scholarly journals Dynamic capabilities: Their effect on performance mediated by product integration in the highly acquisitive software industry

2019 ◽  
Vol 5 (1) ◽  
Author(s):  
Pauline Parker ◽  
Kate Davis
Keyword(s):  
Mergers And Acquisitions ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Software Industry ◽  
Product Integration ◽  
Software Products ◽  
Behavioural Theory ◽  
Business Software ◽  
Over Time

Building on behavioural theory employing dynamic capabilities, this paper examines how firms create competitive advantage through innovation over time after multiple mergers and acquisitions. Mergers and acquisitions are a way to acquire gaps and prominently missing features and functions; the firm then has only to assimilate them into their portfolio. This research is focused on the acquirer’s ability towards obtaining performance from product integration and is set within the context of highly acquisitive software-houses; those organisations involved in the sales and manufacture of business software products. The ability to realign and innovate this will increase performance over the long term.

scholarly journals Production Processes Choices

2021 ◽  
pp. 165-170
Author(s):  
Jean-Pierre Jeannet ◽  
Thierry Volery ◽  
Heiko Bergmann ◽  
Cornelia Amstutz
Keyword(s):  
Competitive Advantage ◽  
Production Process ◽  
Free Market ◽  
Open Market ◽  
Process Automation ◽  
Production Processes ◽  
Key Steps ◽  
Over Time ◽  
Factory Floor

AbstractHow SMEs arranged their factory floor and the kind of processes, proprietary, or other, they employed, including the extent of automation in use, are all important aspects of the process practices. Swiss SMEs have realized that reliance on product feature advantages alone, even if protected by patents, is not sufficient to guarantee a lasting competitive advantage. Many companies, over time, have developed proprietary processes that are not available on the open market. This can include proprietary production or custom equipment developed and built in-house for key steps of the production process. Automation and robotization are extensively applied throughout, much of this designed by the companies themselves. The longevity of the companies fosters long-term improvements that are not available on the free market.

Keys to the Survival of the Family Firm

2020 ◽  
pp. 234-259 ◽  
Author(s):  
César Camisón ◽  
José Antonio Moreno
Keyword(s):  
Competitive Advantage ◽  
Economic Performance ◽  
Time Horizon ◽  
Dynamic Capabilities ◽  
Sustainable Competitive Advantage ◽  
Short Term ◽  
Functional Capabilities ◽  
The Family ◽  
Short And Long Term

The purpose of this research is to carry out an in-depth exploration of the causes of the family firm's success over short and long term, analysing which capabilities are the most valuable sources of sustainable competitive advantage in every time horizon. The results confirm only functional capabilities have a positive and significant effect on short-term economic performance, whereas dynamic capabilities are the only ones that have a positive and significant impact on long-term economic performance.

scholarly journals The Formation and Effects of Exploitative Dynamic Capabilities and Explorative Dynamic Capabilities: An Empirical Study

2019 ◽  
Vol 11 (9) ◽  
pp. 2581 ◽  
Author(s):  
Lina Liu ◽  
Bo Yu ◽  
Weiwei Wu
Keyword(s):  
Competitive Advantage ◽  
Leadership Style ◽  
Dynamic Capabilities ◽  
Positive Influence ◽  
Slack Resources ◽  
Transactional Leadership Style ◽  
Transformational Leadership Style ◽  
Absorbed Slack ◽  
Unabsorbed Slack

Although previous studies have explored the formation and effects of dynamic capabilities, much remains to be learned on this topic. There has been little research on the formation and effects of exploitative dynamic capabilities and explorative dynamic capabilities. This paper provides an explanation of how entrepreneurial leadership style and slack resources affect the formation of exploitive dynamic capabilities and explorative dynamic capabilities and evaluates the effects of exploitive dynamic capabilities and explorative dynamic capabilities on competitive advantage. Based on a sample of 382 Chinese firms, the empirical results show that a transactional leadership style and absorbed slack resources can encourage the formation of exploitative dynamic capabilities, and that a transformational leadership style and unabsorbed slack resources are conducive to the development of explorative dynamic capabilities. Furthermore, exploitative dynamic capabilities and explorative dynamic capabilities can reinforce and complement each other. Exploitative dynamic capabilities positively impact explorative dynamic capabilities, and explorative dynamic capabilities enhance exploitative dynamic capabilities. In particular, exploitative dynamic capabilities have an important effect on short-term financial performance, and explorative dynamic capabilities lead to a significant long-term competitive advantage. The results show that explorative dynamic capabilities surpass exploitative dynamic capabilities in terms of competitive advantage, even if both have a positive influence on competitive advantage. This study validates and develops the theory of dynamic capabilities.

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.

Dynamic Capability as a Theory of Competitive Advantage

2016 ◽  
Author(s):  
Jerker Denrell ◽  
Thomas C. Powell
Keyword(s):  
Technological Change ◽  
Competitive Advantage ◽  
Effect Size ◽  
Dynamic Capabilities ◽  
Market Competition ◽  
Explanatory Power ◽  
Dynamic Capability ◽  
Firm Resources ◽  
Changing Environments

Dynamic capability is a theory of competitive advantage in rapidly changing environments. We reconcile this explanation with previous theories of competitive advantage, showing how it informs and complements explanations based on market positions, firm resources, and Schumpeterian creative destruction. We examine the scope conditions of dynamic capability; that is, when the theory has more and less explanatory power. We find that dynamic capability has greatest explanatory power when a partially foreseeable technological change is on the verge of transforming market competition; and less explanatory power when dynamic capabilities are not undervalued or scarce; when change is unforeseeable; when change is easily foreseeable; when the effect size of new capabilities is small; in industries subject to repeated technological shifts; and in markets that reward short bursts of extraordinary performance over long-term persistence. We discuss these scope conditions and show how dynamic capability combines with prior theories to explain competitive advantage in different industry contexts.

scholarly journals Strategy Design Method Based on Corporate Learning System

2020 ◽  
Vol 19 (2) ◽  
pp. 119-124
Author(s):  
A. V. Kavaliou ◽  
A. V. Hromava
Keyword(s):  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Design Method ◽  
Learning System ◽  
Organizational Capabilities ◽  
Sustainable Competitive Advantage ◽  
Corporate Learning ◽  
Strategy Design ◽  
A Company

The paper proposes a method for a strategy design that corresponds to concept of dynamic capabilities. The advan-tages and disadvantages of the methods of strategy design used by various schools of strategic management are demonstrated. The authors postulate inconsistency between a new stage of scientific knowledge and the related technique of strategic analysis and strategy design methods. The purpose of the article is to develop a method for creation a strategy based on a learning system as a key element of a competitive advantage in the concept of dynamic abilities. The method compares favorably with approaches based on the analysis of the external environment, which have a methodological contradiction, since such a stra-tegy is available to all market actors, and it is easy to repeat it. Unlike the methods of the “basic” resource concept, the proposed one allows you to expand an approach to design a strategy precisely from the standpoint of strategic actions in relation to the resources, capabilities, and competencies of the company, which can be combined into clusters that provide a syner-gistic effect. The long-term horizon of the strategy invariably requires the inclusion of corporate learning system as a gene-rator  of  organizational  capabilities into the various clusters.  It has been noted  that the speed of  reaction to changes which is required in a contemporary competitive environment puts forward a corporate learning system as a key competency of a company. The method corresponding to the concept of dynamic capabilities creates the possibility of developing a strategy based on a corporate learning system and provides a dynamic sustainable competitive advantage.

Technology Portfolio Dynamics

2013 ◽  
Vol 1 (2) ◽  
pp. 125-139
Author(s):  
Samuli Kortelainen ◽  
Antero Kutvonen ◽  
Lauri Lättilä
Keyword(s):  
Technology Management ◽  
Competitive Advantage ◽  
Mobile Phone ◽  
Dynamic Capabilities ◽  
Significant Source ◽  
Dynamic Processes ◽  
First Finding ◽  
New Challenges ◽  
Different Levels ◽  
Over Time

Innovations are significant source of competitive advantage for firms. They are also a major source of dynamics that forces firms to adapt their capabilities to sustain competitiveness. In this study we analyzed how firms manage their technological portfolio in mobile phone industry. Our first finding is that firms have focused differently their technology portfolios. Then we identified that most firms change their technology portfolio over time. And finally we conclude that firms in mobile phone industry have different levels of dynamics where some firms change their technology portfolio faster than others. This research identifies new challenges in dynamic capabilities research related to the appropriate level of dynamics in technology management. This information is crucial in practice in order to correctly manage the firm’s dynamic processes.

Understanding industrialised house building as a company’s dynamic capabilities

2020 ◽  
Vol 21 (1) ◽  
pp. 5-21
Author(s):  
Lars Stehn ◽  
Susanne Engström ◽  
Petri Uusitalo ◽  
Rita Lavikka
Keyword(s):  
Dynamic Capabilities ◽  
Original Data ◽  
Higher Order ◽  
Content Type ◽  
Archival Material ◽  
Corporate Ability ◽  
House Building ◽  
Over Time

Purpose To further the understanding of industrialised house building (IHB) from a temporal, emergent corporate-ability perspective, this study aims to trace the build-up of corporate assets in an IHB company over time. The research draws on dynamic capabilities, acknowledging not only what assets the company have developed and currently are exploiting, but also how these assets were develop and managed (i.e. enhanced, combined, protected and potentially reconfigured) to sustain long-term competitiveness. Design/methodology/approach A case study design was used to form a narrative that covers the evolution of an IHB company over a 25-year period. Corporate archival material, analysis of original data from a large number of research studies during 1993-2013 and retrospective reflections of owners and managers, including crosschecking interpretations of archival material, developed and triangulated the narrative. Findings The study presents rich empirical findings on the build-up of corporate assets. Starting from a successive process of exploration and exploitation formation of dynamic capabilities eventually played out into an exponential dynamic capability build-up. The IHB case company displays the ability to not only continuously exploit and renew resources and competences, but also to sense, seize and reconfigure cumulative assets over time. The exponential development of dynamic capabilities resonates to literature on higher-order dynamic capabilities implying that: the accumulated and higher-order dynamic capabilities are difficult to imitate and a (any) company must possess higher-order dynamic capabilities to be able to exploit and/or take up IHB. Originality/value The study is complementing and potentially challenging frequent framings of the IHB concept. Previous research has addressed and characterised IHB mainly by encapsulating a moment in time and, thus, characteristics are momentary and represent static views on IHB. However, IHB has seen a strong development over the past 25 years, and the study reflects on this development from the perspective of one of the IHB-forerunner companies in Sweden. By exploring from a company perspective the developments, reconfiguration and capacity to develop/reconfigure over time in a changing environment, the study introduces an alternative understanding of IHB as dynamic capabilities.

Keys to the Survival of the Family Firm

2022 ◽  
pp. 103-129
Author(s):  
César Camisón ◽  
José Antonio Moreno
Keyword(s):  
Competitive Advantage ◽  
Economic Performance ◽  
Time Horizon ◽  
Dynamic Capabilities ◽  
Sustainable Competitive Advantage ◽  
Short Term ◽  
Functional Capabilities ◽  
The Family ◽  
Short And Long Term

The purpose of this research is to carry out an in-depth exploration of the causes of the family firm's success over short and long term, analysing which capabilities are the most valuable sources of sustainable competitive advantage in every time horizon. The results confirm only functional capabilities have a positive and significant effect on short-term economic performance, whereas dynamic capabilities are the only ones that have a positive and significant impact on long-term economic performance.

scholarly journals Imovation in shaping dynamic capabilities of organisations

Management ◽  
2016 ◽  
Vol 20 (2) ◽  
pp. 8-22 ◽  
Author(s):  
Kazimierz Krzakiewicz ◽  
Szymon Cyfert
Keyword(s):  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Complex Dynamic ◽  
Underlying Assumption ◽  
Strategic Approach

Summary The underlying assumption of the article is that imitation is as important as innovation when creating a long-term competitive advantage, and that a systematic, strategic approach to imitation is necessary to ensure efficient and effective innovation. Viewed in this light, imitation is a rare and complex dynamic capability which organisations should properly develop and skillfully use. Imitators provide customers with products that are both better and cheaper. This article contributes to a discussion of innovative processes and their role in shaping dynamic capabilities of organisations. It attempts to portray the essence and nature of imitation and identifies benefits which copying what other organisations do can bring in terms of dynamic capabilities.

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