Validating a Design Thinking Strategy: Merging Design Thinking and Absorptive Capacity to Build a Dynamic Capability and Competitive Advantage

2018 ◽  
Vol 6 (2) ◽  
pp. 102-120 ◽  
Author(s):  
Brad Cousins
Keyword(s):  
Competitive Advantage ◽  
Absorptive Capacity ◽  
Dynamic Capabilities ◽  
Design Thinking ◽  
Theoretical Foundation ◽  
Organization Design ◽  
Dynamic Capability ◽  
Capacity Theory ◽  
Management Context ◽  
Strategic Consideration

Design thinking in the management context has suffered from vague definition, gaps in literature, and lack of theoretical foundation. Research streams in absorptive capacity and dynamic capabilities have reached a point of convergence with respect to design thinking and absorption of external knowledge. As such, this study draws on both absorptive capacity and dynamic capability theory to provide theoretical foundation for the strategic consideration of design thinking in strategy, organization design, and organizational learning. In doing so, this study extends seminal absorptive capacity theory providing empirical evidence of design thinking as a dynamic capability to enhance absorptive capacity. Additionally, this study extends dynamic capabilities theory by confirming design thinking as a means of integration, learning, and reconfiguring knowledge to build competitive advantage. Therefore, this study merges existing research streams to empirically validate design thinking as a dynamic capability which must be strategically considered.

Dynamic Capability and Coopetition

2022 ◽  
pp. 21-30
Author(s):  
Wlademir Leite Correia Filho ◽  
Daniel Knebel Baggio
Keyword(s):  
Competitive Advantage ◽  
Adaptive Capacity ◽  
Absorptive Capacity ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Competitive Advantages ◽  
Changing Environments ◽  
Business Opportunities ◽  
New Business ◽  
Collective Strategy

The COVID-19 pandemic accelerated changes in company management, valuing coopetition as a collective strategy by strengthening the dynamic capabilities defined by Teece et al. as the firm's ability to integrate, build, and reconfigure external and internal competencies in rapidly changing environments. The adaptive capacity will prepare the company for adversity; the absorptive capacity favors the acquisition, assimilation, transformation, and application of external knowledge to create and maintain competitive advantages, and the capacity to innovate allows the identification of new business opportunities. The research showed that for the studied group, the good use of the dynamic absorption and adaptation capacities present in coopetition strongly contributes to the development of innovation competences, thus achieving and sustaining competitive advantage.

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.

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.

Competitive Advantage, Open Innovation, and Dynamic Capabilities

Biotechnology ◽  
2019 ◽  
pp. 1556-1580
Author(s):  
Geoffroy Labrouche ◽  
Med Kechidi
Keyword(s):  
Competitive Advantage ◽  
Open Innovation ◽  
Dynamic Capabilities ◽  
Rate Of Change ◽  
High Rate ◽  
Dynamic Capability ◽  
Organisational Memory ◽  
Innovation Strategies ◽  
Relational Capabilities ◽  
Theoretical Considerations

This chapter deals with a particular type of dynamic capability: dynamic relational capabilities. They are defined as the organisational ability of a firm to enter into successful business relationships with other actors. It is shown that these abilities, based on organisational memory, are expressed in particular through the acquisition of assets and the conclusion of partnerships/alliances. In the pharmaceutical industry, open innovation strategies are the concrete proof of such abilities. Indeed, this sector is considered to be a High-Velocity Environment characterized by a high rate of change. Such change, challenging firms' competitive advantage, fosters the development of dynamic capabilities and open innovation strategies. These theoretical considerations are illustrated by reference to the innovation strategy adopted by the Sanofi group, particularly since 2008.

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.

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.

Dynamic Capability as a Theory of Competitive Advantage

2016 ◽  
Author(s):  
Jerker Denrell ◽  
Thomas C. Powell
Keyword(s):  
Technological Change ◽  
Competitive Advantage ◽  
Effect Size ◽  
Dynamic Capabilities ◽  
Market Competition ◽  
Explanatory Power ◽  
Dynamic Capability ◽  
Firm Resources ◽  
Changing Environments

Dynamic capability is a theory of competitive advantage in rapidly changing environments. We reconcile this explanation with previous theories of competitive advantage, showing how it informs and complements explanations based on market positions, firm resources, and Schumpeterian creative destruction. We examine the scope conditions of dynamic capability; that is, when the theory has more and less explanatory power. We find that dynamic capability has greatest explanatory power when a partially foreseeable technological change is on the verge of transforming market competition; and less explanatory power when dynamic capabilities are not undervalued or scarce; when change is unforeseeable; when change is easily foreseeable; when the effect size of new capabilities is small; in industries subject to repeated technological shifts; and in markets that reward short bursts of extraordinary performance over long-term persistence. We discuss these scope conditions and show how dynamic capability combines with prior theories to explain competitive advantage in different industry contexts.

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.

Achieving a firm’s competitive advantage through dynamic capability

2016 ◽  
Vol 11 (3) ◽  
pp. 260-285 ◽  
Author(s):  
Chinho Lin ◽  
Hua-Ling Tsai
Keyword(s):  
Competitive Advantage ◽  
Organizational Performance ◽  
Dynamic Capabilities ◽  
Dynamic Environment ◽  
Quantitative Model ◽  
Organizational Capabilities ◽  
Dynamic Capability ◽  
Top Management ◽  
Content Type ◽  
Firm Model

Purpose – The purpose of this paper is to propose a quantitative model to help managers diagnose what dynamic capabilities a firm needs to address the demands of a rapidly changing environment. Design/methodology/approach – A two-firm model based on the VRIO framework is built using quantitative techniques to assist top management in formulating and implementing strategies regarding when and how to develop a firm’s dynamic capabilities for achieving a competitive advantage. This model is developed by considering both internal and external competences, with the former measured by the features of the organizational capabilities of the focal firm and latter evaluated by comparing the relative utilities of the dynamic capabilities of the two competing firms. Findings – Three resource allocation strategies are introduced to guide a firm to leverage dynamic capability that generates strong organizational performance. The first two strategies are, respectively, synergy oriented, focussing on acquiring various knowledge or experiences of a capability, and uniqueness oriented, emphasizing the depth of knowledge and technology of the capabilities. The third one is a hybrid of the first two strategies. Originality/value – The proposed model is useful to help top management determine how and when to renew, bundle, and leverage resources and capabilities in a dynamic environment. It enables decision makers to detect changes in the competitive environment and take corrective action in a timely and appropriate manner.

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