Exploring the Role of IS in Dynamic Capabilities

Author(s):  
Stephen Duhan ◽  
Margi Levy ◽  
Philip Powell

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.

2020 ◽  
Vol 12 (18) ◽  
pp. 7372
Author(s):  
Jeandri Robertson

This paper explores how competition works in knowledge ecosystems, using a theory elaboration approach. With little research conducted in this area to date, three strategic streams of thought—resource-advantage theory, dynamic capabilities framework, and adaptive marketing capabilities perspective—are compared as a departing point and a frame of reference regarding the dynamics of competition. The streams of strategic thought all converge around the notion that organizations must constantly renew themselves to adapt and align to a fast-changing marketplace. The characteristics of knowledge ecosystems are conceptualized, whereafter an in-depth case study is presented to empirically assess competition in knowledge ecosystems, focusing on the perspective of a keystone actor. At the ecosystem-level, knowledge ecosystems primarily expose and explore knowledge, indicating that they mostly operate in a pre-competitive state. The time needed and the limited control inherent to knowledge exploration translate into the keystone actor focusing on transient rather than sustainable competitive advantage. Knowledge ecosystems further prove to be central in the coevolution and the growth of other ecosystems through connecting and sharing of the explored knowledge base with other ecosystem actors who, in turn, exploit this knowledge common for commercial purposes and innovation.


2005 ◽  
Vol 02 (03) ◽  
pp. 235-257 ◽  
Author(s):  
ARABELLA BHUTTO

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.


Author(s):  
Gleison Lopes Fonseca ◽  
Pedro Fernandes Anunciação ◽  
Antonio Juan Briones Penalver

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.


2016 ◽  
Vol 11 (3) ◽  
pp. 328-347 ◽  
Author(s):  
Margaret Tallott ◽  
Rachel Hilliard

Purpose – The purpose of this paper is to examine the development process of dynamic capabilities. Design/methodology/approach – The paper adopts a qualitative, longitudinal participant-observation research design. A single case study firm was observed over a ten-year period of active researcher engagement allowing for the collection of rich data on the development and deployment of dynamic capabilities as they evolved. Findings – Dynamic capabilities can be identified as sensing, seizing and transforming. They are capable of intentional development by managers through strategic decision making and deliberative learning, within a path-dependent evolution. Research limitations/implications – A longitudinal single case study allowed for a close look at the development of dynamic capabilities, exploring the context and conditions that facilitated change and tracing the evolution of the organization’s processes. However, this study remains subject to the limits of a single case approach. Future cross-sectional research would be able to test the conceptual model and allow for generalization of the findings to other populations of firms. Practical implications – The dynamic capability concept has been criticized for being of little practical use to managers. This research shows the process of intentional dynamic capability development, offering insights to practicing managers. Originality/value – This research adds to the relatively scant base of empirical work on dynamic capabilities and offers a conceptual model of dynamic capability development. The paper contributes to the neglected area of dynamic capabilities in SME’s, showing that the dynamic capability concept is relevant to this sector. The paper provides insight for practitioners by showing that intentional dynamic capability development is achievable.


2014 ◽  
Vol 52 (3) ◽  
pp. 573-601 ◽  
Author(s):  
Michael E. Prescott

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.


Author(s):  
Petra Schubert ◽  
Susan P. Williams ◽  
Ralf Woelfle

Developing and sustaining a competitive advantage from the use of information technology is a topic of concern for information systems research. Mata et al. (1995) present a model that is founded on the resource-based view of the firm. The model is used to discuss factors that lead to competitive advantage in e-commerce companies. This paper explores factors that enable sustainable competitive advantages in B2C retailing. The analysis is based on a single in-depth case study of an Internet pioneer company (LeShop), which was observed by the authors since its inception more than 10 years ago. The research data stems from a series of interviews with managers at LeShop as well as two case studies about the company from two different points in time (2000 and 2009). LeShop is an online pioneer, which began selling groceries on the Internet in Switzerland in April 1998. After a turbulent few years, LeShop is now one of the few successful e-commerce suppliers in the supermarket segment worldwide. The discussion includes an analysis of further critical resources of the company from a resource-based view.


2020 ◽  
Vol 12 (1) ◽  
pp. 18-34
Author(s):  
Umu Khouroh ◽  
Irany Windhyastiti ◽  
Christina Sri Ratnaningsih

The aim of this study is to investigate the role of environmental dynamism in relation to dynamic capabilities and competitive advantage. This study uses a quantitative approach and type of explanatory research. The survey was conducted at 130 MSMEs in Malang Raya. Hypothesis testing using SEM-PLS. The findings of the study prove that environmental dynamism is a driver for dynamic capability, while providing evidence that environmental dynamism acts as a negative moderator for achieving competitive advantage. Another finding is that dynamic capabilities have a major effect on competitive advantage while simultaneously acting as fully mediating environmental dynamism with competitive advantage. The implication is important for MSMEs to develop dynamic capabilities in order to deal with environmental dynamism so that MSMEs can increase competitive advantage because if they do not develop dynamic capabilities, environmental dynamism will reduce MSME's competitive advantage.


2013 ◽  
Vol 13 (2) ◽  
pp. 1-17 ◽  
Author(s):  
Thayaparan Gajendran ◽  
Graham Brewer ◽  
Malliga Marimuthu

Despite the role of internet and web based applications in delivering competitive advantage through e-business process is widely acknowledged, little is done by way of research to use the dynamic capability framework, in exploring the role of ecommerce in the construction business internationalisation. The aim of this paper is to present a literature based theoretical exploration using dynamic capability view to discuss internationalising construction businesses through electronic commerce (e-commerce) platforms. This paper contextualises the opportunities for internationalising construction, using a mix of supply chain paradigms, embedded with e-commerce platforms. The paper concludes by identifying the potential of dynamic capabilities of a firm, exploiting the innovation and integration potential of different e-business systems, in contributing to the internationalisation of construction businesses. It proposes that contracting firms with developed dynamic capabilities, has the potential to exploit e-commerce platforms to channel upstream activities to an international destination, and also offers the firm’s products/services to international markets.


Author(s):  
Sugiarto Koentjoro ◽  
Sri Gunawan

Family businesses often face significant challenges while trying to develop and increase their sustainability throughout generations. This is often due to their inability to properly manage the knowledge required to develop their resources to increase sustainability. Therefore, this study examines the relationship between processes of managing knowledge, dynamic capabilities, and innovative performance in an Indonesian family company in order to improve business performance. This is qualitative research with a single case study used to obtain data from nineparticipants in an Indonesian family company (“Ardiles”) that focuses on footwear. The findings showed that a family company that mobilizes knowledge can improve its members’ dynamic capabilities for proper business management and growth. Furthermore, the frequent process of mobilizing knowledge improves family members’ dynamic capabilities to create new ideas. This creative process helps to improve its innovative performance, thereby creating a sustainable competitive advantage among family companies.


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