Dynamic Capabilities; exploring media industry level capabilities

The competitive dynamics of many industries have changed considerably over the past decade, and perhaps, none more so than in the Media Industry. Industries have long been examined by researchers from a strategic perspective with various themes of inquiry relating to; industry structure and positioning, industry evolution and development, industry lifecycle, industry change and industry consolidation. Fundamentally, this body of knowledge emphases the importance of an organisation’s strategic fit with their competitive environment. This paper extends our knowledge of industry analysis into the domain of dynamic capabilities. As such, it examines the notion of dynamic capabilities existing at industry level and in doing so it presents the findings from a survey of UK media executives into the existence dynamic capabilities in the UK Media Industry

Role of Cognitive Style of a Manager in the Development of Tourism Companies’ Dynamic Capabilities

Purpose – The purpose of this paper is to investigate the relationship between cognitive styles of managers working in tourism companies and dynamic capabilities of these companies. Design – The research relies on a quantitative questionnaire. Methodology – To answer the research question, the bivariate (Pearson) correlation was applied. A number of 268 answers from people working in tourism were received. Findings – We found a positive correlation between different dimensions of dynamic capabilities of tourism companies. These capabilities are influenced by managers’ cognitive characteristics. The organizational culture plays a mediating role in the latter relationship. Implications for theory – The paper offers an alternative understanding of dynamic capabilities in tourism and hospitality; the paper also opens new paths for academic research on the impact of cognitive characteristics of managers on the dynamic capabilities of tourism companies. Implications for practitioners – Making accurate psychological portrait of the candidate can predict his/her behavior in certain situation, such as response towards environmental change using dynamic capabilities and when making the necessary changes to the organizational culture. Originality – This study proposes model of influence of a manager’s cognitive style on dynamic capabilities, whereby organizational culture moderates this relationship

Dynamic capabilities, creative action and poetics

Research on dynamic capabilities explores how businesses change enables enterprises to remain competitive. However, theory on dynamic capabilities still struggles to capture novelty, the essence of change. This study argues that a full understanding of strategic change requires us to sharpen our focus on real people and experiences; in turn, we must incorporate other faculties, which almost always operate alongside our logical ones, into our theory. We must pay more attention to the "non-rational" sides of ourselves-including, but not limited to, our imaginations, intuitions, attractions, biographies, preferences, and aesthetic faculties and capabilities. We argue that all such faculties, on the one hand, are central to our abilities to comprehend and cope with complexity and, on the other hand, foster novel understandings, potential responses, and social creativity. This study introduces the possibility of an alternative form of inquiry that highlights the role of poetic faculties in strategic behavior and change

Competitive Advantages as a Complete Mediator Variable in Strategic Resources, Dynamic Capabilities and Performance Relations in the Car Sales Sector

Taking the resource-based view –RBV- and the dynamic capability view –DCV- as an orientation, the main aim of this study is to develop the mediator role that competitive advantages play in the relations between strategic resources, dynamic capabilities and performance. The study takes place in a dynamic and changing sector: the sale of new cars in Portugal. The results show that (a) achieving competitive advantages, which are decisive for business results, depends on the available strategic resources and the generating of dynamic capabilities, (b) in dynamic and changing sectors strategic resources are essential to generate dynamic capabilities, (c) firms must center their attention on, more than results, the generating of sustainable competitive advantages as these act as a mediator variable of the effect of strategic resources and dynamic capabilities on performance. The data scrutiny uses structural equation modeling (SEM) through PLS as the statistical instrument. The sample comprises 89 firms which sell new cars in Portugal

Building dynamic capabilities in product development: the role of knowledge management

This paper contributes to the clarification of the connections between knowledge management and dynamic capabilities in the context of product development to see how they explain product development competences. Building on the knowledge management and dynamic capabilities literatures, the paper argues that the social side of knowledge management has a role to play as enabler of dynamic capabilities in the context of product development. Further, dynamic capabilities shape product development competences. Empirical evidence is provided by performing survey research with data collected from 80 product development projects developed in Spain.Capabilities , Knowledge management, Organizational knowledge

Unbundling dynamic capabilities for inter-organizational collaboration

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

Employment Growth of New Firms

This paper provides an overview of empirical studies on employment growth in new firms and offers a systematic analysis of new empirical data to address the methodological issues identified. Using a longitudinal database of 354 firms over their first ten years, we examine factors associated with new firm growth in terms of R&D, inter-firm alliancing, new product development, and exporting; these are activities that have been identified as denoting dynamic capabilities. The empirical evidence gives some evidence for the positive association between dynamic capabilities and new firm growth. Inter-firm alliancing is the only indicator of dynamic capabilities that has a positive effect on new firm growth. No moderating effect on dynamic capabilities and growth could be seen to be exerted by the level of human capital and/or firm resources. Environmental dynamism – assumed to be highly relevant in the dynamic capability approach – is not revealed to be a moderating factor affecting the relationship between dynamic capabilities and new firm growth.

Entrepreneurship, Dynamic Capabilities and New Firm Growth

This paper applies the dynamic capability framework to the study of new firm growth. Using a longitudinal database of 354 firms over their first ten years, we provide an explanation of new firm growth in terms of new product development, R&D, inter-firm alliancing, and exporting, activities that have been identified as denoting dynamic capabilities. In addition, an overview of empirical studies on employment growth in new firms is provided. The empirical evidence for this study shows that general firm resources have a much stronger effect on growth than the dynamic capabilities measured here (mainly inter-firm alliancing). High levels of human capital of the entrepreneur or resourcemunificence of the firm does not improve the value of dynamic capabilities for growth. Environmental dynamism ? a supposed boundary condition of the dynamic capability approach ? is not revealed to be a moderating factor on the effect of dynamic capabilities on new firm growth.

Organization, Evolution, Cognition and Dynamic Capabilities

Using insights from ‘embodied cognition’ and a resulting ‘cognitive theory of the firm’, I aim to contribute to the further development of evolutionary theory of organizations, in the specification of organizations as ‘interactors’ that carry organizational competencies as ‘replicators’, within industries as ‘populations’. Especially, I analyze how, if at all, ‘dynamic capabilities’ can be fitted into evolutionary theory. I propose that the prime purpose of an organization is to serve as a cognitive ‘focusing device’. Here, cognition has a wide meaning, including perception, interpretation, sense making, and value judgements. I analyse how this yields organizations as cohesive wholes, and differences within and between industries. I propose the following sources of variation: replication in communication, novel combinations of existing knowledge, and a path of discovery by which exploitation leads to exploration. These yield a proposal for dynamic capabilities. I discuss in what sense, and to what extent these sources of variation are ‘blind’, as postulated in evolutionary theory.evolutionary economics;organization;cognition;dynamic capabilities

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