Dynamic capabilities configurations: the firm lifecycle and the interplay of DC dimensions
International Journal of Entrepreneurial Behavior & Research
ISSN: 1355-2554
Article publication date: 14 February 2022
Issue publication date: 10 May 2022
Abstract
Purpose
Dynamic capabilities (DCs) upgrade operational capabilities. However, DC dimensions of sensing, seizing and reconfiguring may combine in different configurations that result in alternative outcomes, depending on the firm's lifecycle stage. The purpose of this research is to explore configurations of DC dimensions during different stages of firms' lifecycles that result in operational marketing and technological capabilities.
Design/methodology/approach
Given the limited understanding of how DC dimensions and operational capabilities interact across a firm's lifecycle, the authors employed a multi-method approach to understand whether different configurations of DC dimensions may lead to operational marketing and technological capabilities and how the firm's lifecycle may condition these configurations. The authors first apply PLS path modelling to assess the validity and reliability of the measures. Then, the authors use fuzzy-set qualitative comparative analysis (fsQCA) to analyse micro, small and medium-sized enterprises (SMEs) in different growth stages operating in the creative industry within highly competitive and fast-changing environments.
Findings
Results show that several configurations of DC dimensions and competitive intensity influence marketing and technological capabilities. Although several configurations include sensing, seizing and reconfiguring, the findings also point to configurations where not all DC dimensions are present.
Practical implications
Improving operational capabilities does not necessarily imply a simultaneous presence of all three DC dimensions. Especially in the growth stage, managers that face resources shortage may only focus on sensing and seizing dimensions when developing marketing capabilities.
Originality/value
This research focuses on configurations of DC dimensions (instead of configurations of different types of DCs) that generate diverse marketing and technological capabilities development paths. The authors provide several equifinal configurations of DC dimensions that lead to operational marketing and technological capabilities. This study contributes to disentangling DCs and their dimensions across different lifecycle stages.
Keywords
Acknowledgements
Funding: The study was funded by the Portuguese government – Fundação para a Ciência e a Tecnologia (FCT), The Ministry of Science, Technology and Higher Education. This research was also co-financed by the European Social Fund through the Norte’s Regional Operational Programme (NORTE 2020) (FCT Doctoral Grant 2020.07900.BD; UIDB/03182/2020).
Citation
Cordero Páez, L.C., Pinho, J.C. and Prange, C. (2022), "Dynamic capabilities configurations: the firm lifecycle and the interplay of DC dimensions", International Journal of Entrepreneurial Behavior & Research, Vol. 28 No. 4, pp. 910-934. https://doi.org/10.1108/IJEBR-05-2021-0322
Publisher
:Emerald Publishing Limited
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