Dynamic Capabilities and their Indirect Impact on Firm Performance

This paper investigates the relationship between dynamic capabilities and firm performance. In particular it addresses the question of whether dynamic capabilities impact directly or indirectly on performance. Using data from manufacturing firms, the paper articulates and measures dynamic capabilities as a multi-dimensional construct with three underlying factors: coordination, learning and strategic competitive response. Then, structural equation modelling is employed to explore the relationships among dynamic capabilities, functional competences and firm performance. Empirical findings suggest that dynamic capabilities are antecedents to functional competences which in turn have a significant effect on performance. Direct effects on performance are found to be insignificant. Furthermore, similar effects seem to hold for both higher and lower levels of environmental dynamism. Theoretical and practical implications are discussed.Dynamic capabilities; functional competences; firm performance; indirect impact

Building Core Competencies in a Turbulent Environment: An Exploratory Study of Firm Resources and Capabilities in Chinese Transitional Economy

The impact of firm resources and capabilities on performance among Chinese enterprises has been a subject of anecdotal speculation due to its significant implications for organizational researchers as well as practitioners. Yet empirical evidence has been very limited. In this research, set in the People’s Republic of China, we examine firm resources and capabilities and their impact on firm performance among Chinese enterprises. Using large sample of 12,047 Chinese firms from 1991 to 1992, we found that most of the firm specific resources and capabilities examined in this study have a positive impact on performance. We discussed the implications for organizational researchers, policy makers, and managers, and proposed directions for future research.economic transition, firm strategy, resources and capabilities

The impact of information technology resources on SMEs' innovation performance

This work aims to develop a research framework to examine the impact of information technology resources on the innovation performance of Saudi small-and-medium enterprises (SMEs). SMEs innovation capability influences growth and technological progress (Bruque & Moyano, 2007). However, many developing countries exhibit moderate or even low innovation performance. For instance, Saudi Arabia is ranked 54th by the Global Innovation Index (GII 2011). Innovation systems studies focus on the alignment between the interactions of innovation actors with their constantly changing environment toward better innovation performance (Etzkowitz & Leydesdorff, 2000). The dynamic capabilities of organisations have been highlighted as a crucial characteristic that helps to achieve a sustainable competitive advantage (Teece et al., 1997). The indirect impact IT resources on innovation performance represents an attractive research area (Benitez-Amado et al., 2010). Therefore, we argue that a closer look at Saudi SMEs information technology resources and their impact on the firm dynamic capabilities and innovation performance would make a significant contribution to existing knowledge. Areas such as the organisation strategies of developing countries, innovation management, dynamic capabilities, open innovation and strategic information systems are few examples of areas that might benefit from this work

Resource-Based View and SMEs Performance Exporting through Foreign Intermediaries: The Mediating Effect of Management Controls

Following the resource-based view, this research empirically explores the role of formal and informal management control in mobilizing export resources to develop export capabilities, influencing the export performance of small and medium-sized enterprises (SMEs) in an interorganizational relationship context. Empirical data were collected using a survey administrated online to finance managers in Spanish SMEs which use foreign intermediaries to access export markets. In this setting, evidence mainly suggests, first, that management control systems (MCSs) play a relevant mediating role between the effect of, on the one hand, resources on capabilities, and, on the other hand, resources and capabilities on performance. Second, that MCSs and capabilities play a interrelated double mediating effect between the impact of resources on performance; more specifically, a significant double indirect effect is found (1) between financial resources, behavior control, customer relationship building capability and performance, and (2) between physical resources, behavior control, customer relationship building capability and performanc

The impact of dynamic capabilities on the sustainability performance of SMEs

Despite environmental and social goals being identified as key objectives for small- and medium-sized enterprises (SMEs), the literature has not provided an explanation of how these goals can be achieved alongside stable economic outcomes. Several researchers have argued that sustainability performance should be addressed through a process of constant adjustment, which can be facilitated by dynamic capabilities. The aim of this study is to investigate the effect of integrative dynamic capabilities on the social, environmental and economic performance of SMEs. This study is among the first to investigate this effect and uses unique survey data from 297 SMEs in the Netherlands. The empirical results highlight the importance of external integrative dynamic capabilities for all three pillars of sustainability performance in SMEs. These findings contribute to the debate on the ability/inability of SMEs to balance social, environmental and economic objectives by integrating new insights from the dynamic capabilities literature. (C) 2019 Elsevier Ltd. All rights reserved

Knowledge Flows and Capability Building in the Indian IT Sector: A Comparative Analysis of Cluster and Non-Cluster Locations

The role of industrial clusters in the industrialization of many emerging economies continues to dominate the debate among policy makers and researchers worldwide. While recent discussions on this debate have focused on knowledge spillovers among participants within clusters, knowledge flows between non local networks and the cluster actors have not been accorded due attention in the literature. Further, the literature does not compare the relative impact of knowledge flows among firms within clusters and firms outside clusters. In this study, we attempt a comparative analysis of the role of knowledge flows in capability formation among firms in the Indian Information Technology sector (IT sector) across cluster and non-cluster locations. The empirical results suggest that at the firm level, leveraging of capabilities to enhance performance and networks to build capabilities is not automatic; structural features of the firms’ location enable this transformation. Moreover, while capabilities affect performance of firms positively only in clusters, economies of scale and some strategies like quality certification used by firms impact performance of firms outside clusters. Interestingly, although economies of scale do not impact the performance of firms within clusters, they do, however affect the capability formation of firms within clusters only. Further, we found that local and national non-customer networks affect capability formation of firms within and outside clusters whereas international customer networks affect capability formation of firms within clusters only. These have implications for how firms can develop appropriate strategies to enhance their performance.Industrial Clustering, Information Technology industry, Networks, Capabilities

Delivery capabilities impact project performance

The aim of this research is to study project delivery capabilities impact project performance. If the companies know the factors that influencing the project’s performance, they will focus on that and can deliver the project successfully. For the factors of project delivery capabilities is a set as independent variable. The factors that have been use in this research are process, organizations, methods, metric and leaderships because these are the top five factors that have impact on project performance. Then, the dependent variable of project performance is time. Sixty respondents from the construction industry in Kuantan, Pahang that are registered under CIDB were surveyed by questionnaire. The questionnaires were distributed using mail, google doc, and face to face. Software SPSS was use to analyse the data to get the results. The objectives of this research are to investigate project delivery capabilities practices in project management and to rank the project delivery capabilities according to priorities in project performance Results show that project delivery capabilities impact project performance and the finding are parallel accordance with previous researches but had different ranking of factors

Assessing the Relationship Between IT Capabilities and Performance: A Study in Banking Industry of Bangladesh

oai:ojs.localhost:article/42126In every economic system banking institutions play important role to accelerate the growth of economy. As the advancement of IT is incredibly increase day by day so it is necessary to assess the impact of IT capabilities on the performance of banking activities. This study demonstrates the relationship between IT capabilities and performance of bank in Bangladesh. The sample size of the study was 15 commercial banks which were randomly selected from the listed commercial banks of Dhaka Stock Exchange. A structured questionnaire was asked to key personnel of selected banks to achieve research objectives.  After examining previous studies it was identified that IT capabilities has mixed relationship with firm performance. The study has taken  process oriented dynamic capabilities (PDC)  to identify the relationship between IT and performance of banks and treat business processes of bank as mediating factors between IT capabilities and bank performance. Here collective effects of IT Capabilities at both the process level and the firm level are examined. To measure the performance at firm level the study has taken Balance Score Card (BSC) method which considers all perspectives to evaluate performance. Study result shows that IT capabilities have significant positive impact on the business process level of bank which in turn positively impact on the performance of bank. Among the components of IT capabilities, IT management capabilities and IT personnel skills have insignificant effect on IT infrastructure flexibility. However, IT personnel skills have statistically significant effect on IT management skills. The major findings of the study facilitate banking organization to understand that IT improves business performance through process improvements which are considered as mediating factors. Keywords: IT Capabilities, Process Oriented Dynamic Capabilities (PDC), Balance Score Card, Mediating Factors, Business Process

Building core competencies in a turbulent environment

The impact of firm resources and capabilities on performance among Chinese enterprises has been a subject of anecdotal speculation due to its significant implications for organizational researchers as well as practitioners. Yet empirical evidence has been very limited. In this research, set in the People`s Republic of China, we examine firm resources and capabilities and their impact on firm performance among Chinese enterprises. Using large sample of 12,047 Chinese firms from 1991 to 1992, we found that most of the firm specific resources and capabilities examined in this study have a positive impact on performance. We discussed the implications for organiyational researchers, policy makers, and managers, and proposed directions for future research