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.

Dynamic capabilities: antecedents and implications for firms' performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ricardo Jorge Correia ◽  
Mário Sérgio Teixeira ◽  
José G. Dias
Keyword(s):  
Structural Equation ◽  
Dynamic Capabilities ◽  
Structural Equation Models ◽  
Causal Link ◽  
Competitive Advantages ◽  
Content Type ◽  
Mediating Role ◽  
Strategic Orientations ◽  
The Relationship

PurposeThis paper aims to explore a new causal link between learning, market and entrepreneurial orientations and firms' performance by introducing dynamic capabilities and competitive advantages as mediator variables.Design/methodology/approachThe mediating role of dynamic capabilities and competitive advantages is tested using a sample of 1,190 Portuguese firms, and structural equation models.FindingsIt is shown that dynamic capabilities mediate the relationship between the three orientations–learning, market and entrepreneurial–and competitive advantages of differentiation and cost leadership, and both competitive advantages lead to firm's performance. It is also shown that learning orientation is an antecedent of market orientation and entrepreneurial orientation.Practical implicationsThis research shows that firm's performance depends on the capacity of firms to learn, innovate, be proactive, take risks and collect the best market data. Indeed, by optimizing the internal management and knowledge dissemination, firms will develop a set of capabilities and competitive advantages that lead to an appropriate response to market challenges.Originality/valueThis study tests the relationship between strategic orientations and firm's performance by taking the mediating effects of dynamic capabilities and competitive advantages into account. This research was conducted in Portugal.

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.

scholarly journals IMPACT OF DYNAMIC CAPABILITIES ON SMALL AND MEDIUM ENTERPRISES PERFORMANCE IN A VOLATILE ENVIRONMENT AS MODERATED BY ORGANIZATIONAL INERTIA

2020 ◽  
Vol 12 (1) ◽  
Author(s):  
Prasheenaa Jeyaranjan ◽  
Thavakumar D
Keyword(s):  
Organizational Performance ◽  
Dynamic Capabilities ◽  
Small And Medium Enterprises ◽  
Competitive Advantages ◽  
Significant Relationships ◽  
Organizational Inertia ◽  
And Performance ◽  
Medium Enterprises ◽  
The Relationship

In Sri Lanka especially in Batticaloa, the studies related to dynamic capabilities, organizational inertia and organizational performance are rare and there is need to fill this empirical gap by investigating the influence of the dynamic capabilities of small and medium enterprises (SMEs) on organizational performance, and the interaction between dynamic capabilities and organizational inertia in a volatile environment. Therefore, this study has been undertaken to examine the relationship among these three variables and to assess the moderating role of organizational inertia in relationship between dynamic capabilities and organizational performance. The findings indicated that the variables have significant relationships among them and further findings of this study revealed that organizational inertia negatively moderates the relationship between dynamic capabilities and organizational performance of SMEs in Manmunai North Divisional Secretariat in Batticaloa District. By addressing the findings of this study SME owners could try to reduce the inertia in their business by which the relationship between dynamic capabilities and performance can be induced and this lead the businesses in achieving competitive advantages.

scholarly journals Analysis Effect of Resources and Dynamic Capabilities to Sustainable Competitive Advantages and It’s Implications to the Firms Performance

2017 ◽  
Vol 10 (10) ◽  
pp. 209
Author(s):  
Supriyadi Supriyadi
Keyword(s):  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Company Performance ◽  
Competitive Advantages ◽  
Sustainable Competitive Advantage ◽  
Resources And Capabilities ◽  
Sustainable Competitive Advantages ◽  
Positive Effect ◽  
Dominant Influence

The objective of this research are to find out the effect : (1). resources on sustainable competitive advantages; (2). dynamic capability to continuous competitive advantage; (3). resources on company performance; (4). dynamic capability to company performance; (5). sustainable competitive advantage on company performance; (6). dynamic resources and capabilities on sustainable competitive advantages ; (7). dynamic resources and capabilities as well as the competitive advantage of sustainable. sample unit in this research using survey 69 companies which producing coffee in lampung, with interview to manager and director with total number of responden 345 respondents and all hypothesis accepted and positive effect to this research. the conclusion of this reserach are : (1). resources affect sustainable competitive advantage; (2). dynamic capabilities affect sustainable competitive advantage; (3). resources affect the firm's performance; (4). dynamic capability affects the firm's performance; (5). sustainable competitive advantage affects the company's performance; (6). resources and dynamic capabilities together affect sustainable competitive advantage; (7). resources, dynamic capabilities and sustainable competitive advantages jointly affect the company's performance the effect of resource, dynamic capability and sustainable competitive advantage simultaneously on company performance is positive and significant, with sustainable competitive advantage variables having the most dominant influence on firm performance. this shows that positively improving the effectiveness of resources, dynamic capabilities and sustainable competitive advantage will result in improved corporate performance.

The impact of customer knowledge and marketing dynamic capability on innovation performance: an empirical analysis

2017 ◽  
Vol 32 (7) ◽  
pp. 901-912 ◽  
Author(s):  
Mauro Falasca ◽  
Jiemei Zhang ◽  
Margy Conchar ◽  
Like Li
Keyword(s):  
Organizational Learning ◽  
Dynamic Capabilities ◽  
Innovation Performance ◽  
Dynamic Capability ◽  
High Tech ◽  
Customer Knowledge ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to explore the intermediary role of marketing dynamic capability (MDC) in the relationship between customer knowledge management (CKM) and product innovation performance (PIP). Design/methodology A conceptual model is proposed and a survey instrument is developed. The model is tested empirically in an organizational buyer/seller setting using a survey among middle and top management of firms engaged in business-to-business relationships within high-tech industries in China. Findings Results show that MDC fully mediates the relationship between CKM and PIP. Empirical findings thus demonstrate that CKM is related to improved firm PIP through the deployment of firm-specific MDCs. Research implications/limitations The study provides clarification for a unique distinction between organizational learning and dynamic capabilities. Findings suggest that knowledge creation occurs within the scope of CKM, while the analytical and perceptual processes that lead to insights and redeployment of firm resources fall under the umbrella of MDCs. Practical implications Dynamic capabilities play an essential role in transforming the firm’s knowledge resources to create new configurations in response to market needs. Hence, this study reinforces the role of marketing decision-makers with appropriate decision-making power who, in an ongoing cooperation with other functional areas, are able to adapt and redeploy resources to reflect environmental changes and implement marketing strategy decisions. Originality/value This study contributes to the literature by addressing simultaneously the relationship between CKM, MDC and PIP. Specifically, the study demonstrates the mediating influence of MDCs on the relationship between CKM and firm PIP. The study also clarifies a key distinction between organizational learning and dynamic capabilities, demonstrating that knowledge serves an antecedent role to the deployment of dynamic capabilities.

Dynamic capabilities vs. innovation capability: are they related?

2014 ◽  
Vol 21 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Lidija Breznik ◽  
Robert D. Hisrich
Keyword(s):  
Literature Review ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Future Research ◽  
Innovation Capability ◽  
New Approach ◽  
Content Type ◽  
New Research ◽  
The Relationship

Purpose – The purpose of this paper is to provide insights into the relationship between dynamic capabilities and innovation capabilities. It links dynamic capability with innovation capability and indicates the ways they can be related. Design/methodology/approach – The relationships between dynamic and innovation capability were investigated through a systematic literature review. Findings – The review indicates that common characteristics exist between of the both fields, which demonstrate six relationships. Additionally, findings show some inconsistencies and even contradictions. Originality/value – In this paper, the authors have compared dynamic capabilities, a relatively new approach in the field of strategic management, with innovation capabilities, a widely recognised crucial domain for sustained competitiveness. Since both areas address issues that are essential to today's environment, future research should seek to clarify both concepts, by undertaking some new research and developing comprehensive and unambiguous framework.

A Semi-Formalization of the Dynamic Capability View

2018 ◽  
Author(s):  
Ralf Wilden ◽  
Timothy M. Devinney ◽  
Nidthida Lin
Keyword(s):  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Market Demand ◽  
Resource Base ◽  
Structured Model ◽  
The Core ◽  
Theoretical Status ◽  
Core Components ◽  
The Relationship ◽  
Core Construct

Some management scholars doubt the value of the dynamic capability view when compared to existing theories. The concern expressed is often related to unclear definitions of the core construct and the relationship among the components that make up that construct. The end result is potentially confused and conflicting interpretations of empirical findings and non-commensurate measurement. One solution is to formalize core components of the theory at hand. The purpose of this paper is not to discuss or argue for (or against) the theoretical status of the dynamic capability view, but to provide a simple, yet insightful, structured model of its core components. Specifically, this paper takes as its basis the perspective of dynamic capabilities as comprising the sensing, seizing, and reconfiguring processes that are deployed to create a resource base aimed at satisfying evolving market demand; it presents a simple but formal way of characterizing its components.

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.

Sensing opportunities in dynamic markets: how to encourage all employees to take part

2019 ◽  
Vol 40 (3) ◽  
pp. 18-24
Author(s):  
Klavdia Markelova Evans ◽  
Ashley Salaiz
Keyword(s):  
Design Methodology ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Content Type ◽  
Dynamic Markets ◽  
Simple Rules ◽  
Rules Of Thumb ◽  
Micro Foundations ◽  
Practical Implications ◽  
Conceptual Work

Purpose This paper aims to investigate how companies can retain their ability to recognize, seize and maintain opportunities. Design/methodology/approach This conceptual work is built on existing research about an organization’s dynamic capabilities and literature on judgment under uncertainty. Findings This study offers specific ways in which companies can develop the dynamic capability of identifying new opportunities and, most importantly, how firms can maintain this rare dynamic capability for significant periods, so that they can harvest the benefits offered by owning this capability. Practical implications This study’s specific insights equip practitioners with turn-key information on how to build or maintain a firm’s unique ability to sense and capture an opportunity via the enhancement of the firm’s portfolio of simple rules. Originality/value This research introduces a novel idea about micro-foundations of a firm’s dynamic capabilities and theoretically argues that a favorable organizational culture and individuals’ rules of thumb can form a company’s dynamic ability to sense and seize an opportunity in high-velocity markets.

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