scholarly journals Dynamic Capabilities-Based and Environment Serving Organization-Based Concepts in Strategic Management: Are They Complementary? A Theoretical Overview

2020 ◽  
Author(s):  
Augustinus Oroh
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Real Root ◽  
Practical Approach ◽  
Management Concepts ◽  
Market Turbulence ◽  
The Right ◽  
Industrial Context ◽  
Theoretical Overview

In the last few decades resource-based concepts have been discussed and seemingly accepted by many scholars in strategic management. Some have argued and challenged them since many companies struggle to obtain and apply the strategic tools to enhance their performance and competitiveness. Competitive advantage is moving toward a different paradigm, following dynamic competition and market turbulence. In the current era of the digital economy a company’s top and general managements can be blamed for not smartly leveraging their resources and responding to their customers on time with the right offerings. Therefore, it is difficult to sustain competitive advantage. This research, using theories and a practical approach, discuss the relevance of strategic management concepts, especially Dynamic Capabilities-based, Resource-based and Environment Serving Organization-based (ESO-based) perspective in the current industrial context, as the real root of strategic management theories. This paper concludes that both Dynamic Capabilities-Based as well as Resource-Based concepts complement the ESO-based concept and therefore deserved to be explored further as a strategic formula for companies. Keywords: resource-based; dynamic-capabilities; ESO-based; competitive advantage

scholarly journals Seeking competitive advantage with service infusion: a systematic literature review

2015 ◽  
Vol 26 (3) ◽  
pp. 394-425 ◽  
Author(s):  
Ville Eloranta ◽  
Taija Turunen
Keyword(s):  
Literature Review ◽  
Strategic Management ◽  
Competitive Advantage ◽  
Systematic Literature Review ◽  
Dynamic Capabilities ◽  
Business Models ◽  
Content Type ◽  
Management Concepts ◽  
Service Infusion ◽  
Management Theories

Purpose – The purpose of this paper is to analyze how the service infusion literature explains competitive advantage through services. The four strategic management theories – competitive forces, the resource-based view, dynamic capabilities, and relational view – are applied in the analysis. Design/methodology/approach – A systematic literature review analyzes the links between the service infusion and strategy literature. Findings – The review reveals that although discussion of service infusion applies strategic management concepts, the stream lacks rigor with respect to construct definition and justification. Additionally, contextual variables are often missing. The result is an over-emphasis of contextually bound measures, such as technology, and focal actors. Research limitations/implications – The growing trends toward social networks, co-specialization, actor dependency and shared resources encourage service infusion scholars to focus on network-related and relational capabilities, co-opetition, open business models, and relational rent extraction. Furthermore, service infusion research would benefit from considering strategy-based theoretical discussions, constructs, and constraints that would improve the scientific rigor, impact and contribution. Originality/value – This paper represents a systematic attempt to link the service infusion literature with strategic management theories and thoroughly analyzes the knowledge gaps and possible misconceptions.

scholarly journals The Circular Economy

2019 ◽  
Vol 1 (1) ◽  
pp. 298-309 ◽  
Author(s):  
José G. Vargas-Hernández ◽  
Marlene De Jesús Morales Medrano
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Circular Economy ◽  
Social Impact ◽  
Point Of View ◽  
Economy Model ◽  
Operational Level ◽  
Resources And Capabilities ◽  
The Right

The purpose of this document is to analyze the Circular Economy (CE) model from the point of view of the resources and capacities of the organization. How is the application of the Circular Economy model related to Strategic Management? At first glance, it seems that the CE is operating within an operational level with a social impact, but it also has implications that allow us to think that it can be used as an internal resource of the company that, if applied in the right way, can become a competitive advantage, in other words, the application of the CE is related to Strategic Management through the point of view based on resources and capabilities. Therefore, the present investigation has a descriptive-correlational nature, which was analyzed through Peng's VRIO framework.

scholarly journals Assessing dynamic capabilities: Mintzberg’s schools of thought

2011 ◽  
Vol 42 (1) ◽  
pp. 1-8 ◽  
Author(s):  
F. Arndt
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Human Agency ◽  
Dynamic Capability ◽  
Evolutionary Perspective ◽  
Central Source ◽  
Growing Body ◽  
Attention Process ◽  
Micro Foundations

A growing body of research in strategic management has focused on dynamic capabilities as a central source of firms' competitive advantage. The theoretical roots of dynamic capabilities can be found in many of the schools of thought identified by Mintzberg, Ahlstrand and Lampel (1998). In this paper, we identify three aspects of dynamic capabilities that, we believe, require more detailed attention: Process, cognitive and decision-based micro-foundations, and human agency. We explore each of these areas from an evolutionary perspective to emphasize the fact that dynamic capability is essentially an evolutionary construct. By highlighting the evolutionary implications of these areas, we add important detail to the way “evolution” has been used in this field of research.

scholarly journals Dynamics of the evolution of the strategic management concept: From the planning school to the neostrategic approach

2021 ◽  
Vol 17 (2) ◽  
pp. 7-28
Author(s):  
Tomasz Kafel ◽  
◽  
Bernard Ziębicki ◽  
Keyword(s):  
Strategic Management ◽  
Dynamic Capabilities ◽  
Technology Development ◽  
Two Dimensions ◽  
Theory And Practice ◽  
Research Results ◽  
Main Research ◽  
Management Concepts ◽  
Management Concept ◽  
Selection Of

Purpose: Strategic management has been developing in business theory and practice for over 50 years. Presently, it constitutes the main area of research interest in management science. The contemporary conditions of business operations create new challenges for strategic management, such as the use of dynamic capabilities in strategy building, relational strategies, networking of organizations, technology development and automation of processes, and global strategies. These challenges are often referred to as neostrategic management. The purpose of this publication is to present the findings of research concerning new strategic management concepts and challenges. Methodology: The main research method of this article was a narrative literature review. On the basis of the research, the development of the concepts as well as contemporary trends and challenges of strategic management were characterized. There is also a synthesis of the problems and research results presented in the articles in this special issue of JEMI. Findings: Various schools and approaches to strategy formulation have been created. They indicate different factors that allow for success in strategic management such as: setting long-term goals, selection of programs and their execution plans (planning school); connection of the enterprise with the environment (evolutionary school); focusing attention on competitive advantage and achieved performance (position-based school); focus on one’s own resources and competences (resource school); use of opportunities and creating innovation (simple rules school); selection of the best option and orientation in business management (real options school); or eclectic perspectives, integrating the listed approaches. The strategic management concept has two dimensions. The first dimension is related to the emergence of subsequent, new strategic management concepts, which often hark back to the previous schools and approaches. The second dimension of development applies to operationalization and adjustment of the previous concepts to the changing conditions. Implications for theory and practice: The paper characterizes the research results presented in the articles included in this JEMI issue. They deal with various problems and challenges in the field of strategic management, such as the relationship between market dynamics, market orientation and performance of enterprises; the innovativeness of companies as a contemporary strategic orientation of companies; the strategy implementation and the management of the organization change; problems of strategic management of the development of the city. Originality and value: The problems presented in the study relate to challenges and new concepts in strategic management. They enrich the existing knowledge on the development of strategic management, and also create inspiration for further research in this area.

Dynamic Capabilities

Management ◽  
2020 ◽  
Author(s):  
Anja Tuschke ◽  
Emma Buellet
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Business Strategy ◽  
Dynamic Capabilities ◽  
Evolutionary Economics ◽  
Empirical Work ◽  
Sustainable Competitive Advantage ◽  
Vast Number ◽  
Resource Based View ◽  
Dynamic Capabilities Perspective

As a relatively young, yet flagship discipline of strategic management, dynamic capabilities research has emerged as one of the central perspectives exploring the foundations of the achievement of sustainable competitive advantage, especially in the context of dynamic environments. Dynamic capabilities are deeply rooted in, and sometimes seen as an extension of, the resource-based view of the firm. The notion that competitive advantage both stems from the exploitation of current capabilities and the development of new ones was already vaguely conceptualized by prominent contributors of the resource-based view such as Edith Penrose and Birger Wernerfelt. However, the idea that there are special capabilities—dynamic capabilities—enabling organizations to build, integrate, or reconfigure their internal and external resource and competence base, was formerly conceptualized in the late 1990s as a separate yet connected stream of research (see Teece, et al. 1997—cited under Seminal Papers—which is titled “Dynamic Capabilities and Strategic Management”). The dynamic capabilities perspective is also strongly connected to evolutionary economics. This is why the field has focused for some time on the exploration of semi-automatic and path-dependent routines as the foundation of dynamic capabilities. However, proponents of the behavioral theory of the firm have criticized this approach and integrated the deliberate human element in the dynamic capabilities perspective (for an overview of the theoretical assumptions underpinning the dynamic capabilities perspective, see the article “Dynamic Capabilities and the Role of Managers in Business Strategy and Economic Performance”—Augier and Teece 2009, cited under Conceptual Refinements). As a result, various important debates emerged in the community and the field has been generally criticized for its ambiguity, inconsistency, and conflicting assumptions. This is exemplified by the important number of diverging conceptual contributions to the field, still up to this day, and by the relatively late materialization of empirical work. Nevertheless, the vast number of contributions illustrates the necessity to consider dynamism, which underlies the concept of dynamic capabilities, as a key component of competitive advantage and organizational adaption (see the separate Oxford Bibliographies in Management article “Organizational Adaptation”). The key contributors of the dynamic capabilities perspective in management research are, among others, Kathleen Eisenhardt, Constance Helfat, Margaret Peteraf, David Teece, and Sidney Winter. To support scholars to move toward a theory of dynamic capabilities, this bibliography provides an overview of the field, its origin and developments, while highlighting the conceptual and empirical problems that remain to be solved.

The Effect of Dynamic Capability for the Formation of Competitive Advantage to Achieve Firm’s Performance (Empirical Study on Indonesian Credit Co-operatives)

2015 ◽  
Vol 21 (4) ◽  
pp. 809-813 ◽  
Author(s):  
Anna Astrid Susanti ◽  
Muhtosim Arief
Keyword(s):  
Economic Development ◽  
Empirical Study ◽  
Competitive Advantage ◽  
Empirical Research ◽  
Dynamic Capabilities ◽  
Environmental Changes ◽  
Empirical Studies ◽  
Dynamic Capability ◽  
Unique Character ◽  
The Right

The co-operative plays an important role in Indonesia’s economic development since it can improve people’s welfare and support SMEs through its unique character, which is a combination of the economic and social character. As an enterprise, co-operative is not immune to environmental changes. Therefore co-operative must be able to compete with other industries to reach the best performance in globalization era. The capability to cope with environmental pressure is known as dynamic capability. Research on the implementation of dynamic capabilities, however, only focus on conceptual discussions and empirical studies are still limited, especially in co-operatives. This research is proposed to fill the gap by conducting the empirical research, in order to examine the effect of dynamic capabilities for the formation of competitive advantage to achieve co-operatives’ performance in terms of economic and social performances. The result shows that dynamic capability could be implemented in Indonesian credit co-operatives to establish a competitive advantage and ultimately be used to achieve a better firm’s performances. However, dynamic capability cannot be used directly to achieve a better performance. The firms must choose the right and superior capability to compete with their competitors.

scholarly journals Strategising for Resilience

2021 ◽  
Author(s):  
◽  
Simon Collins
Keyword(s):  
New Zealand ◽  
Financial Crisis ◽  
Strategic Management ◽  
Dynamic Capabilities ◽  
Global Financial Crisis ◽  
Manufacturing Sector ◽  
Current Theory ◽  
Study Approach ◽  
Management Concepts ◽  
The Global Financial Crisis

<p>The term “resilience” is used to describe aspects of businesses that are able to withstand potentially destructive changes in the commercial environment in which they operate. Few studies have investigated the ability that some firms have not just to endure disturbance, but to buck market trends and improve, grow and capitalise on potentially destructive change. This thesis aims to elaborate our existing understanding by contributing empirical knowledge on resilient firms through the examination of the research questions: In the context of the New Zealand Manufacturing sector during the Global Financial Crisis, what contributes to resilience in firms? And, do dynamic capabilities play a role in the resilience of firms?  To address the identified gap in the literature, this research analysed the strategies of seventeen New Zealand manufacturing firms during the Global Financial Crisis utilising a qualitative, case study approach. Teece’s (2007) Sensing, Seizing and Transformation dynamic capabilities framework was used to analyse and categorise the firms’ actions. The findings confirm some, but also refute other, pre-existing assumptions and understandings regarding the resilience of firms that are offered by the prevailing literature.  This thesis contributes to the field of theory by offering evidence for five propositions that extend the existing resilience literature. These are: first, that the dynamic capabilities framework provides a useful means through which to examine the resilience of firms; second, resilient firms appear to have bundles of dynamic capabilities that provide resilience when present; third, certain capabilities appear to be necessary but not sufficient to create resilience; fourth, capabilities that enable firms to generate additional efficiency and margin appear to be among the most valuable in the creation of resilience, and fifth, capabilities that increase the ‘volume’ of knowledge, and improve the flow of, and access to, knowledge within a firm also appear to be among the most valuable for creating resilience.  This examination of the concept of resilience presents new perspectives on why some firms perform better during crises, and how advantage is created and maintained when the environment generates barriers to performance. The results progress resilience as an emerging concept in the strategic management literature in two ways: first, the addition of empirical evidence extends and elaborates current theory regarding what constitutes resilient action in firms; and second, the results highlight the strengths and weaknesses of applying a dynamic capabilities framework to explore strategic management concepts.</p>

Strategising for Resilience

2021 ◽  
Author(s):  
◽  
Simon Collins
Keyword(s):  
New Zealand ◽  
Financial Crisis ◽  
Strategic Management ◽  
Dynamic Capabilities ◽  
Global Financial Crisis ◽  
Manufacturing Sector ◽  
Current Theory ◽  
Study Approach ◽  
Management Concepts ◽  
The Global Financial Crisis

<p>The term “resilience” is used to describe aspects of businesses that are able to withstand potentially destructive changes in the commercial environment in which they operate. Few studies have investigated the ability that some firms have not just to endure disturbance, but to buck market trends and improve, grow and capitalise on potentially destructive change. This thesis aims to elaborate our existing understanding by contributing empirical knowledge on resilient firms through the examination of the research questions: In the context of the New Zealand Manufacturing sector during the Global Financial Crisis, what contributes to resilience in firms? And, do dynamic capabilities play a role in the resilience of firms?  To address the identified gap in the literature, this research analysed the strategies of seventeen New Zealand manufacturing firms during the Global Financial Crisis utilising a qualitative, case study approach. Teece’s (2007) Sensing, Seizing and Transformation dynamic capabilities framework was used to analyse and categorise the firms’ actions. The findings confirm some, but also refute other, pre-existing assumptions and understandings regarding the resilience of firms that are offered by the prevailing literature.  This thesis contributes to the field of theory by offering evidence for five propositions that extend the existing resilience literature. These are: first, that the dynamic capabilities framework provides a useful means through which to examine the resilience of firms; second, resilient firms appear to have bundles of dynamic capabilities that provide resilience when present; third, certain capabilities appear to be necessary but not sufficient to create resilience; fourth, capabilities that enable firms to generate additional efficiency and margin appear to be among the most valuable in the creation of resilience, and fifth, capabilities that increase the ‘volume’ of knowledge, and improve the flow of, and access to, knowledge within a firm also appear to be among the most valuable for creating resilience.  This examination of the concept of resilience presents new perspectives on why some firms perform better during crises, and how advantage is created and maintained when the environment generates barriers to performance. The results progress resilience as an emerging concept in the strategic management literature in two ways: first, the addition of empirical evidence extends and elaborates current theory regarding what constitutes resilient action in firms; and second, the results highlight the strengths and weaknesses of applying a dynamic capabilities framework to explore strategic management concepts.</p>

Dynamic Capabilities for Competitive Advantage

Paradigm ◽  
2017 ◽  
Vol 21 (1) ◽  
pp. 31-51 ◽  
Author(s):  
Vaneet Kaur ◽  
Versha Mehta
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Multinational Corporations ◽  
Multinational Firms ◽  
Dynamic Capabilities ◽  
Focal Point ◽  
Developed Countries ◽  
Dynamic Capability ◽  
Indian Origin ◽  
The Relationship

Though the dynamic capability framework has emerged as the new touchstone in the domain of strategic management, the focal point of most of the studies has predominantly been the multinational firms belonging to developed countries. The present study aims to bridge this gap not only by empirically analysing the dynamic capabilities of Indian multinationals but also by comparing the level of deployment of dynamic capabilities in Indian-origin multinational corporations (MNCs) vis-à-vis the foreign-origin MNCs operating in India. Moreover, as there is no consensus among researchers on the relationship between dynamic capabilities and competitive advantage, this relationship is put to test in the present study, and its wider applicability is checked in Indian and foreign-based MNCs. The study also analyses the effect of company’s country-of-origin on its competitiveness. Furthermore, individual capabilities of the organizations under study are analysed and strategies to enhance the competitiveness of each organization are thereby suggested.

A dynamic capabilities view of employability

2016 ◽  
Vol 58 (1) ◽  
pp. 61-81 ◽  
Author(s):  
David J Finch ◽  
Melanie Peacock ◽  
Nadege Levallet ◽  
William Foster
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Human Resource ◽  
Dynamic Capabilities ◽  
Personal Narratives ◽  
University Graduates ◽  
Holistic View ◽  
Content Type ◽  
Post Secondary ◽  
New Graduates

Purpose – The increasing demand for post-secondary education, and the ongoing difficulty students’ face in securing appropriate work upon program completion, highlight the importance of an enhanced understanding of employability resources for university graduates. Just as organizations achieve a strategic advantage from resources and dynamic capabilities (DCs), university graduates can similarly apply these principles and tactics to be competitive in the job market. The purpose of this paper is to ask the question: how can new graduates enhance their competitive advantage when entering the employment market? To address this question the authors propose to adopt the DCs framework to analyze the competitive advantage of a graduate and argue that university graduates can take specific steps to enhance their own competitive advantage in the labor market. Design/methodology/approach – An extensive review of the existing human resource and strategic management literature was used to develop a conceptual DCs model of employability. The core dimensions of the conceptual model were refined using 26 one-on-one interviews with employers of new university graduates. This study concludes by recommending specific empirical and experimental research to further test the model. Findings – The results from the qualitative study identified the importance of four specific resources that university graduates should possess: intellectual, personality, meta-skill and job-specific. In addition, the authors suggest that integrated DCs are crucial for enhancing the value of these individual resources. Both pre-graduate application and the construction of personal narratives are essential signals that university graduates can mobilize individual resources in a complementary and strategic manner, in real-world settings, to maximize value. Research limitations/implications – This is an exploratory study and is designed as a foundation for future empirical and experiential research. Practical implications – The findings suggest that, in order to increase employability, university students need to assume a DCs view of competitive advantage. As a result, students need to reflect on both their intrinsic and learned resources to create a systematic competitive advantage that is valued, rare and difficult to replicate or substitute. Social implications – This paper challenges students to assume a holistic view of education by recognizing education extends far beyond a classroom. Therefore, differentiation and value creation is reflected in the synthesis and application of both intrinsic and learned resources. Originality/value – The integration of strategic management and human resource literature is a unique theoretical approach to explore the drivers of graduate employability.

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