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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.

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.

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.

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.

This paper aims to present an empirical test to analyze a structural process model based on constructs of organizational innovativeness types considering sustainability aspects. It explores interdependency among constructs of organizational innovativeness identified as product, process, behavioral, market, strategic and risk innovativeness. It integrates a dynamic capability perspective to strengthen the existing literature.

Sample for data analysis covers 389 managers of firms demonstrating some traits of sustainability orientation and operating in a developing economy like India. Structural equation modeling is applied to test the causal model.

Study reveals that risk innovativeness along with strategic innovativeness leads to behavioral innovativeness which further causes product innovativeness and business process innovativeness. Business process innovativeness supports product innovativeness leading to market innovativeness of a firm. Characteristics of organizational innovativeness linked with the risk-taking ability of top management can be a critical differentiating factor between conventional and sustainability-oriented firms.

The factor of risk innovativeness was applied as per the existing measurement scale and has a scope for further exploration. It also offers an opportunity to reassess organizational innovativeness processes considering sustainability aspects.

The study may help organizations to develop a systemic approach to evolve and develop business processes linked to organizational innovativeness considering sustainability challenges and uncertain market conditions.

Development of organizational innovativeness considering sustainability aspects may lead to innovative and disruptive products/services leading to mitigate climate change issues, thus helping global societies in long run.

The study offers common ground linked to the bodies of research related to dynamic capabilities, micro-foundations of dynamic capabilities, innovative capability and sustainability.

The purpose of this paper is to provide a quantitative measure for organizational renewal capability which would enable inter‐firm comparison and external communication. To make the tool more concrete for the reader, a case organization with the measurement results and conclusions is described.

A method of how renewal capability can be shown on an organizational level and measurement is demonstrated. The approach is based on systems thinking, but it also has boundary surfaces with the knowledge‐based theory of the firm, dynamic capability approach, and intellectual capital (IC) research. A tool for analyzing and measuring organizational renewal, called KM‐factor^®, and the theoretical model behind it, is presented.

The preliminary analysis indicates that the indexes of KM‐factor^® correlate strongly with the future financial success of the company. Thus, the results refer to the fact that companies with (system based and strategy connected) renewal capability have more competitive advantage than others. It is crucial for the organization to understand the required change direction in renewal capability to achieve sustainable competitive advantage.

The topic of renewal has been increasingly dealt with by the research traditions of IC, knowledge management and strategic management. However, even if several relatively consolidated theories about the composition of IC or competitiveness have been presented – renewal being one of the components – the operational and measurement perspectives of continuous renewal have mainly been neglected. This paper demonstrates a quantitative and practical implementation of organizational renewal capability measurement.

This study investigates the mediating role of organizational change capacity (OCC) in the relationship between the perception of extreme contexts and firm product and process innovation, which was not empirically investigated in the literature. In addition, this study explores the moderating role of the perception of extreme contexts-related variables, which were not operationalized in ordinary firms, on the relationship between OCC and firm product and process innovation.

A questionnaire-based research was conducted to test the suggested hypotheses. The data were gathered from 90 firms during the peak period of COVID-19.

This study shows that OCC, which covers contexts, process and learning dimensions, fully mediates the relationship between the perception of extreme contexts and firm product and process innovation. Also, this study discovers that the perception of extreme contexts, including temporal ordering of extremity, the magnitude of consequences, proximity among people and operational deficiencies, positively moderate the relationship between OCC and firm product innovation.

This study has constraints inherited in survey design, primarily sampling and country context.

This study identifies, conceptualizes and operationalizes the term extreme context, conceptually argued for particular organizations/units in ordinary/mundane organization settings so far. In addition, this study extends the current understanding of how the perception of extreme contexts interacts with a firm's capability to increase innovation efforts. Further, this study shows how OCC mediates the relationship between extreme contexts and firm product and process innovation.

The purpose of this paper is to analyse the relationship between environmental dynamism and supply chain flexibility (SCF) and to evaluate if two dynamic capabilities, i.e. operational absorptive capacity (OAC) and organisational learning (OL), are necessary competences for firms to develop such a responsive supply chain strategy as flexibility.

Hypothesised relationships are tested with survey data from 302 Spanish manufacturing firms using structural equations modelling.

Environmental dynamism is positively associated with both OAC and OL, and both dynamic capabilities enable SCF. The authors also find that the relationship between environmental dynamism and SCF is partially mediated by both dynamic capabilities.

The study contributes to the literature, for example, by determining when it is advantageous to develop SCF, by specifying what capabilities a firm needs to develop to align SCF with the environment, and by opening the black box that is the relationship between the environment and SCF.

Managers should develop SCF via OAC and OL when they detect a high degree of environmental dynamism. Knowing when this is necessary relies on a good understanding of the environment. OAC is found to be a stronger enabler of SCF than OL. The findings provide managers with an insight into why some firms are able to develop more effective responses to dynamic environments than others.

This study is one of only a limited number of studies that adopt a dynamic capabilities approach to supply chain management. Prior literature has shown that dynamic capabilities can aid in developing strategic, structural, and operational flexibility. The authors extend this literature by showing that OAC and OL have an effect on SCF.