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Process capability indices as an important kind of indices are intended to provide single‐number assessments of the inherent process capability to meet specification limits on quality characteristic(s) of interest. In this paper the condition for the application of process capability indices is analyzed. On the basis of process capability indices, dynamic process capability indices as a new kind of indices to show the current process capability are discussed and the condition for the application of dynamic process capability indices is exhibited. Comparison between process capability index and dynamic process capability index and comparison between D_p and D_pk are made and the conclusions provide the approach for process control. According to the requirement of process capability indices provided by customer, quality control based on process capability indices dynamic process capability indices is ciscussed.

This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative information technology open architecture design and integrating Radio Frequency Identification Device data technologies and real-time optimization and control mechanisms as the critical technology components of the solution. The innovative information technology, which pursues the focused logistics, will be deployed in 36 months at the estimated cost of $568 million in constant dollars. We estimate that the Systems, Applications, Products (SAP)-based enterprise integration solution that the Army currently pursues will cost another $1.5 billion through the year 2014; however, it is unlikely to deliver the intended technical capabilities.

Indonesian woven craft small- and medium-sized enterprises (SMEs) have encountered several difficulties in sustaining their success in the digital era. The performance of the business is contingent upon its ability to gain competitive advantage through traditional knowledge capabilities. The purpose of this research is to study the role of traditional knowledge management processes towards competitive advantage and sustainable performance for woven craft SMEs.

This research used a quantitative approach with a survey strategy. Confirmatory research was conducted to test five hypotheses to determine the causal relationship of four variables, namely, traditional knowledge management, dynamic capabilities, competitive advantage and sustainable performance. This study used a purposive sampling strategy and gathered data from 385 respondents. The sample was selected based on predetermined criteria, including operation for more than five years and entrepreneurial activity using traditional knowledge as a resource to manage product innovation. The analytical technique used was structural equation modelling with the support of the AMOS programme.

The findings indicated that traditional knowledge management processes directly affect dynamic capabilities and sustainable performance. This study also found traditional knowledge management processes play a significant role in enhancing competitive advantage mediated by dynamic capabilities. However, traditional knowledge management processes have no significant effect on competitive advantage. Hence, there is a significant effect contributed by the relationship between traditional knowledge management processes and sustainable performance. Therefore, in the context of craft woven SMEs, the higher the traditional knowledge-based capabilities, the higher their sustainable performance.

The novelty shows a direct relationship between traditional knowledge management processes and sustainable performance. This study also found traditional knowledge management processes meditated by dynamic capabilities have a relationship with competitive advantage. Traditional knowledge management processes will trigger an increase in dynamic capability which is a source of business development; those conditions will increase sustainable performance. Traditional knowledge-based capability is an antecedent of sustainable performance. The benefits of this research can be used as scientific literature regarding the link between traditional knowledge management processes, competitive advantage and sustainable performance. The results of this study can also be used as a basis for empowering traditional woven craft SMEs in Indonesia.

Strategic management research has shown growing interest in understanding the dynamic resource reconfiguration processes through which firms grow, evolve, and sustain profitability. The goal of our study is to understand how dynamic resource reconfigurations enable firms to pursue growth opportunities. We use the methods of inductive theory building from case studies to elaborate current theoretical understanding about how firms draw on both internal and external resources in the pursuit of growth. We examine the patterns of resource reconfigurations through which Yahoo and Google powered their early growth strategies in their first 10 years of existence. We analyze a total of 192 new product launches in 43 markets by the two firms to capture how they reconfigured resources dynamically. Our analysis reveals that both firms developed highly dynamic strategies exhibiting both surprising similarities and differences. These similarities and differences provided the basis for our theoretical insights about the development of what we term “dynamic resource platforms,” comprising of (a) dynamic resource shifts; (b) targeted resource orchestration; and (c) complementary processes balancing dynamism and capability development. These ideas contribute novel theoretical insights to current strategic management research on dynamic capabilities and on resource reconfiguration and redeployment.

Existing studies have paid less attention to the impact of knowledge accumulation on digital transformation and its boundary conditions. Hence, this study aims to investigate the effects of ambidextrous knowledge accumulation on manufacturing digital transformation under the moderation of dynamic capability.

This study divides knowledge accumulation into exploratory and exploitative knowledge accumulation and divides dynamic capability into alliance management capability and new product development capability. To clarify the relationship among ambidextrous knowledge accumulation, dynamic capability and manufacturing digital transformation, the authors collect data from 421 Chinese listed manufacturing enterprises from 2016 to 2020 and perform analysis by multiple hierarchical regression method, heterogeneity test and robustness analysis.

The empirical results show that both exploratory and exploitative knowledge accumulation can significantly promote manufacturing digital transformation. Keeping ambidextrous knowledge accumulation in parallel is more conducive than keeping single-dimensional knowledge accumulation. Besides, dynamic capability positively moderates the relationship between ambidextrous knowledge accumulation and manufacturing digital transformation. Moreover, the heterogeneity test shows that the impact of ambidextrous knowledge accumulation and dynamic capabilities on manufacturing digital transformation varies widely across different industry segments or different regions.

First, this paper shifts attention to the role of ambidextrous knowledge accumulation in manufacturing digital transformation and expands the connotation and extension of knowledge accumulation. Second, this study reveals that dynamic capability is a vital driver of digital transformation, which corroborates the previous findings of dynamic capability as an important driver and contributes to enriching the knowledge management literature. Third, this paper provides a comprehensive micro measurement of ambidextrous knowledge accumulation and digital transformation based on the development characteristics of the digital economy era, which provides a theoretical basis for subsequent research.

The objective of this paper is to address the question whether and how firms can follow a standard management process to cope with emerging corporate social responsibility (CSR) challenges? Both researchers and practitioners have paid increasing attention to the question because of the rapidly evolving CSR expectations of stakeholders and the limited diffusion of CSR standardization. The question was addressed by developing a theoretical framework to explain how dynamic capabilities can contribute to effective CSR management.

Based on 64 world-leading companies’ contemporary CSR reports, we carried out a large-scale content analysis to identify and examine the common organizational processes involved in CSR management and the dynamic capabilities underpinning those management processes.

Drawing on the dynamic capabilities perspective, we demonstrate how the deployment of three dynamic capabilities for CSR management, namely, scanning, sensing and reconfiguration capabilities can help firms to meet emerging CSR requirements by following a set of common management processes. The findings demonstrate that what is more important in CSR standardization is the identification and development of the underlying dynamic capabilities and the related organizational processes and routines, rather than the detailed operational activities.

Our study is an early attempt to examine the fundamental organizational capabilities and processes involved in CSR management from the dynamic capabilities perspective. Our research findings contribute to CSR standardization literature by providing a new theoretical perspective to better understand the capabilities enabling common CSR management processes.

The purpose of this study is to investigate absorptive capacity and dynamic capabilities dilemma in high dynamic market IT small medium enterprises (SMEs). Absorptive capacity and dynamic capabilities have a conflict in theoretical stance. Those in favor of dynamic capabilities regard absorptive capacity as a part of dynamic capabilities, and there are many arguments regarding treating absorptive capacity as a part of dynamic capabilities. One major deficit of dynamic capabilities is that it requires adjusting the firm’s dynamic resources when responding to change, requiring some investment and time. Thus, dynamic capabilities then have a problem in instantaneously responding to a highly dynamic market. With the requirement to adjust organizational resources, absorptive capacity, as a part of dynamic capabilities, cannot have direct impact on a firm’s performance.

To show that absorptive capacity, by itself, can have a direct impact on a firm’s performance in a highly dynamic market, quantifiable variables are identified to measure the level of effort in developing absorptive capacity. The relationships between the absorptive capacity development effort and the firm’s financial performance is then explored and evaluated.

It is confirmed that absorptive capacity in a high dynamic market such as IT SMEs have direct and positive impact to the firm’s financial performance, without having to configure its resource to interact with changes.

The study discusses the paradoxical dilemma of the role of absorptive capacity under the light of dynamic capability. The finding indicates that in high dynamic market when the spontaneous respond to market change is crucial to firm's survival, absorptive capacity can direly deliver the result to leverage the firm's performance without having to reconfigure its resources as indicated in the theoretical stance of dynamic capability.

The study this chapter reports focuses on how network theory contributes to the understanding of the internationalization process of SMEs and measures the effect of network capability on performance in international trade and has three research objectives.

The first objective of the study relates to providing new insights into the international market development activities through the application of a network perspective. The chapter reviews the international business literature to ascertain the development of thought, the research gaps, and the shortcomings. This review shows that the network perspective is a useful and popular theoretical domain that researchers can use to understand international activities, particularly of small, high technology, resource-constrained firms.

The second research objective is to gain a deeper understanding of network capability. This chapter presents a model for the impact of network capability on international performance by building on the emerging literature on the dynamic capabilities view of the firm. The model conceptualizes network capability in terms of network characteristics, network operation, and network resources. Network characteristics comprise strong and weak ties (operationalized as foreign-market entry modes), relational capability, and the level of trust between partners. Network operation focuses on network initiation, network coordination, and network learning capabilities. Network resources comprise network human-capital resources, synergy-sensitive resources (resource combinations within the network), and information sharing within the network.

The third research objective is to determine the impact of networking capability on the international performance of SMEs. The study analyzes 11 hypotheses through structural equations modeling using LISREL. The hypotheses relate to strong and weak ties, the relative strength of strong ties over weak ties, and each of the eight remaining constructs of networking capability in the study. The research conducts a cross-sectional study by using a sample of SMEs drawn from the telecommunications industry in Ireland.

The study supports the hypothesis that strong ties are more influential on international performance than weak ties. Similarly, network coordination and human-capital resources have a positive and significant association with international performance. Strong ties, weak ties, trust, network initiation, synergy-sensitive resources, relational capability, network learning, and information sharing do not have a significant association with international performance. The results of this study are strong (R2=0.63 for performance as the outcome) and provide a number of interesting insights into the relations between collaboration or networking capability and performance.

This study provides managers and policy makers with an improved understanding of the contingent effects of networks to highlight situations where networks might have limited, zero, or even negative effects on business outcomes. The study cautions against the tendency to interpret networks as universally beneficial to business development and performance outcomes.

This study aims to analyse design management as a dynamic capability.

This is a systematic review with paper searches conducted on the ISI Web of Science database’s Social Sciences Citation Index, complemented by a historiographical analysis developed using the HistCite software.

The analysis of paper allowed for the identification of three processes that, if integrated, construct design management as a dynamic capability, namely, design learning, design coordination and design skills. Design learning corresponds to the skill of acquiring and absorbing knowledge and practices and spreading them throughout the whole organisation, and design coordination corresponds to the capability to coordinate the activities and practices that are necessary for good design. Finally, design skills comprise a set of techniques and knowledge that generate synergy, creativity and innovation.

This perspective suggests a new concept of design management that allows organisations to achieve a competitive advantage in environments of rapid technological change.

This study contributes to the literature on design management as a dynamic capability. Another contribution is that design management presents itself as an important dynamic that is capable of creating and maintaining a competitive edge through its potential to generate innovation and creativity and to make firms more flexible and dynamic.

The current conventional strategic management model is incapable of dealing with various questions on organizational management in a dynamically discontinuous environment. Hence, how an enterprise can effectively apply its knowledge management (KM) capability and develop a uniquely dynamic capability in order to provide quick response to a dynamic environment has become an urgent need. The purpose of this paper is to discuss the above-mentioned issues.

In order to gain best exploration on KM capability, dynamic capability, and organizational performance, the questionnaire and statistical analytical techniques were used.

The results indicate that dynamic capability is an important intermediate organizational mechanism through which the benefits of KM capability are converted into performance effects at the corporate level. That is, KM capability enhances the dynamic capability of organizations. While dynamic capability, in turn, increases organizational performance and provides competitive advantages.

This research applied a purposive sampling method and obtained a slightly inadequate number of respondents. Therefore, it is suggested that future research should apply a random sampling method to collect more responses and increase the generalizability.

This research aims to investigate KM capability, dynamic capability, and organizational performance, as well as establish and verify the patterns of the aforementioned relationships based on how enterprises implement their KM capabilities and dynamic capabilities to enhance organizational performance.

There is still little related literature investigating the relationships among KM capability, dynamic capability, and organizational performance. Hence, this study applies questionnaire methods as the main research tools in order to conduct an in-depth investigation into the influence of KM capability and dynamic capability on organizational performance. Furthermore, this research is expected to provide enterprises with valuable suggestions for management practices.