Operations capability, productivity and business performance: the moderating effect of environmental dynamism

Purpose – The purpose of this study is to investigate the relationships between operations capability, productivity and business performance in the context of environmental dynamism. Design/methodology/approach – A proposed conceptual framework grounded in the resourcebased view (RBV) and dynamic capability view (DCV) is analysed using archival data from 193 automakers in the UK. Findings – The results show that operations capability, as an important dynamic capability, has a significant positive effect on productivity, which in turn leads to improved business performance. The results also suggest that productivity fully mediates the relationship between operations capability and business performance, and that environmental dynamism significantly moderates the relationship between operations capability and productivity. Practical implications – The research findings provide practical insights that will help managers develop operations capability to gain greater productivity and business performance in a dynamic environment

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

Should Organisations Compete or Collaborate when Absorbing New External Knowledge?

Organisations possessing significant resources (Resource Based View) or knowledge, as their significant capability (Dynamic Capability View), are often unaware of their own ability to acquire new knowledge entering the enterprise (level of absorptive capacity); this unawareness can lead to reduced marketplace performance and incorrect decision making, which may result in the wastage of organisational resources, including employee knowledge. This study highlights the key differences in absorptive capacity which firms possess, in the context of resource based and dynamic capability views. Based on these differing perspectives, options are provided for companies who wish to compete or mate/merge with competitors in the market, while discussion is given on the considerations that organisations must take before adopting a suggested option

The Effect of Dynamic Relationship Capabilities on B2B Lolyalty

The focal issue of our study is to model the adaptation capability of enterprises from a relational point of view in the South Great Plain Region of Hungary. Our main question is how enterprises can modify their relational behaviour in B2B markets to ensure the success of their relationships. We use the resource based view from a dynamic aspect. To operationalise the investigation problem we use the dynamic relational capability framework. In the study we investigate the perceived values of dynamic relational capability and the effect of relational capability on the perceived relationship success

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

Market fit and business performance : an empirical investigation

This paper argues that an organisation needs to be managed for its fit to its intended target market. Market fit is defined as the capability configuration of a firm moderated by the relevant factors in the external environment. It is conceptualised within the integrated dynamic resource-based view of the firm. The study is based on survey data collected from 216 larger Australian businesses. Drawing on the existing literature on the resource-based view of the firm (RBV), a model of market fit has been developed and tested empirically. The results of the study suggest that the intangible internal assets of marketing planning, decision-making process, and marketing strategy form the core capability configuration of an organisation and that the market fit measure associates positively with business performance indicators. The assertion is that while the internal intangible assets form the core capability of an organisation, this capability is influenced by the market dynamics that may alter its character, intensity, and effectiveness in relation to its intended business performance objectives. <br /

Impact of Technological Innovation Capabilities on the Market Value of Firms

In the era of globalisation and with the advent of knowledge economies, organisational innovation has assumed a critical role in enhancing economic performance of firms. Proponents of the Resource Based View of the firm and its more recent extensions such as the Knowledge Based View and Dynamic Capabilities Theory have suggested that generation, diffusion and application of organisational knowledge could be the source of sustained competitive advantage and superior performance of firms. While there is near unanimity in accepting the vital role of innovation in a firm\u27s performance, consensus on what constitutes organisational innovation and how to measure it has proven to be elusive so far. Most previous research in this area has conceptualised innovation through one or more dimensions of a firm\u27s innovative capability using R&D of a firm only. The measurement of the construct has thus reflected this narrow conceptualisation with a single measure of R&D expenditure being the most often used proxy. This study utilises a broader de¯nition of organisational innovation capabilities that includes the generation, dissemination and strength of innovative activity in a firm. The unique features of this study is that it uses multiple indicators of a firm\u27s innovation pro¯le along with lagged measures of market value using fixed effects panel data analysis

Dynamic and operational capabilities for innovation: their influence on export market effectiveness

This paper analyzes the influence of technological turbulence, organizational management dynamic capability and operational capabilities for innovation on export market effectiveness. Based on the dynamic capability view, we investigate the effect of technological turbulence on organizational management dynamic capability, and how this latter contributes to leverage operational capabilities for innovation in order to benefit performance in export markets. To test the hypotheses, we carry out a structural equation model, using a sample of 471 exporting manufacturers firms that operate from Portugal. The results demonstrate that technological turbulence is an antecedent factor of organizational management dynamic capability, which in turn has a significant impact on the development of firms’ operational capabilities for innovation, specifically innovativeness, innovation strategy, and technological capability. However, the findings only establish that innovation strategy and technological capability have a significant direct effect on export market effectiveness. Implications for scholars and practitioners are discussed along with suggestions for future research.info:eu-repo/semantics/publishedVersio

China’s Institutional Architecture: A New Institutional Economics and Organization Theory Perspective on the Links between Local Governance and Local Enterprises

We start our exploration of China’s institutional change by asking what the China experience can tell us about institutional economics and organization theory. We point to under-researched areas such as the formation of firms and the interplay between firms and local politics. Our findings support the dynamic capability approach which concentrates on activities rather than on pre-defined groups and models institution building as a co-operative game between the local business community and local government agencies. We find that the analysis of firms has to set in before they are formed by entrepreneurs and networks and we identify political management as a core competence of these two groups. While this contradicts the conventional view of clientelism or principle agent relations as institutional building blocks, we don’t propose competing models. Instead, we suggest focusing on a dynamic process in which the role of players can change. Faced with the spontaneous emergence of institutions, our concept of institutional architecture captures the fact that the two models can co-exist side by side and that, once the dichotomy between formal and informal institutions is given up, there can be a transition from local patron-client relations to local business-state coordination.entrepreneurship;dynamic capabilities;networks;institutional change;diversity and convergence of institutions

Knowledge, learning, networks and performance of firms in knowledge-based economies

The paper examines the issue of knowledge as a public good, and, therefore, the question of open knowledge. Moreover, it analyses the crucial relationship between knowledge and learning and, more specifically, the relationship between technological knowledge, learning and the environment. Thus the construct of absorptive capacity is investigated and the related dynamic capability approach is also considered. Finally, the paper looks at the networks and investigate the rationale of networking. Therefore, in this context, the paper discusses the issue of competition/collaboration duality, since alliance is also a complex phenomenon, where collaborative behaviours and competitive relations coexist; a more eclectic view is, thus, offered on this issue with the aim to provide a new theoretical framework of inter-firm relations.Firms; Knowledge; Learning; Networks