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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 relate…

3212

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

Open Access
Article
Publication date: 25 July 2022

Tim Heubeck and Reinhard Meckl

Managers play a critical role in shaping the development of firms due to the risky and long-term nature of innovation. Although the managerial effect on strategic change has long…

2586

Abstract

Purpose

Managers play a critical role in shaping the development of firms due to the risky and long-term nature of innovation. Although the managerial effect on strategic change has long been factored into organizational theories, scholars still lack a complete understanding of the specific managerial capabilities that drive innovation in today's digital economy. The present study builds on dynamic managerial capabilities theory to close this research gap. The paper proposes managers' dynamic capabilities and their three underlying drivers – managerial human capital, social capital, and cognition – as a direct antecedent to digital firms' innovativeness.

Design/methodology/approach

The study draws on survey data from German Industry 4.0 manufacturing firms, which were analyzed using regression analysis.

Findings

The results confirm managers' dynamic capabilities as facilitators of innovation. In contrast to previous research on nondigital industries, the findings demonstrate that only the complete portfolio of managers' dynamic capabilities promotes innovativeness in digital firms. The study provides evidence for the importance of dynamic managerial capabilities in the digital economy yet contradicts previous research on nondigital industries related to the advantageousness of managers' human capital, social capital, and cognition for innovation.

Originality/value

The study contributes to the literature by being the first to holistically test the effects of dynamic managerial capabilities on innovation in digital firms. The results offer a nuanced account of managers' dynamic capabilities, thereby expanding dynamic managerial capabilities theory to the digital economy.

Details

European Journal of Innovation Management, vol. 25 no. 6
Type: Research Article
ISSN: 1460-1060

Keywords

Open Access
Article
Publication date: 13 April 2018

Kaveh Moghaddam, Elzotbek Rustambekov, Thomas Weber and Sara Azarpanah

Transnational entrepreneurship can be considered a new stream of research where migrant entrepreneurship and international business research fields intersect. The purpose of this…

5598

Abstract

Purpose

Transnational entrepreneurship can be considered a new stream of research where migrant entrepreneurship and international business research fields intersect. The purpose of this paper is to offer a theoretical framework to address the following research question: How do transnational entrepreneurs (TEs) develop their competitive advantage to succeed in a global market?

Design/methodology/approach

Based on the strategic entrepreneurship approach and dynamic capability perspective, this paper suggests a theoretical framework to extend the understanding on how TEs may develop their competitive advantage to succeed in a global market.

Findings

The suggested theoretical framework exhibits how the social ties of TEs affects their firm performance through the mediating effect of a bundle of two organizational processes (opportunity sensing and opportunity seizing) and the moderating effect of institutional distance between countries of origin and residence.

Practical implications

TEs should not solely focus on their ethnic social ties. That is why this paper suggests that ethnic ties in the country of origin and the country of residence (COR) may lead to higher firm performance only if systematically used alongside nonethnic ties in the COR. Furthermore, it is crucial for TEs to understand the importance of dynamic capabilities in developing and sustaining their competitive advantage.

Originality/value

Based on the strategic entrepreneurship approach, this paper suggests a social tie-based model of the dynamic capability to address the theoretical void in the transnational entrepreneurship literature. The linkage between social tie and performance which has been in a black box is examined in terms of how strong and weak social ties may affect different underlying processes of TEs’ dynamic capabilities differently. In contrast to the common conceptualization of institutional distance as a negative moderator in international business literature, institutional distance is theorized as a positive moderator in the suggested theoretical model of transnational entrepreneurship.

Details

New England Journal of Entrepreneurship, vol. 21 no. 1
Type: Research Article
ISSN: 2574-8904

Keywords

Open Access
Article
Publication date: 10 November 2020

Agnieszka Karman and Asta Savanevičienė

The research is aimed at elaborating a model in which dynamic capabilities affect sustainable competitiveness via organisational sustainability practices and the mediating role of…

7002

Abstract

Purpose

The research is aimed at elaborating a model in which dynamic capabilities affect sustainable competitiveness via organisational sustainability practices and the mediating role of organisational ambidexterity.

Design/methodology/approach

Emphasising the need for business sustainability in the face of technological breakthroughs, resource depletion and increasing expectations of stakeholders, it is necessary to reflect on a long-term organisational resilience that would enable sustainable competitiveness through dynamic capabilities. Hence, the paper provides insights on how an organisation can sustain its competitiveness by constantly balancing between the need for continuous improvement due to the pressure in economic, social and ecological environment, and the pursuit of continuous improvement of performance. The authors used structural equation modelling on data collected via a survey of 455 organisations from the Baltic region.

Findings

The results confirm the relationships between sensing and reconfiguring capabilities and sustainability practices, but reject them for scanning capabilities. They also confirm the impact of sustainability practices on some of the pillars of sustainable competitiveness. The research disclosed that ambidexterity was a mediator between dynamic capabilities and sustainable competitiveness.

Originality/value

The paper discloses the link between dynamic capabilities and sustainable competitive advantage by identifying the main characteristics of the constructs and revealing the linkage between them.

Details

Baltic Journal of Management, vol. 16 no. 2
Type: Research Article
ISSN: 1746-5265

Keywords

Open Access
Article
Publication date: 11 November 2021

Danish Ahmed, Xie Yuantao and Umair Saeed Bhutta

Insurance companies exist to manage the risk of others, which is why they are perceived to be competitive in risk management (RM). Considering this, we investigate how different…

2508

Abstract

Purpose

Insurance companies exist to manage the risk of others, which is why they are perceived to be competitive in risk management (RM). Considering this, we investigate how different RM capabilities make insurers effective in RM. These capabilities include understanding risk and risk management (URRM), risk identification (RI), risk assessment and analysis (RAA) and risk monitoring (RMON) activities in insurance companies. In addition, the authors probe how these capabilities can jointly yield a competitive advantage for the insurance industry under the resource-based view (RBV) and dynamic capabilities perspective (DCP).

Design/methodology/approach

The authors present a latent variable RM model for the insurance industry and employ structural equation modeling (SEM) to test the hypotheses. Furthermore, the authors also conduct confirmatory factor analysis (CFA) and convergent and discriminant validity analysis for model fit and invariance testing, respectively.

Findings

The results show that insurers who investigated RM-related capabilities directly influence their risk management practices (RMPs). Moreover, improving these capabilities will make insurers more effective in managing the risks of others. Thus, RM as a business process will yield a competitive advantage for the insurance sector. The findings are supported by the theoretical insights presented by the RBV and DCP. Furthermore, the model also adheres to the convergent and discriminant validity cut-off values.

Originality/value

To the best of the authors’ knowledge, this is the first study examining insurers' RM practices as a source of a competitive advantage.

研究目的

保險公司存在的目的是為其它公司或個人管理其風險;因此,保險公司在風險管理方面、被認為具有競爭能力。故此、我們擬研究不同的風險管理能力是如何能使保險公司有效地管理風險的呢?這些風險管理能力包括對風險及風險管理之了解、風險辨識、風險評估和分析,以及在保險公司內的風險監控活動。再者,我們探究這些風險管理能力如何根據資源基礎觀點及動態能力理論共同為保險業創造競爭優勢。

研究方法

我們為保險業展示一個潛在變項風險管理模型,並使用結構方程模型,來測試我們的假設;而且,我們為模型適配度而進行了驗證性因素分析,又為不變性檢定而進行了驗證輻合及驗證區別效度分析。

研究結果

研究結果顯示、若保險公司審査與風險管理相關之能力,這會直接影響其對風險管理之措施;而且,若保險公司能改善其風險管理之能力,這會使它們更有效地管理其它公司或個人的風險。因此,作為業務過程的一環、風險管理會為保險業創造競爭優勢。我們的研究結果,得到資源基礎理論及動態能力理論提供之理論見解所支持;而且,我們的模型從附驗證輻合及驗證區別效度的截止值。

研究的原創性

據我們所知,本研究為首個研究、去探討保險公司的風險管理措施如何為它們創造競爭優勢。

Details

European Journal of Management and Business Economics, vol. 31 no. 3
Type: Research Article
ISSN: 2444-8451

Keywords

Open Access
Article
Publication date: 2 January 2024

Ming-Hsiung Hsiao

Digital transformation is a foundational change in how firms operate and deliver value to customers by using digital technologies to create new business opportunities. The purpose…

Abstract

Purpose

Digital transformation is a foundational change in how firms operate and deliver value to customers by using digital technologies to create new business opportunities. The purpose of this study is to offer a conceptual framework by reorganizing the elements of digital transformation, including resources, technology, capabilities and performance, into a workable process and investigating how firms integrate these resources, build new capabilities and transform them into enhanced performance.

Design/methodology/approach

This framework builds three blocks: resource integration, organizational capabilities and outcomes, exploring the impact of resource integration on outcomes through organizational capabilities. For resource integration, this study adopts a resource-based view (RBV) and service-dominant logic (SDL) to integrate organizational resources, including information technology (IT)-based resources, which play a role in moderating the effect of resource integration. Moreover, the author argues that firms’ capabilities have two levels: higher-order capabilities and lower-order capabilities, which will convert these resources through the capabilities into organizational performance.

Findings

This framework is built to understand the process of digital transformation and its antecedents for firms’ performance in business environments. Drawing on RBV, it provides a more holistic perspective that has been linked to resource integration, organizational capabilities and outcomes at the firm level. In this way, the theoretical basis for diminishing implicitness associated with the current perspective of digital transformation can be strengthened.

Originality/value

This paper offers a coherent discussion of digital transformation and explains the process of digital transformation, thus advancing prior work. The major contribution is connecting the process of digital transformation through which firms integrate resources, i.e. digital technologies and valuable, rare, inimitable and nonsubstitutable (VRIN) and nonVRIN resources as well, to build organizational dynamic capabilities based on RBV and SDL.

Details

Digital Transformation and Society, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2755-0761

Keywords

Open Access
Article
Publication date: 5 September 2023

Gregor Pfajfar, Maciej Mitręga and Aviv Shoham

This study aims to conduct a thorough literature review to map current studies on international marketing capabilities (IMCs) applying dynamic capabilities view (DCV). The aim of…

4593

Abstract

Purpose

This study aims to conduct a thorough literature review to map current studies on international marketing capabilities (IMCs) applying dynamic capabilities view (DCV). The aim of this study is to increase the chances for more conceptual and terminological rigor in future research in this particular research area.

Design/methodology/approach

This is a systematic literature review following the established review process of reviews in leading (international) marketing journals. A multilevel analytical approach was adopted, combining inductive coding with deductive coding and following the logic of antecedents-phenomena-consequences.

Findings

Synthesis of 20 rigorously selected previous empirical studies on IMCs applying DCV reveals that academic interest in these capabilities is well justified and growing and there are some well researched antecedents to focal capabilities (e.g. inter-organizational capabilities, outside-in market orientation) as well as their prevalent consequences (e.g. export and innovation performance). There is little knowledge of moderators to these links, especially with regard to consequences. This review illustrates that the current research lacks consistency in how key constructs are defined and measured, provides the guide to future conceptualization and measurement of so-called International Dynamic Marketing Capabilities (IDMCs) and proposes some concrete research directions.

Originality/value

The authors extend prior research in the investigated topic by critically evaluating prior works, providing improved conceptualization of IDMCs as well as concrete research agenda for IDMCs structured along recommendations for Theory, Context and Methods (TCM framework).

Open Access
Article
Publication date: 13 February 2024

Elina Karttunen, Aki Jääskeläinen, Iryna Malacina, Katrina Lintukangas, Anni-Kaisa Kähkönen and Frederik G.S. Vos

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

Abstract

Purpose

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

Design/methodology/approach

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.

Findings

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.

Social implications

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

Originality/value

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.

Details

Journal of Public Procurement, vol. 24 no. 1
Type: Research Article
ISSN: 1535-0118

Keywords

Open Access
Article
Publication date: 19 April 2022

Ranjan Chaudhuri, Sheshadri Chatterjee, Sascha Kraus and Demetris Vrontis

This study assesses the capability of artificial intelligence integrated customer relationship management (AI-CRM) technology for sustaining family businesses in times of crisis…

3519

Abstract

Purpose

This study assesses the capability of artificial intelligence integrated customer relationship management (AI-CRM) technology for sustaining family businesses in times of crisis, such as the COVID-19 pandemic. The study also investigates the moderating role of strategic intent in sustaining family businesses in times of crisis.

Design/methodology/approach

The authors used dynamic capability view theory and related literature on family business and technology adoption to develop a conceptual model. This model has been validated using the structural equation modeling technique considering 332 usable responses from people of India involved in family businesses and technology adoption. The study also uses multigroup analysis to examine the moderating role of strategic intent.

Findings

The study finds that adoption of AI-CRM technology significantly and positively impacts dynamic capabilities of the family businesses, such as sensing, seizing and transforming capabilities, which in turn positively and significantly influences their sustainability during crises. The study also highlights the significant moderating impact of strategic intent for sustaining family business firms in uncertain times.

Practical implications

This study has highlighted the importance for family businesses to adopt AI-CRM technology and its influence on their dynamic capabilities. The study also provides important inputs to the management of family businesses regarding adoption of new technologies and their significance during crises. The study also documents that strategic intent could help family businesses to survive during such times. The study is conducted in India and thus cannot be generalized.

Originality/value

This study table is unique in that it investigates the influence of AI-CRM technology and the moderating role of strategic intent on family business sustainability in times of crisis. Moreover, the proposed theoretical model is a unique model with explanative power of 71%.

Details

Journal of Family Business Management, vol. 13 no. 1
Type: Research Article
ISSN: 2043-6238

Keywords

Open Access
Article
Publication date: 22 November 2022

Leopoldo Gutierrez, Bart Alex Lameijer, Gopesh Anand, Jiju Antony and Vijaya Sunder M

The purpose of this study is to theorize and test the relationships among lean operations and lean supply chain practices, learning- and innovation-oriented lean cultures and…

2331

Abstract

Purpose

The purpose of this study is to theorize and test the relationships among lean operations and lean supply chain practices, learning- and innovation-oriented lean cultures and dynamic capabilities (DCs) microfoundations. Further, this study aims to assess the association of DCs microfoundations with process innovation.

Design/methodology/approach

The researchers combine primary data collected from 153 manufacturing firms located in five continents using a survey designed for the purpose of this study with archival data downloaded from the Bureau Van Dijk Orbis database and test the hypothesized relationships using structural equation modelling.

Findings

Results support the contribution of lean operations and lean supply chain practices to the development of DCs microfoundations, which further lead to greater process innovation. Additionally, while a learning-oriented lean culture positively moderates the relationships between both lean operations and lean supply chain practices and DCs microfoundations, an innovation-oriented lean culture only moderates the relationship between lean operations practices and DCs microfoundations.

Practical implications

This study identifies DCs microfoundations as the key mechanisms for firms implementing lean practices to achieve greater levels of process innovation and the important role played by lean cultures. This study provides direction for managers to put in place DCs through lean implementations, enabling their firms to be ready to respond to challenges and opportunities generated by environmental changes.

Originality/value

While previous research has confirmed the positive effects of lean practices on efficiency, the role of lean practices and cultures in developing capabilities for reacting to environmental dynamism has received little attention. This study offers an empirically supported framework that highlights the potential of lean to adapt processes in response to environmental dynamics, thereby extending the lean paradigm beyond the traditional focus on operational efficiency.

Details

International Journal of Operations & Production Management, vol. 42 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

1 – 10 of over 1000