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The purpose of this study is to explore the dynamic capabilities required of information technology (IT) entrepreneurs for facing globalized challenges.
Abstract
Purpose
The purpose of this study is to explore the dynamic capabilities required of information technology (IT) entrepreneurs for facing globalized challenges.
Design/methodology/approach
Using a methodological approach that combines Q‐technique and questionnaire survey, the author collected 98 statements obtained from interviewing ten IT entrepreneurs. A total of 44 out of 98 critical statements were extracted as Q‐samples based on purposive sampling. Subsequently, 20 experts used Q‐technique in terms of the sample the 44 statements to generate a revised questionnaire to investigate 500 Taiwan IT‐based companies.
Findings
According to the responses of the 281 valid copies of questionnaire received, market‐oriented sensitivity, the ability to absorb knowledge, social‐networking capability, and the integrative ability to communicate and negotiate are the dynamic capabilities required of IT entrepreneurs.
Research limitations/implications
As for the restrictions, the expansive nature of the IT industry prevented the author from addressing any specific sector of the industry, and no minimum capitalisation of IT companies was set for the sample‐collecting process.
Practical implications
The results can be used by IT entrepreneurs of SMEs in the self‐assessment of capabilities and the development of dynamic capabilities during their start‐up and growth phases. They can also be applied to nurturing successors and cultivating new entrepreneurs.
Originality/value
This study clarifies the intrinsic dynamic capabilities of IT entrepreneurs, and identifies the required components of such capabilities and their priorities. The results can be used in managerial decision‐making and personnel training, both of which help entrepreneurs in building competitive advantages.
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Nader Seyed Kalali and Ali Heidari
The purpose of this paper is to study the process in which dynamic capabilities renewed operational capabilities to sustain competitive advantage in management consulting firms of…
Abstract
Purpose
The purpose of this paper is to study the process in which dynamic capabilities renewed operational capabilities to sustain competitive advantage in management consulting firms of Iran during a period of drastic environmental changes.
Design/methodology/approach
Using a grounded theory building approach, comparative longitudinal case analyses were conducted in consultancies of Iran. The research was based on a deep study of documents, observations and interviews with managers and employees of 14 consulting firms.
Findings
It was found that during a period of environmental changes there was a relationship between dynamic capabilities and competitive advantage, but this relationship was mediated by the role of marketing and technological capabilities of a firm. It was also found that trust-building capabilities of the consulting firms moderate the relationship between dynamic and operational capabilities. The research explores homogeneity and heterogeneity of dynamic capabilities among consultancies too.
Originality/value
This research shows that under changing environmental conditions, dynamic capabilities of consultancies can become a source of competitive advantage. Moreover, it discusses whether dynamic capabilities are idiosyncratic or are best practices. It also explains the role of trust-building capabilities of consulting firms in moderating the relationship between dynamic and operational capabilities in the particular environment of Iran.
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Within the context of an open innovation business environment, the frequent interaction and coordination activities among heterogeneous partners have a significant impact on…
Abstract
Purpose
Within the context of an open innovation business environment, the frequent interaction and coordination activities among heterogeneous partners have a significant impact on enterprises' business model. Nevertheless, fewer empirical research has been made to explore how to match external partners and update organizational dynamic capabilities at an ecosystem level. Therefore, this paper attempts not only to investigate the direct impact of partner match on different business model innovation (BMI) themes (efficiency-centered BMI and novelty-centered BMI) but only to shed light on the pivotal mediating role of interfirm dynamic capabilities.
Design/methodology/approach
This paper utilized the methodology of Partial Least Squares Structural Equation Modeling (PLS-SEM) to investigate the impact of diverse partner selection criteria and interfirm dynamic capabilities on two distinctive themes of BMI. More than 20 industry clusters with multiple industries were selected as representatives of the creative ecosystem, predominantly from the Yangtze River Delta region. Valid data were collected from 254 managers by both online questionnaires and offline interviews.
Findings
The findings of the study show that different partner match criteria have distinct direct impacts on BMI themes. Partner complementary and partner synergy, deriving from the “task-related criteria”, are significantly correlated with both EBMI and NBMI. Conversely, partner compatibility, deriving from “Partnering-related Criteria”, shows a positive correlation with EBMI but not NBMI. Furthermore, compare the indirect effect on EBMI, the paper’ results demonstrate interfirm dynamic capabilities as mediator can more maximize external benefits to promote NBMI.
Practical implications
The study findings effectively help enterprises implement different BMI themes. From a management perspective, whether pursuing EBMI or NBMI, enterprises should consciously seek partners who can provide complementary support or share mutual goals across diverse industries. This strategic approach can significantly enhance the opportunities for sustainable and innovative business development. Furthermore, to successfully accomplish NBMI, enterprises must cultivate interfirm dynamic capabilities encompassing a comprehensive range of cross-organizational innovation capacities, such as bolstering organizational learning capability, establishing interactive network platforms to enhance coordination capabilities and engaging in integrative activities to foster a collective mindset.
Originality/value
This paper contributes to the match theory by introducing three critical matching criteria, enabling enterprises to discern partners based on diverse organizational characteristics. Additionally, this paper broadens the scope of the dynamic capability literature by adopting a network perspective to strengthen interaction and relationship mechanisms. The authors primarily elucidate the concept of interfirm dynamic capabilities as a formative higher-order model formed by three sub-capabilities (absorptive capacity, coordination capability and collective mind). Finally, this paper combines matching theory with dynamic capacity theory to the field of BMI, which adds depth and complexity to the existing ecosystem innovation research.
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Suchitra Ajgaonkar, Netra Ganesh Neelam and Judith Wiemann
This paper aims to represent an exploration of drivers of workforce agility under the lens of dynamic capabilities to advance the existing workforce literature on agility and…
Abstract
Purpose
This paper aims to represent an exploration of drivers of workforce agility under the lens of dynamic capabilities to advance the existing workforce literature on agility and strategic human resource management.
Design/methodology/approach
In-depth qualitative interviews with senior information technology professionals, managers, directors and leadership were conducted. Data coding and analysis followed the Gioia methodology to develop a theoretical framework.
Findings
The theoretical paradigm of workforce agility is seeing revisions. In the past it was solely connected to resource-based view theory, current literature superficially speaks of the link with dynamic capability but lacks comprehensive and strategic understanding. The research brings in the evolutionary change by viewing workforce agility directly under the lens of dynamic capability theory and recognizes workforce agility as a high-level strategy. Based on the analysis of the qualitative interviews this study has developed a conceptual heuristic of workforce agility drivers, interlinked with dynamic capabilities micro-foundations – “sensing”, “seizing”, and “continual renewal”. This paper conceptualizes workforce agility as a response to high pressures for the dynamic capability of the company, which requires reconfiguration and redeployment of external and internal human resources and an inherent need to bring some stability to the internal resources of the company.
Originality/value
There is a growing body of literature linking organizational agility with dynamic capabilities, which overlooks workforce agility. This study is theory-based research on workforce agility, which guides practitioners in making human resource processes more agile.
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C. Eze Sunday and C. Chinedu-Eze Vera
Since the 1980s, a substantial number of theories have contributed extensively to information and communication technology (ICT) adoption. Much of such theories regarded ICT…
Abstract
Purpose
Since the 1980s, a substantial number of theories have contributed extensively to information and communication technology (ICT) adoption. Much of such theories regarded ICT adoption as a one-off action as they specifically focus on factors affecting decision making at one decision point. They tend to play down on the fact that as adoption decision progresses through stages, they are supposedly influenced by the same or different factors. Therefore, the purpose of this paper is to examine the dynamic process of ICT adoption using the concepts of dynamic capabilities.
Design/methodology/approach
This study used qualitative approach to gain in-depth insight into the dynamic and evolutionary process of emerging information and communication technology (EICT) adoption in UK small service SMEs. Unstructured and semi-structured interviews were conducted in two separate rounds with 26 participants drawn from Crunch Online Data Base and Luton Business Directory. The participants were selected from a sample of 65 drawn from extended classification of professional service businesses proposed by Ramsey et al. (2008). They include managers, government agencies, SMEs consultants and IT vendors; and then purposeful random sampling and snowball sampling were used.
Findings
The study developed a framework from the concept of dynamic capabilities and found that using the concept of dynamic capabilities to examine the process of EICT adoption helps to unveil the recursive nature of the process and how the factors vary at both single and multiple stages of adoption.
Research limitations/implications
This study is limited by its focus and other factors. Studying the opinions of small service UK SMEs limits the power of generalizing the identified causal relationships; therefore, extended measures are required on accounts of environmental, cultural, geographical and sectoral differences. While some errors seemed unavoidable when measures appear subjective and prone to common error biases, the study advised on recognizing the over-riding influence of the factor(s) at each stage of the adoption process in order to be proactive in committing resources.
Originality/value
This work focuses on emerging ICT adoption in SMEs from the dynamic and evolutionary process perspective using the concept of dynamic capability. It advances ICT adoption research by developing a framework to depict that ICT is not a one-off event, rather it is dynamic and interactive in nature and factors influencing adoption vary from one stage or the other.
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Roberto S. Vassolo and Jaideep Anand
Firms frequently need to update their capabilities in changing environments but face significant barriers to accomplish this goal due to the stickiness of their routines, local…
Abstract
Firms frequently need to update their capabilities in changing environments but face significant barriers to accomplish this goal due to the stickiness of their routines, local search constraints, bounded rationality, uncertain imitability, and causal ambiguity. Under high levels of uncertainty, dynamic capabilities are often externally oriented, involving acquisitions and alliances. However, nonunique but competitive predictions about the behavior of these capabilities arise from the evolutionary theory. We test these competitive hypotheses analyzing portfolios of acquisitions and alliances made by pharmaceutical firms in search of portfolios of biotech capabilities. The analysis of portfolios enables us to better identify “common practices” in the pharmaceutical industry than using a transactional‐level focus. We develop implications for the evolutionary theory and for managerial practice.
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Carlos Hiroshi Usirono, Ely Laureano Paiva and Raul Beal Partyka
Operating in a market of scarcity and uncertainty, the startups have stood out by contributing to changing the economy and society, a new type of management. This study analyses…
Abstract
Purpose
Operating in a market of scarcity and uncertainty, the startups have stood out by contributing to changing the economy and society, a new type of management. This study analyses how startup companies may develop dynamic capabilities from the resources present in their ecosystems.
Design/methodology/approach
Through a qualitative content analysis, we show different startup management and environmental features when compared with established companies.
Findings
Unlike mature and established companies, startups develop innovative businesses, raise funds and develop competences quickly, anchoring themselves in differentiation and innovation. Results show different startup management and environmental features when compared with established companies.
Research limitations/implications
The study contributes to the literature by identifying management elements in dynamic environments, thus expanding the application of the theory of dynamic and managerial capabilities.
Practical implications
The study contributes to generating an instrument that assists entrepreneurs in the operationalization of their strategies through the use and development of their managerial capabilities and the orchestration of resources with the help of ecosystem actors.
Originality/value
We propose a framework with the main elements identified in the cases analyzed. Those elements may assist managers in orchestrating their resources in order to support ecosystem actors.
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Wei Wang, Yi Zhang and Shuguang Chen
Influenced by factors such as fluctuations in market supply and demand and the rapid development of new technologies, manufacturing companies are facing greater challenges to…
Abstract
Purpose
Influenced by factors such as fluctuations in market supply and demand and the rapid development of new technologies, manufacturing companies are facing greater challenges to transform and upgrade. The existing relevant studies about sustainable innovation capabilities mostly focus on classification of innovation or from a static resource-based view and less on quantitative measurement from a dynamic perspective and inter-organizational relationships. This paper takes a dynamic capabilities and social capital theory, explore the concept and dimensions of sustainable innovation capabilities and then makes development of a new scale.
Design/methodology/approach
This paper uses a combination of qualitative and quantitative research methodologies to develop a measure of sustainable innovation capabilities in two studies. Grounded theory methodology is used to explore the concept definition and dimensions of sustainable innovation capabilities. Exploratory factor analysis and confirmatory factor analysis are conducted to refine and validate the factor structure, and then the authors developed the sustainable innovation capabilities scale.
Findings
The results show that sustainable innovation capabilities composed of ideation capabilities, opportunity capture capabilities, agile learning, creative inheritance and networking capabilities. The sustainable innovation capabilities that firms should possess are reflected at the firm level and inter-organizational relationship level, and the culture-specific dimension of creative inheritance reflects the influence of national and organizational culture.
Originality/value
The research reveals the internal driving force of the manufacturer's sustainable innovation capabilities, as well as the role and uniqueness embodied in the specific culture, providing a new perspective for improving the manufacturer's sustainable innovation capabilities.
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Carina Culotta, Constantin Blome and Michael Henke
Digital platforms transform supply chains. However, no unified theoretical understanding of digital platforms exists. Thus, the underlying research aims at investigating platform…
Abstract
Purpose
Digital platforms transform supply chains. However, no unified theoretical understanding of digital platforms exists. Thus, the underlying research aims at investigating platform theories for supply chain management tasks.
Design/methodology/approach
The authors conduct a systematic literature review to identify relevant theories in the context of digital platforms and synthesize the respective findings for supply chain management tasks.
Findings
In total, 43 papers and 41 different relevant theories are identified. The most prominent theories are the resource-based view, transaction cost economics, internalization theory and the dynamic capabilities approach. Digital platforms alter and change the boundary decisions of firms. Therefore, they have various implications for supply chain management tasks such as make-or-buy decisions or the orchestration of resources to sustain a competitive advantage.
Practical implications
The identified supply chain theories as well as platform theories and their overlap provide a meaningful starting point for discussing and developing new and platform-based supply chain management approaches in the B2B domain.
Originality/value
The conducted systematic literature review provides a first starting point for building a holistic theoretical approach to digital platforms in supply chains. Thus, the paper contributes a missing link for discussing digital platforms and their theoretical foundations for supply chain management tasks.
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The purpose of this paper is to provide a theoretical account of how firms make choices between dynamic capability-based and ad hoc problem-solving approaches toward strategic…
Abstract
Purpose
The purpose of this paper is to provide a theoretical account of how firms make choices between dynamic capability-based and ad hoc problem-solving approaches toward strategic change.
Design/methodology/approach
A model has been developed to answer the questions of how and under what conditions firms develop appropriate approaches to handle strategic change.
Findings
Drawing upon structural inertia theory (SIT) and the resource-based view (RBV), the model predicts that firms, regardless of their age and size, are more likely to adopt an ad hoc problem-solving approach to handle change in both highly dynamic and low-dynamic environments. However, in moderately dynamic environments, a dynamic capability-based approach may be more appropriate, depending on which theoretical logic (SIT or RBV) the decision is made.
Originality/value
The paper builds on the useful distinction made by Winter (2003) in terms of the ways to handle organizational change and extends the recent research on temporary vs sustainable competitive advantages to investigate how firms tackle strategic change within the contexts of both environmental dynamism and organizational attributes.
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