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This study aims to investigate the relationship between dynamic capabilities and sustainable business performance in Vietnamese small- and medium-sized enterprises (SMEs), focusing on the mediating role of digitalization strategies. Specifically, the authors seek to explore whether and how the three critical characteristics of dynamic capabilities (DCs) – sensing, seizing and transforming capabilities – are linked to business model innovation (BMI) or sustained performance and what dimensions contribute to their development and adoption in digitalization strategies.

The authors analyse a sample of 596 Vietnamese SMEs using a validated measurement framework to explore the three clusters of DCs activities and their contributions to digitalization strategies, BMI and sustainable business performance across economic, social and environmental dimensions.

The study highlights the pivotal role of sensing, seizing and transforming capabilities in the adoption of digitalization strategies, BMI, as well as in promoting sustainable business performance. Firstly, sensing capability profoundly influences product digitalization strategy, whereas seizing capability has the greatest impact on process digitalization strategy. Secondly, sensing and transforming capabilities significantly contribute to BMI. Thirdly, both process and product digitalization strategies exert a significant positive influence on sustainable business performance, especially the environmental dimension. Finally, the study exhibits the indirect impacts of seizing and sensing capabilities on sustainable business performance through product and process digitization strategies.

This study extends recent research by investigating the DCs underlying a firm’s digitalization strategies and contribute to ongoing calls for further investigation in the DCs literature. This research design, which draws from a validated measurement framework, responds to recent calls to broaden the toolkit used in DCs research. The practical implications of this study can benefit SMEs in Vietnam and beyond as they seek to enhance their digitalization strategies and achieve sustainable competitive advantage.

This study aims to build on the dynamic capability view by examining dynamic capabilities associated with public value in public procurement.

A qualitative case study approach is used in this study. The interview and secondary data consist of eight cases of value-creating procurement from four public organizations.

The findings connect dynamic capabilities and public value in terms of innovation generation and promotion, well-functioning supplier markets, public procurement process effectiveness, environmental and social sustainability and quality and availability of products or services.

Dynamic capabilities in public procurement are necessary to improve public procurement.

This study extends understanding of how sensing, seizing and transforming capabilities contribute to public value creation in both innovative and less innovative (i.e. ordinary) procurement scenarios.

This study aims to answer the question: What dynamic capabilities do diverse humanitarian organizations have?

We examine this question through the lens of dynamic capabilities with sensing, seizing and reconfiguring capacities. The research team interviewed 15 individuals from 12 humanitarian organizations that had (a) different geographic scopes (global versus local) and (b) different missions (emergency response versus long-term development aid). We also gathered data from secondary sources, including standard operating procedures, company websites, and news databases (Factiva, Reuters and Bloomberg).

The findings identify the operational and dynamic capabilities of global and local humanitarian organizations while distinguishing between their mission to provide long-term development aid or emergency relief. (1) The global organizations, with their beneficiary responsiveness, reconfigured their sensing and seizing capacities throughout the COVID-19 pandemic by pivoting quickly to local procurement or regional supply chains. The long-term development organizations pivoted to multi-year supplier agreements with fixed pricing to counter price uncertainty and accessed social capital with government bodies. In contrast, emergency response organizations developed end-to-end supply chain visibility to sense changes in supply and demand. (2) Local humanitarian organizations developed the capacity to sense demand and supply changes to reconfigure based on their experiential learning working with the local community. The long-term-development local organizations used un-owned and scalable relief infrastructure to seize opportunities to rebuild affected areas. In contrast, emergency response organizations developed their capacity to seize opportunities to provide aid stemming from their decentralized decision-making, a lack of structured procedures, and the authority for increased expenditure.

We propose a theoretical framework to identify humanitarian organizations' operational and dynamic capabilities, distinguishing between global and local organizations and their emergency response and long-term aid missions.

This paper aims to draw on the Dynamic Capabilities View to discuss how small and medium enterprises (SMEs) use digital technologies to develop digital capabilities that will enable them to change their current business model and trajectory, that is, to pivot-within turbulent environments, and subsequently to survive and grow.

The authors collected and analysed qualitative data from 26 SMEs in South-East England that have used digital technologies to pivot during the pandemic. The data was collected via in-depth semi-structured interviews. The authors analysed the data by creating first-order concepts, second-order themes, and aggregating dimensions.

The findings suggest that (1) digital technologies enable pivoting by facilitating the creation of the following digital capability types: “digital sensing”, “digital seizing” and “digital transforming”; (2) Each of these digital capability types is underpinned by micro-foundations (sub-capabilities) and shaped by the digital culture of the organisation. (3) these capabilities are triggered by the turbulent environment and the existing digital technologies, and are shaped by the digital culture.

The authors contribute to the literature of digital entrepreneurship as the authors illustrate (1) how the micro-foundations of digital capabilities, as facilitated by digital technologies, assist pivoting; and (2) the process from key activities during pivoting to second-order themes that represent micro-foundations to digital (dynamic) capabilities for pivoting in turbulent environments. The study highlights the importance of digital pivoting for businesses in the UK Southeast that have many aspirations for growth and innovation, whilst striving to address multiple challenges including digital divide and literacy, inflation and cost of living crisis, as well as supply chain issues.

In the landscape created by digital transformation, developing the ability to adapt and innovate by absorbing and generating new knowledge has become a strategic priority for organizations. The theory of dynamic capabilities, especially from a knowledge-based perspective, has proven particularly useful in studying the phenomena of transformation and change. Moving from this premise, this paper aims to map the state of research and to define guidelines for the actualization of dynamic capabilities theory in the digital transformation era.

A structured literature review of 75 papers, using descriptive, bibliographic and content analysis, was performed to analyze the evolution of dynamic capabilities in the context of digital transformation.

Studies concerning knowledge-based dynamic capabilities for digital transformation have been clustered into five main research areas: the micro-foundation of dynamic capabilities for digital transformation; dynamic capabilities for value creation in digital transformation; dynamic capabilities for digital transition in specific industries; dynamic capabilities for “data-driven organizations”; and dynamic capabilities for digital transformation in SMEs and family firms. A future research agenda for scholars in strategic management is presented.

A conceptual framework and a future research agenda are presented to highlight directions for this promising research field concerning the renewal of dynamic capabilities in the context of digital transformation.

The originality of the paper lies in the conceptual framework aiming to systematize current research on knowledge-based dynamic capabilities for digital transformation and to provide a new conceptualization of digital dynamic capabilities, clarifying how organizations create and share knowledge in the era of digitalization.

This study examines the marketing performance of firms from an international dynamic marketing capability perspective. It also investigates the moderating role of marketing leadership teams to improve organizations' international marketing performance.

The authors used dynamic capability view and other related literature to develop a theoretical model, which was validated with the structural equation modelling technique, considering a sample of 455 respondents from Indian firms. The authors also used the multigroup analysis method to examine the moderating impacts of a firm's marketing leadership team on their international marketing performance.

There is a positive relationship between a firm's dynamic ability factors and its international dynamic-marketing capabilities. The study also finds that a firm's marketing leadership team has a significant positive moderating impact on improving its international marketing performance.

The unique theory-based model clearly explains how a firm's dynamic abilities impact international dynamic marketing capability, which then impacts its international marketing performance. This model can help practitioners, researchers and academicians to understand the significance of a firm's international dynamic capability on international marketing performance. The study also helps firms to understand the moderating influence of marketing leadership teams to improve international marketing performance.

This study adds value to the body of literature on international dynamic marketing, international marketing performance and international marketing knowledge management, on which, until now, few other studies have focused. Thus, this research is unique. The proposed model of international dynamic marketing is also unique with high explanative power.

This research is an empirical study that addresses whether knowledge resources impact on, or do not impact on, innovation development and if this impact is mediated by dynamic capabilities in the medical tourism sector in Mashhad city, Iran.

A quantitative research methodology was applied and questionnaires were used for data collection in this study. A total of 108 questionnaires were collected of which 102 questionnaires were valid. Data were analyzed using structural equation modelling technique.

Empirical evidence obtained from the study reveals that the dynamic capability of learning plays a significant role in transforming knowledge resources into innovation in the medical tourism sector. The mediating role of coordinating capability in the relationship between explicit and tacit knowledge and innovation is considerable and it influences human capital, as well. Sensing capability also exhibits some degree of a mediating role; however, integrating capability is not influential and its role in transforming explicit knowledge to innovation is rejected.

Most studies on innovation in medical tourism focused on market and its typology, and neglected the role of knowledge resources and dynamic capabilities. The current study bridges this gap and thus contributes to the scientific literature.

Grounded in dynamic capabilities theory, this study aims to examine how dynamic capabilities and a transactive memory system (TMS) can build the resilience of service organizations and improve their financial performance. Limited studies examine the link between a TMS and organizational resilience.

The authors test a theoretical model on a sample of 350 UK service firms that were impacted by the COVID-19 pandemic and analyze the data using partial least square structural equation modeling.

Results highlight the positive effects of a TMS and dynamic capabilities on organizational resilience. Only a TMS and organizational resilience have direct positive effects on financial performance.

To the best of the authors’ knowledge, this is the first study to ascertain the influence of a TMS on organizational resilience in service firms following adversity.

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.

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.

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.

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.

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.

This study aims to explore how subsidiary capabilities collectively configure for performance. Additionally, it seeks to examine whether these configurations of capabilities can provide equifinal solutions through developing a comprehensive research framework that focuses on subsidiaries in China.

With a data set collected through a questionnaire from 172 Korean multinational enterprises (MNEs) in China, this study used a fuzzy-set qualitative comparative analysis to detect the capability conditions and configurations. These configurations represent combinations of various subsidiary capabilities linked to high performance.

This study identified several complex pathways with distinct configurations for high subsidiary performance. The findings demonstrate the importance of configurations over individual conditions. Thus, the results highlight that the effectiveness of diverse capabilities, which are widely believed to singularly contribute to the high performance of MNE subsidiaries, depends on how each combines with other capabilities. Overall, the findings provide a richer and fine-grained understanding of the role and relative importance of various forms of MNE subsidiary capabilities and how the joint effect of these subsidiaries contributes to high performance.

This study suggests that MNE managers should comprehensively understand how subsidiary capabilities are configured to produce subsidiary performance outcomes. This specifically illustrates the importance of understanding the mutually conflicting yet collectively exhaustive results of multi-selective solutions and aims to align with China’s industrial and regional heterogeneity.

By examining the role of MNE subsidiary capability configurations, which may collectively influence the subsidiary’s performance, this study contributes to the literature. It elucidates how MNE subsidiaries may achieve superior performance by developing and possessing various capabilities tailored to the local context.