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Organizational design has been suggested as a facilitator of an organization’s dynamic capabilities. This study aims to investigate the role of organizational design in the concept of dynamic capabilities and explores how it facilitates long-term dynamic capabilities in practice.

Empirical data were collected via a longitudinal case study conducted at a global company engaged in the development and manufacture of railway equipment. Specifically, this study focused on one of the organization’s sites in Sweden for a period of approximately five years.

Organizational design has a twofold impact on dynamic capabilities, functioning as both a facilitator and an impediment. It is essential for structures and processes to align with the available resources and capabilities of an organization. Moreover, managers’ beliefs and decision making significantly influence the extent to which organizational design choices effectively foster dynamic organizational performance.

This longitudinal case study contributes to the theory of dynamic capabilities by identifying key changes in an organization that is transforming to become more dynamic and the impact of organizational design on the organization’s dynamic capabilities.

With social media usage growing rapidly in business sustainability in manufacturing sectors, the means through which manufacturing firms can incorporate it into the pursuit of environmental sustainability are largely under-researched by academics. Drawing upon the dynamic capability view, this study examines the indirect relationship between social media usage and sustainable innovation in manufacturing sectors.

The study was based on analyzing data collected through a questionnaire survey on Chinese manufacturing firms. Partial least squares structural equation modeling was applied to test the hypotheses.

The results show that social media usage has a positive effect on sustainable innovation in the manufacturing sectors. Firms' sustainable dynamic capability mediates the relationship between social media usage and sustainable innovation. In addition, the effects of social media usage on firms' sustainable dynamic capability are stronger when stakeholder pressure is stronger and top management team commitment is higher.

This study highlights social media application as an important, yet underexplored, factor in sustainable innovation of manufacturing firms. The findings also untangle the mechanism of sustainable dynamic capability by which social media usage improves sustainable innovation for manufacturing firms.

While previous research has demonstrated the positive effects of digital business strategies on operational efficiency, financial performance and value creation, little is known about how such strategies influence innovation performance. To address the gap, this paper aims to investigate the impact of a firm’s digital business strategy on its innovation performance.

Drawing on the dynamic capability view, this study examines the mechanism through which a digital business strategy affects innovation performance. Data were collected from 215 firms in China and analyzed using multiple regression and structural equation modeling.

The empirical analysis reveals that a firm’s digital business strategy has positive impacts on both product and process innovation performance. These impacts are partially mediated by knowledge-based dynamic capability. Additionally, a firm’s digital business strategy interacts positively with its entrepreneurial orientation in facilitating knowledge-based dynamic capability. Moreover, market turbulence enhances the strength of this interaction effect. Therefore, entrepreneurial-oriented firms operating in turbulent markets can benefit more from digital business strategies to enhance their knowledge-based dynamic capabilities and consequently improve their innovation performance.

This study contributes to the understanding of how a firm’s digital business strategy interacts with entrepreneurial orientation in turbulent markets to shape knowledge-based dynamic capability, which in turn enhances the firm’s innovation performance.

Existing studies have paid less attention to the impact of knowledge accumulation on digital transformation and its boundary conditions. Hence, this study aims to investigate the effects of ambidextrous knowledge accumulation on manufacturing digital transformation under the moderation of dynamic capability.

This study divides knowledge accumulation into exploratory and exploitative knowledge accumulation and divides dynamic capability into alliance management capability and new product development capability. To clarify the relationship among ambidextrous knowledge accumulation, dynamic capability and manufacturing digital transformation, the authors collect data from 421 Chinese listed manufacturing enterprises from 2016 to 2020 and perform analysis by multiple hierarchical regression method, heterogeneity test and robustness analysis.

The empirical results show that both exploratory and exploitative knowledge accumulation can significantly promote manufacturing digital transformation. Keeping ambidextrous knowledge accumulation in parallel is more conducive than keeping single-dimensional knowledge accumulation. Besides, dynamic capability positively moderates the relationship between ambidextrous knowledge accumulation and manufacturing digital transformation. Moreover, the heterogeneity test shows that the impact of ambidextrous knowledge accumulation and dynamic capabilities on manufacturing digital transformation varies widely across different industry segments or different regions.

First, this paper shifts attention to the role of ambidextrous knowledge accumulation in manufacturing digital transformation and expands the connotation and extension of knowledge accumulation. Second, this study reveals that dynamic capability is a vital driver of digital transformation, which corroborates the previous findings of dynamic capability as an important driver and contributes to enriching the knowledge management literature. Third, this paper provides a comprehensive micro measurement of ambidextrous knowledge accumulation and digital transformation based on the development characteristics of the digital economy era, which provides a theoretical basis for subsequent research.

The view that dynamic capabilities theory can help explain how lean organizations improve has been put forward by scholars. However, there is still a lack of research on the matching relationship between the application of lean practice and the internal elements of enterprise organization from the perspective of dynamic capabilities. The purpose of this study is to validate the moderating effect of dynamic capabilities on the relationship between lean practices and operational performance.

This study used the method of survey and empirical research to collect sample data from 263 enterprises in China. Through literature review, this study put forward the moderating hypotheses around dynamic capabilities, lean practices and operation performance and used the method of regression analysis to validate these hypotheses.

The results showed that dynamic capabilities have a partially moderating effect on the application of lean practices. Specifically, dynamic capabilities have a significant moderating effect on the relationship between just-in-time, total quality management, total preventive maintenance and operational performance, while dynamic capabilities have no significant moderating effect on the relationship between human resource management and operational performance.

The research conclusion complements and enriches the lean practices literature from the perspective of dynamic capabilities. Existing studies mainly focus on the moderating role of external environmental factors, while there is a lack of empirical research on the role of dynamic capabilities in lean practices literature. The research results will help enterprises further understand the matching relationship between lean practices and dynamic capabilities and then improve the success of lean practices application.

Much of the existing research conducted on dynamic capabilities and the microfoundations of innovation has focused either on individual or organizational factors without considering mechanisms. This paper aims to address this “process” gap by developing an integrated conceptual framework based on individual, processual and structural microfoundations as well as the interaction between and among them with respect to innovation.

To understand the theoretical and empirical landscape in building our conceptual model, we conducted a content analysis of existing research microfoundations, dynamic capabilities and innovation. Using NVivo 12, we identified and examined the individual and organizational behavior microfoundations and their interplay to propose possible processual mechanisms. We framed these process mechanisms using the sensing, seizing and reconfiguring dynamic capabilities framework.

The study emphasizes certain microfoundations that facilitate innovation-dynamic capabilities at various organizational levels. It is posited that both formal and informal strategic intelligence processes, along with directed and undirected information research methods, constitute crucial microfoundations for identifying opportunities for innovation. For the internal capture and seizing of these opportunities, we assert that the diversity of individual internal networks and the mechanisms for social integration will prove to be critical. Furthermore, the paper suggests that reconfiguring microfoundations, specifically an organization’s flexible structure and the involvement of external directors with diverse experiences, are pivotal in spurring innovation.

We combine the microfoundations approach (individual, structural and processual) with the dynamic capabilities theory (sensing, seizing and reconfiguring) to offer an integrated conceptual framework underlying innovation’s dynamic capabilities. This sets us apart from existing research by both introducing processual aspects and their multilevel interactions.

This paper aims to explore the relationship between strategic internationalization decisions and dynamic capabilities deployment for the internationally growing firm (IGF). Dynamic capabilities refer to a firm’s ability to adapt proactively to a changing business environment, emphasizing the importance of “doing the right things” rather than just “doing things right.

Literature-based, this paper proposes a model that links internationalization decisions and dynamic capabilities deployment, offering valuable insights for both research and practical application.

The study highlights that the IGF – focused on expansion and growth abroad – faces unique complexities that demand “doing the right things” in terms of strategic internationalization decisions. Three critical organizational capabilities – knowledge transfer, knowledge recombination and learning capabilities – are mechanisms linking strategic internationalization decisions to dynamic capability deployment in the IGF. These organizational capabilities enable the IGF to act entrepreneurially and deploy dynamic capabilities across borders.

The model provides a practical framework illustrating the interconnectedness of strategic internationalization decisions and their combined effects on the ability of IGF to deploy dynamic capabilities to adapt to a changing global environment.

This research addresses a gap in the literature, challenging the conventional assumption that dynamic capabilities precede firms’ decisions to internationalize and that these dynamic capabilities can only be enhanced abroad.

Grounded in dynamic capabilities theory, this study aims to examine how dynamic capabilities and a transactive memory system (TMS) can build the resilience of service organizations and improve their financial performance. Limited studies examine the link between a TMS and organizational resilience.

The authors test a theoretical model on a sample of 350 UK service firms that were impacted by the COVID-19 pandemic and analyze the data using partial least square structural equation modeling.

Results highlight the positive effects of a TMS and dynamic capabilities on organizational resilience. Only a TMS and organizational resilience have direct positive effects on financial performance.

To the best of the authors’ knowledge, this is the first study to ascertain the influence of a TMS on organizational resilience in service firms following adversity.

Scholars increasingly focus on digital transformation as a key strategy for incumbent firms to gain competitive advantages. Meeting digital transformation commitments presents challenges, requiring the application and the reconfiguration of dynamic capabilities. To address this need, this research proposes a framework of dynamic capabilities and its microfoundations to assess the opportunities and challenges regarding digital transformation, involving three dimensions: Digital sensing, digital seizing, and digital reconfiguring.

This study employed a descriptive qualitative empirical approach, encompassing a sample of eight companies. Data triangulation was achieved through a combination of in-depth semi-structured interviews and secondary data.

The research provides evidence that data-driven culture fosters digital transformation and proposes the following new microfoundations: “Analytics for the customer experience journey” and “Digital analytics innovation management”, the internal barriers “Leadership without digital skills” and “Lack of strategic human resources management for digital transformation”, and the internal enablers “Defined strategy for digital transformation” and “Data-driven culture”. Finally, based on empirical results, it was possible to gather clues that link dynamic capabilities with digital maturity.

The application of the proposed framework in companies enables them to develop a roadmap for the digital transition oriented towards their business and management strategies.

This paper contributes to the literature on dynamic capabilities for digital transformation by proposing new theoretical constructs that unearth their microfoundations, barriers, and enablers.

The effect of dynamic capabilities on operational excellence and the moderating effect of environmental dynamism on the relationship between operational excellence and dynamic capabilities in the apparel industry in Sri Lanka were investigated while developing new psychometric scales to assess operational excellence and dynamic capacities constructs.

We followed the exploratory sequential research design with a mixed-method research approach, aligning with the pragmatic research philosophy. Thus, both qualitative and quantitative research methods were followed.

Dynamic capabilities positively affect operational excellence, and environmental dynamism moderates the relationship between operational excellence and dynamic capabilities in the apparel industry in Sri Lanka such that when a higher environmental dynamism exists, a weaker positive relationship exists between dynamic capabilities and operational excellence. The two main dimensions of the operational excellence construct are continuous improvement of sustainable operational performance and sustainable competitive advantages. It empirically confirmed that sensing, seizing and reconfiguring capabilities are the three main dimensions of the dynamic capabilities construct.

This study was limited to the apparel industry in Sri Lanka. This research phenomenon should be explored in other industrial sectors worldwide to generalize the findings. The practitioners in the apparel sector may improve the organizational dynamic capabilities to achieve operational excellence and keep a strong positive relationship between dynamic capabilities and operational excellence in a highly dynamic environment if they address out-of-family situations with out-of-the-box thinking.

We generated two new empirical findings: (1) dynamic capabilities positively affect operational excellence, and (2) environmental dynamism moderates the relationship between dynamic capabilities and operational excellence. Also, we introduced validated new scales for assessing operational excellence and dynamic capabilities.