scholarly journals Linking Strategic Orientations, Dynamic Capabilities, and Firm Performance: Evidence from the Pakistani Pharmaceutical Industry

2019 ◽  
Vol IV (III) ◽  
pp. 155-162
Author(s):  
Shehla Zaman ◽  
Aneel Salman ◽  
Omer Farooq Malik

The paper aims to extend the resource-based view to dynamic capability view under dynamic environment, by investigating the effects of three strategic orientations (i.e., customer, competitor, and technology) on firm performance mediated through dynamic capabilities. A sample of 180 pharmaceutical firms of Pakistan was drawn using simple random sampling. Data was collected through a self-administrated questionnaire and analyzed using the variance-based structural equation modeling. The findings demonstrated that customer, competitor, and technology orientations have both a direct and indirect relationship with firm performance. The study offers Pakistani pharmaceutical firms a better comprehension of their strategic orientations and demonstrates how the alignment of strategic orientations with dynamic capabilities may result in better firm performance.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amiram Markovich ◽  
Kalanit Efrat ◽  
Daphne R. Raban

PurposeThis study aims to augment the understanding of dynamic capabilities (DCs) by exploring the interrelations among the DC categories (sensing, seizing, reconfiguring) and the distinct impact of each DC on firm performance under low and high levels of competitive intensity.Design/methodology/approachThe analysis is based on a cross-sectional survey of 139 managers in Israel. The data were collected through Web-based questionnaires using the Qualtrics software. A two-stage data analysis was performed using structural equation modeling (SEM).FindingsThe findings indicate that DCs follow a sequence in which sensing drives seizing, which, in turn, enhances reconfiguring. The effects of sensing are mainly manifested through its direct impact on seizing, with no evidence for an impact of sensing on company performance. Moreover, under low competitive intensity, only seizing appears to impact performance, while under high competitive intensity, reconfiguring joins seizing in improving firm performance.Originality/valueThe study's findings advance the debate on the direct vs sequential nature of DCs by indicating an internal DC sequence. Our research also advocates for a crucial role of sensing in enhancing DCs, regardless of the level of competitive intensity. Furthermore, this research expands the understanding of the consequences of DCs and enables the prioritization of DC categories under low and high competitive intensity.


2017 ◽  
Vol 25 (5) ◽  
pp. 731-747 ◽  
Author(s):  
Steven S Zhou ◽  
Abby J Zhou ◽  
Junzheng Feng ◽  
Shisong Jiang

AbstractHow firms’ dynamic capabilities lead to their competitive advantage and improved firm performance has been a core issue and full of debates. In this research, we theorize that dynamic capabilities, which could be defined by three distinct dimensions (sensing capability, integration capability, and reconfiguration capability), facilitate different types of innovation that in turn improve firm performance. Based on a sample of 204 Chinese firms, results from partial least squares structural equation modeling analyses generally support our arguments despite some nuanced differences existing among different dimensions of dynamic capabilities. This study contributes to dynamic capabilities literature by reducing the scarcity of empirical research and by uncovering the mechanisms through which dynamic capabilities influence firm performance.


2015 ◽  
Vol 26 (1) ◽  
pp. 172-194 ◽  
Author(s):  
Hefu Liu ◽  
Qian Huang ◽  
Shaobo Wei ◽  
Liqiang Huang

Purpose – The purpose of this paper is to derive a model to examine how Information Technology (IT) capability affects internet-enabled supply and demand process integration, which will eventually improve firm performance. In addition, the moderating effects of industry type in the research framework are explored. Design/methodology/approach – Data were obtained from a survey administered to 261 firms in the manufacturing and services industry in China. The structural equation modeling approach is used to test the hypotheses. The study further applied the t-test to compare the path coefficiencies between manufacturing and service. Findings – Results from the survey indicate that internet-enabled supply and demand process integration is affected by IT capability, and can directly impact firm performance. The results further indicate that manufacturing and services firms may benefit from IT capability in different ways. Originality/value – The current paper contributes knowledge on the value-realizing mechanism of internet-enabled supply chain integration (SCI) from a resource-based view. It presents a multidimensional explanation of the relationships among IT capability, internet-enabled SCI, and firm performance.


2019 ◽  
Vol 31 (4) ◽  
pp. 1058-1075 ◽  
Author(s):  
Ivy S.N. Chen ◽  
Patrick K.O. Fung ◽  
Simon S.M. Yuen

Purpose Dynamic capabilities (DC) have been linked to firm competitive advantage, but the ways in which firms can create and build these DC are still not clear. The purpose of this paper is to propose a model with organizational learning (OL) and supply chain orientation (SCO) as antecedents of dynamic logistics capabilities and firm performance as the outcome. The study tests this model on a sample of logistics service firms. Design/methodology/approach Partial least squares structural equation modeling was used to analyze the data collected from 103 logistics firms drawn from the Chartered Institute of Logistics and Transportation of Hong Kong. Findings Results show that OL directly enhances DC and indirectly through SCO. The relationship between OL and SCO is stronger than the relationship between OL and DC. DC are positively related to logistics firm performance. Research limitations/implications The study relied on perceptual and self-reported data from senior management. Relationships among variables may also be inflated by common method variance but efforts were taken to reduce this threat. Practical implications Logistics firms should promote a learning culture in the organization. Organization learning enhances a firm’s willingness to change and innovate. It also helps employees to gain a better understanding of clients’ supply chains and possibilities. SCO helps the firm to direct its reconfiguration and renewal efforts where the returns are the highest. Originality/value There is scant empirical research on the antecedents of DC outside of manufacturing and knowledge-intensive services. The study focused on the logistics services industry. SCO, a necessary strategic orientation for firms in the supply chain, has not been empirically investigated in the previous research. This study addressed these gaps in the literature and contributes to the understanding of the factors giving rise to DC.


2021 ◽  
pp. 031289622110401
Author(s):  
Salman Ali ◽  
Ajeet N Mathur ◽  
Anand Kumar Jaiswal

There is a paucity of research on re-internationalization, where firms re-enter international operations after complete withdrawal from previous international operations. The extant literature is largely silent on what drives firm performance during re-internationalization. We conducted an empirical investigation of re-internationalized enterprises from India to identify key antecedents to firm performance during the re-internationalization phase. Data analysis using partial least squares structural equation modeling (PLS-SEM) indicates that initial internationalization experiences, presence of dynamic capabilities, and organizational commitment to internationalization positively contribute to re-internationalization performance. The findings have implications for firm strategies, organization systems, managerial attention to knowledge management, policies supporting subventions, and for future research into de-internationalization and re-internationalization. JEL Classification: F23


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Randy Kurniawan ◽  
Adler Haymans Manurung ◽  
Mohammad Hamsal ◽  
Wibowo Kosasih

PurposeThis study examines the collaborative impact of networking capability and balanced agile project management (APM) on firm performance through the mediating role of market orientation and business process agility of medium and large telecommunication technology providers in Indonesia.Design/methodology/approachResearch data were collected from the executive management of telecommunication technology providers in Indonesia via a questionnaire survey to obtain 150 valid questionnaires for analysis. This study analyzed the overall model fit and causal relationship using confirmatory factor analysis (CFA) and structural equation modeling (SEM).FindingsThe results indicate that market orientation fully mediates the link between networking capability-business process agility and balanced APM-business process agility. Furthermore, business process agility mediates the relationship between market orientation and firm performance.Research limitations/implicationsThis study is based on a cross-sectional nature and might fail to capture the dynamic of the studied variables over an extended period.Originality/valueThe study extends the knowledge that dynamic capabilities, represented by networking capability and balanced APM, must be framed by market orientation to create customer value and improve bargaining position. However, market orientation alone is not enough in a highly dynamic business environment. Organization also requires business process agility, responsiveness and adaptability to timely address customers' needs and requirements.


2021 ◽  
Vol 15 (1) ◽  
pp. 90-106
Author(s):  
Rodrigo Marques de Almeida Guerra ◽  
Maria Emília Camargo

This article aims to investigate the effect of the exploration and exploitation dimensions on profitability and growth in sales by exporting companies. The resource-based view (RBV) theory supported the research findings. The survey involved 132 exporting companies in the state of Paraná/PR. Structural equation modeling was applied with the aid of the AMOS software (Analysis of Moment Structures). The results reinforce the multidimensional concept of organizational ambidexterity, characteristic of exporting companies inserted in a dynamic environment. Thus, it is necessary to develop new organizational skills and competences, aiming to develop structures and mechanisms related to organizational ambidexterity.


2020 ◽  
Vol 12 (14) ◽  
pp. 5508
Author(s):  
Ying Yu ◽  
Xiaoling Hu ◽  
Yong Wang ◽  
Philippa Ward

Using data from SMEs in Hubei province, the role of entrepreneurship in the sustainable performance of born global firms in China was discussed. The structural equation modeling analysis of 345 questionnaires indicates that both international knowledge and international entrepreneurial capability are significantly related to born global firms’ performance. Dynamic capabilities, which includes three sub-dimensions: adaptation capability, absorption capability and innovation capability, was found to be less important to firm performance. Therefore, it may be argued that born global firms in inland China are still limited by resources, including those generated from the international knowledge needed to adapt to internal and external pressures.


SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110613
Author(s):  
FeCheng Ma ◽  
Farhan Khan ◽  
Kashif Ullah Khan ◽  
Si XiangYun

In today’s dynamic market environment, information technology (IT) enables firms to obtain knowledge they need to achieve superior performance. To this end, the present study explores the effects of IT, absorptive capacity (ACAP), and dynamic capabilities (DCs) on firm performance (FP) by employing empirical research design. In addition, the study focuses on the DCs perspective and ACAP as a firm knowledge-based view focusing on those firms where technology involved in either a particular unit of the firm or as a whole in operational processes. The data (total 241) was analyzed through AMOS, a mathematical analysis methodology focused on structural equation modeling (SEM). Moreover, through Sobel test we further verify the indirect impact of IT on FP.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marco Savastano ◽  
Nicola Cucari ◽  
Francesco Dentale ◽  
Ari Ginsberg

PurposeThe purpose of this paper is to identify and empirically examine the dynamic capabilities (DC) that drive the development of digital manufacturing capabilities (DMC) and the role of DMC in mediating their influence on firm performance.Design/methodology/approachBased on the dynamic capabilities view (DCV) of the firm, the authors develop a set of hypotheses that are tested through a survey of 110 managers in the manufacturing sector. The hypothesized model is tested through structural equation modeling.FindingsThe results indicate that although higher-order DC (HODC) have a strong influence on firm performance, their effects are partially mediated by the DMC that they generate, by positively affecting the extended production process.Practical implicationsThe analysis contributes to a better understanding of the interplay between levels of the DC hierarchy by finding that DMC play an important role in translating HODC into enhanced firm performance.Originality/valueBy complementing the DCV with the disruptive innovation theory in a specific fast changing context, this study introduces a new construct (DMC) providing an original and considerable contribution to the literature. To the best of the authors’ knowledge, it is the first empirical study that includes and assesses all these elements together in the context of the manufacturing industry.


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