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Article
Publication date: 8 February 2016

Sang M Lee and Jin Sung Rha

Developing ambidexterity as a dynamic capability is important for firms to sustain their competitive advantage. Moreover, this capability allows firms to build the resiliency to…

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Abstract

Purpose

Developing ambidexterity as a dynamic capability is important for firms to sustain their competitive advantage. Moreover, this capability allows firms to build the resiliency to mitigate enterprise risks. The purpose of this paper is to apply two main theoretical frames from the strategy literature, dynamic capabilities, and organizational ambidexterity, to supply chain management (SCM) to examine mitigation strategies for supply chain (SC) disruptions. The authors empirically investigated how the firm’s SC ambidexterity is developed through a dynamic capability-building process and how this, in turn, can mitigate the negative impact of SC disruptions and improve business performance.

Design/methodology/approach

This study conducted a field survey to answer the research questions as there exists no archival database with detailed information on ambidextrous SC strategies and dynamic capability. A total of 316 usable responses were received from managers working in the SC area. Confirmatory factor analysis and structural equation modeling were run on SPSS (version 16.0) and AMOS (version 18.0) to test the hypotheses to answer research questions.

Findings

Overall, the results of the study confirmed that a dynamic SC capability-building process is an antecedent of SC ambidexterity, and that SC ambidexterity is important to firms as it mitigate the negative impact of SC disruptions and enhance business performance. To take advantage of an ambidextrous SC, through minimizing the negative impact of SC disruptions and maximizing firm performance, firms should continually search for creative ways to satisfy new market needs and adapt to the fast changing business environment.

Originality/value

This study applied a dynamic capability-building process and ambidexterity to SCM. From the resilient SC perspective, the study found that the ability to effectively utilize existing resources and create novel strategies for problem solving plays a critical role in addressing SC disruptions.

Details

Management Decision, vol. 54 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 10 December 2018

Ju Liu

The purpose of this paper is to contextually theorise the different patterns of emerging multinational companies’ (EMNCs’) learning processes for innovation and the different…

Abstract

Purpose

The purpose of this paper is to contextually theorise the different patterns of emerging multinational companies’ (EMNCs’) learning processes for innovation and the different influences of their technology-driven FDIs (TFDIs) on the processes.

Design/methodology/approach

A comparative case study method and process tracing technique are employed to investigate how and why firms’ learning processes for innovation took place, how and why the TFDIs emerged and influenced the firms’ learning processes in different ways.

Findings

The paper identifies two different patterns of learning process for innovation (Glider model vs Helicopter model) and two different roles of the case firms’ TFDIs (accelerator vs starter) in the different contexts of their learning processes. It is found that the capability building of the domestic wind energy industry has an important influence on the case of EMNCs’ learning processes and thus on the roles of their TFDIs.

Research limitations/implications

The limitation of the paper lies in its small number of cases in a specific industry of a specific country. The two contextually identified learning models and roles of TFDIs may not be applied to other industries or other countries. Future research should investigate more cases in broader sectoral and geographic scope to test the models and also to identify new models.

Practical implications

For EMNCs, who wants to use the Helicopter model to rapidly gain production and innovation capability, cross-cultural management and integration management are crucial to practitioners. For emerging countries with ambitions to explore the global knowledge and technology pool, besides of the EMNC’s capability building, the capability building in the domestic industries should not be overlooked by policy makers.

Originality/value

The paper develops a dynamic and contextual analytical framework which helps to answer the important questions about how and under what context a TFDI emerges and influences firm’s learning process for innovation. It theorises the EMNCs’ learning process and TFDIs in the context of the development of the domestic industry. It strengthens the explanatory power of the learning-based view and adds new knowledge to the current FSA/CSA discourse in the international business literature.

Details

International Journal of Emerging Markets, vol. 14 no. 1
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 17 October 2018

Giuseppe Tattara

The purpose of this paper is to examine the process of capability building at subsidiary level and the forces preventing such process. The paper discusses and tests three…

Abstract

Purpose

The purpose of this paper is to examine the process of capability building at subsidiary level and the forces preventing such process. The paper discusses and tests three propositions governing this process.

Design/methodology/approach

This research is based on multiple case studies. A case study research is most useful when addressing issues about which little prior theory has been developed or empirical evidence collected.

Findings

Subsidiaries in Asia operate in a way substantially different from those in the West. Specifically what ways do market specificities in Asian economies serve to either inhibit or positively encourage the development of a subsidiary? What are the circumstances which could induce subsidiaries to outsource production?

Research limitations/implications

Future research should explore the regional effect on MNE subsidiary types and different flexibilities exhibited in the value chain. What are the specific aspects (macro and micro) that explain variations of business strategies at subsidiary levelboth over time and between countries?

Practical implications

Multinational enterprises (MNEs) should be aware of the strong potential for capability development at the subsidiary level. This increased awareness ought to induce consideration in MNEs about how best to encourage such know capability development and how to leverage these capabilities for a better MNE performance.

Social implications

Managers who knew the host country languages and culture, and have outward-looking attitudes, are in advantageous positions to learn about new opportunities.

Originality/value

The paper offers empirical insights into the state and drivers of subsidiary performance in Asia. Specifically it shows how neglect of external conditions can act to open people’s eyes and foster a capability-building process within subsidiaries.

Details

Multinational Business Review, vol. 26 no. 4
Type: Research Article
ISSN: 1525-383X

Keywords

Book part
Publication date: 5 November 2016

Peter Altmann

This study investigates the role of functional area-specific managerial schemas on the attempt of strategic renewal at a large medical devices developer and manufacturer during a…

Abstract

This study investigates the role of functional area-specific managerial schemas on the attempt of strategic renewal at a large medical devices developer and manufacturer during a period of high environmental dynamism. Using data from a 16-month field study on managerial work related to the strategy process, I examine how functional area managers attempted to (re)configure organizational capabilities in response to various environmental challenges. While I did not find any disagreement between functional area managers related to what those challenges were, I did find fundamental disagreements related to what capabilities the organization can muster as a response. More specifically, disagreements surfaced in relation to how these capabilities should be assembled, and ultimately acted as triggers for the contestation of existing shared frames between functional area managers. These findings add to a growing body of evidence suggesting that there exist large differences between how managers within an organization interpret what the organization is capable of, and more specifically link these differences to the organization’s ability to adapt to environmental changes by showing how they impact the assembly of new capabilities deemed necessary for a successful response.

Details

Uncertainty and Strategic Decision Making
Type: Book
ISBN: 978-1-78635-170-8

Keywords

Book part
Publication date: 25 September 2017

Xiaolan Fu, George Essegbey and Godfred Frempong

This study investigates the impact of multinational enterprises (MNEs) on economic and human development in Africa. Specific focus is placed on the local managerial capability

Abstract

This study investigates the impact of multinational enterprises (MNEs) on economic and human development in Africa. Specific focus is placed on the local managerial capability building. Capability building is an important part of the Millennium Development Goals (MDGs) framework and is considered a necessary prerequisite for achieving poverty alleviation targets. The low level of local capabilities is a well-recognized issue in Africa. The study also addresses the emerging stream of research devoted to MNEs from developing countries. Such MNEs have a different level of managerial capabilities, a different corporate culture, and different operation models compared to MNEs from developed countries. This study analyzes the industrial development of Ghana and compares cases of Chinese and European MNEs operating in this country. On the basis of multimethod analysis, we provide extensive policy implications.

Details

Multinational Enterprises and Sustainable Development
Type: Book
ISBN: 978-1-78743-163-8

Keywords

Book part
Publication date: 11 August 2005

Johan Wallin

This paper addresses the accusation that the competence perspective lacks operationalization. By evaluating the resources and competences regarded as important a categorization of…

Abstract

This paper addresses the accusation that the competence perspective lacks operationalization. By evaluating the resources and competences regarded as important a categorization of capabilities is developed. Four lower-order and three higher-order capabilities are derived inductively by analyzing the firm as an open system. Using this categorization of capabilities five cases of business model transformation are analyzed. The paper also discusses the possibilities to use this categorization for prescriptive and normative purposes and presents some preliminary ideas for further research.

Details

Competence Perspective on Managing Internal Process
Type: Book
ISBN: 978-1-84950-320-4

Article
Publication date: 5 May 2023

Nicole Böhmer and Heike Schinnenburg

Human resource management (HRM) processes are increasingly artificial intelligence (AI)-driven, and HRM supports the general digital transformation of companies' viable…

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Abstract

Purpose

Human resource management (HRM) processes are increasingly artificial intelligence (AI)-driven, and HRM supports the general digital transformation of companies' viable competitiveness. This paper points out possible positive and negative effects on HRM, workplaces and workers’ organizations along the HR processes and its potential for competitive advantage in regard to managerial decisions on AI implementation regarding augmentation and automation of work.

Design/methodology/approach

A systematic literature review that includes 62 international journals across different disciplines and contains top-tier academic and German practitioner journals was conducted. The literature analysis applies the resource-based view (RBV) as a lens through which to explore AI-driven HRM as a potential source of organizational capabilities.

Findings

The analysis shows four ambiguities for AI-driven HRM that might support sustainable company development or might prevent AI application: job design, transparency, performance and data ambiguity. A limited scholarly discussion with very few empirical studies can be stated. To date, research has mainly focused on HRM in general, recruiting and HR analytics in particular.

Research limitations/implications

The four ambiguities' context-specific potential for capability building in firms is indicated, and research avenues are developed.

Originality/value

This paper critically explores AI-driven HRM and structures context-specific potential for capability building along four ambiguities that must be addressed by HRM to strategically contribute to an organization's competitive advantage.

Details

Employee Relations: The International Journal, vol. 45 no. 5
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 14 March 2023

Jong-Seok Kim and Dongsu Seo

This study aims to predict artificial intelligence (AI) technology development and the impact of AI utilization activity on companies, to identify AI strategies dealing with the…

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Abstract

Purpose

This study aims to predict artificial intelligence (AI) technology development and the impact of AI utilization activity on companies, to identify AI strategies dealing with the broad innovation activity of AI, and to construct the strategic decision-making framework of AI strategies for a small- and medium-sized enterprise (hereafter SME), to improve strategic decision-making practices of AI strategy in SMEs.

Design/methodology/approach

This study used the multiple methods on the design of two data collection stages. The first stage is an expertise-based approach. It organized the three groups of expert panels and conducted the Delphi survey on them in combination with the brainstorming of technology, innovation and strategy in the fourth industrial revolution. The second stage is in the complement approach of expertise-based results. It used the literature review to involve the analysis of academic and practical papers, reports and audio materials relating to technology development, innovation types and strategies of AI. Additionally, it organized the four semi-structured interviews. Finally, this study used the mind-map and decision tree to conduct each analysis and synthesize each analytical result.

Findings

This study identifies the precondition and four paths of AI technological development classifying into specialized AI, AI convergence with other technologies, general AI and AI control methods. It captures the impact of non- and technological innovation through AI on companies. Second, it identifies and classifies the six types of AI strategy: the bystander, capability-building, capability-holding, management-enhancing, market-enhancing and new-market-creating strategy. By using the decision tree, it constructs the strategic decision-making framework containing six AI strategies. Actionable points, strategic priorities and relevant instruments are suggested.

Research limitations/implications

The strategic decision-making framework covering from AI technology development to utilization in a SME can help understand the strategic behaviours in SMEs. The typology of six AI strategies implies the broad innovation behaviours in SMEs. It can lead to further research to understand the pattern of strategic and innovation behaviour on AI.

Practical implications

This practical study can help executives, managers and engineers in SMEs to develop their strategic practices through the strategic decision framework and six AI strategies.

Originality/value

This practical study elicits the six types of AI strategy and constructs the strategic decision-making framework of six AI strategies from AI technology development to utilization. It can contribute to improving the practices of strategic decision-making in SMEs.

Article
Publication date: 12 February 2018

Neeraj Mittal, Renu Agarwal and Willem Selen

The purpose of this paper is to demonstrate the development of key supply chain capabilities in the Indian public sector-run liquefied petroleum gas (LPG) supply chain. This case…

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Abstract

Purpose

The purpose of this paper is to demonstrate the development of key supply chain capabilities in the Indian public sector-run liquefied petroleum gas (LPG) supply chain. This case study has relevance to emerging markets grappling with problems caused by monopolies and subsidies. Furthermore, this case study not only aims to improve operations of the LPG supply chain, but also re-designs its supply network to meet customers’ expectations. It illustrates value creation through growth in non-domestic sales, a reduction in consumption of subsidized LPG as a consequence of better understanding of customer needs and customer diversity, process re-engineering and deployment of ICT systems, and change management and capability building across various LPG stakeholders.

Design/methodology/approach

An interpretive research methodology is applied, using an illustrative single case study of the Indian public sector-run LPG supply chain. The research methodology is iterative and exploratory in nature, consisting of a back and forth process between extant literature and the field, as well as in-depth discussions/interviews with senior management, distributors, and consumers.

Findings

Key supply chain capabilities of an integrated and seamless ICT system, detection and blocking of duplicate/ghost connections, the capping of entitlements, and coordination and collaboration across various stakeholders result in value creation for all stakeholders. When such collaboration across stakeholders’ spans both vertically and horizontally through the supply chain, change management and capability building drive value creation through policy interventions and initiatives.

Practical implications

This study provides an illustrative example of meeting customers’ expectations, increasing consumer convenience, and improving service levels, amidst the complex subsidy challenges in LPG distribution in India. The economic and environmental benefits, as well as increased customer satisfaction, from policy interventions regarding value creation in supply chains, have implications for similar public sector-run schemes.

Social implications

As a result of the various policy changes, the LPG subsidy was restricted to legitimate customers, reducing the fiscal burden on the Indian Government. Furthermore, seamless ICT-introduced efficiencies for government, distributers, and customers were attained.

Originality/value

This research articulates the capture, creation, and appropriation of value through the deployment of new supply chain initiatives in a large, complex environment, in particular the public sector-run LPG supply chain.

Details

The International Journal of Logistics Management, vol. 29 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 1 February 2010

Rossitza Rousseva

Software development activities have been identified as a ‘window of opportunity’ for latecomer companies. Based on a critical literature review, this paper argues that studies…

Abstract

Software development activities have been identified as a ‘window of opportunity’ for latecomer companies. Based on a critical literature review, this paper argues that studies are yet to scrutinise the exact nature and extent of the capabilities, which the latecomer companies have been able to develop. The main proposition advanced by this research is that the analyses need to investigate the technological capabilities, which the latecomer companies have been able to accumulate. This study outlines the specifics in analysing technological capabilities in latecomer software companies and improves our understanding about the complexity in developing software industries in latecomer context.

Details

World Journal of Science, Technology and Sustainable Development, vol. 7 no. 1
Type: Research Article
ISSN: 2042-5945

Keywords

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