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Article
Publication date: 15 April 2024

Taewoo Roh, Byung Il Park and Shufeng (Simon) Xiao

This study aims to explore how subsidiary capabilities collectively configure for performance. Additionally, it seeks to examine whether these configurations of capabilities can…

Abstract

Purpose

This study aims to explore how subsidiary capabilities collectively configure for performance. Additionally, it seeks to examine whether these configurations of capabilities can provide equifinal solutions through developing a comprehensive research framework that focuses on subsidiaries in China.

Design/methodology/approach

With a data set collected through a questionnaire from 172 Korean multinational enterprises (MNEs) in China, this study used a fuzzy-set qualitative comparative analysis to detect the capability conditions and configurations. These configurations represent combinations of various subsidiary capabilities linked to high performance.

Findings

This study identified several complex pathways with distinct configurations for high subsidiary performance. The findings demonstrate the importance of configurations over individual conditions. Thus, the results highlight that the effectiveness of diverse capabilities, which are widely believed to singularly contribute to the high performance of MNE subsidiaries, depends on how each combines with other capabilities. Overall, the findings provide a richer and fine-grained understanding of the role and relative importance of various forms of MNE subsidiary capabilities and how the joint effect of these subsidiaries contributes to high performance.

Practical implications

This study suggests that MNE managers should comprehensively understand how subsidiary capabilities are configured to produce subsidiary performance outcomes. This specifically illustrates the importance of understanding the mutually conflicting yet collectively exhaustive results of multi-selective solutions and aims to align with China’s industrial and regional heterogeneity.

Originality/value

By examining the role of MNE subsidiary capability configurations, which may collectively influence the subsidiary’s performance, this study contributes to the literature. It elucidates how MNE subsidiaries may achieve superior performance by developing and possessing various capabilities tailored to the local context.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 25 April 2008

Jagjit Singh Srai and Mike Gregory

The purpose of this paper is to explore the impact of configuration on supply network capability. It was believed that a configuration perspective might provide new insights on…

9277

Abstract

Purpose

The purpose of this paper is to explore the impact of configuration on supply network capability. It was believed that a configuration perspective might provide new insights on the capability and performance of supply networks, a gap in the literature, and provide a basis for the development of tools to aid their analysis and design.

Design/methodology/approach

The methodology involved the development of a configuration definition and mapping approach extending established strategic and firm level constructs to the network operational level. The resulting tools were tested and refined in a series of case studies across a range of sectors and value chain models. Supply network capability assessments, from the perspective of the focal firm, were then compared with their configuration profiles.

Findings

The configuration mapping tools were found to give new insights into the structure of supply networks and allow comparisons to be made across sectors and business models through the use of consistent and quantitative methods and common presentation. They provide the foundations for linking configuration to capability and performance, and contribute to supply network design and development by highlighting the intrinsic capabilities associated with different configurations.

Research limitations/implications

Although multiple case networks have been investigated, the configuration exemplars remain suggestive models. The research suggests that a re‐evaluation of operational process excellence models is needed, where the link between process maturity and performance may require a configuration context.

Practical implications

Advantages of particular configurations have been identified with implications for supply network development and industrial policy.

Originality/value

The paper seeks to develop established strategic management configuration concepts to the analysis and design of supply networks by providing a robust operational definition of supply network configuration and novel tools for their mapping and assessment.

Details

International Journal of Operations & Production Management, vol. 28 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 14 February 2022

Laura Cristina Cordero Páez, José Carlos Pinho and Christiane Prange

Dynamic capabilities (DCs) upgrade operational capabilities. However, DC dimensions of sensing, seizing and reconfiguring may combine in different configurations that result in…

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.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 4
Type: Research Article
ISSN: 1355-2554

Keywords

Open Access
Article
Publication date: 20 August 2020

Lauri Haapanen, Pia Hurmelinna-Laukkanen and Kaisu Puumalainen

In this study, the authors explore how sensing and seizing of market opportunities, asset reconfiguration and top management team (TMT) consensus on these elements jointly relate…

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Abstract

Purpose

In this study, the authors explore how sensing and seizing of market opportunities, asset reconfiguration and top management team (TMT) consensus on these elements jointly relate to a firm's international expansion. By doing this, the authors contribute to the existing literature by addressing dynamic managerial capabilities at the TMT level instead of considering them as individual executives' traits. The authors use the qualitative comparative analysis (QCA) method to analyze our data from 261 TMT executives in 63 firms. The findings indicate that sensing, seizing and reconfiguration capabilities are highly relevant for internationalization but in different configurations for specific stages and elements of international business. Presence of sensing as a part of configurations is observable, especially in connection to a firm having foreign customers and explicit internationalization strategies, while configurations where seizing and reconfiguration emerge are connected to firms showing continuity in the international markets. The authors’ results also indicate that a lack of TMT consensus in connection to dynamic managerial capabilities is a driving force that allows the firm not to stagnate with regards to internationalization. Yet, lack of TMT consensus combined with low reconfiguration capabilities seems to generate negative results, which suggests that different views are not helpful if the firm is incapable of changing its approaches.

Design/methodology/approach

This study uses data gathered with a questionnaire where the executives select either “yes” or “no” in response to statements describing the firm situation with regard different managerial aspects and progress of international growth. The authors analyze these data from 261 TMT executives from 63 firms using the QCA method.

Findings

The findings indicate that sensing, seizing and reconfiguration capabilities are highly relevant for internationalization but to different extents for specific elements of international business; generally, while sensing is needed, in particular, for having foreign customers and internationalization strategies in the first place, seizing and reconfiguration became relevant for continuity in the international markets. Consensus or rather lack of it on these elements also plays a role. It seems that some disagreement is a driving force that allows the firm not to stagnate with regards to internationalization. However, TMT disagreement combined with low reconfiguration capabilities seems to generate negative results, which suggests that different views are not helpful if the firm is incapable of changing its approaches.

Research limitations/implications

The findings contribute to existing knowledge by exploring how managerial capabilities influence firm-level dynamic capabilities from the point of view of the TMT. The authors also add to existing research that has often focused on the relationships between TMT executives' demographic traits and TMT consensus and, further, the (subsequent) firm performance by looking at different configuration rather than linear linkages. Together, these notions further mean that the authors change the point of view on diversity. The authors consider the consensus on existing managerial dynamic capabilities rather than evaluate the functional diversity or the TMT executives' agreement on strategic moves.

Practical implications

All capabilities are important. TMT does not need to agree on everything, as long as they acknowledge where their problem areas are, and they can capture at least some of the relevant trends and opportunities. In fact, having some lack of consensus seems to be a driving force that allows capabilities to be questioned and potentially keeps (false) under-appreciation of existing capabilities from becoming a barrier to international expansion.

Originality/value

Unlike previous studies that have focused on the relationship between the TMT executives' demographic characteristics and firm performance or the relationship of the demographics and TMT strategic consensus at a general level – or studies that have explained international performance with TMT consensus (or with dynamic managerial capabilities), this study brings forth how the dynamic managerial capabilities and the TMT executives' strategic consensus with regard to these capabilities influence the firm's international expansion. Here, the authors consider internationalization widely, looking at whether the firm has foreign customers or international expansion strategy in place, and whether there this activity is sustained and continuous (with repeated trading and long-term international contracts, in particular). To our knowledge, there is no research on TMT strategic consensus that explains how the unanimity among executives on dynamic managerial capabilities connects to the firm's international expansion.

Details

Cross Cultural & Strategic Management, vol. 27 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

Open Access
Article
Publication date: 10 March 2023

Huda Khan, Ahmad Arslan, Lauri Haapanen, Peter Rodgers and Shlomo Yedidia Tarba

Applying both the dynamic capability and configuration theoretical perspectives, the paper showcases the role of network configuration and dynamics of hybrid offerings in both…

Abstract

Purpose

Applying both the dynamic capability and configuration theoretical perspectives, the paper showcases the role of network configuration and dynamics of hybrid offerings in both developed and emerging markets by high-tech firms.

Design/methodology/approach

The current paper uses an exploratory qualitative research methodology based on in-depth case studies of three Finnish high-tech firms operating in the medical technology industry globally.

Findings

The findings from the study showed that dynamic capabilities such as sensing and customer engagement along with internal coordination and adaptation capabilities are critical to the success of hybrid market offerings. Moreover, dynamic capabilities were found to be influential in those emerging and advanced international markets where case firms were less familiar with market dynamics. Moreover, the configuration of these capabilities within functional units and coordination of marketing and R&D activities can be effective for creating hybrid offerings in international markets. Ultimately, this was found to be the case even though target market selection for hybrid offerings was influenced by the level of convergence and fragmentation of the market.

Originality/value

Applying the configuration theory, this is one of the first studies to specifically analyze the differences in organizational network configuration changes in relation to hybrid market offerings in both developed economies and emerging economies. The findings contribute to hybrid market offering literature by pointing out that not only internal capabilities are important for enacting hybrid offerings, but the roles of ecosystems and knowledge centers are also extremely important to develop hybrid offerings. This paper also highlights the criticality of under-studied dynamic capabilities such as market sensing and customer engagement in the context of hybrid offerings in international markets. This showcases the wider role of ecosystems in enabling technology firms to develop hybrid offerings.

Details

International Marketing Review, vol. 40 no. 4
Type: Research Article
ISSN: 0265-1335

Keywords

Book part
Publication date: 9 August 2017

François L’Écuyer and Louis Raymond

This study aims to explore the relationship between IT and HRM in the context of manufacturing SMEs, more specifically the relationship between strategic HRM and e-HRM as well as…

Abstract

Purpose

This study aims to explore the relationship between IT and HRM in the context of manufacturing SMEs, more specifically the relationship between strategic HRM and e-HRM as well as the performance effects of this relationship. The conceptual framework is founded upon the resource-based view (RBV), specifically upon the strategic HRM and e-HRM capabilities of SMEs and upon the strategic alignment of these capabilities in the form of capability configurations or “gestalts.”

Methodology/approach

To answer the research questions, a questionnaire was constructed and mailed to 1854 manufacturing SMEs in the province of Quebec, Canada, producing 216 valid responses that were used for statistical analysis purposes. Capability configurations were identified through a cluster analysis of the e-HRM and strategic HRM capabilities developed by these firms.

Findings

Using structural equation modeling to validate the research model, a causal analysis confirmed a positive influence of the sampled SMEs’ strategic orientation upon their development of strategic HRM capabilities. More importantly, a higher level of alignment between the SMEs’ strategic HRM and e-HRM capabilities was associated to a higher level of strategic HRM performance.

Originality/value

To our knowledge, ours is the first study to show interest in the effect of the strategic alignment of HRM and IT capabilities upon HRM performance, by adopting a configurational perspective and considering organizational IT from a functional point of view. Given the specific context of SMEs, the focus was on e-HRM capabilities related to the IT infrastructure of these organizations and the IT competencies of individuals related to HRM.

Details

Electronic HRM in the Smart Era
Type: Book
ISBN: 978-1-78714-315-9

Keywords

Article
Publication date: 29 April 2021

Philipp Richter

The purpose of this paper is to explore the configurations of shared service center (SSC) characteristics, their performance implications and the dynamics of SSC configurations

Abstract

Purpose

The purpose of this paper is to explore the configurations of shared service center (SSC) characteristics, their performance implications and the dynamics of SSC configurations during their implementation.

Design/methodology/approach

This study uses the capability-based view and configurational approach to suggest a model that explains performance outcomes of shared service configurations. Survey data are analyzed with a cluster analysis to examine shared service configurations in distinct stages of implementation. Moreover, a lifecycle framework of shared service configurations is conceptualized.

Findings

This study considers shared service configurations as operational capabilities to run corporate support activities. The purpose is to examine the configurations of those capabilities, their performance implications and their dynamics during the shared service implementation.

Practical implications

The findings help senior executives to effectively implement and transform shared services when deciding to renew corporates' support activities.

Originality/value

This study is one of the first that conceptually and empirically explores shared service configurations, performance and configurational dynamics.

Details

Baltic Journal of Management, vol. 16 no. 4
Type: Research Article
ISSN: 1746-5265

Keywords

Book part
Publication date: 15 August 2019

Gábor Nagy, Carol M. Megehee and Arch G. Woodside

Firm’s operating contexts and asymmetric perspectives of success versus failure outcomes are two essential features typically absent in research on firms’ implemented strategies…

Abstract

Firm’s operating contexts and asymmetric perspectives of success versus failure outcomes are two essential features typically absent in research on firms’ implemented strategies. The study here describes and provides examples of formal case-based models (i.e., constructing algorithms) of firms implemented strategies within several of 81 potential context (task environments) configurations – large vs small, service vs production orientation, low vs high competitive intensity, low vs high technological turbulence, and ambiguous settings for each. The study applies the tenets of complexity theory (e.g., equifinality, causal asymmetry, and single causal insufficiency). The study proposes a meso-theory and empirical testing position for solving “the crucial problem in strategic management” (Powell, Lovallo, & Fox, 2011, p. 1370) – firm heterogeneity – why firms adopt different strategies and structures, why heterogeneity persists, and why competitors perform differently. A workable solution is to identify/describe implemented executive capability strategies that identify firms in alternative specific task environments which are consistently accurate in predicting success (or failure) of all firms for specific implemented capabilities/context configuration. The study shows how researchers can perform “statistical sameness testing” and avoid the telling weaknesses and “corrupt practices” of symmetric tests such as multiple regression analysis (Hubbard, 2015) including null hypothesis significance testing. The study includes testing the research issues using survey responses of 405 CEO and chief marketing officers in 405 Hungarian firms. The study describes algorithms indicating success cases (firms) as well as failure cases via deductive, inductive, and abductive fuzzy-set logic of capabilities in context solutions.

Details

New Insights on Trust in Business-to-Business Relationships
Type: Book
ISBN: 978-1-83867-063-4

Keywords

Article
Publication date: 1 July 2005

Raffaella Cagliano, Nuran Acur and Harry Boer

The paper aims to address the question of how and how often companies change their manufacturing strategy in the medium and long run, thus addressing a lack of evidence in the…

2784

Abstract

Purpose

The paper aims to address the question of how and how often companies change their manufacturing strategy in the medium and long run, thus addressing a lack of evidence in the literature.

Design/methodology/approach

This paper explores the movements made by companies among four manufacturing strategy configurations drawn from the literature (market‐based, product‐based, capability‐based and price‐based configuration). Analyses are based on three longitudinal samples from the International Manufacturing Strategy Survey (IMSS) database.

Findings

Results show that while strategic configurations are rather stable, many companies do indeed change strategy and identifies which patterns of change prevail. Product‐based strategy is the most‐widely spread and most stable strategy. Capability‐based competition is the rising star. The market‐based strategy is struggling and price‐based competition is on its way out.

Research limitations/implications

The main limitation is the small size of longitudinal samples, leading to tentative propositions for further testing.

Practical implications

No strategic configuration appears to be the final “maturity” target for manufacturers. Companies select their configurations according to life cycle of the organization and market competition.

Originality/value

The paper contributes to fill a lack of longitudinal evidence of strategic change and flexibility of manufacturing companies.

Details

International Journal of Operations & Production Management, vol. 25 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 2 February 2015

Annachiara Longoni and Raffaella Cagliano

Environmental and social sustainability are becoming key competitive priorities for companies, but the way in which they are integrated in operations strategies remains an open…

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Abstract

Purpose

Environmental and social sustainability are becoming key competitive priorities for companies, but the way in which they are integrated in operations strategies remains an open issue. The purpose of this paper is to determine whether established operations strategy configuration models (i.e. price-oriented, market-oriented and capability-oriented models) are modified to include environmental and social priorities and whether different operations strategy configuration models are equally successful in the short and long term.

Design/methodology/approach

Analyses were performed using data from the International Manufacturing Strategy Survey (2009), including companies in the assembly industry in 21 different countries. According to previous studies, cluster analysis of competitive priorities and ANOVA analysis of the business strategy and short- and long-term performance were performed.

Findings

The results show that traditional operations strategy configuration models are slightly modified. Market-oriented and capability-oriented operations strategies are complemented by environmental and social sustainability priorities. These operations strategies are adopted by companies with a differentiation and innovation business strategy. Moreover, capability-oriented companies, which are the most committed to environmental and social sustainability, perform better in both the short and long term.

Practical implications

This research shows to companies that traditional operations strategies focusing on specific competitive priorities (e.g. low price) are being replaced by more holistic strategies that include sustainability priorities. However, environmental and social priorities contribute to competitive advantage when complementing capability-oriented operations strategies.

Originality/value

This paper extends operations strategy configuration models highlighting how environmental and social sustainability priorities can be deployed together with traditional competitive operations priorities.

Details

International Journal of Operations & Production Management, vol. 35 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

1 – 10 of over 24000