A Dynamic Ability-Based View of the Organization

2011 ◽  
Vol 7 (2) ◽  
pp. 86-101 ◽  
Author(s):  
Farley Simon Nobre ◽  
David S. Walker

This paper investigates theoretical micro-foundations of core competencies in the organization that pursues sustainable competitive advantage. It advocates that there is a lack of literature perspectives which can explain the sources of core competencies of the firm. This research raises questions on: What are the main sources of creation and sustenance of core competencies? What are the abilities which nourish the development of operational and dynamic capabilities? What is the main source of collective knowledge in the organization? This work answers these questions by proposing a dynamic ability-based view of the organization which contributes to explaining the dynamic behavior of the firm in the pursuit of sustainable competitive advantage. Cognition is the core ability which supports individuals, groups, and organizations with intelligence, autonomy, learning, and knowledge management. These concepts form the set of organizational abilities in this research.

Author(s):  
Farley Simon Nobre ◽  
David S. Walker

This paper investigates theoretical micro-foundations of core competencies in the organization that pursues sustainable competitive advantage. It advocates that there is a lack of literature perspectives which can explain the sources of core competencies of the firm. This research raises questions on: What are the main sources of creation and sustenance of core competencies? What are the abilities which nourish the development of operational and dynamic capabilities? What is the main source of collective knowledge in the organization? This work answers these questions by proposing a dynamic ability-based view of the organization which contributes to explaining the dynamic behavior of the firm in the pursuit of sustainable competitive advantage. Cognition is the core ability which supports individuals, groups, and organizations with intelligence, autonomy, learning, and knowledge management. These concepts form the set of organizational abilities in this research.


2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Xi Liu ◽  
Shuai Yang

In order to explore how the core technological capabilities of the high-tech industry affect the sustainable competitive advantage of an enterprise, by consulting a large number of literature studies on sustainable competition, the characteristics of high-tech enterprises were summarized through analysis and sorting and a sustainable competition model was proposed based on market, management, marketing, strategy, and organizational innovation. Through factor analysis, correlation analysis, and structural equations of 266 survey data of related companies, the effectiveness of the model based on the impact of core capabilities of high-tech companies on sustainable competitive advantage was confirmed. The results show that the core competencies of high-tech enterprises’ market recognition, strategic planning, management and operation, full-person marketing, and dynamic marketing directly affect the company’s sustainable competitive advantage. The most important influence on a company’s sustainable competitive advantage is market awareness, and the organizational innovation of the company can also influence the sustainable competitive advantage indirectly, while dynamic marketing can increase the other four capabilities to improve the sustainable competitive advantage of the enterprise. The theoretical model is established to identify the core technological capabilities of high-tech enterprises that can help enterprises effectively identify the core technological capabilities that can form a sustainable competitive advantage and then provide ideas for enterprises to build theoretical research on core technological capabilities.


2020 ◽  
Vol 10 (3) ◽  
pp. 48
Author(s):  
Paweł Cegliński

This article deals with the relationship between dynamic capabilities and core competencies of companies. Both categories extend the resource-based view of the firm. They are difficult to work out, but thanks to their durability and universality they enable to achieve a sustainable competitive advantage. Due to intensive changes in the business environment and increasing difficulty in forecasting them, the importance of adaptability based on both categories increases. The presented results of the research of two leading Polish companies—Panek S.A. and Cukiernia Sowa—are practical examples of the impact of dynamic capabilities on the creation of core competencies and indirectly core and end products and services. The analysis is the basis for improvement of future research.


2017 ◽  
Vol 6 (2) ◽  
pp. 1
Author(s):  
Albert Naiem Naguib ◽  
Eahab Elsaid ◽  
Abdel Moneim Elsaid

This study examines the relationship between dynamic capabilities (experience, routine, skills, firm characteristics, knowledge and technology) and competitive advantage sustainability in the Egyptian pharmaceutical sector. The data was collected using primary and secondary data sources. Primary data was collected from questionnaires distributed to 160 top managers in 20 pharmaceutical firms. The secondary data about pharmaceutical firms like rankings, revenues and market share was collected from external sources such as Intercontinental Marketing Service (IMS). The questionnaires examine six independent variables based on a five-scale Likert scale. The methodology used in the study is non-probability sampling (judgmental sampling), Cronbach’s alpha reliability coefficient and Chi-square tests. The results support the notion that there is a significant relationship between four of the six dynamic capabilities (experience, skills, firm characteristics and knowledge) and the competitive advantage sustainability for pharmaceutical firms in Egypt. Designing the questionnaire and formulating the questions to target the required field was challenging, given that the topic is dynamic and the business scene in Egypt has witnessed drastic political changes since January 2011. The study should assist pharmaceutical companies in Egypt in directing their investments properly and in determining the weaknesses in their dynamic capabilities that need to be addressed.


2018 ◽  
Vol 56 ◽  
pp. 04006
Author(s):  
Louis Lim Vui Han ◽  
Vijayesvaran Arumugam ◽  
Lawrence Arokiasamy

This study will be a bit different than others in the sense that it pierces directly into the human hearts. The world current economy is full of mysterious and uncertainty. There are plenty of different perspectives, but who can guarantee that they are right? The root of the problems of all issues generally come from the human heart or action. If we able to deal with human issues, it sorts out almost all the problems. The purpose of this study is to determine the contributing factors towards the sustainable competitive advantage (SCA) of small and medium-sized accounting firms (SMPs) in Malaysia. It aims to have a long-term impact on the prospects for the practitioners and the accounting professions. It becomes an attention to the world when numerous accounting scandals being published, and they jeopardized the accounting professions’ reputations. There are a few undisclosed cases especially it dealt with compliance, corporate tax, GST, money laundering and other issues, not only in Malaysia but in other countries as well. As such, the study focuses on creating better humans. Key findings from the literature highlighted the deficiencies in the core competencies of the firms. They are related to human capital and most of the researchers pinpointed the importance of knowledge, skills, capabilities in which it links to competencies in the corporate environment. The resource-based view of the firm is a common theory used by researchers as a mean of explaining competitive advantage and superior performance amongst the firms. And most of them stress the necessity to meet customer needs and expectation to create a sustainable competitive advantage.


2014 ◽  
Vol 21 (3) ◽  
pp. 178-183
Author(s):  
Beata Gierczak

Abstract Introduction. Competitive advantage determines the success of modern enterprises, such as hospitality companies, on the market. In turn, competitive advantage is gained as the result of skillful management, taking into account the factors that characterize the company environment. In the management process, methods and concepts that, when properly applied, facilitate the company's innovative activities play the key role, thus contributing to building competitive advantage. The purpose of this paper is to specify and characterize the methods and management concepts most commonly used by hospitality companies in the process of building competitive advantage. The core benefit of these considerations is that they serve to identify those activities of hospitality companies in which the analyzed methods and concepts found practical application. The final part of the article is devoted to an attempt to identify barriers and problems that significantly limit the use of these methods and concepts. Material and methods. In order to achieve this objective, a survey and interviews were carried out in all three- and four-star hotels in the Rzeszów area in the first quarter of 2012. Results. The results revealed that the concept most commonly used by hoteliers was knowledge-based organization (knowledge management), followed by outsourcing, benchmarking and internal competition, respectively. Conclusions. The study also demonstrated that the managers of these hospitality companies significantly lacked substantive knowledge of emerging “market” management methods and concepts.


Author(s):  
Yanti Mayasari Ginting ◽  
Elfindri Elfindri ◽  
Hafiz Rahman ◽  
Dodi Devianto

The purpose of this study is to analyze the effect of business Knowledge Management System (KMS) of creative industry in the visual communication design sub-sector to attain sustainable competitive advantage. This research is a quantitative research using survey method with a questionnaire as the instrument. The population in this study consists of business owners, business managers, and creative workers in the business of visual communication design sub-sector located in Riau, Indonesia. The sample size is 202 and the sampling method used is purposive sampling, there are 34 questions in the questionnaire and analyzed by using SEM AMOS. This study found that KMS of the business effect sustainable competitive advent age. Both basic competing strategies and strategic competitiveness can be used as dimensions of sustainable competitive advantage. This study is conducted in Visual Communication Design so that it needs to be extended to other sub-sectors to further validate the model.


2014 ◽  
Author(s):  
Nicholas Parkyn

Introduction A Knowledge Management System is a valuable tool for the Naval Architect or Marine Professional. It plays an important role in transforming the data to information and information to knowledge which is known as the transformation lifecycle. Knowledge Management is a key factor for creating value and competitive advantage. A common approach to knowledge structuring facilitates the sharing of knowledge and collaboration with others, based on knowledge sharing, which increases the value proposition of organizations like the SNAME. “The transformation of information into knowledge is a critical one, lying at the core of value creation and competitive advantage” – Stewart 2001 Positioning Knowledge Management can be applied in many different ways related to the specific requirements of organizations, societies, companies and individuals. National Shipbuilding Research Program (NSRP) has done extensive work in the area of Knowledge Aware Engineering to enable: - Active Delivery Relevant Knowledge - Cultivation of Technical Memory - Enablement of Engineering Decision Support - Integration into the Engineering Process - Supports for standards, heuristics and best practices.


Author(s):  
Johan Oscar Ong ◽  
Masyhudzulhak Mahazan

The industrial growth and technology development need competent human resource in every business organization. The presence of millennial and Generation Z has increasingly dominated workforce presenting a new challenge for organizations to provide work climate that supports their development. It has been surveyed that millennial generation is tech savvy but less patient to stay in an organization. The ability to retain and develop millennial and generation Z is the organization's key success factor to continuously improve its business performance and sustainable growth. The new approach HR management strategies are needed to make sure achieving the business outcome (growth revenue, growth profit, lower cost). The Framework of Organizational Sustainability Model in era 4.0 is designed to map out the HR strategies in order to achieve a sustainable competitive advantage. The organizational key drivers would be the input for this model to support employee core competencies so as to give their outstanding performance and increase productivity. Having skills and experience are not enough for employees, they have to make a commitment and well motivated that is shaped by a strong organizational culture and climate. The current research has provided AMO (Ability, Motivation, Opportunity) model approach to support for the key theoretical propositions. The study is imperative for practitioners and organizations since it offers Human Resource Management strategies as a suggestions and guidelines to develop human capital for improving organizational performance and for gaining sustainable competitive advantage.


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