scholarly journals Development of Dynamic Capabilities for Automotive Industry Performance under Disruptive Innovation

2020 ◽  
Vol 6 (4) ◽  
pp. 97
Author(s):  
Atichat Rotjanakorn ◽  
Pornrat Sadangharn ◽  
Khahan Na-Nan
Keyword(s):  
Firm Performance ◽  
Dynamic Capabilities ◽  
Dynamic Environment ◽  
Past Research ◽  
Disruptive Innovation ◽  
Dynamic Capability ◽  
Competitive Advantages ◽  
Cross Sectional ◽  
Innovative Firm ◽  
Short Period

Dynamic capabilities are creating dramatic change for the industry around the world. Resource-Based View (RBV) theory and Operational capability theory are the basic capabilities of an organization under a normal changing environment. This creates a competitive advantage and organizational success in a relatively short period of time, in which the dynamic environment is not sufficient to cope with this change. Dynamic capability is a concept for managing change under this dynamic environment. Past research supports a direct positive relationship between dynamic capability and firm performance but it did not focus on the mediator variables. This research emphasizes the influences of competitive advantages and innovation capabilities as mediators of dynamic capabilities and firm performance were investigated. A cross-sectional design study was utilised and questionnaires were submitted to 326 firms to test the proposed relationships. IBM SPSS Statistics Base 26, IBM SPSS AMOS 21, and PROCESS macro 3.6 were used for statistical analysis. Results revealed that competitive advantages and innovation capabilities were partially mediated by dynamic capabilities and firm performance. Findings contribute to the literature on empowering leadership and innovative firm performance by highlighting that competitive advantages and innovation capabilities act as mediators to improve dynamic capabilities and enhance innovative firm performance.

Dynamic capabilities: interrelations and distinct effects on performance in low and high competitive intensity environments

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amiram Markovich ◽  
Kalanit Efrat ◽  
Daphne R. Raban
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Equation Modeling ◽  
Company Performance ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Competitive Intensity ◽  
Content Type ◽  
Impact Performance

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.

scholarly journals Dynamic capability of the firm: analysis of the impact of internationalisation on SME performance in an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahfuzur Rahman ◽  
Dieu Hack-Polay ◽  
Sujana Shafique ◽  
Paul Agu Igwe
Keyword(s):  
Firm Performance ◽  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Emerging Economy ◽  
Two Dimensions ◽  
Dynamic Capability ◽  
Content Type ◽  
Market Expansion ◽  
The Impact ◽  
The Relationship

PurposeInternationalisation is considered as a key strategy for the growth of Small and Medium Enterprises (SMEs). The purpose of this paper is to examine the relationship between dynamic capability, SMEs internationalisation and firm performance in the context of emerging economies and to evaluate the impact of financial, asset and market expansion on internationalisation of SMEs.Design/methodology/approachUsing primary data from 212 SMEs from Bangladesh, structural equation modelling and mathematical (hierarchical reflective) model, the analysis enabled the measurement of the casual relationship on the impacts of internationalisation.FindingsThe results revealed that internationalisation of SMEs has significant impact on both financial and non-financial performance of SMEs in an emerging economy- Bangladesh. The paper found internationalisation impacts on two dimensions (financial and non-financial) with eight defined indicators – higher sales, higher profit, assets maximisation, market expansion, competitive advantage, better reputation, better customer service and added knowledge.Originality/valueDespite several studies that examine the relationship between SME internationalisation and firm performance, limited research exists on emerging economies. This is contrary to the fact that SMEs are one of the main vehicles for growth in those economies such as Bangladesh. In this research, the authors use the theories of dynamic capabilities to conceptualise how internationalisation becomes a core SME capability for SMEs in an emerging economy.

scholarly journals Role of Dynamic Capabilities in the Performance of Manufacturing Firms in Nairobi County, Kenya

2017 ◽  
Vol 13 (31) ◽  
pp. 438
Author(s):  
Thomas O. Nyachanchu ◽  
Joel Chepkwony ◽  
Ronald Bonuke
Keyword(s):  
Firm Performance ◽  
Dynamic Capabilities ◽  
Business Models ◽  
Free Market ◽  
Reliability And Validity ◽  
Manufacturing Firms ◽  
Three Dimensions ◽  
Primary Data ◽  
Cross Sectional Survey ◽  
Cross Sectional

The advent of globalization has brought with it drastic changes to the operating landscape for firms in the manufacturing sector. The need for transformational changes so as sustain competitive advantage has been on  the rise. Firms are expected to continuously re-engineer their business models and operations to catch up with the turbulent environment. Previous studies have investigated the contribution of manufacturing firms in economic growth. Some have concentrated on the preferred approaches that countries should take, whether protectionism or free market. However, empirical studies investigating direct impact of dynamic capabilities on manufacturing firms’ performance have been minimal. The general objective of the study was to examine the influence of the three dimensions of dynamic capabilities (sensing capabilities, seizing capabilities and reconfiguration capabilities) on firm performance. The study was grounded on the Resource-Based View theory. An explanatory research design was used for the cross-sectional survey. Primary data was obtained from 271 out of 369 firms sampled from a population of 1,496 manufacturing firms in Nairobi County, Kenya, using a structured questionnaire instrument through drop and pick. The questionnaire was completed by the firms’ CEOs. Reliability and validity tests were carried out on the research instruments and study measures. Hypotheses were tested using regression analysis results, namely: - sensing capabilities (B=0.215, P<0.01), seizing capabilities (B=0.194, P<0.01) and reconfiguration capabilities (B=0.182, P<0.001). These three variables combined, contributed 25.9% (R2=0.259) of the variance in firm performance. The study concluded that deployment of dynamic capabilities has significant influence on firm performance.

The Role of Dynamic Capabilities as Influencers of Organizational Intelligence

2019 ◽  
pp. 138-149
Author(s):  
Gleison Lopes Fonseca ◽  
Pedro Fernandes Anunciação ◽  
Antonio Juan Briones Penalver
Keyword(s):  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Competitive Advantages ◽  
Sustainable Competitive Advantage ◽  
Organizational Intelligence ◽  
Internal Resources ◽  
Dynamic Markets ◽  
Ultimate Objective ◽  
The Relationship

Dynamic markets have made it extremely difficult for firms to sustain their competitive advantages. Adapting with the reconfiguration of its internal resources has become essential for the survival of firms. In the midst of these changes in the market, the concepts of Dynamic Capability (DC) and Organizational Intelligence (OI) arise, theories that, despite their different approaches to the use of firms' resources, have as their ultimate objective the creation and maintenance of a sustainable competitive advantage. So, in order to better understand the influence of these theories on the activities of firms, this chapter approaches the relationship between both theories, analyzing their common points, and the way DC influence OI.

scholarly journals Dynamic capabilities, expert and entrepreneurial learning

2014 ◽  
Vol 45 (2) ◽  
pp. 65-81 ◽  
Author(s):  
C. J. Lecler ◽  
J. Kinghorn
Keyword(s):  
Problem Solving ◽  
Dynamic Capabilities ◽  
Dynamic Environment ◽  
Dynamic Capability ◽  
Entrepreneurial Learning ◽  
Learning Framework ◽  
Building Process ◽  
Analyse Data ◽  
Problem Solving Strategy ◽  
Solving Strategy

This article focuses on how managers sense and seize opportunities for learning and developing dynamic capabilities in organisations. An approach of building process theory from cases traces learning events in the technological innovationapproaches of three securities custodians facing an increasingly dynamic market. The article extends and elaborates the dynamic capability learning framework (Lecler, 2013) which proposes that managers recognise learning opportunitiesthrough two types of learning, expert and entrepreneurial, with variants for technological and organisational problem solving. The concept of entrepreneurial learning is further elaborated to help explain differences in the learning patternsfound. Distinctive characteristics of the two types of learning are proposed pertaining to opportunity recognition and realisation, and the problem solving strategy. The framework helps to analyse data in terms of four learning patterns: expert honing and aligning, and entrepreneurial shaping and configuring. Further, entrepreneurial learning is suggested to facilitate dynamic capability development in a highly dynamic environment.

scholarly journals Dynamic capabilities and collaborative innovation: a case study in the textile industry of Santa Catarina, Brazil

2017 ◽  
Vol 16 (4) ◽  
pp. 50-68
Author(s):  
Linda Jessica De Montreuil Carmona ◽  
Iara Regina Dos Santos Parisotto
Keyword(s):  
Textile Industry ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Primary Data ◽  
Competitive Advantages ◽  
Structured Interviews ◽  
Industrial Firms ◽  
Collaborative Innovation ◽  
Virtuous Cycle

With increasingly fiercer competition, many industrial firms with similar characteristics are concerned with obtaining competitive advantages that allow them to differentiate themselves for survival, efficiency and profitability. Based on the Dynamic Capability Theory (Eisenhardt Martin, 2000; Teece, 2007, 2014; Teece, Pisano, Shuen, 1997), this research aimed to investigate how dynamic capacities and collaborative innovation in textile manufacturing are developed. To this end, a case study was conducted in a textile manufacturer, in which it was sought to distinguish the opportunities detection processes directed to innovation, the approach to these opportunities and the management of threats through the reconfiguration of internal and external organizational resources. For triangulation, data collection included primary data from semi-structured interviews and secondary documentary and audiovisual data. The research identified the following processes: 1) constant search for the best way to select clients, satisfy and anticipate their needs; 2) search for innovation and improvement in products, processes and practices; 3) leadership engagement and teams with innovation. The contribution of this work lies in the identification, empirical evidence and analysis of the processes involved in Dynamic Capability in the perspective of innovation, offering a model to analyze the processes linked to dynamic capacities, facilitating their understanding and verification. The results of the study showed that these capabilities act not only as a cause of innovation, but also as a consequence, establishing a continuous virtuous cycle oriented towards collaborative and dynamic innovation of products involving the manufacturer, its suppliers and customers, generating loyalty and sustaining a competitive advantage in the textile sector.

scholarly journals Chief Executive Officers Entrepreneurial Orientation, Dynamic Capabilities, and Firm Performance: The Moderating Effect of the Manufacturing Industry

2021 ◽  
Vol 12 ◽  
Author(s):  
Yueyue Liu ◽  
Meng Xi ◽  
Yingya Jia ◽  
Xiulin Geng
Keyword(s):  
Firm Performance ◽  
Indirect Effect ◽  
Chief Executive Officers ◽  
Entrepreneurial Orientation ◽  
Manufacturing Industry ◽  
Dynamic Capabilities ◽  
Chief Executive ◽  
Dynamic Capability ◽  
Industry Type ◽  
Executive Officers

This study explores the implications of CEO entrepreneurial orientation for firm performance through corporate dynamic capabilities. It explores the moderating effects of firm industry type on the above indirect effect. Based on 188 matched sample data collected from vice chief executive officers (CEOs) of Chinese firms, this study found that CEO entrepreneurial orientation was positively related to corporate dynamic capabilities and firm performance and that corporate dynamic capabilities mediated the positive relationship between CEO entrepreneurial orientation and firm performance. Firm industry type moderated the direct effect of CEO entrepreneurial orientation on corporate dynamic capability, and the indirect effect of CEO entrepreneurial orientation on firm performance through corporate dynamic capability. Both direct and indirect effects were stronger in manufacturing enterprises. The findings enrich the CEO entrepreneurial orientation literature by extending the existing knowledge on its underlying mechanism and its impact on firm performance, as well as its boundary conditions.

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
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Dynamic Environment ◽  
Simple Random Sampling ◽  
Equation Modeling ◽  
Resource Based View ◽  
Pharmaceutical Firms ◽  
Strategic Orientations ◽  
Indirect Relationship

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.

The effect of knowledge management capability and dynamic capability on organizational performance

2014 ◽  
Vol 27 (2) ◽  
pp. 158-179 ◽  
Author(s):  
Shu-Mei Tseng ◽  
Pei-Shan Lee
Keyword(s):  
Knowledge Management ◽  
Organizational Performance ◽  
Dynamic Capabilities ◽  
Sampling Method ◽  
Management Practices ◽  
Dynamic Environment ◽  
Dynamic Capability ◽  
Future Research ◽  
Content Type ◽  
Main Research

Purpose – The current conventional strategic management model is incapable of dealing with various questions on organizational management in a dynamically discontinuous environment. Hence, how an enterprise can effectively apply its knowledge management (KM) capability and develop a uniquely dynamic capability in order to provide quick response to a dynamic environment has become an urgent need. The purpose of this paper is to discuss the above-mentioned issues. Design/methodology/approach – In order to gain best exploration on KM capability, dynamic capability, and organizational performance, the questionnaire and statistical analytical techniques were used. Findings – The results indicate that dynamic capability is an important intermediate organizational mechanism through which the benefits of KM capability are converted into performance effects at the corporate level. That is, KM capability enhances the dynamic capability of organizations. While dynamic capability, in turn, increases organizational performance and provides competitive advantages. Research limitations/implications – This research applied a purposive sampling method and obtained a slightly inadequate number of respondents. Therefore, it is suggested that future research should apply a random sampling method to collect more responses and increase the generalizability. Practical implications – This research aims to investigate KM capability, dynamic capability, and organizational performance, as well as establish and verify the patterns of the aforementioned relationships based on how enterprises implement their KM capabilities and dynamic capabilities to enhance organizational performance. Originality/value – There is still little related literature investigating the relationships among KM capability, dynamic capability, and organizational performance. Hence, this study applies questionnaire methods as the main research tools in order to conduct an in-depth investigation into the influence of KM capability and dynamic capability on organizational performance. Furthermore, this research is expected to provide enterprises with valuable suggestions for management practices.

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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