Foreword to the Special Issue dynamic capabilities of firms

"20 years of Dynamic capabilities" - that was the name of a plenary session at the recent Academy of Management annual meeting in Atlanta, Georgia. After 20 years of research on the topic, it remains highly relevant, but not fully investigated. Many scholars provided valuable contributions in search for microfoundations, a further development into the capability-based view of the firm, underlying processes and routines (focusing on the non-linear nature and process theory), and systems theoretical approaches to capture the concept. Based on this progress, some scholars claim that the concept reached the stage of maturity. However, Constance Helfat argued during the panel discussion at the recent Academy of Management annual meeting for a continuous demand of research in the field. One of the reasons is that the concept and research contributions in the field of dynamic capabilities spilled over to other research areas such as: marketing, supply chain management and non-profit organizations. We need further research to investigate the contributions that the concept can make to other domains. Our special issue supports this trend: the work by Moritz Botts is targeting the application of dynamic capabilities in a non-profit domain. The researcher investigates the concept of dynamic managerial capabilities in a military setting. Similarly, Gaja Amigioni and Johannes Gaedicke also transfer the concept to a new domain. The authors link dynamic capabilities, power symbols, and their impact on creativity in firms. Furthermore, research is needed as the nature and the theoretical embeddedness of the dynamic capability concept are not clear yet. David Teece, founder of the concept, characterized dynamic capabilities as a systems theoretic concept in his presentation (presented by his replacement Brian Silverman) at the Academy of Management's recent annual meeting. Teece proposes to focus on dynamic capabilities with a rather holistic “zoom-out” approach. This means that various theories would fit under the umbrella dynamic capabilities, which might explain different understandings of the concept. In our special issue, Klara-Marie Gremme and Veit Wohlgemuth provide a literature overview on the nature of dynamic capabilities that sheds light on this theoretical divide. Adriana Takahashi and Josué Sander follow the rather holistic approach and propose to amalgamate institutional theory with the dynamic capabilities concept, which leads to a set of interesting proposition concerning the institutional framework for dynamic capabilities. Similarly, Mariam Arpentieva proposes to merge the concept of foresight capabilities with the dynamic capabilities view. This is a highly demanded attempt to make dynamic capabilities a more useful tool for practitioners and goes in line with the umbrella approach. Interestingly, research on dynamic capabilities develops with different pace and with a different direction across countries. Reasons for this divide are for example access-limitations to specific academic journal and language issues in Ukraine and other CIS countries. Moreover, a different theoretical embeddedness also lead to a different understanding. Teece’s proposition to regard dynamic capabilities from a systems theoretic perspective is unusual for an American scholar, but quite common for European scholars. While American scholars have made most of the contributions in this field, this is something where Europeans might provide strong contributions. The view that dynamic capabilities are a mechanism of a system to deal with dynamic environments explains why different firms, being different complex systems that act in environments with different degrees of complexity, may (and should) have different mechanisms in place (with different elements, i.e. microfoundations). Dynamic capabilities, thus, become more complex than previously assumed, i.e. they are highly idiosyncratic, non-linear and self-reflective. However, one has to bear in mind that systems theory is criticized for its vagueness and problems with falsifiability. Put differently, if systems theory explains everything, it explains nothing. While this might be a challenge in future research endeavors, the view of the founder has clearly outlined the path many researchers probably are going to follow. In our special issue, we shed light on non-American perspectives of dynamic capabilities to add a European perspective to the debate. The paper by Sergii Sardak and Oleksandr Krupskyi sheds light on the development of the concept in Ukraine and other CIS countries. Finally, the paper by Bogodistov shows that language matters: in Ukraine the word "capability" can be translated in different ways imposing slightly different meanings. Whether they translate to "having potential to" or "being good at" makes a huge difference. As our special issue shows, the concept has not reached the stage of maturity yet. However, after 20 years of search for a concept that explains how firms remain their competitive advantage in dynamic environments, we hope that this issue of the European Journal of Management Issues will inspire researchers in CEE and CIS countries as well as readers from other regions of the world to contribute to the field. There is still a huge demand for a good theory and we hope that this special issue is a good example for other journals to follow

Готівка означає контроль: Емоції і розробка процесу оплати

Purpose – to investigate reasons and conditions impacting payment preferences. Design/Method/Approach. In this exploratory study, we apply the Implicit Association Test in order to investigate whether the prejudice of the population of some countries such as Germany preferring cash holds. Findings. Cash payments still play a major role in a number of countries although other payment options, namely card payments, are promoted heavily.  We discover that the type of payment and the level of control are implicitly associated. We manipulate the emotions of fear and joy. The relationship changes when participants experience fear, whereas emotion of joy does not produce statistically significant effects. Practical implications. The results have major implications for the design of payment processes. Originality/Value. Our study helps explain preferences with regard to payment types as well as predict preferences as a response to scary or joyful events. Research limitations/Future research. Generalizability is limited. Future research can focus on other emotions and types of payment (e.g., NFC – based payments). Paper type – empirical.Цель работы – определить причины и условия, влияющие на предпочтения касательно способа оплаты. Дизайн/Метод/План исследования. Применён тест подсознательных ассоциаций, чтобы выяснить, предпочитает ли население некоторых стран, например, Германии, наличные деньги. Результаты исследования. Платежи наличными по-прежнему играют важную роль в ряде стран, хотя другие способы оплаты, такие как карточные платежи, также активно продвигаются. Обнаружено, что тип оплаты и уровень контроля подсознательно связаны. Проведено манипуляцию эмоций страха и радости и выяснено, что подсознательные связи изменились, когда участники испытывали страх, тогда как эмоция радости не принесла статистически значимых эффектов. Практическое значение исследование. Результаты имеют большое значение для разработки процессов оплаты. Оригинальность/Ценность/Научная новизна исследование. Это исследование помогает объяснить предпочтения в отношении типов платежей, а также предсказать их как реакцию на пугающие или радостные события. Ограничения исследования/Перспективы дальнейших исследований. Обобщенность результатов ограничена. Будущие исследования могут сосредоточиться на других эмоциях и типах оплаты (например, NFC). Тип статьи – эмпирический. .Мета роботи – визначити причини і умови, що впливають на надання переваги певному способу оплати. Дизайн/Метод/План дослідження. Застосовано тест підсвідомих асоціацій, щоб з'ясувати, чи надає перевагу населення деяких країн, наприклад Німеччини, готівці. Результати дослідження. Платежі готівкою, як і раніше, відіграють важливу роль в ряді країн, хоча інші способи оплати, такі як карткові платежі, також активно просуваються. Виявлено, що тип оплати та рівень контролю підсвідомо пов'язані. Проведено маніпуляцію емоцій страху і радості та виявлено, що підсвідомі зв'язки змінилися, коли учасники відчували страх, тоді як емоція радості не принесла статистично значущих ефектів. Практичне значення дослідження. Результати мають велике значення для розробки процесів оплати. Оригінальність/Цінність/Наукова новизна дослідження. Це дослідження допомагає пояснити надання переваг певним типам платежів, а також передбачити їх як реакцію на радісні події або ті, що лякають. Обмеження дослідження/Перспективи подальших досліджень. Узагальненість результатів обмежена. Майбутні дослідження можуть зосередитися на інших емоціях і типах оплати (наприклад, NFC). Тип статті – емпіричний

AI Acquisition in Question: Process Improvement and Process Innovation

We investigate the capacity of firms to acquire and assimilate artificial intelligence (AI) technology. AI has become a magic term for digital innovation in all industries worldwide. Therefore, we first focus on antecedents which foster the development of the capacity to acquire and assimilate AI. We hypothesize that strong capabilities with regard to process improvement and process innovation should help absorb AI. Second, we hypothesize a mediation relationship. We assume that the capability of a firm to innovate processes arises from the capability to improve processes and allows for a better AI absorption. With a quantitative study, we show the strength of the proposed model. Our empirical data collection reveals that process improvement has a positive impact on AI absorption, whereby process innovation capability is a mediator. We show that uncertainty avoidance matters: it directly and indirectly impacts process improvement, process innovation, and AI absorption

Gendering dynamic capabilities in micro firms

Gender issues are well-researched in the general management literature, particular in studies on new ventures. Unfortunately, gender issues have been largely ignored in the dynamic capabilities literature. We address this gap by analyzing the effects of gender diversity on dynamic capabilities among micro firms. We consider the gender of managers and personnel in 124 Ukrainian tourism micro firms. We examine how a manager’s gender affects the firm’s sensing capacities and investigate how it moderates team gender diversity’s impact on sensing capacities. We also investigate how personnel composition impacts seizing and reconfiguration capacities. We find that female managers have several shortcomings concerning a firm’s sensing capacity but that personnel gender diversity increases this capacity. Team gender diversity has positive effects on a firm’s seizing and reconfiguration abilities. Our study advances research on gender diversity and its impact on firm capabilities and illustrates its relevance for staffing practices in micro firms

Динамические способности: сравнение методов измерения на примере малых и средних предприятий Украины

The purpose of this paper is to investigate different approaches in measurement of the concept of dynamic capabilities. The paper focuses on a formative measurement model by Wilden and colleagues (2013) and a reflective model by Li and Liu (2014). The models were tested on Ukrainian firms in relation to their performance. A Ukrainian and Russian translation of both measurements is introduced and tested. The proposed measurements were tested by applying a partial least squares algorithm using SmartPLS™ software. The sample contained 113 randomly selected firms from the city of Dnipropetrovs’k and the Dnipropetrovs’k region. The results showed that, first, both measurement approaches produced similar results. There were no statistically significant differences between the results received from these measurements. Second, organizational settings like firm size and firm type did not influence the results. Third, dynamic capabilities proved to be a reliable predictor of a firm’s performance. This study is unique in that it applies and compares two different measuring models (reflective and formative) and provides empirical data on the usefulness of both methods

Динамічні здібності чи динамічні здатності?

Purpose. Purpose of the research is to analyze of the concept of dynamic capabilities aiming at formation of the correct terminology. Design/Method/Approach. This a conceptual paper is based on the academic literature analysis.Findings. The paper analysed the historical development of the concept of dynamic capabilities from the moment of introduction of this expression and till now. The study described the main theoretical struggles іn the concept, which can have influence on the correct understanding and, thus, translation. The two main academic discussions concerned with dynamic capabilities are reviewed. Different definitions of organizational capabilities are analyzed and their influence on the formation of the understanding of dynamic capabilities is performed. A set of most popular definitions of dynamic capabilities is offered in the work. Those definitions indicate different aspects of the currently running academic discussion on the concept. Theoretical implications. This paper is important for the academic discussion on dynamic capabilities in the Ukrainian academic segment, since an approach for unambiguous understanding of the terminology of this concept is proposed. Originality/value. Since different understandings of the concept of dynamic capabilities may mislead the translators from English into Ukrainian, the most appropriate translation terminology is proposed. Paper type - conceptual

Wandel im Gesundheitswesen: Analyse der Auswirkungen auf Ärzte und Patienten am Beispiel der Ukraine

Background The health care sector is experiencing a drastic transition all over the world. This has an impact not only on the way hospitals, clinics, special-care homes etc. are organized, but also on patients, personnel and other stakeholders involved. The consequences of changes for both physicians and patients are investigated using a comprehensive health care reform in Ukraine as an example. Methods The analysis is based on empirical data collected from general physicians in 2 Ukrainian cities. Based on the Job Demands-Resources Model, we developed a set of hypotheses and tested them using the structural equation modelling technique. A total of 178 general physicians (81% of the approached population) participated in the study. Results Our investigation reveals a clear relationship between the organizational job demands (additional tasks, structural changes, new processes) and their psychological effects (e. g., burnout). The latter have a negative impact on cooperation of physicians in hospitals leading to lower patient satisfaction. Discussion and Conclusions Change in health care is inevitable. The example of Ukraine shows that openness of hospitals towards change reduces the probability of physicians’ burnout and, eventually, increases patient satisfaction. We strongly suggest applying the process management approach in order to increase openness to change, especially in turbulent times

AI-driven Optimization in Healthcare: the Diagnostic Process

Purpose: Process optimization in healthcare using artificial intelligence (AI) is still in its infancy. In this study, we address the research question "To what extent can an AI-driven chatbot help to optimize the diagnostic process?" Design/ Method/ Approach: First, we developed a mathematical model for the utility (i.e., total satisfaction received from consuming a good or service) resulting from the diagnostic process in primary healthcare. We calculated this model using MS Excel. Second, after identifying the main pain points for optimization (e.g., waiting time in the queue), we ran a small experiment (n=25) in which we looked at time to diagnosis, average waiting time, and their standard deviations. In addition, we used a questionnaire to examine patient perceptions of the interaction with an AI-driven chatbot. Findings: Our results show that scheduling is the main factor causing issues in a physician's work. An AI-driven chatbot may help to optimize waiting time as well as provide data for faster and more accurate diagnosis. We found that patients trust AI-driven solutions primarily when a real (not virtual) physician is also involved in the diagnostic process. Practical Implications: AI-driven chatbots may indeed help to optimize diagnostic processes. Nevertheless, physicians need to remain involved in the process in order to establish patient trust in the diagnosis. Originality/ Value: We analyze the utility to physicians and patients of a diagnostic process and show that, while scheduling may reduce the overall process utility, AI-based solutions may increase the overall process utility. Research Limitations/ Future Research: First, our simulation includes a number of assumptions with regard to the distribution of mean times for encounter and treatment. Second, the data we used for our model were obtained from different papers, and thus from different healthcare systems. Third, our experimental study has a very small sample size and only one test-physician. Paper type: Empirical

Розвиток лідерських якостей майбутніх фахівців сфери туризму в процесі аудиторної та позааудиторної роботи

Розглянуто питання розвиток лідерських якостей майбутніх фахівців сфери туризму в процесі аудиторної та позааудиторної робот

Bedeutung des Prozessreifegrads für die Patientenorientierung im Gesundheitswesen

Aim Excellent organization of the internal processes is essential for a well-functioning health care system. Particularly, the process of treatment and interaction with the patients is important because the perception of treatment and interaction has a direct relation to the patients’ satisfaction. The latter has a strong influence on the recovery of the patients. The impact of the maturity level of the treatment and interaction process on patient orientation is investigated at the example of an extensive survey of hospital managers in Ukraine. Method The analysis is based on an empirical data collection conducted with hospital managers and their deputies in a large Ukrainian city, which is acknowledged as a ‘model city’ with regard to a comprehensive health care reform in the country. By means of the Business Process Maturity Model (BPMM) we have tested our hypothesis that a high level of process maturity leads to a high level of patient orientation. For this purpose, we have developed a scale for measuring the level of process maturity and have checked the method on validity and reliability. A total of 79 hospital managers and deputies, who represent all public health care facilities of the city (hospitals, primary care clinics, etc.), participated in the study. Results The study reveals a clear relationship between the level of maturity of the treatment and interaction process and the level of patient orientation of the respective health care facility. The variance, which is explained by the independent variable process maturity level, is 16.3 %. All formative dimensions have a strong significant influence on the construct “patient orientation”. Likewise the maturity level of the treatment and interaction process shows a strong significant influence on patient orientation. Conclusion For health care facilities it is of great importance to achieve a high maturity level of the treatment and interaction process to live up to the claim of being patient oriented. The maturity of the process can be tested using the questionnaire developed in the course of our study