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The digitization efforts for small and medium enterprises (SMEs) as a result of advances in information technology are challenging, with one of them being the creation of digital ecosystems for SMEs. This study aims to develop a model of the relationship between SMEs’ readiness to change, agile leadership and dynamic capability to implement a digital ecosystem for SMEs in the creative industry in Semarang, Central Java, Indonesia.

A survey methodology was used in this study. Respondents in this study were creative industry SMEs in Semarang, Central Java, Indonesia. SMEs in the creative industry sector were chosen as samples as they require digital technology to manage their business development, production and distribution, customer relationships and to innovate in their businesses. In total, 250 creative SMEs, selected based on a purposive random sampling method, were included in this study. Data were analyzed using structural equation model-partial least square.

This study provides current insights and future needs for implementing digital ecosystems in SMEs in Indonesia’s creative industries. It also identifies three critical conditions for dealing with Industry 4.0: organizational readiness to change, agile leadership and dynamic capability.

In response to information technology advancements, this study proposes a new model for implementing digital ecosystems for SMEs. Furthermore, this study adds knowledge about the concept of a service-oriented technology ecosystem to help SMEs operate more efficiently. It focuses on the interaction of entities to improve the system’s utility, gain benefits and promote information exchange.

The purpose of this paper is to propose a new way to distinguish a firm’s dynamic capabilities from operational capabilities.

Conceptual paper/literature review.

Current literature on dynamic capabilities posits that dynamic capabilities are those firm capabilities that can induce change in other capabilities, while operational capabilities are static. Distinguishing between these capabilities in this manner is not helpful because changes occur continuously in all capabilities to at least some extent. In addition, empirical studies show that even task-level operational capabilities can change on their own and can induce change in other capabilities. In contrast to focussing on the presence or lack of change to determine if a capability is dynamic or operational, this paper distinguishes between them by determining a priori the expected nature of the outcome. By focussing on the outcomes of change rather than the changes themselves, this paper proposes that capabilities should be considered operational if they produce outcomes that can be predicted using probability distribution while those capabilities that produce outcomes that cannot be predicted using probability distribution should be considered dynamic.

Future research on dynamic capabilities should not only investigate whether or not change is occurring, but the outcome of change to understand whether a change is precipitated by dynamic or operational capabilities.

Existing dynamic capabilities literature is unclear about how to distinguish between dynamic capabilities from operational capabilities. Previous research attempts to distinguish these capabilities by arguing dynamic capabilities are those firm capabilities that can induce change in other capabilities, while operational capabilities are static and do not induce change. This is not particularly helpful. A clear distinction between dynamic and operational capabilities could facilitate further advancement of the dynamic capability literature; this study makes a rudimentary effort to distinguish between them.

This article reviews the extensive history of dynamic performance research, with the goal of providing a clear picture of where the field has been, where it is now, and where it needs to go. Past research has established that job performance does indeed change, but the implications of this dynamism and the predictability of performance trends remain unresolved. Theories are available to help explain dynamic performance, and although far from providing an unambiguous understanding of the phenomenon, they offer direction for future theoretical development. Dynamic performance research does suffer from a number of methodological difficulties, but new techniques have emerged that present even more opportunities to advance knowledge in this area. From this review, I propose research questions to bridge the theoretical and methodological gaps of this area. Answering these questions can advance both research involving job performance prediction and our understanding of the effects of human resource interventions.

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.

A model has been developed to answer the questions of how and under what conditions firms develop appropriate approaches to handle strategic change.

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.

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.

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.

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.

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.

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.

This empirical study uncovers emotional sensemaking factors that cause changes in management perceptions about wicked strategic problems under dynamic complexity. These perception changes improve understanding of, and solutions to, the wicked problem.

Senior managers from three large organizations in different sectors participated in gaming simulation workshops. The strategic issues at stake were intractable and divisive. Qualitative methods captured participants' perceptions of the problems and the dynamic complexity that they faced and how they changed.

Flawed management perceptions were revised as sensemaking processes were catalyzed by emotions of shock/surprise that came from experiencing unexpected stakeholder conduct within a simulation. The plausibility of the conduct was strengthened because managers were role-playing stakeholders. The shock/surprise emotion uncoupled attachment to entrenched beliefs, leading to a willingness to revise the flawed perceptions. The changed perceptions created new insights for a solution to the wicked problem.

Practical implications are how management practitioners can improve the tackling of wicked strategic problems through the use of shock and surprise in a gaming simulation.

This research extends theory on the role of emotions in sensemaking under dynamic complexity. The authors uncover how a hierarchy of managers' emotions used in sensemaking explains the catalytic effect of the shock and surprise of unexpected stakeholder conduct on revisions to their perceptions of the outcomes of the dynamic complexity.

Most of the existing studies on the evolution of emergency topics in social media focused on the emergency information demand of fixed user type in emergency while ignoring the changing roles of stakeholders during the emergency. Thus in this study, a three-dimensional dynamic topic evolution model is proposed, in which fine grained division of time, dynamic identification of stakeholders in the emergency, and emergency topic evolution based on both timeline and stakeholder's type are all considered.

Particularly the relevance between the tweets posted and the topic of emergency, the influence on the social network, and the attention of emergency topic are as well taken into account to quantitatively calculate the weight and ranking of stakeholders at different stages of the emergency. To verify the proposed model, an experimental demonstration was carried out under an emergency event posted on social media.

The results show that (1) based on the three-dimensional dynamic topic evolution model, the composition and ranking of stakeholders have obvious differences at different stages; (2) the emergency information needs and the sharing behavior of stakeholders on emergency information also indicate different preferences where the topic concerns of stakeholders at different stages have a strong relationship with their weight ranking; (3) the emergency topic evolution considering both the dynamics of emergency stakeholders and emergency information demand could more accurately reflect the changing regularity of social media users' attention to information in emergency events.

This study is one of first to investigate the emergency topic evaluation on social media by considering the dynamic changes of various stakeholders in emergency. It could not only theoretically provide more accurate method to understand how users share and search emergency information in social media, but also practically signify an information recommendation way in social media for emergency tracking.

The peer review history for this article is available at: https://publons.com/publon/10.1108/OIR-02-2021-0098.

The concept of dynamic capabilities emerged from strategic management theory, the aim being to determine how organizations can achieve and sustain competitive advantage in a continuously changing environment. It is widely accepted in the literature that this concept, although extremely popular and potentially powerful, still needs clarification and elaboration. The main criticisms are centered on the lack of understanding of where these capabilities originate and how their dynamism can be sustained in the long run. The purpose of this paper is to bring some novel insights into these issues in bridging the theories of strategic management and change management.

This paper is based on extensive literature review and bridges dynamic capabilities and change management literatures.

The paper proposes a distinction between domain-specific and generic dynamic capabilities and puts forward the concept of “organizational change capability” as representing a generic dynamic capability. The nature of such capability is discussed using the insights from organizational change theory.

This paper provides a novel way to examine the sources of capability dynamism both conceptually and empirically by integrating insights from organizational change and dynamic capabilities literatures.

In this paper the authors explore the managerial processes involved in deep, purposeful organizational change. The authors investigate change towards a goal-directed end state and the managerial actions involved in reaching it. The purpose of this paper is to identify patterns of organizational change by analysing how variations occurred in a firm’s resources and capabilities at a time of high internal and external uncertainty.

The authors use a longitudinal in-depth case study on the airline Spanair. The authors analyse the change process this airline engaged in between 2007 and 2012, which was considered the most turbulent period in aviation history. The authors followed the grounded theory approach to induce a strategic capability pattern model from secondary data.

The authors identify a capability pattern with four dynamic capabilities: adding, transferring, integrating and shedding; and two higher-order capabilities: goal development and change orchestration. The authors show how the higher-order capability processes are performed by two levels of decision makers, where one creates a goal-directed path, and the other performs a central role in orchestrating change.

Using the teleological approach the authors identify how top management orchestrate change arising from the dynamic capability process outcomes in a top-down and bottom-up manner. As such the authors show how the role of management becomes fundamental in adjusting the capabilities required to meet the goals set, particularly in times of heightened internal and external environmental turbulence. The authors also emphasize the importance of providing bottom-up advice to goal directors.

The aim of this study is to explore dynamic managerial capabilities (DMCs) and their effect on public organisational performance. While the previous research has focused on how leadership style impacts on organisational performance, the authors have investigated how the dynamic managerial capabilities of middle managers and their organisational capacity for change as well as their attitude towards the change are linked to organisational performance.

The dataset was gathered during the field research carried out in a large public Indonesian government institution. In total, 313 managers and their direct followers participated in this study. The authors have employed structural equation modelling to test the hypotheses.

The results of this study demonstrate the role of the dynamic capabilities of the middle managers associated with organisational performance. The results show that dynamic managerial capabilities and organisational performance are mediated by the organisational capacity for change.

Middle managers should equip and develop their capabilities in order to embrace change in the organisation through the communication between the different staff levels, uniting the vision and mission with the organisational members. Further, the organisation should empower the role of the middle managers by increasing their authority and participation in the policy-making that is part of the change process. In addition, the workplace could implement interventions to optimise the dynamic managerial capabilities held by the middle manager and employees through assessments and mentoring. Finally, particular training programmes could be implemented to boost the employees' skills and flexibility, thereby keeping them agile in the context of the changes in the work environment.

The role of the dynamic managerial capabilities of the middle manager is a prominent factor when facilitating a high level of organisational performance in a public organisation. However, the role of dynamic managerial capabilities does not have a direct effect on organisational performance if the organisation does not have the capacity to change, particularly in the Indonesian context.