HCD) on strategic renewal (SR) of firms in hospitality industryof Khyber Pakhtunkhwa. In addition, the currentstudy also examined the mediatingrole of ambidextrous learning (AL) and the moderating role of dynamic capabilities(DC)between HCD and SR relationship. Data were collected from 490 managers/owners of 3-stars and 4-stars hotelsthrough questionnaires operatingin thetourist destinations of Khyber Pakthunkhwa, Pakistan. Data analysis was performed throughvarious statistical techniqueswhich provides some interesting results. The results indicate that HCD is positively associated withSR. Moreover, AL bridgesthe associationbetween HCD and SR. Furthermore, the results stated that DChas a strong contingent effect on the relationship between HCD and SR. The findingsreveal that HCD in presence of AL plays acritical role inSRof the hospitality in Khyber Pakhtunkhwa.


2017 ◽  
Vol 32 (5) ◽  
pp. 419-431 ◽  
Author(s):  
Thomas M. Hess ◽  
Erica L. O'Brien ◽  
Peggy Voss ◽  
Anna E. Kornadt ◽  
Klaus Rothermund ◽  
...  

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