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Based on the dynamic capability theory, the purpose of this study is to examine the mediating role of the adaptive capability of small- and medium-sized enterprises (SMEs) on the relationship between business ties and firm performance. This study also investigates the moderating role of technological turbulence in those relationships.

Data were collected from 1,265 SME managers in Turkey. Partial least squares analysis, a variance-based structural equation modelling, was applied to examine a mediated moderation model.

The results support the proposed framework illustrating that business ties are positively related to adaptive capability and firm performance. Moreover, adaptive capability mediates the relationship between business ties and firm performance. The results also indicate that the indirect effect of business ties on firm performance through adaptive capability was moderated by technological turbulence.

SMEs in emerging economies need to enhance their business ties and invest in their adaptive capabilities to increase their performances. This relation becomes more strategic under technologically turbulent environments.

By introducing empirical data from the Turkish emerging context, this paper contributes to our understanding of how SMEs’ relational networks contribute to firm performance. From the dynamic capability perspective, it shows how SMEs use their adaptive capabilities to environmental challenges. It also fills an important gap by showing that environmental uncertainties (specifically technological turbulence) moderate the adaptive capability’s mediating impact on the relationship between business ties and firm performance. The results also provide potential future directions for dynamic capabilities research in emerging contexts.

The purpose of this paper is to investigate the relationship between capabilities and renewal of organizational and business know-how in franchise networks.

This work uses a comparative case study of adaptive, absorptive and innovative capabilities to investigate knowledge renewal in 16 franchise networks.

The findings show that adaptive and innovative capabilities complement each other to foster know-how renewal. Furthermore, networks without internal R&D need to mobilize adaptive, absorptive and innovative capabilities to renew both organizational and business know-how. The findings also highlight that the three capabilities are interconnected.

The results of this research could provide insights for franchise networks to regenerate their knowledge base and ensure their long-term survival.

The underlying capabilities that explain organizational and business know-how renewal in franchises have not been investigated.

A growing body of literature suggests that unpredictable, resource-depleting shocks – ranging from natural disasters to public health crises and beyond – require the firm to respond adaptively. However, how firms do so remains largely undertheorized. To contribute to this line of literature, the authors borrow from the conservation of resources (COR) theory of stress and the dynamic capabilities perspective to introduce the concept of firm stress – a state of reduced and irregular readiness firms enter into following unpredictable, resource-depleting shocks. Our theoretical model illustrates that firms must punctuate the stress state to adapt by first deploying a retrenchment response, thereby conserving resources and allowing the firm to consider how to best redeploy its dynamic capabilities to adapt. Subsequently, the firm can redeploy its capabilities and adaptively respond in one of three ways: exiting (reconfiguring resources for alternative use), persevering (reconfiguring resources for better use), or innovating (developing new resources). Overall, the authors offer a process model of firm stress and adaptive responses following an unpredictable, resource-depleting shock that paves the way for future research on stress in the strategy literature.

Drawing upon the resource-based view this study aims to examine the connections between formal and informal business relationships and resource-bridging and adaptive capabilities within the context of foreign subsidiaries of multinational enterprises (MNEs) operating in Thailand. Based on prior literature emphasizing business network ties as sources of competitive advantage in emerging markets, this study extends the discourse by investigating the moderating effects of technological turbulence, power distance and assertiveness.

This study uses a quantitative research approach, using data obtained from a self-administered survey conducted among 168 foreign subsidiaries spanning diverse industries in Thailand. The data were analyzed by using multiple-group structural equation modeling to test the hypothesized relationships.

Cultivating different types of business ties enables foreign subsidiaries to improve different types of capabilities. While interpersonal relationships (i.e. informal businessties) enable them to develop their abilities to combine various resources (i.e. resource-bridging capability), rigid contractual-based relationships (i.e. formal businessties) help them to be more adaptive (i.e. adaptive capability). These relationships are also contingent upon the levels of technological turbulence, host-country power distance and host-country assertiveness.

This research builds upon prior research on network ties and capability building by delineating the specific nature of capabilities. Contradicting to the previous findings, demonstrating a negative relationship between formal business ties and capabilities, this study found that each type of business tie enables foreign subsidiaries to enhance different types of capabilities under different circumstances. Moreover, this study adopts a lens of host-country national culture rather than home-country culture in investigating the moderating effects of power distance and assertiveness.

This study aims to examine the relationship between the influence of technological disruption and the transformation of business models mediated by adaptive organization and organization learning.

In total, 116 top management teams from the member of the Indonesian Advertising Association (P3I) were recruited for this study. The data was obtained through an online survey and analyzed using the PLS-structural equation modeling (SEM) technique.

This study revealed the importance of organizational learning and adaptive organization in minimizing technology disruption and enabler of the business model transformation. In an always-changing environment, the adaptive organization is the core element and catalyst of firm transformation. The acceleration of business model transformation is empowered through establishing an organization's learning system by exploiting existing knowledge, exploring new knowledge and cultivating a learning culture.

In today’s fast-paced digital world and a constant state of flux, advertising agencies need to build a sustainable business model and structure that allows them to be flexible, adaptive to changes and efficient.

To the best of the authors’ knowledge, this study was the first to develop a model to mitigate technology disruption and enable necessary elements to create a transformation business model.

The paper aims to assess the impact of a government digital platform, WoredaNet on the dynamic capabilities (DCs) of government organizations, that provides government services to citizens in Ethiopia.

The study adopted a quantitative strategy using 10 local government administrative regions in Ethiopia (Woredas), which digitally innovate using the government digital platform. This study sampled 970 employees from government organizations to better understand the usage of digital government in low-income countries to enhance service delivery through DCs. The study adopted a conceptual formative model using the covariance-based structural equation modeling (SEM) technique. The model integrated seven latent variables, namely, WoredaNet usage, adaptive capability, absorptive capability, innovative capability, opportunity-sensing ability, opportunity-seizing ability and opportunity-reconfiguring ability. The relationships between the latent variables were then created, and 15 hypotheses were designed.

The research showed that government organizations’ ability to adapt, absorb and innovate is enhanced by using WoredaNet. The study revealed how government organizations could enhance their opportunity seizing and opportunity reconfiguring capabilities by leveraging their adaptive, absorptive and innovative capabilities. On the other hand, the findings of the study indicated that there is no significant relationship between WoredaNet usage and the microfoundations of government organizations. This could be because of the varied nature of government organizations. And hence, could be addressed by considering the same formative model on narrower segment of government organizations.

The paper contributes to digital government literature in revealing how DCs of government organizations in resource-constrained low-income countries could be assessed effectively using formative models.

Through the lens of resource-based view (RBV), knowledge-based view (KBV) and DCV, this paper aims to investigate the relationship of entrepreneurial leadership (EL) on the project success (PS) and further examines the mediating effect of knowledge infrastructure capability (KIC), knowledge-based dynamic capability (KBDC) and Big data analytic capability (BDAC).

The data were collected from 467 employees working on project in software companies. The data were evaluated using SMART-PLS, a structural equation modeling (SEM) tool.

The study revealed a significant impact of EL on the PS, the study also found the significant mediation role of KIC, KBDC and BDAC on the EL and PS relationship.

The research gives valuable insight into the effective role of EL as a contemporary leadership style in project-based firms. Also, this research is one of the first to examine knowledge-oriented dynamic capabilities (DC) as a knowledge fulcrum in project execution. These DC have been empirically proven to facilitate EL in achieving PS and support the firm in competing in an uncertain environment.

This study aims to investigate the dynamic capabilities of Indonesia’s local government internal auditors (LGIAs). LGIAs are the functional civil apparatus that is responsible for the main task of auditing local governments at the provincial, regency and municipal levels. Meanwhile, the LGIAs are also a spearhead in identifying and analysing errors, irregularities and fraudulent actions in the finance and development of local government.

The exploratory case study methodology was used, gathering insights from 18 individuals through interviews. In addition, the authors use a critical perspective of the LGIAs’ behaviours in enhancing their capabilities in compliance with the regulations. Moreover, the authors discuss the low motivation of LGIAs in terms of achievement in knowledge acquisition, a mechanistic curriculum creating a climate of low spirit, mental models in rooted ordinariness and behavioural anxiety in hierarchical systems of expertise.

This paper infers that the LGIAs reflect inertia in terms of capabilities because its curriculum, environment and organisation have pervasively changed the culture of the work environment. Consequently, although immorally convenient and practical, the LGIAs work with professional discipline and expedient behaviours. In addition, the LGIAs behave performativity, presenting task performances with undynamic capabilities. Lastly, these behaviours imply the need to enhance the LGIAs’ dynamic capabilities by structuring local governments’ adaptive environment. Hence, this adaptive environment, in turn, could facilitate LGIAs’ further being in high spirits in enhancing knowledge-based expertise.

This study firstly implies that the research findings indicate the need for environmental-, organisational- and curriculum-made transformations to change the capabilities and competencies of LGIAs in the future, facilitating them to increase assimilation-learning abilities. Furthermore, the research shows that mental models dominate LGIAs, resulting in low spirits and reluctance to develop their dynamic capabilities. The paper recommends creating a work culture where anxiety is not dominant and changing the flexibility of the professional structure for LGIAs so that they can be promoted from functional to structural officers.

LGIAs work in a cultural environment that is always structured to fulfil what the regulations require. So, this study’s first novelty is that it underlines the ordinary job practices of LGIAs and the low incentives to enhance their dynamic capabilities. Secondly, it is highlighted that the institution’s auspices do not facilitate LGIAs to advance their dynamic capabilities because of the static competency-based development curriculum. Thirdly, the research shows that the LGIAs are a civil apparatus whose employment system in Indonesia implies a no-dismissal culture and halo effect in measuring performance.

The criticality of late deliveries in transportation lies in the threat of considerable multi-level supply chain costs. This study aims to reveal the dynamic capabilities playing a facilitating role in preventing delay, thus providing timely delivery, as well as developing an understanding of how and when those capabilities are activated within the supply chain network.

An exploratory study was conducted involving 16 semi-structured expert interviews with the representatives of logistics service providers and shippers. Following an interpretive phenomenology framework, the prevention phenomenon was explained.

Findings revealed two preventive capability categories in delay prevention: (1) proactive capabilities, referring to the enabling actions planned before departure, and (2) reactive capabilities, referring to actions planned after departure. Findings pinpoint that, in addition to the proactive capabilities, reactive capabilities enabled by innovative problem-solving actions are crucial for adapting to a dynamically changing environment in prevention. Moreover, this study shows that prevention capabilities are characterized by tangible and intangible resources and integration of resources with external links which constitute a delay prevention network within a wider service ecosystem.

This study stands out with its specific focus on delay prevention capabilities and enabling actions from the perspectives of logistics service providers and shippers. The premises of the resource-based view are combined with dynamic capabilities theory, leading to a proposed time-based taxonomy of proactive and reactive capabilities in supply chains, aimed at creating value and strengthening resilience.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

The study provides evidence of how franchise businesses integrate various capabilities to renew their business and organizational know-how.

The briefing saves busy executives, strategists, and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.