Identification of the Dynamic Capabilities Ecosystem—A Systems Thinking Perspective

2020 ◽  
pp. 105960112096363
Author(s):  
Vijaya Sunder M ◽  
L S Ganesh

An in-depth look at the extant literature of dynamic capabilities (DCs) shows that the focus has been on the development, justification, and validation of individual DCs through both conceptual and empirical methods. We argue that studying DCs in isolation may not offer a complete practical meaning. Organizations being complex systems, multiple combinations of capabilities and their interrelationships (as a DC system) lead to a sustained competitive advantage, and this effect cannot be attributed to a single DC in isolation. Through this article, we present a system theoretic view of DCs and subsequently propose the concept of a DC ecosystem using a systems thinking perspective. We use the logical reasoning approach of justificationism to present the associated propositions. We conclude with a discussion of managerial implications and suggestions for future research.

Author(s):  
Erin Fahrenkopf ◽  
Linda Argote

We assess the role that organizational learning plays in the development of dynamic capabilities which confer sustained competitive advantage on firms. We argue that learning from the experience of others is a mechanism for developing dynamic capabilities. We examine how firms can learn from the prior experiences of their founders and other employees and identify the conditions under which this learning is most likely to occur. We develop how characteristics of the organizational context and characteristics of the knowledge being transferred condition a firm’s ability to learn from others. The chapter concludes with a set of expectations that we hope will stimulate future research on the important question of how learning from the experience of others enables firms to develop dynamic capabilities.


Author(s):  
Vilani Sachitra ◽  
Siong-Choy Chong

Purpose The agribusiness sector has long been acknowledged as a major source of livelihood to many people in developing countries. Hence, determining the resources and capabilities influencing farm-level competitive advantage are vital to better understand and formulate appropriate strategies to increase the competitiveness ofminor export crops farms. This study aims to understand of the link between resources-capabilities-competitive advantage for appropriate measures to be recommended to enhance the competitive position of the smallholding farms. Design/methodology/approach This study adopts the resource-based view in combination with dynamic capabilities. The scope comprises owners of farms who possess experience in commercial cultivation of minor export crops in Sri Lanka. A self-administrated structured questionnaire was used to collect data. Findings Based on the responses from 456 farm owners, results of the multiple regression analysis indicate that variables representing resources such as human assets, physical assets, financial assets, institutional capital, collective action and entrepreneurial identity; and dynamic capabilities such as organisational learning, relationship building, quality management and marketing are significantly associated with competitive advantage of the minor export crops farms. Reputation and farm process management capability are the only two insignificant variables. Taken together, the resources and dynamic capabilities investigated explain 89.3 per cent of the variation in competitive advantage, in which 82 per cent is contributed by resources. Originality/value The findings provide useful insights not only in terms of understanding the link between resources, dynamic capabilities and competitive advantage but also how resources and capabilities can be channelled and leveraged to bring about competitive advantage to the minor export crops farms. Theoretical and practical implications as well as future research directions are provided.


2011 ◽  
pp. 259-273
Author(s):  
Carlos D. Santos ◽  
Márcio A. Gonçalves ◽  
Fabio Kon

Open source communities such as the ones responsible for Linux and Apache became well known for producing, with volunteer labor innovating over the Internet, high-quality software that has been widely adopted by organizations. In the web server market, Apache has dominated in terms of market share for over 15 years, outperforming corporations and research institutions. The resource-based view (RBV) of firms posits that an organization outperforms its competitors because it has valuable, rare, imperfectly imitable, and non-substitutable resources. Accordingly, one concludes that Apache possesses such resources to sustain its competitive advantage. However, one does not know what those resources are. This chapter is an effort to locate them, answering the question: “What resources enable Apache to outperform its for-profit competitors consistently?” This research draws on the RBV to develop a series of propositions about Apache’s internal resources and organizational capabilities. For each proposition developed, methods for their empirical validation are proposed, and future research directions are provided.


Author(s):  
R. Daniel Wadhwani ◽  
Geoffrey Jones

This chapter aims to deepen the scholarly dialogue between strategy and history. It does so by examining how historical models of change can contribute to theory and research on the competitive advantage of firms during periods of rapid innovation. Focusing on the dynamic capabilities framework, it shows how three models of historical change—evolutionary, dialectical, and constitutive—can be used to extend theory and deepen research about the origins, context, and micro-foundations of dynamic capabilities. We show how each model of historical change shaped the intellectual development of the dynamic capabilities framework, point to historical research that illustrates these processes, and discuss the methodological and conceptual implications for future research. We conclude by suggesting that recognizing and building on these historical models of change can provide a common conceptual language for a deeper dialogue between historians and strategy researchers.


1998 ◽  
Vol 24 (4) ◽  
pp. 489-509 ◽  
Author(s):  
Augustine A. Lado ◽  
Michael J. Zhang

In this paper, we propose a resource-based model to explain how expert systems generate sustained competitive advantage for a firm. Speciftcally, we analyze the extent to which expert systems (ESs) exhibit the attributes of value, rareness, imperfect imitability, and non substitutability associated with a rent-generating resource (e.g., Barney, 1991). Then, we discuss how expert systems yield sustainable competitive advantage through fostering organizational knowledge development and utilization. Finally, we examine the role of ESs in engenden’ng a reciprocal, mutually enhancing relationship with organizational competencies, leading to sustained competitive advantage. Propositions are ofleered to facilitate future research.


2016 ◽  
Vol 34 (5) ◽  
pp. 671-691 ◽  
Author(s):  
S. M. Riad Shams

Purpose – Capacity building is a crucial antecedent for socio-economic development. However, an enhanced capacity that is difficult to develop could quickly be eroded, because of rapid changes in competitive forces in industries and markets. Therefore, this paper intends to analyse the extant strategic management and relationship marketing (RM) literature that deal with competition. Eventually, the purpose of this paper is to develop an alternative route for capacity building process that could sustain competitive advantage in a market or industry, which encounters rapid changes in business competition. Design/methodology/approach – An inductive constructivist approach is followed to support arguments, in order to develop a synthesis from the relevant literature to reinforce the current understandings on capacity building and sustained competitive advantage. Findings – An influence of RM on strategic organisational dynamic capabilities (DCs) is recognised, which appears as significant to sustain DCs and subsequent competitive advantage. Based on this influence, this paper proposes a conceptual framework of capacity building that could survive through the “valuable, rare, inimitability and non-substitutability” test, which is fundamental to sustain competitive advantage. Some empirical insights are developed, in support of this conceptual framework. Practical implications – For research and practice, these insights will be useful to focus on specific attributes in capacity building to sustain the enhanced capacity’s competitive advantage over time, across industries and markets. Social implications – Similarly, the insights will be instrumental to sustain the benefit of capacity building to underpin socio-economic progress. Originality/value – The paper proposes a much needed initial conceptual framework for capacity building to sustain competitive advantage of a hard-earned capacity for socio-economic development.


Author(s):  
Rogier van de Wetering ◽  
Patrick Mikalef ◽  
Adamantia Pateli

Dynamic capabilities theory (DCT) emerged as a leading framework in the process of value creation for firms. Its core notion complements the premise of the resource-based view of the firm and is considered an important theoretical and management framework in modern information systems research. However, despite DCT's significant contributions, its strength and core focus are essentially in its use for historical firm performance explanation. Furthermore, valuable contributions have been made by several researchers to extend the DCT to fit the constantly changing IT environments and other imperative drivers for competitive performance. However, no DCT extension has been developed which allows firms to integrally assess their current state of maturity to derive imperative steps for further performance enhancements. In light of empirical advancement, this article aims to develop a strategic alignment model for IT flexibility and dynamic capabilities and empirically validates proposed hypotheses using correlation and regression analyses on a large data sample of 322 international firms. The authors conjecture that the combined synergetic effect of the underlying dimensions of a firm's IT flexibility architecture and dynamic capabilities enables organizations to cope with changing environmental conditions and drive competitive firm performance. Findings of this study suggest that there is a significant positive relationship between firms' degree of strategic alignment—defined as the degree of balance between all dimensions—and competitive firm performance. Strategic alignment can, therefore, be seen as an important condition that significantly influences a firm's competitive advantage in constantly changing environments. The proposed framework helps firms assess and improve their maturity and alignment of IT flexibility and dynamic capabilities. This article concludes with a discussion, suggestions for future research and managerial implications are also discussed.


2021 ◽  
Vol 7 (5) ◽  
pp. 1-9
Author(s):  
Rene J Zweedijk ◽  

A proposition is made for scientific substantiation of “Primary respiration” and related concepts, including suggestions for future research. For research and support, the field of mathematics, artificial intelligence, chaos theory and complex systems thinking can be of fundamental and essential value.


2020 ◽  
Vol 46 (1) ◽  
pp. 26-35
Author(s):  
S. M. Riad Shams ◽  
Demetris Vrontis ◽  
Alkis Thrassou ◽  
Christos Themistocleous ◽  
Michael Christofi

The combined effect of strategic ambidextrous management (dynamic capabilities and contextual ambidexterity), marketing and brand communication management has been implicitly and explicitly identified as bearing critical implications for competitive advantage. However, the mutual influence of these knowledge streams on competitive advantage as well as its key component of contextual ambidexterity are much under-researched. This article follows an inductive constructivist method to develop a theoretically founded conceptualisation of the means through which the various stakeholder contextual ambidextrous dynamic capabilities can leverage the organisational authenticity learning process in cross-functional management to explore and exploit new competitive advantage scopes. Specifically, this research proposes a theoretically synchronised conceptual framework that focuses on identified key attributes of the knowledge streams, interlinking their individual and combined influences on brand positioning and corporate reputation for the creation of competitive advantage. Scholarly and empirical implications are also presented along with future research avenues.


2018 ◽  
Vol 26 (2) ◽  
pp. 331-342 ◽  
Author(s):  
Saša Baškarada ◽  
Andy Koronios

Purpose Although there is widespread agreement that organizational agility is increasingly becoming critical to achieving sustained competitive advantage, there is little consensus on what exactly constitutes organizational agility, or how it may be assessed and improved. The purpose of this paper is to contribute toward operationalization of the organizational agility construct through a high-level conceptual framework grounded in dynamic capabilities. Design/methodology/approach This is a conceptual paper that presents a new organizational agility framework, which draws from, and builds on, the existing literature. Findings This paper defines organizational agility as rapid, continuous and systematic evolutionary adaptation and entrepreneurial innovation directed at gaining and/or maintaining competitive advantage. The 5S Organizational Agility Framework proposes five dynamic capabilities (sensing, searching, seizing, shifting and shaping) underpinning organizational agility. Originality/value The framework presented in this paper contributes toward operationalization of the organizational agility construct.


Sign in / Sign up

Export Citation Format

Share Document