Developing dynamic capabilities in culturally distant service multi-units

Abstract

Purpose

The purpose of this paper is to provide a more robust understanding of the development of dynamic capabilities (DCs) in service multi-units with different cultural distances (CD) (high (HCD) and low (LCD)) through the routines of embedded social capital (structural and relational) and knowledge archetype (exploitative and exploratory) learning.

Design/methodology/approach

The authors used survey questionnaires and structural equation modeling to discriminate the relationships among variables.

Findings

The authors found that structurally embedded social capital has a positive influence on exploratory knowledge learning in HCD service multi-units; relationally embedded social capital has a positive influence on knowledge archetype (exploitative vs exploratory) learning in both HCD and LCD service multi-units; and knowledge archetype learning has a positive influence on the development of DCs in both HCD and LCD service multi-units.

Research limitations/implications

The results identify the central role of social capital (structurally and relationally embedded) in enabling knowledge archetype learning and the development of DCs in service multi-units. In addition, this study provides a description and comparison of how structurally and relationally embedded social capital are key antecedents in knowledge archetype learning and the development of DCs in the context of service multi-units with different HCD and LCD.

Originality/value

The results provide a practical trajectory for the development of DCs in multi-units of multinational corporations in the service industry with different HCD and LCD.

Citation

Lee, P.-Y., Kung, C.-Y. and Li, C.-S.J. (2015), "Developing dynamic capabilities in culturally distant service multi-units", Industrial Management & Data Systems, Vol. 115 No. 8, pp. 1547-1562. https://doi.org/10.1108/IMDS-01-2015-0025