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Article
Publication date: 13 February 2024

Liang-Hung Lin and Yu-Ling Ho

This study aims to examine the effect of exploratory innovation offshoring on the level of hierarchical control and how this effect is moderated by transnational and dynamic…

Abstract

Purpose

This study aims to examine the effect of exploratory innovation offshoring on the level of hierarchical control and how this effect is moderated by transnational and dynamic environments.

Design/methodology/approach

This study draws on a sample of 148 Taiwanese multinational enterprises to examine their governance decisions on foreign investments.

Findings

Findings show that the more innovation offshoring is exploratory, the higher the level of hierarchical control will be used by multinational enterprises (MNEs) and that transnational and dynamic environments have different moderation effects on the positive exploratory innovation offshoring-hierarchical control relationship.

Research limitations/implications

This study has two theoretical implications. First, this study extends the concept of complexity from a transaction attribute level (problem) to an environmental level (transnational environment) and finds that exploratory innovation offshoring and transnational environments interactively impact governance choices. Second, this study distinguishes between two sources of technological uncertainty – uncertainty due to transaction-level attributes (exploratory innovation offshoring) and external environments (dynamic environments) and finds that exploratory innovation offshoring and dynamic environments interactively impact governance choices.

Practical implications

The practical implication of this study lies in the simultaneous consideration of exploratory innovation offshoring and transnational/dynamic environments, which will allow international decision-makers to adjust/select the governance forms most appropriate for speedy responding to and handling environmental changes.

Originality/value

This study employs the theoretical perspectives of transaction cost economics (TCE) and resource-based view (RBV) to analyze and discuss the impact of operational environments – transnational and dynamic environments – on MNEs’ decisions on the governance structure for a given innovation offshoring.

Details

Management Decision, vol. 62 no. 3
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 25 January 2024

Atef Gharbi

The purpose of the paper is to propose and demonstrate a novel approach for addressing the challenges of path planning and obstacle avoidance in the context of mobile robots (MR)…

Abstract

Purpose

The purpose of the paper is to propose and demonstrate a novel approach for addressing the challenges of path planning and obstacle avoidance in the context of mobile robots (MR). The specific objectives and purposes outlined in the paper include: introducing a new methodology that combines Q-learning with dynamic reward to improve the efficiency of path planning and obstacle avoidance. Enhancing the navigation of MR through unfamiliar environments by reducing blind exploration and accelerating the convergence to optimal solutions and demonstrating through simulation results that the proposed method, dynamic reward-enhanced Q-learning (DRQL), outperforms existing approaches in terms of achieving convergence to an optimal action strategy more efficiently, requiring less time and improving path exploration with fewer steps and higher average rewards.

Design/methodology/approach

The design adopted in this paper to achieve its purposes involves the following key components: (1) Combination of Q-learning and dynamic reward: the paper’s design integrates Q-learning, a popular reinforcement learning technique, with dynamic reward mechanisms. This combination forms the foundation of the approach. Q-learning is used to learn and update the robot’s action-value function, while dynamic rewards are introduced to guide the robot’s actions effectively. (2) Data accumulation during navigation: when a MR navigates through an unfamiliar environment, it accumulates experience data. This data collection is a crucial part of the design, as it enables the robot to learn from its interactions with the environment. (3) Dynamic reward integration: dynamic reward mechanisms are integrated into the Q-learning process. These mechanisms provide feedback to the robot based on its actions, guiding it to make decisions that lead to better outcomes. Dynamic rewards help reduce blind exploration, which can be time-consuming and inefficient and promote faster convergence to optimal solutions. (4) Simulation-based evaluation: to assess the effectiveness of the proposed approach, the design includes a simulation-based evaluation. This evaluation uses simulated environments and scenarios to test the performance of the DRQL method. (5) Performance metrics: the design incorporates performance metrics to measure the success of the approach. These metrics likely include measures of convergence speed, exploration efficiency, the number of steps taken and the average rewards obtained during the robot’s navigation.

Findings

The findings of the paper can be summarized as follows: (1) Efficient path planning and obstacle avoidance: the paper’s proposed approach, DRQL, leads to more efficient path planning and obstacle avoidance for MR. This is achieved through the combination of Q-learning and dynamic reward mechanisms, which guide the robot’s actions effectively. (2) Faster convergence to optimal solutions: DRQL accelerates the convergence of the MR to optimal action strategies. Dynamic rewards help reduce the need for blind exploration, which typically consumes time and this results in a quicker attainment of optimal solutions. (3) Reduced exploration time: the integration of dynamic reward mechanisms significantly reduces the time required for exploration during navigation. This reduction in exploration time contributes to more efficient and quicker path planning. (4) Improved path exploration: the results from the simulations indicate that the DRQL method leads to improved path exploration in unknown environments. The robot takes fewer steps to reach its destination, which is a crucial indicator of efficiency. (5) Higher average rewards: the paper’s findings reveal that MR using DRQL receive higher average rewards during their navigation. This suggests that the proposed approach results in better decision-making and more successful navigation.

Originality/value

The paper’s originality stems from its unique combination of Q-learning and dynamic rewards, its focus on efficiency and speed in MR navigation and its ability to enhance path exploration and average rewards. These original contributions have the potential to advance the field of mobile robotics by addressing critical challenges in path planning and obstacle avoidance.

Details

Applied Computing and Informatics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2634-1964

Keywords

Article
Publication date: 6 February 2024

Aboobucker Ilmudeen and Alaa A. Qaffas

Although information technology (IT) governance and IT capability have been extensively examined, the impact of IT governance mechanisms on IT-enabled dynamic capability (ITDC…

Abstract

Purpose

Although information technology (IT) governance and IT capability have been extensively examined, the impact of IT governance mechanisms on IT-enabled dynamic capability (ITDC) with moderators has received less attention. This study investigates how the impact of IT governance mechanisms on firm performance is achieved through an ITDC through the moderating role of IT governance decentralization and a turbulent environment.

Design/methodology/approach

This study extends from the traditional view of IT capabilities and integrates dynamic capability theory to propose that IT governance is vital for the ITDC. Path analysis, hierarchical regression analysis and moderation analysis were performed using partial least squares (Smart PLS 3.0) as the data analysis methods. This study empirically tests the proposed mediated moderation model by using data collected from 254 firms in China to test the hypotheses.

Findings

Significant and impactful relationships are found in the model that includes turbulent environment moderating effects. Contrary to expectations, IT governance decentralization is also significant but not very strong.

Research limitations/implications

This study’s findings have implications for investigating IT governance, IT-enabled capabilities and moderators. Accordingly, this study has implications for board and executive management to capitalize on dynamic IT capability, to keep pace with the challenges and turbulent conditions associated with business needs and for the productivity paradox in the context of Chinese firms.

Originality/value

This country-specific research study theoretically contributes to the IT governance, dynamic capabilities and turbulent environment in the information systems literature and proposes many practical guides to the board and executive management of companies in the Chinese context.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 19 March 2024

Claire K. Wan and Mingchang Chih

We argue that a fundamental issue regarding how to search and how to switch between different cognitive modes lies in the decision rules that influence the dynamics of learning…

Abstract

Purpose

We argue that a fundamental issue regarding how to search and how to switch between different cognitive modes lies in the decision rules that influence the dynamics of learning and exploration. We examine the search logics underlying these decision rules and propose conceptual prompts that can be applied mentally or computationally to aid managers’ decision-making.

Design/methodology/approach

By applying Multi-Armed Bandit (MAB) modeling to simulate agents’ interaction with dynamic environments, we compared the patterns and performance of selected MAB algorithms under different configurations of environmental conditions.

Findings

We develop three conceptual prompts. First, the simple heuristic-based exploration strategy works well in conditions of low environmental variability and few alternatives. Second, an exploration strategy that combines simple and de-biasing heuristics is suitable for most dynamic and complex decision environments. Third, the uncertainty-based exploration strategy is more applicable in the condition of high environmental unpredictability as it can more effectively recognize deviated patterns.

Research limitations/implications

This study contributes to emerging research on using algorithms to develop novel concepts and combining heuristics and algorithmic intelligence in strategic decision-making.

Practical implications

This study offers insights that there are different possibilities for exploration strategies for managers to apply conceptually and that the adaptability of cognitive-distant search may be underestimated in turbulent environments.

Originality/value

Drawing on insights from machine learning and cognitive psychology research, we demonstrate the fitness of different exploration strategies in different dynamic environmental configurations by comparing the different search logics that underlie the three MAB algorithms.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 5 December 2023

Ranjan Chaudhuri, Demetris Vrontis and Sheshadri Chatterjee

“Born global firms” are those organizations which, from their inception and by nature, adopt an essentially global-scale entrepreneurial functional and attitudinal strategy for…

Abstract

Purpose

“Born global firms” are those organizations which, from their inception and by nature, adopt an essentially global-scale entrepreneurial functional and attitudinal strategy for growth. They seek to gain significant competitive advantage by utilizing their internal resources while leveraging external environment potentialities, to sell their outputs internationally. The aim of this research is to investigate the influence of the external business environment and the dynamic capabilities of born global firms, on their strategic and operational performance, as well as the role of leadership vision on their internationalization performance.

Design/methodology/approach

Initially and resting on extant literature with pertinent foci, including the absorptive capacity and the dynamic capability view theories, a conceptual model is proposed. Subsequently, the model is validated through the partial least square structural equation modeling technique, based on 417 respondents from Indian firms.

Findings

The study concludes that the external business environment and internal dynamic capabilities of born global firms have a significant and positive impact on their strategic, as well as operational performance; with leadership vision playing a significant moderating role to this relationship. The study finally presents the executive implications of the findings and identifies the avenues for further scientific research.

Originality/value

This is a unique study on the topic, both in relation to resources/capabilities versus performance and with regards to the leadership vision's role. It moreover focuses on a primary business force, India, which comprises prime examples of global entrepreneurship. The research constituting a significant contribution to knowledge, as research on how small firms can strategically grow so rapidly and effectively, is still far from conclusive, particularly under the present evolutions that incessantly redefine the contextual business forces upon which strategy is drawn.

Article
Publication date: 18 April 2024

Manori Pathmalatha Kovilage, Saman Yapa and Champa Hewagamage

The effect of dynamic capabilities on operational excellence and the moderating effect of environmental dynamism on the relationship between operational excellence and dynamic…

Abstract

Purpose

The effect of dynamic capabilities on operational excellence and the moderating effect of environmental dynamism on the relationship between operational excellence and dynamic capabilities in the apparel industry in Sri Lanka were investigated while developing new psychometric scales to assess operational excellence and dynamic capacities constructs.

Design/methodology/approach

We followed the exploratory sequential research design with a mixed-method research approach, aligning with the pragmatic research philosophy. Thus, both qualitative and quantitative research methods were followed.

Findings

Dynamic capabilities positively affect operational excellence, and environmental dynamism moderates the relationship between operational excellence and dynamic capabilities in the apparel industry in Sri Lanka such that when a higher environmental dynamism exists, a weaker positive relationship exists between dynamic capabilities and operational excellence. The two main dimensions of the operational excellence construct are continuous improvement of sustainable operational performance and sustainable competitive advantages. It empirically confirmed that sensing, seizing and reconfiguring capabilities are the three main dimensions of the dynamic capabilities construct.

Research limitations/implications

This study was limited to the apparel industry in Sri Lanka. This research phenomenon should be explored in other industrial sectors worldwide to generalize the findings. The practitioners in the apparel sector may improve the organizational dynamic capabilities to achieve operational excellence and keep a strong positive relationship between dynamic capabilities and operational excellence in a highly dynamic environment if they address out-of-family situations with out-of-the-box thinking.

Originality/value

We generated two new empirical findings: (1) dynamic capabilities positively affect operational excellence, and (2) environmental dynamism moderates the relationship between dynamic capabilities and operational excellence. Also, we introduced validated new scales for assessing operational excellence and dynamic capabilities.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

Book part
Publication date: 13 December 2023

Lan Phuong Ho Dang

This chapter delves into the impact of digital initiatives on firms and sheds light on how they can be explained through market reactions and the resource/capabilities mechanism…

Abstract

This chapter delves into the impact of digital initiatives on firms and sheds light on how they can be explained through market reactions and the resource/capabilities mechanism. By providing a novel conceptual framework that reflects the potential impact of digital initiatives on the sensing, seizing and transforming capabilities of dynamic capabilities, this chapter reveals the tremendous potential of digital initiatives to help firms become more adaptive to their environment and create sustainable competitive advantages that elicit positive market responses. This conceptual framework represents an original contribution to the literature. It enhances the understanding of the resource-based view and efficient market hypothesis, providing a fresh perspective on the influence of digital initiatives on firm performance and the dynamic capabilities mechanism that has hitherto been overlooked. As a result, this chapter enables researchers to develop testable hypotheses that examine the causal relationships between digital initiatives, dynamic capabilities and market performance using robust quantitative research methods. Furthermore, this chapter offers valuable insights for managers seeking to develop a more focused approach to digital transformation and enhance their competitive advantage. By exploring the impact of digital initiatives on sensing, seizing and transforming capabilities, managers can gain a deeper understanding of how they can leverage digital initiatives to improve their organisational performance and respond more effectively to the demands of an ever-changing landscape.

Open Access
Article
Publication date: 28 February 2023

M. Isabel González-Ramos, Mario J. Donate and Fátima Guadamillas

This paper aims to analyze unexplored connections between economic, environmental and social dimensions of corporate social responsibility (CSR) and knowledge management (KM…

3624

Abstract

Purpose

This paper aims to analyze unexplored connections between economic, environmental and social dimensions of corporate social responsibility (CSR) and knowledge management (KM) strategies (exploration, exploitation), also considering environmental dynamism as an influencing variable on these connections. The predicted CSR-KM interplay suggests, from stakeholder and knowledge-based views of the firm, the existence of ideal configurations between CSR and KM strategies that generate differentiated impacts on companies’ innovation capabilities, especially in dynamic environments.

Design/methodology/approach

Structural equation modeling by means of the partial least squares technique was used to test the study’s hypotheses after collecting survey data from Spanish companies of the renewable energy sector.

Findings

The study findings show that in highly dynamic environments, companies will tend to commit prominently in CSR, although their orientation (economic, environmental, social) and effects on innovation capabilities will depend mainly on the selected KM strategies. Social and environmental CSR are found to be highly related to KM exploration, whereas economic CSR is highly related to KM exploitation. Nevertheless, while a significant indirect effect of economic CSR by means of the KM exploitation strategy on innovation capabilities is found, the proposed indirect effect of both environmental and social CSR through the KM exploration strategy on innovation capabilities is not significant.

Practical implications

The results suggest that company managers should be aware of the advantages of following specific paths of investment in KM and CSR initiatives in highly dynamic environments, as there is a potential payoff in terms of innovation capability improvement. The results also suggest that “good” relationships with stakeholders, built from specific CSR investments, make firms able to get valuable knowledge that it is useful to develop KM strategies for innovation capability development.

Originality/value

Previous studies do not consider the interplay between KM strategies and CSR as a catalyzer for developing a firm’s innovation capabilities. This paper contributes to the KM and innovation literatures by introducing CSR into the conversation about how to improve innovation capabilities in dynamic and sustainable industries by using configurations of KM strategies and specific CSR investments in economic, social and environmental areas.

Article
Publication date: 30 August 2022

Saniye Yıldırım Özmutlu and Korhan Arun

This paper aims to understand better how strategic management (SM) affects organizational and operational performance by examining the mediating role of dynamic capabilities (DCs…

Abstract

Purpose

This paper aims to understand better how strategic management (SM) affects organizational and operational performance by examining the mediating role of dynamic capabilities (DCs) in complex environments.

Design/methodology/approach

This study uses a survey of a sample of managers (n = 480) from each logistics firm and applies structural equation modeling to determine the relationships among variables.

Findings

The analyses identify SM directly and DCs as a mediator significant antecedent for the operational performance; further, environmental complexity shows an impact as a significant factor on both variables.

Research limitations/implications

One of the managerial implications is that acquiring-sensing the environment should be orchestrated to be effective.

Originality/value

Previous DC literature studied underdeveloped DCs in complex environments and ignored the manager’s role as a connection between the environment and the firm. This paper contributes to the topic in three important ways: first, it clarifies the operational performance from the combination of the design of the DCs and the SM characteristics within the complex environment; second, the paper specifies that microfoundations of DCs are essential in the drive’s differences in the performance of the firms; and third, it clarifies regarding the role of the complex external environment rather than dynamic ones.

Article
Publication date: 25 April 2024

Sukran Seker

Since conducting agile strategies provides sustainable passenger satisfaction and revenue by replacing applied policies with more profitable ones rapidly, the focus of this study…

Abstract

Purpose

Since conducting agile strategies provides sustainable passenger satisfaction and revenue by replacing applied policies with more profitable ones rapidly, the focus of this study is to evaluate agile attributes for managing low-cost carriers (LCCs) operations by means of resources and competences based on dynamic capabilities built on resource-based view (RBV) theory and to achieve sustainable competitive advantage in a volatile and dynamic air transport environment. LCCs in Turkey are also evaluated in this study since the competition among LCCs is high to gain market share and they can adapt quickly to all kinds of circumstances.

Design/methodology/approach

Two well-known Multi-Criteria Decision-Making Methods (MCDM) named as the Stepwise Weight Assessment Ratio Analysis (SWARA) and multi-attributive border approximation area comparison (MABAC) methods by employing Picture fuzzy sets (PiFS) are employed to determine weight of agile attributes and superiority of LCCs based on agile attributes in the market, respectively. To check the consistency and robustness of the results for the proposed approach, comparative and sensitivity analysis are performed at the end of the study.

Findings

While the ranking orders of agile attributes are Strategic Responsiveness (AG1), Financial Management (AG4), Quality (AG2), Digital integration (AG3) and Reliability (AG5), respectively, LCC2 is selected as the best agile airline company in Turkey with respect to agile attributes. SWARA and MABAC method based on PiFS is appropriate and effective method to evaluate agile attributes that has important reference value for the airline companies in aviation industry.

Practical implications

The findings of this study will support managers in the airline industry to conduct airline operations more flexibly and effectively to take sustainable competitive advantage in unexpected and dynamic environment.

Originality/value

To the author' best knowledge, this study is the first developed to identify the attributes necessary to increase agility in LCCs. Thus, as a systematic tool, a framework is developed for the implementation of agile attributes to achieve sustainable competitive advantage in the airline industry and presented a roadmap for airline managers to deal with crises and challenging situations by satisfying customer and increasing competitiveness.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

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