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%.

Competitive Advantages in the Turkish Retail Industry

Retail is one of the most important industries that is continuously improving around the world and in particular in Turkey. Competitive advantages owned by firms keep businesses one step ahead of their competitors. The main objectives of this chapter are determination of the main competitive advantages and capabilities for firm performance, determination of competitive advantages and capabilities which are relatively important for firm performance, and determination of competitive advantages and capabilities that are mainly used under the effects of environmental dynamism for firm performance in the Turkish retail industry. In this chapter, retailers are evaluated into two groups as organized and traditional. Totally, 50 competitive advantages and capabilities were identified in the research. The results of the study would be beneficial both for retail literature and retail business life.

Managerial Ambidexterity and Firm Performance

Ambidexterity or the ability by individuals or firms to simultaneously and synergistically pursue both exploitation and exploration activities has been found to have positive effects on firm performance. However, the ambidexterity literature has been predominated by the studies at the organizational level, and little is known about the antecedents and consequences of ambidexterity at the individual level. This study examines environmental dynamism and social network as the antecedents of managerial ambidexterity, and knowledge brokerage and firm performance as the consequences. This study tests the mediating role of knowledge brokerage on the relationship between managerial ambidexterity and firm performance. Data are collected from 308 senior executives working in technology manufacturing firms in Malaysia using a questionnaire survey. The findings reveal that environmental dynamism and social networks are significantly and positively related to managerial ambidexterity, and knowledge brokerage mediates the relationship between managerial ambidexterity and firm performance.

How can Strategy-as-Practice Enable Innovation under the Influence of Environmental Dynamism?

ABSTRACT Purpose: the objective of this study was to analyze innovation in Brazilian organizations when enabled through SIS, in the strategy-as-practice approach, on the influence of moderating environmental dynamism. Methods: we performed structural equation modeling using the statistical technique of partial least squares path modeling (PLS-PM) and post hoc analysis to identify unobserved heterogeneity, with a sample of 256 Brazilian companies from different sectors. Results: the results revealed that the SIS had a strong and significant influence on the innovation of exploitation and exploration. The environmental uncertainty of dynamism moderation was not present in the relationship between SIS and the innovation of exploitation. However, SIS showed a strong and significant influence on innovation of exploration in high levels of dynamism. The existence of unobserved heterogeneity was identified for two segments of the sample, demonstrating a strong path effect between SIS and innovation of exploration and exploitation on the high presence of dynamism in service companies with a size greater than 500 employees. Conclusions: the study contributed to the extension of the strategy-as-practice and innovation literature, by identifying SIS as an alternative in the planning process to enable innovation in the organization, in environments with a high rate of change and unpredictability.

Organizational Adaptability Influenced by Practice Strategy, Environmental Dynamism, and Absorptive Capacity

The adaptability of organizations to their environment has always been a key concern in both organizational theory and management practice. Different from the single perspective of previous studies, this research adopts an integrated, outside-in perspective. Employing an agent-based simulation model (ASM) and a multiple regression model (MRM), we examine the impact of the intensity of exploitative and exploratory practice on organizational adaptability, as well as the moderating effect of environmental dynamism and organizational absorptive capacity. The results of the research show that (1) the stable environment prefers organizations with a practice strategy of high exploitation and low exploration; (2) environmental dynamism inhibits the impact of both exploitative and exploratory practices on organizational adaptability; and (3) organizational absorptive capacity significantly reinforces the link between the intensity of exploitative practice, as well as exploratory practice, and organizational adaptability. The study investigates the external alignment of organizational exploratory and exploitative practices with environmental dynamism and internal fit with absorptive capacity. The findings provide new insight into the question of how organizations can resist the erosion of environmental dynamism through strategic alignment and capacity development.

COUPLED OPEN INNOVATION AND PERFORMANCE IN SMES: THE ROLE OF KNOWLEDGE CAPABILITIES AND ENVIRONMENTAL DYNAMISM

This research proposes to shed light on the antecedents and outcomes of coupled open innovation in the specific context of small and medium-sized enterprises (SMEs). Drawing on the open innovation paradigm, knowledge-based view (KBV), and contingency theory, the paper constructs and tests a research model that investigates the effect of coupled open innovation on firm performance; the impact of knowledge management capability, knowledge appropriation capability, and environmental dynamism on coupled open innovation; and also the mediating role of collaborative open innovation practices. Using a sample of 228 SMEs operating in the Tunisian manufacturing industry, our results based on structural equation modeling (SEM) demonstrate that coupled open innovation positively and significantly influences firm performance. Furthermore, our findings confirm the crucial impact of knowledge management capacity and knowledge appropriation capacity in the implementation of coupled open innovation approach. The role of environmental dynamism in the adoption of collaborative practices is also proven in the SME context. Moreover, the results of our study add to the existing literature by empirically demonstrating the potential mediating role of coupled open innovation in the relationships that link knowledge management capacity, knowledge appropriation capacity, and environmental dynamism with SME performance, respectively. In this sense, this paper goes even further in the research on open innovation, as one of the first to fill an interesting gap regarding the antecedents of coupled open innovation and its implication on performance in the specific context of SMEs. In doing so, our research, through its results, provides interesting suggestions for SME managers who implement or intend to implement coupled open innovation to improve the performance of their company.