Structural process model of absorptive capacity for stakeholder’s integration in decision-making: dynamic capability perspective

Purpose This paper aims to present empirical test to analyse a structural process model based on the constructs of absorptive capacity considering sustainability aspects. It integrates dynamic capability perspective to strengthen the existing literature. Findings of the study may help organisations to renovate business processes related to absorptive capacity and improve decision-making considering sustainability attributes. Design/methodology/approach Sample for data analysis covers 389 managers of firms demonstrating some traits of sustainability orientation and operating in a developing economy like India. Structural equation modelling is applied to test a casual model. Findings Result of this study reveals that a formal system that drives knowledge sharing, storing and exploitation of knowledge, a structured way to appropriate and reward intellectual property rights can be fundamental to development of absorptive capacity. Such a system conducive to knowledge exploration and acquisition must lead to exploration of new knowledge sources and new knowledge. A firm’s knowledge acquisition system shall be able to deliver to acquire external as well as internal knowledge spread across departments. Research limitations/implications This study considers commercial output as an aspect of innovative capability, so this attribute is not included in absorptive capacity. Practical implications The study may help organisations to develop a systemic approach to evolve decision-making and develop suitable processes linked to absorptive capacity considering sustainability challenges and uncertain market conditions. Social implications The study presents a comprehensive view of absorptive capacity considering societal stakeholder’s knowledge in addition to technological and market knowledge. Originality/value There are hardly any research articles which link absorptive capacity, dynamic capability and sustainability strategies.

Impact of organizational dynamic capability on international expansion and the moderating role of environmental dynamism

Purpose The purpose of this study is to examine the impact of dynamic capability (DC) of organizations on international expansion and further investigate the moderating role of environmental dynamism in the same context. Design/methodology/approach Based on the dynamic capability view (DCV) theory and related literature on international business strategy, a theoretical model is developed. This model is subsequently validated with the structural equation modelling technique through a survey of 324 respondents from Indian organizations. The study also examines the moderating impacts using the multigroup analysis method. Findings The study finds that organizations’ sensing, seizing and transformational capabilities impact positively and significantly on international marketing capability, as well as on technological innovation capability, which positively and significantly impacts organizations’ international expansion ability. The study also finds that there is a significant moderating impact of environmental dynamism on organizations’ international expansion. Research limitations/implications This study has provided a unique theoretical model which can explain the factors impacting organizations’ ability toward international expansion. The study also provides vital insights and directions to practitioners, researchers and academicians on the international business strategy for the expansion of organizations. The theoretical model, however, cannot be generalized, as data was taken only from Indian firms. Originality/value The study adds to the body of knowledge of international business strategy, international marketing strategy and technological innovation, adding to the scant research on the relationship between organizations’ DC and the international expansion strategy through a unique and tested model with an explanative power of 73%.

Innovation-oriented dynamic capabilities of logistics service providers, dynamic resilience and firm performance during the COVID-19 pandemic

PurposeThe purpose of this paper is to use a theoretical framework to investigate the relationships between different innovation-oriented dynamic capabilities, dynamic resilience and firm performance among logistics service providers (LSPs) and in-house logistics departments of industrial companies during the coronavirus disease 2019 (COVID-19) pandemic.Design/methodology/approachThe conceptual theoretical framework relies on the dynamic capabilities framework (DCF) and the relational view (RV), which are rooted in the resource-based view (RBV). It is hypothesized that the dynamic capability to innovate reinforces the dynamic capability to adapt and to recover in highly dynamic and vulnerable environments during the pandemic. This allows LSPs to successfully create new services and respond to the changing market circumstances in terms of logistics service quality (LSQ) and firm performance. Data were collected from 83 LSPs and 30 in-house logistics departments via an online survey. The study determined the general strength and direction of the relationships between latent variables. A correlation analysis was utilized to establish statistical significance of the results.FindingsIn this study, a range of innovation-oriented capabilities for achieving more dynamic resilience were bundled in a conceptual framework and were found to be statistically significant for LSQ and firm performance. They are the capability to distribute new knowledge, to train employees effectively, to develop cross-functional collaboration within the firm, to develop inter-firm relationships with business partners on a long-term basis as well as to learn from rivals, and to pursue a win-win relationship with them.Research limitations/implicationsThe results of the study do not imply that the identified capabilities are the only ones relevant to increasing dynamic resilience during the pandemic. In October 2020, the COVID-19 pandemic was at different stages in different countries, so that the level to which firms were affected varied, and although the data were collected during one month only, due to the high dynamics of the pandemic, data were collected during different stages of disruptions, even among respondents in the same country. This study was set in the context of COVID-19, and it could not be proved whether the conceptual framework is generalizable to other crises or particular industries, but it would be worthwhile to examine this in the future. Finally, it was not tested whether LSQ mediates the relationship between innovative capabilities and firm performance during the pandemic.Practical implicationsThe results help managers with regard to their strategic and operational decisions in relation with COVID-19. These findings are useful for executives and logistics managers to improve these capabilities to gain a competitive advantage during pandemic and to find their strengths and weaknesses to develop critical capabilities for situations with a high turbulence and dynamic in their environment, and therefore provide a path for improvement.Originality/valueThis paper operationalizes a multi-theoretical conceptual framework in the context of logistics management (LM) and supply chain management (SCM). This conceptual framework was empirically tested.

Dynamic capability, ambidexterity and social network—empirical evidence from SMEs in China

PurposeThe investigation of organization's ambidextrous innovation is a challenge in the research studies of management sciences. As existent literature showed a positive relation between dynamic capability (DC) and innovation, few empirical studies are conducted to explain how DC impacts on the balanced and combined dimension of ambidexterity and still less on how social network moderates this relation. As a result, this paper aims to investigate and provide empirical evidence on DC’s influence on ambidexterity in the context of China.Design/methodology/approachBy a relational model of DC, ambidextrous innovation and social network, this study has conducted multiple regression analysis on the data collected from 350 small and medium enterprises (SMEs) in mainland China.FindingsThe results show that, DC has positive influence on both the combined and balanced dimension of ambidexterity; and both the relational network and structural network play an inverted U moderating role, where the moderation of relational network is stronger than that of structural network.Originality/valueThis study provides empirical support on DC's influence on ambidexterity together with the moderation of social network.

The Absorptive Capacity and Innovation in Jordanian Universities

Organizational transformation is a high-risk and difficult activity that all institutions must undertake. The objective of this article is to examine how businesses develop and utilize ACAP to aid with transformation. We examine how realized absorptive capacity in terms of transformation and exploitation capability directly affects organizational change and how process innovation practises act as an effective mechanism for connecting transformation and exploitation capability with organizational change, using a dynamic capability perspective and a’resourcing’ synergy perspective. To differentiate ourselves, we focus on both an evolving organizational structure and an emerging economy context in this research. The findings and discussion that follow on how process innovation strategies might help colleges become more entrepreneurial will interest university administrators and lawmakers.

How Internal IT Capability Affects Open Innovation Performance: From Dynamic Capability Perspective

Information technology (IT) and open innovation has been one of hot topic in existing research respectively. However, there are lack empirical research on inner mechanism of internal IT capability affecting open innovation performance. According to dynamic capability theory, this paper puts internal IT capability, internal knowledge integration, firm social capital, and open innovation performance into a theoretical model. Through 232 surveys, the results indicate that internal knowledge integration plays a mediator role in the effect of internal IT capability on open innovation performance. Meanwhile, the relationship between internal IT capability and internal knowledge integration can be positively moderated by firm social capital. This study extends the research on open innovation and IT business value, and provides theoretical direction for practice.

Comprehensive Analysis Methodology for Business Planning

This chapter uses the normative research methodology to review the literature for business research and analysis to search for a set of tools that can provide a comprehensive analysis methodology. The investigation of competitive advantage follows the dynamic capability of the subjective approach to the resource-based view (RBV). This view needs to establish the current position of the company's resources in the context of the surrounding environment to develop a clear understanding of the current competitive status of the organisation. The best practice of suggestions from the literature will be gathered into a proposal for a systematic research and analysis methodology governed by an information policy. A formal information project is suggested to collect and store the required information and to use a formalized set of visualization tools to provide an evolving holistic picture of the information leading to the architectural blueprint.