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Article
Publication date: 17 November 2020

Ricardo Jorge Correia, José G. Dias and Mário Sérgio Teixeira

This paper aims to explore a new causal link between market orientation and business performance by introducing dynamic capabilities as a mediator of the relationship…

Abstract

Purpose

This paper aims to explore a new causal link between market orientation and business performance by introducing dynamic capabilities as a mediator of the relationship between market orientation and competitive advantages, which ultimately determine business performance.

Design/methodology/approach

The mediating roles of dynamic capabilities and competitive advantages are tested with a sample of 1,190 Portuguese firms using a structural equation model.

Findings

The results confirm the hypotheses regarding the mediating roles of the competitive advantages (differentiation and cost leadership) in the relationship between dynamic capabilities and business performance. Additionally, dynamic capabilities also mediate the relationship between market orientation and competitive advantages.

Practical implications

This study shows that business performance depends on the capacity of firms to collect the best market information on customers and competitors, to disseminate this information throughout their internal structure and ultimately optimize its use to respond appropriately to market challenges and trends. These will provide firms with a set of capabilities and a competitive advantage.

Originality/value

This study provides empirical evidence on the understanding of the relationship between market orientation and performance, through the mediating effects of both dynamic capabilities and competitive advantages.

Details

Journal of Strategy and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-425X

Keywords

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Article
Publication date: 15 August 2008

David A.S. Chew, Shigang Yan and Charles Y.J. Cheah

The purpose of this paper is to examine the relationship between a number of variables pertaining to core capability, competitive strategy and performance of construction…

Abstract

Purpose

The purpose of this paper is to examine the relationship between a number of variables pertaining to core capability, competitive strategy and performance of construction small to medium size enterprises (SMEs) in China.

Design/methodology/approach

The paper consists of a quantitative survey. It involves mainly the development of instrument and testing of the hypotheses.

Findings

Core capability and competitive strategy are found to influence construction SMEs' performance. Moreover, there are positive relationships between core capability and competitive strategy. This suggests a need to align core capability and competitive strategy as a precondition for superior performance.

Research limitations/implications

The paper has limitations as a result of data collection. A somewhat larger sample would obviously permit firmer conclusions to be drawn from the results of the statistical analysis.

Originality/value

This paper will contribute to the literature on SMEs, strategic management and resource‐based theory. This integration of scope is particularly new to the context of the Chinese construction industry. Similarly, this research will have implications for practice. The research findings help SMEs' managers to understand the impact of the unique resources of their enterprises and competitive strategy.

Details

Chinese Management Studies, vol. 2 no. 3
Type: Research Article
ISSN: 1750-614X

Keywords

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Article
Publication date: 6 September 2011

George M. Giaglis and Konstantinos G. Fouskas

The purpose of this paper is to study the impact of managerial perceptions regarding the competitive environment and organizational capabilities on the way firms respond…

Abstract

Purpose

The purpose of this paper is to study the impact of managerial perceptions regarding the competitive environment and organizational capabilities on the way firms respond to their rivals' competitive actions.

Design/methodology/approach

The authors draw on competitive dynamics theory to develop a model that is empirically tested in 174 firms from 22 manufacturing, trade and service sectors in Greece.

Findings

The results show an association between managerial perceptions on the one hand and the innovativeness and breadth of competitive responses on the other. More specifically, perceptions of competition intensity, substitution threats and increased buyer powers are associated with broader and more innovative competitive reactions. Similarly, perceptions of strong internal, mediating (managerial) and external (market sensing) capabilities also affect the breadth and innovativeness of competitive responses.

Originality/value

Further to advancing theory in competitive dynamics, the authors contribute to a deeper understanding of the drivers of competitive retaliation that managers can use to anticipate their rivals' retaliation schemes when initiating competitive actions.

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Article
Publication date: 4 July 2016

Chinho Lin and Hua-Ling Tsai

The purpose of this paper is to propose a quantitative model to help managers diagnose what dynamic capabilities a firm needs to address the demands of a rapidly changing…

Abstract

Purpose

The purpose of this paper is to propose a quantitative model to help managers diagnose what dynamic capabilities a firm needs to address the demands of a rapidly changing environment.

Design/methodology/approach

A two-firm model based on the VRIO framework is built using quantitative techniques to assist top management in formulating and implementing strategies regarding when and how to develop a firm’s dynamic capabilities for achieving a competitive advantage. This model is developed by considering both internal and external competences, with the former measured by the features of the organizational capabilities of the focal firm and latter evaluated by comparing the relative utilities of the dynamic capabilities of the two competing firms.

Findings

Three resource allocation strategies are introduced to guide a firm to leverage dynamic capability that generates strong organizational performance. The first two strategies are, respectively, synergy oriented, focussing on acquiring various knowledge or experiences of a capability, and uniqueness oriented, emphasizing the depth of knowledge and technology of the capabilities. The third one is a hybrid of the first two strategies.

Originality/value

The proposed model is useful to help top management determine how and when to renew, bundle, and leverage resources and capabilities in a dynamic environment. It enables decision makers to detect changes in the competitive environment and take corrective action in a timely and appropriate manner.

Details

Baltic Journal of Management, vol. 11 no. 3
Type: Research Article
ISSN: 1746-5265

Keywords

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Article
Publication date: 23 November 2020

Mantas Vilkas, Inga Stankevice and Rimantas Rauleckas

Cumulative capability models are dominating frameworks explaining how manufacturing organizations gain their performance capabilities, such as quality, delivery…

Abstract

Purpose

Cumulative capability models are dominating frameworks explaining how manufacturing organizations gain their performance capabilities, such as quality, delivery, flexibility and cost. When innovation capabilities are excluded from the framework, the models are incapable of explaining how companies sustain substantive capabilities in a changing environment. Responding to this gap, the purpose of this paper is to propose and test a “sand cone” cumulative capability model that includes the innovation competitive performance alongside the competitive performance of quality, delivery flexibility and cost.

Design/methodology/approach

Two competing cumulative models were proposed. The extended cumulative capability model hypothesizes the development of innovation in sequence with other competitive performance dimensions. The affected with innovation cumulative model hypothesizes innovation performance as a predecessor of other performance dimensions. The models were tested using a multimethod approach on a representative sample of 500 manufacturing companies. An analysis of correlations among competitive performance, frequencies of plants following prescribed sequences, fit statistics of covariance-based structural equation modeling and analysis of strength and statistical significance of path coefficients enabled us to select a model that best represents the collected data.

Findings

The findings reveal that innovation competitive performance operates as a predecessor of quality, delivery, flexibility and cost and is developed in relation to these performance dimensions. The modified model also provides a theoretical explanation of how innovation performance helps to sustain reliable production systems that can perform consistently over time within a tolerable range of quality, delivery, flexibility and cost performance.

Practical implications

The results are significant for practitioners, especially for companies that are operating in volatile environments because the results provide insight on how to develop innovation competitive performance in relation to quality, delivery, flexibility and cost performance.

Originality/value

This study extends the cumulative capability models with innovation competitive performance. It advances the contingency approach on cumulative capability models.

Details

International Journal of Quality & Reliability Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-671X

Keywords

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Article
Publication date: 31 March 2020

Mona Rashidirad and Hamid Salimian

The purpose of this research is to explicate the role of dynamic capabilities in the ability of small- and medium-sized enterprises (SMEs) to create value and also…

Abstract

Purpose

The purpose of this research is to explicate the role of dynamic capabilities in the ability of small- and medium-sized enterprises (SMEs) to create value and also investigate the relationship among different dynamic capabilities, competitive strategy and SMEs’ value sources.

Design/methodology/approach

Empirical evidence based on a survey conducted on a sample of 441 UK-based SMEs was used to test the research hypotheses.

Findings

The findings illustrate that sensing, learning, integrating and coordinating capabilities play a significant role in SMEs’ value creation, and competitive strategy mediates the impact of dynamic capabilities on value creation.

Research limitations/implications

This study demonstrates the benefits of understanding the relationship among the four types of dynamic capabilities, competitive strategy and value creation. Moreover, this study contributes to the notion of the contingency nature of dynamic capabilities.

Practical implications

It offers managers insight into the aspects on which to focus their efforts to enhance their firm’s capacity of value creation.

Originality/value

While much of the prior studies have conceptually/qualitatively investigated the financial return of uni-dimensional dynamic capabilities of large firms in the manufacturing sector, this study made a significant effort to quantitatively examine the non-financial value potential of SMEs in service sector through four processes of dynamic capabilities.

Details

European Business Review, vol. 32 no. 4
Type: Research Article
ISSN: 0955-534X

Keywords

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Article
Publication date: 22 October 2019

Hakim Lyngstadaas

This paper aims to examine how information sharing affects cash flow performance through the competitive capabilities of low cost or product quality.

Abstract

Purpose

This paper aims to examine how information sharing affects cash flow performance through the competitive capabilities of low cost or product quality.

Design/methodology/approach

In total, 159 survey responses were collected from Norwegian manufacturing firms in 2018. Structural equation modelling (SEM) was used to analyse the data collected.

Findings

The low-cost competitive capability was found to positively mediate the effect of information sharing on cash flow performance. However, product quality competitive capability did not have a significant mediating effect between information sharing and cash flow performance. Rather, customer satisfaction fully mediated the relationship between product quality, capability and cash flow performance. The empirical results not only support how the competitive capabilities can be developed through information sharing but also illustrate that the competitive capabilities affect cash flow performance through different mediating routes.

Originality/value

While information sharing and competitive capabilities have been studied previously with regard to financial performance, less emphasis has been placed on how customer satisfaction might explain the mediated relationship between product quality, competitive capability and financial performance. In addition, financial performance is measured by the proxy of cash flow. The use of cash flow as a performance measure leads to a more forward-looking financial performance measure. This is especially appropriate for non-listed firms.

Details

Supply Chain Management: An International Journal, vol. 24 no. 6
Type: Research Article
ISSN: 1359-8546

Keywords

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Article
Publication date: 5 August 2019

Dilnaz Muneeb, Kok Wei Khong, Christine Ennew and Mohan Avvari

The purpose of this paper is to provide insights into the overarching role of learning capabilities by presenting a framework to describe how learning capability

Abstract

Purpose

The purpose of this paper is to provide insights into the overarching role of learning capabilities by presenting a framework to describe how learning capability development is captured by combining the three main elements of internal marketing orientation, exploratory capabilities and resource recombination.

Design/methodology/approach

This is a conceptual paper building upon the theoretical integration approach of Mayer and Sparrowe (2013) to establish competitive empowerment through learning capability development, effective internal response and resources recombination.

Findings

The competitive learning capability model provides a firm’s foundation for theorizing organizational competitive models from an internal perspective, by mastering learning capability development at the centre of the model.

Research limitations/implications

The paper emphasizes the competitive connotation of learning capabilities as a construct in strategic management. It shows the underlying role of learning across organizational processes; hence, its theoretical significance through the learning capabilities model.

Practical implications

This paper argues that learning is at the centre of organizational competitiveness. Firms can achieve more fruitful results by continuously implementing resource integration strategies built on their learned experiences.

Originality/value

The principal significance of this paper lies in the achievement of conceptualizing learning from a strategic management perspective. Insight in this area helps bridge organizational efforts in pursuit of competitive advantage by exploiting key core learning competencies embedded in a firm’s resources and capabilities.

Details

Asia-Pacific Journal of Business Administration, vol. 11 no. 3
Type: Research Article
ISSN: 1757-4323

Keywords

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Article
Publication date: 8 February 2016

Maryam Hemmati, Davood Feiz, Mohammad Reza Jalilvand and Iman Kholghi

This paper aims to develop a framework for competitive advantage by systematic quantitative methodology based on resource-based view and dynamic capability theory…

Abstract

Purpose

This paper aims to develop a framework for competitive advantage by systematic quantitative methodology based on resource-based view and dynamic capability theory. Strategic agility was used as a dynamic capability.

Design/methodology/approach

Data were collected from a survey aimed at manufacturing companies from five manufacturing industry in Semnan, Iran. A total of 102 questionnaires were received from 13 companies using convenience sampling. Fuzzy two-stage data envelopment analysis model (DEA) was used to analyse the data collected.

Findings

The results indicate that there is close internal relationship among firm resources, strategic agility and competitive advantage, and their inherent relationship makes constant returns to scale (CRS) scores closer to 1. In most of the companies, the second process which transforms strategic agility to competitive advantage is the main cause for unsatisfactory performance in gaining competitive advantage.

Originality/value

The innovation of this paper is in its model and method. There is no research has been ever done on the relationship among firm resources, strategic agility and competitive advantage. Moreover, to obtain a competitive advantage structure, DEA technique was adopted which is a new approach in this area.

Details

Journal of Modelling in Management, vol. 11 no. 1
Type: Research Article
ISSN: 1746-5664

Keywords

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Article
Publication date: 9 February 2015

Qun Tan and Carlos M.P. Sousa

By using the dynamic capabilities (DC) theory and the theory of competitive advantage, the purpose of this paper is to develop a framework to investigate the role of…

Abstract

Purpose

By using the dynamic capabilities (DC) theory and the theory of competitive advantage, the purpose of this paper is to develop a framework to investigate the role of marketing capabilities on the firm’s export performance. Specifically, this framework depicts the consequences of marketing capabilities and focuses on the relationships among marketing capabilities, competitive advantage, and export performance.

Design/methodology/approach

The authors conduct a meta-analysis of the literature on marketing capabilities and use multivariate analyses to test the framework.

Findings

The study revealed that competitive advantage has an important mediating role in the relationship between marketing capabilities and export performance. Specifically, the authors found that two types of competitive advantage (i.e. low-cost advantage and differentiation advantage) positively mediate the effect of marketing capabilities on export performance.

Originality/value

Although research on marketing capabilities is still in its early infancy, the study provides a base from which future work can be developed. The authors also contribute to the literature by examining the mediating role of competitive advantage in the marketing capability-export performance relationship, thereby offering new insights into how and why marketing capabilities play a crucial role in explaining the firm’s export performance.

Details

International Marketing Review, vol. 32 no. 1
Type: Research Article
ISSN: 0265-1335

Keywords

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