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Recently, researchers have highlighted the limited attention that has been devoted to managerial capabilities as micro-foundational elements of absorptive capacity. Strategic thinking is one such managerial capability that guides managers during the development of organizational capabilities. The purpose of this paper is to empirically investigate the influence of managerial strategic thinking on the development of absorptive capacity.

Data were collected using a sample of 324 senior-level and mid-level managers from the software industry. PLS-SEM was used to test the hypothesized relationships.

Study results indicate that managerial strategic thinking is positively related to absorptive capacity, as well as to each of its four components – acquisition, assimilation, transformation and exploitation.

The current study adopts a micro-foundations perspective and delves into the development and orchestration of organizational capabilities. This study is the first to empirically investigate the relationship between managerial strategic thinking and absorptive capacity. Prior literature on absorptive capacity has focused on its influence on phenomena that are downstream to absorptive capacity, e.g. innovation, new product development and firm performance. The research offers new insights into the relationship between absorptive capacity and managerial strategic thinking, a hitherto unexplored upstream phenomenon. Scholars have theorized that managerial strategic thinking plays a pivotal role in managerial decisions, making it a critical factor in developing the absorptive capacity of an organization. The authors believe that the empirical evidence of the theorized relationship offers valuable insights that will aid scholarly research on organizational capabilities.

The purpose of the study is to investigate whether the alignment between organizational capabilities is idiosyncratic to an organization or a predictable pattern of alignments can be identified across organizations.

Survey design is used to collect data from upper- and mid-level managers of organizations operating in the software industry. A total of 219 responses are used to test the study hypotheses. Partial least squares structural equation modeling and regression analysis are used for data analysis and hypotheses testing.

Results suggest that the alignment between strategic thinking and absorptive capacity is different for organizations with a prospector-type strategic orientation compared to organizations with other types (defenders and analyzers) of strategic orientations. The study also finds that the pattern of alignment holds for each dimension of absorptive capacity.

There is limited research on the alignment between the three types of organizational capabilities (metaphysical, dynamic and ordinary). This may have transcended from arguments that if organizational capabilities are truly idiosyncratic, they should not be expected to follow a predictable pattern of alignments across organizations. To the best of the authors’ knowledge, this study is the first to empirically investigate and provide evidence that the alignment between organizational capabilities is contingent on the strategic orientation of the organizations. The findings offer hope for the development of a generalizable theory of organizational capability alignment in organizations.

The success rate of new products is stubbornly low. This paper aims to explore the differences in how product designers and product managers approach the new product development task by comparing their perspectives on the process.

This study conducted a worldwide survey of professional product designers and managers and compared their perspectives.

Managers struggle to understand the problem to be solved until they see the solution in the form of an outstanding product design. Designers struggle to develop new products until they have a specific and insightful understanding of the problem that needs to be solved.

Designers’ and managers’ ways of thinking are different, and effective collaboration depends on them being cognizant of each other’s ways of thinking; the success of their work is highly interdependent.

To the best of the authors’ knowledge, this study is the first study that simultaneously investigates both product designers and managers to reveal the paradoxical dynamics between their perspectives.

The purpose of this study is to model the strategic thinking process, considering the different psychological traits of TMTs (top management teams) and how the technological dynamism affects the strategies framed together impacting the performance of the firm.

Modeling and simulation are done in this study using the system dynamics (SD) tool. The data are extracted using social media analytics, and the same is given as an input for the SDmodel, which is used for modeling and simulation of the interdependencies between the psychological factors, technological dynamism and firm performance. The analysis decodes how a change in the thinking process of a TMT has an impact on the performance of the company in an automobile market.

The study has explained how different psychological traits affect the thinking process of a TMT and how the strategies framed with this thinking behavior have an impact on firm performance.

The study is limited only to the automobile industry in India, and only partial psychological constructs were considered to examine their impact on firm performance. This study can be further extended by analyzing the same to various other industries along with many other psychological constructs.

The findings identify the change in behavior of the performance due to the thinking process and technological dynamism. This helps the top management to take into consideration different factors that affect the strategies framed for the company and what are the threshold points in the system that are to be focused on during the framing of a strategy.

The study fills the unattended gaps in the literature regarding how the psychological traits are interdependent and how their relationship is affecting the thinking process, which is going to have an impact on the behavior of the firm performance. It also adds to the literature of systems thinking.

This study aims to identify the antecedents of strategic thinking and its relationship with competitive advantage. Further, this study analyses the mediating effect of strategic thinking between its antecedents and competitive advantage.

A self-reported questionnaire with 51 questions was floated among 220 professionals from various industries in India. The response was analysed using the partial least squares-structural equation modelling methodology using SmartPLS software.

The direct effect of creativity, corporate culture and knowledge management are established with strategic thinking, as well as a competitive advantage. Also, the study finds a significant relationship between strategic thinking and competitive advantage. The study finds no mediation (direct effect) in the case of creativity, corporate culture and knowledge management. Further, no mediation (no relationship) is found in the case of vision.

Business must start adopting strategic thinking practices in their decision-making process to create a competitive advantage. Further, the influence of corporate culture, creativity and knowledge management on strategic thinking highlights their importance.

The study establishes the impact of antecedents of strategic thinking on competitive advantage. The study highlights the importance of other factors along with strategic thinking for achieving competitive advantage.

In the era of Big Data, larger volumes of data arrive in various forms at an increasing pace but of questionable quality and value. The abundant information (that emanates from these 5Vs – volume, variety, velocity, veracity, and value) taxes the bounded capacity of managers. This chapter introduces a taxonomy of approaches available for strategic decision making in an information-rich environment, several of which showcase that automation can help to augment (not supplant) managerial decision making. This taxonomy is then applied to an innovation context. Mapping a stylized version of the phases of the innovation process (i.e., front-end innovation, new product development, commercialization) onto the four decision-making approaches yields an organizing framework for understanding strategic decision making in the realm of innovation. The chapter concludes by identifying promising areas for future research.

This conceptual chapter: (1) explicates the foundational terminology regarding strategic decision making in a marketing context; (2) provides a primer on the era of Big Data and making strategic decisions in an information-rich environment; (3) introduces a taxonomy, which features approaches to decision making in an information-rich environment; and (4) applies the taxonomy in an innovation context to yield an organizing framework.

This chapter focuses on the nascent field that is emerging at the intersection of innovation, marketing strategy, and information-rich environments, and breaks new ground by exploring automation available to aid managerial decision making in this realm.

The main practical implication is to elucidate that managers can apply different approaches to decision making in today’s information-rich environment. Tables 2–4 provide to managers 12 examples of the types of decision making in an innovation context.

This chapter introduces a new taxonomy to classify four approaches for making strategic decisions in an information-rich environment, and extends that framework to the innovation realm. This framework aims to prompt researchers to explore important topics that exist at the intersection of innovation, marketing strategy, and managerial decision making in an information-rich environment.

The purpose of this paper is to describe and analyse how the main driving forces are affecting companies in a supply chain. The focus is on what managers expect will influence customer value from a strategic point of view.

The paper is based on a qualitative study where managers at a division level have been interviewed.

The main driving forces have been identified. These driving forces have been found to affect the business and marketing strategy in the market among different actors, in the technology and due to external changes in the market, e.g. by changes in demography resulting in dissimilar market behaviour. Co‐operation among actors has been found to improve customer value.

The managerial implications therefore indicate that managers need to assess the main driving forces and find a competitive and marketing strategy that can match competition and influence driving forces in the actual market area.

The paper has a longitudinal approach. An important value of the paper is that actors at different stages in the supply chain have been interviewed during a longer period of time.

Mergers and acquisitions strategies are not risk-free, potential problems in achieving success include integration difficulties, inadequate evaluation of target, inability to achieve synergy, and complexity. Such strategies can fail for many reasons including inadequate evaluation of targets or inadequate pre-decision control mechanisms. Mergers and acquisitions are reviewed in this chapter as strategic investment decision-making perspective. Established financial analyses remain important in appraising investment choices, despite their limiting assumptions and their recognised shortcomings in capturing strategic project dimensions. However, managers balance these economic analyses with less-structured, strategic analyses underpinned by informed judgement. The fact that empirical studies reveal a continued reliance on judgement by investment decision-makers does not mean that rational economic analysis is a futile exercise. What studies of practice do seem to suggest is that the theory and practice of strategic investment decision-making need to take into account both economically rational and intuitive decision processes. Reflecting on the research evidence, we conclude that strategic investment appraisal will be best supported by approaches that (i) couple sound economic analysis with the development of managerial judgement and (ii) take account of the broader decision-making context within which both economic and strategic analyses are used.

Organisational resilience is a strategic resource within the contingencies of organising in Small and Micro businesses (SMEs). In this regard, the notion of resilient human capital in propelling a resilient organisation has come to dominate the contemporary discourse on the performance of SMEs. Drawing on human capital theory as a meta-theoretical lens, we examine the cumulative effect of managerial training on managers’ performance in the context of relatively underdeveloped institutions and markets. Employing a quantitative research methodology, data for our empirical inquiry comes from a survey of 506 Ghanaian SMEs operating in diverse sectors of the economy. Following SMEs being at the convergence point of resource constraint, we show why some firm managers are more likely to exhibit managerial resilience than those in other firms. Our data evidence suggests that targeted managerial training, in practice, has the potential to strengthen organisational resilience. Nevertheless, the content, efficiency and frequency of the training received, we argue, accounts for the differential performance of managers within the contingencies of everyday organising. We conclude by delineating some relevant implications of our study for the theory and practice of managerial resilience nurturing in organising.

This paper aims to enrich absorptive capacity literature by specifically highlighting and adding environmental conditions and internationalisation process to the original conceptualisation.

The authors undertake a conceptual analysis and present an enhanced framework of absorptive capacity by integrating multiple literature streams. The authors have analysed the most relevant literature to provide underlying justifications for the proposed conceptual model.

Absorptive capacity ensures the long-term survival and success of a business. To develop absorptive capacity successfully, firms should focus on its various dimensions and existing intangible assets and external environment. The multidimensionality and richness of absorptive capacity is an under-explored area in the existing literature. The authors revisit the conceptualisation of absorptive capacity and add environmental conditions and the internationalisation process to the original conceptualisation. Absorptive capacity does not lead to a competitive advantage independent of its environment. To successfully develop it, firms have to adopt a holistic approach by considering the multi-dimensions, drivers and contextual conditions of absorptive capacity.

This study contributes by conceptualising absorptive capacity as a dynamic capability. It is one of the first studies to specifically propose a framework that combines antecedents (prior knowledge, combinative capabilities and IT capabilities), moderators (environmental conditions, namely, market and technological turbulence, competitiveness and the internationalisation process) and consequences (competitive advantage). The study offers a unique conceptualisation with implications for researchers and managers. As a result, managers will have a well-defined blueprint to create value by using firm capabilities.