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Open Access
Article
Publication date: 19 September 2019

Olga Petricevic and Alain Verbeke

The purpose of this paper is to explore two distinct subsets of dynamic capabilities that need to be deployed when pursuing innovation through inter-organizational…

2229

Abstract

Purpose

The purpose of this paper is to explore two distinct subsets of dynamic capabilities that need to be deployed when pursuing innovation through inter-organizational activities, respectively, in the contexts of broad networks and specific alliances. The authors draw distinctions and explore potential interdependencies between these two dynamic capability reservoirs, by integrating concepts from the theoretical perspectives they are derived from, but which have until now largely ignored each other – the social network perspective and the dynamic capabilities view.

Design/methodology/approach

The authors investigate nanotechnology-driven R&D activities in the 1995–2005 period for 76 publicly traded firms in the electronics and electrical equipment industry and in the chemicals and pharmaceuticals industry, that applied for 580 nanotechnology-related patents and engaged in 2,459 alliances during the observation period. The authors used zero-truncated Poisson regression as the estimation method.

Findings

The findings support conceptualizing dynamic capabilities as four distinct subsets, deployed for sensing or seizing purposes, and across the two different inter-organizational contexts. The findings also suggest potential synergies between these subsets of dynamic capabilities, with two subsets being more macro-oriented (i.e. sensing and seizing opportunities within networks) and the two other ones more micro-oriented (i.e. sensing and seizing opportunities within specific alliances).

Practical implications

The authors show that firms differ in their subsets of dynamic capabilities for pursuing different types of inter-organizational, boundary-spanning relationships (such as alliances vs broader network relationships), which ultimately affects their innovation performance.

Originality/value

The authors contribute to the growing body of work on dynamic capabilities and firm-specific advantages by unbundling the dynamic capability subsets, and investigating their complex interdependencies for managing different types of inter-organizational linkages. The main new insight is that the “linear model” of generating more innovations through higher inter-firm collaboration in an emerging field paints an erroneous picture of how high innovation performance is actually achieved.

Details

Cross Cultural & Strategic Management, vol. 26 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 16 August 2021

Alvaro Lopes Dias and Luis F. Lages

The purpose of this paper is to conceptualize and operationalize the concept of market-sensing capabilities and analyze its relationship with new product development (NPD…

Abstract

Purpose

The purpose of this paper is to conceptualize and operationalize the concept of market-sensing capabilities and analyze its relationship with new product development (NPD) success and organic organizational structures. To the authors' knowledge, past measures of market-sensing capabilities have never included opportunity interpretation, through business experience and organizational articulation, as part of the concept.

Design/methodology/approach

Based on a sample of over 180 small and medium-sized enterprises (SMEs), market-sensing capabilities constructs and their relationships were tested through academics' and managers' perceptions. The measure was tested using confirmatory factor analysis (CFA).

Findings

Findings reveal theoretically sound constructs based on four underlying market-sensing capabilities components: analytical processes, customer relationship, business experience and organizational articulation. Results demonstrate reliability, convergent, discriminant and nomological validity. All four dimensions are positively associated with NPD success and are more likely to appear in organic organizational structures.

Practical implications

The resulting instrument provides managers with a valuable tool to measure firms' abilities to address environmental uncertainty. By using this instrument, managers can assess internal organizational structures and resources allocated to sensing capabilities. By developing sensing capabilities, managers might ultimately influence their NPD strategy. Findings also reveal that sensing capabilities are positively and significantly associated with organic organizational structures.

Originality/value

Existing sensing capabilities measures are focused on environmental scanning, and the essence of the concept is not fully expressed by the traditional measures of analytical processes and customer relationship. The authors' new measure includes opportunity interpretation through business experience and organizational articulation.

Details

Journal of Small Business and Enterprise Development, vol. 28 no. 7
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 14 May 2018

Mona Rashidirad, Hamid Salimian and Ebrahim Soltani

The aim of this study is to examine the impact of the fit between product-service strategy and sensing capability on novelty, and the potential moderating impact of…

Abstract

Purpose

The aim of this study is to examine the impact of the fit between product-service strategy and sensing capability on novelty, and the potential moderating impact of contextual factors (i.e. technological and market turbulence) on novelty.

Design/methodology/approach

In line with the aim of the study, a quantitative approach is adopted and a multi-item scale survey is designed to collect primary data. Using a mixed mode survey, a total number of 491 questionnaires are collected from a sample of UK-based telecommunications firms. Multiple regression is used to test the hypotheses and predict the outcomes.

Findings

The results support the positive contribution of a contingency approach to the study of the impact of the fit between product-service strategy and sensing dynamic capability on novelty. The results also partially confirm the reinforcing impact of technological and market turbulence on novelty.

Originality/value

This study extends research on product-service strategy and sensing capability by adopting a contingency view, which intends to serve two purposes: to complement the existing reductionistic explanations and to explore how the relationship between product-service strategy and sensing capability could create novelty as well as the degree to which this relationship could be moderated in light of the external contextual factors.

Details

European Business Review, vol. 30 no. 3
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 11 May 2021

Amiram Markovich, Kalanit Efrat and Daphne R. Raban

This study aims to augment the understanding of dynamic capabilities (DCs) by exploring the interrelations among the DC categories (sensing, seizing, reconfiguring) and…

Abstract

Purpose

This study aims to augment the understanding of dynamic capabilities (DCs) by exploring the interrelations among the DC categories (sensing, seizing, reconfiguring) and the distinct impact of each DC on firm performance under low and high levels of competitive intensity.

Design/methodology/approach

The analysis is based on a cross-sectional survey of 139 managers in Israel. The data were collected through Web-based questionnaires using the Qualtrics software. A two-stage data analysis was performed using structural equation modeling (SEM).

Findings

The findings indicate that DCs follow a sequence in which sensing drives seizing, which, in turn, enhances reconfiguring. The effects of sensing are mainly manifested through its direct impact on seizing, with no evidence for an impact of sensing on company performance. Moreover, under low competitive intensity, only seizing appears to impact performance, while under high competitive intensity, reconfiguring joins seizing in improving firm performance.

Originality/value

The study's findings advance the debate on the direct vs sequential nature of DCs by indicating an internal DC sequence. Our research also advocates for a crucial role of sensing in enhancing DCs, regardless of the level of competitive intensity. Furthermore, this research expands the understanding of the consequences of DCs and enables the prioritization of DC categories under low and high competitive intensity.

Details

Baltic Journal of Management, vol. 16 no. 4
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 28 July 2021

One-Ki Daniel Lee, Peng Xu, Jean-Pierre Kuilboer and Noushin Ashrafi

The purpose of this study is to understand how IT capabilities for knowledge management and process integration can build a firm's agile process capabilities for sensing

Abstract

Purpose

The purpose of this study is to understand how IT capabilities for knowledge management and process integration can build a firm's agile process capabilities for sensing, strategic decision and responding. The study also investigates how the three agile capabilities affect firm performance in different competitive environments.

Design/methodology/approach

This study conducted a large-scale field survey with firms in the United States. Survey invitations were sent to business executives of the target firms. A total of 254 complete samples were collected for our hypotheses test.

Findings

The results confirm the overall significant roles of IT capabilities in the three agile capabilities. The results further reveal that the IT capability for knowledge management has a higher influence on sensing capability, while the IT capability for process integration has a higher influence on responding capability. Moreover, strategic decision and responding capabilities are more important in the high market competition. However, in the low market competition, sensing capability becomes more important while responding capability demonstrates a negative impact on firm performance.

Originality/value

This study helps both academics and practitioners better understand a firm's IT-agility-performance mechanism. Particularly, our findings guide how to achieve agile capabilities and what to focus on under the different levels of market competition.

Details

Industrial Management & Data Systems, vol. 121 no. 11
Type: Research Article
ISSN: 0263-5577

Keywords

Open Access
Article
Publication date: 20 August 2020

Lauri Haapanen, Pia Hurmelinna-Laukkanen and Kaisu Puumalainen

In this study, the authors explore how sensing and seizing of market opportunities, asset reconfiguration and top management team (TMT) consensus on these elements jointly…

2081

Abstract

Purpose

In this study, the authors explore how sensing and seizing of market opportunities, asset reconfiguration and top management team (TMT) consensus on these elements jointly relate to a firm's international expansion. By doing this, the authors contribute to the existing literature by addressing dynamic managerial capabilities at the TMT level instead of considering them as individual executives' traits. The authors use the qualitative comparative analysis (QCA) method to analyze our data from 261 TMT executives in 63 firms. The findings indicate that sensing, seizing and reconfiguration capabilities are highly relevant for internationalization but in different configurations for specific stages and elements of international business. Presence of sensing as a part of configurations is observable, especially in connection to a firm having foreign customers and explicit internationalization strategies, while configurations where seizing and reconfiguration emerge are connected to firms showing continuity in the international markets. The authors’ results also indicate that a lack of TMT consensus in connection to dynamic managerial capabilities is a driving force that allows the firm not to stagnate with regards to internationalization. Yet, lack of TMT consensus combined with low reconfiguration capabilities seems to generate negative results, which suggests that different views are not helpful if the firm is incapable of changing its approaches.

Design/methodology/approach

This study uses data gathered with a questionnaire where the executives select either “yes” or “no” in response to statements describing the firm situation with regard different managerial aspects and progress of international growth. The authors analyze these data from 261 TMT executives from 63 firms using the QCA method.

Findings

The findings indicate that sensing, seizing and reconfiguration capabilities are highly relevant for internationalization but to different extents for specific elements of international business; generally, while sensing is needed, in particular, for having foreign customers and internationalization strategies in the first place, seizing and reconfiguration became relevant for continuity in the international markets. Consensus or rather lack of it on these elements also plays a role. It seems that some disagreement is a driving force that allows the firm not to stagnate with regards to internationalization. However, TMT disagreement combined with low reconfiguration capabilities seems to generate negative results, which suggests that different views are not helpful if the firm is incapable of changing its approaches.

Research limitations/implications

The findings contribute to existing knowledge by exploring how managerial capabilities influence firm-level dynamic capabilities from the point of view of the TMT. The authors also add to existing research that has often focused on the relationships between TMT executives' demographic traits and TMT consensus and, further, the (subsequent) firm performance by looking at different configuration rather than linear linkages. Together, these notions further mean that the authors change the point of view on diversity. The authors consider the consensus on existing managerial dynamic capabilities rather than evaluate the functional diversity or the TMT executives' agreement on strategic moves.

Practical implications

All capabilities are important. TMT does not need to agree on everything, as long as they acknowledge where their problem areas are, and they can capture at least some of the relevant trends and opportunities. In fact, having some lack of consensus seems to be a driving force that allows capabilities to be questioned and potentially keeps (false) under-appreciation of existing capabilities from becoming a barrier to international expansion.

Originality/value

Unlike previous studies that have focused on the relationship between the TMT executives' demographic characteristics and firm performance or the relationship of the demographics and TMT strategic consensus at a general level – or studies that have explained international performance with TMT consensus (or with dynamic managerial capabilities), this study brings forth how the dynamic managerial capabilities and the TMT executives' strategic consensus with regard to these capabilities influence the firm's international expansion. Here, the authors consider internationalization widely, looking at whether the firm has foreign customers or international expansion strategy in place, and whether there this activity is sustained and continuous (with repeated trading and long-term international contracts, in particular). To our knowledge, there is no research on TMT strategic consensus that explains how the unanimity among executives on dynamic managerial capabilities connects to the firm's international expansion.

Details

Cross Cultural & Strategic Management, vol. 27 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 2 February 2021

Jiahe Song, Kang-Bok Lee, Zhongyun Zhou, Lin Jia, Casey Cegielski and Soo Il Shin

The purpose of this study is to investigate the relationship between social media and sensing capability for supply chain management (SCM) from an environmental scanning…

Abstract

Purpose

The purpose of this study is to investigate the relationship between social media and sensing capability for supply chain management (SCM) from an environmental scanning perspective. The authors consider upstream supply and downstream customer markets as two aspects of social media-enabled environmental scanning (SMES). The moderating effects of three uncertainties are explored.

Design/methodology/approach

The data were collected from 178 supply chain professionals through a survey. Generalized estimating equations (GEE) were used to analyze the data.

Findings

SMES in both supply and customer markets enhance sensing capability. Interestingly, the results reveal an accelerating effect on sensing by the incremental effort of SMES-supply. However, that of SMES-customer leads to a decelerating outcome for sensing. Also, uncertainties, especially the demand- and technology-related, play a series of interacting effects according to SMES levels.

Research limitations/implications

This research contributes to the literature of operations and supply chains regarding social media strategies and dynamic capabilities. It opens the black box of environmental scanning behavior on social media and adds new knowledge on the dynamic influence of such behavior toward organizational sensing capability for SCM. In addition, further understanding on supply chain uncertainty as a moderator is also strengthened through this research.

Originality/value

This research is the first to empirically uncover the effect of social media on sensing capability for SCM through the lens of environmental scanning. The results support the employment of social networking for improving supply and demand sensing.

Details

Information Technology & People, vol. 35 no. 1
Type: Research Article
ISSN: 0959-3845

Keywords

Article
Publication date: 11 October 2021

Siddharth Gaurav Majhi, Arindam Mukherjee and Ambuj Anand

Novel and emerging technologies such as cognitive analytics attract a lot of hype among academic researchers and practitioners. However, returns on investments in these…

Abstract

Purpose

Novel and emerging technologies such as cognitive analytics attract a lot of hype among academic researchers and practitioners. However, returns on investments in these technologies are often poor. So, identifying mechanisms through which cognitive analytics can add value to firms is a critical research gap. The purpose of this paper is to theorize how cognitive analytics technologies can enable the dynamic capabilities of sensing, seizing and reconfiguring for an organization.

Design/methodology/approach

This conceptual paper draws on the extant academic literature on cognitive analytics and related technologies, the business value of analytics and artificial intelligence and the dynamic capabilities perspective, to establish the role of cognitive analytics technologies in enabling the sensing, seizing and reconfiguring capabilities of an organization.

Findings

Through arguments grounded in existing conceptual and empirical academic literature, this paper develops propositions and a theoretical framework linking cognitive analytics technologies with organizations’ dynamic capabilities (sensing, seizing and reconfiguring).

Research limitations/implications

This paper has critical implications for both academic research and managerial practice. First, the authors develop a framework using the dynamic capabilities theoretical perspective to establish a novel pathway for the business value of cognitive analytics technology. Second, cognitive analytics is proposed as a novel antecedent of the dynamic organizational capabilities of sensing, seizing and reconfiguring.

Originality/value

To the best of the authors’ knowledge, this is the first paper to theorize how cognitive analytics technologies can enable dynamic organizational capabilities, and thus add business value to an organization.

Details

VINE Journal of Information and Knowledge Management Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-5891

Keywords

Open Access
Article
Publication date: 13 September 2021

Johannes W.F.C. van Lieshout, Jeroen M. van der Velden, Robert J. Blomme and Pascale Peters

Establishing a competitive advantage in today's dynamic environment involves optimizing an organization's exploration and exploitation strategy. This paper aims to explore…

2896

Abstract

Purpose

Establishing a competitive advantage in today's dynamic environment involves optimizing an organization's exploration and exploitation strategy. This paper aims to explore how an open innovation strategy complements the organization's ambidextrous strategy in attaining a competitive advantage. Organizational ambidexterity and dynamic capability theories are also explored to investigate the impact of open innovation on the organization's ambidextrous strategy and competitive advantage – especially inbound and outbound open innovation.

Design/methodology/approach

The authors conducted a systematic literature review using Boolean search techniques, which was focused on the research fields of the sub-areas of general management, strategy, innovation, organization studies, information management, entrepreneurship, international business, marketing, and economics, supplemented by the snowball technique.

Findings

Organizations that combine their ambidextrous strategy with open innovation attributes achieve a competitive advantage through developing their dynamic capabilities by which organizations change their value proposition. This study also shows that an ambidextrous strategy should no longer be viewed as a structural solution implemented by management, but also as a bottom-up intervention. Additionally, the authors found that the organization's dynamic capabilities establish a feedback loop, which changes the organization's ambidextrous strategy to resolve the efficiency–agility paradox.

Originality/value

Previous research has focused on strategic orientation; however, hardly any research has investigated how the interrelatedness of open innovation, organizational ambidexterity and dynamic capabilities support a competitive advantage. The authors present a conceptual model that inspires new research avenues.

Details

European Journal of Management Studies, vol. 26 no. 2/3
Type: Research Article
ISSN: 2183-4172

Keywords

Article
Publication date: 2 December 2019

Elaheh Bigdeli, Mohammadreza Motadel, Abbas Toloie Eshlaghy and Reza Radfar

This paper aims to present a dynamic model based on casual relationships among the most important effective factors on business–IT alignment in Agile businesses by using…

Abstract

Purpose

This paper aims to present a dynamic model based on casual relationships among the most important effective factors on business–IT alignment in Agile businesses by using system dynamics modeling approach.

Design/methodology/approach

To study the most important factors on agility and alignment, the data were collected by questionnaires filled by 201 experts and were analyzed by SPSS and PLS. Casual relationships among studied factors and efficiency coefficients of each factor were identified by fuzzy DEMATEL technique and analyzed by MATLAB and EXCELL. Finally, the dynamic model was plotted by VENSIM.

Findings

According to the results, only “learning IT capabilities” are the most important casual factor that has the highest influence on the other factors. “Business responding capabilities” take the highest effect from the system, and “business sensing capabilities” are in the next rank.

Practical implications

This study underpins effective IT deployment toward developing efficient IT capabilities to gain greater agility.

Originality/value

The dynamic capabilities view (DCV) has emerged as an influential theoretical and management framework in modern IS and agility researches. In this regard, we propose a conceptualization of dynamic capabilities in the form of an alignment model. Based on the dynamic capabilities, and on the alignment perspectives found in Henderson and Venkatraman’s seminal model, IT alignment is modeled as a process of reconfiguration of the firm’s IT and organizational resources, competencies and capabilities.

Details

Kybernetes, vol. 49 no. 10
Type: Research Article
ISSN: 0368-492X

Keywords

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