Market opportunities seizing capability and fish farming firm performance: A dynamic managerial capability perspective

The role that owner-managers' managerial capabilities play in agricultural firms' strategic change and performance is still unclear. A firm's market opportunities seizing capability (OSC) is a source of competitiveness and superior performance. The objective of this study is to establish how owner-manager's dynamic managerial capabilities (DMCs) including managerial human capital, managerial social capital and managerial cognition affect firm performance through the mediating effect of OSC, as well as the moderating effect of market dynamism in the relationship OSC and firm performance. 306 cross-sectional data collected at fish farming firms (FFF) level in southern Benin were used and partial least squares structural equation model was applied to test research hypotheses. The results of SmartPLS4 reveal that owner-managers' DMCs including business ties (BTs), political ties (PTs), and managerial cognition (MC) demonstrate a significant effect at improving FFF market OSC and performance. Finding also underline the significant contribution of market dynamism to FFF performance as well the mediating role of market OSC in the relationship between BTs, PTs, MC, and FFF performance. Findings suggest that FFF owner-managers can achieve superior performance by strengthening their DMCs while improving market OSC. The study provides useful insights to FFF owner-managers, agriculture policymakers and practitioners who are engaged in agriculture firms' strategic management and sustainable performance.

Strategic and entrepreneurial abilities: Surviving the crisis across countries during the Covid-19 pandemic

This paper seeks to identify organisational abilities that influence the company's survival during crises. To address this issue, first-through literature review-we identified five groups of crucial organisational abilities that companies pursue during the crisis, i.e., strategic, technological, collaboration, entrepreneurial and relational. We have also identified four objectives that relate to surviving the crisis. Next, we have scrutinised 226 companies from two sides of the world, Poland (Europe) and Morocco (Africa), during the Covid-19 crisis. Quantitative analysis using Structural Equations Modelling demonstrated that surviving during a crisis depends mostly on strategic and entrepreneurial abilities such as the ability to shift resources quickly, organise the work in the firm effectively and plan strategically, as well as diversify its products and services perceived as critical.

Customer integration in the supply chain: the role of market orientation and supply chain strategy in the age of digital revolution

Ever increasing demand for customization and product diversity from the customers has made it important for firms to predict changes in the customer demand patterns and adopt accordingly. Customer integration allows firms to understand customers and respond to their particular needs in a better way. This study investigates the mechanisms through which customer integration is developed and affects supply chain performance. We develop a structural model underlining the role of market orientation and supply chain strategy as factors affecting the degree of customer integration. We also investigate the contingency role of marketing - supply chain integration in these relationships. We test the hypothesized model using data from Pakistani manufacturing organizations using structural equation modelling. Our results provide support for the study hypotheses except that marketing-supply chain alignment does not moderate the relationship between supply chain strategy and customer integration.

Dynamic capabilities for digital procurement transformation: a systematic literature review

Purpose

The purpose of this paper is to achieve a collective understanding of the capabilities required for digital procurement transformation (DPT).

Design/methodology/approach

The authors contextualize theory about dynamic capabilities (DCs) to integrate the fragmented body of literature on procurement digitalization by means of a systematic literature review (SLR). By extracting and clustering capabilities, as well as proven performance outcomes from existing literature in the field, the authors develop a conceptual model of the DCs required for DPT.

Findings

The authors first introduce and define DPT and the corresponding motivations that trigger firms to invest in advanced digital technologies. Second, by adopting the DC lens, the authors provide an overview of nine microfoundations required for DPT and highlight the strategic options procurement leaders can use when strategizing about adopting combinations of digital technologies. Third, the authors present a future research agenda on DCs for DPT.

Research limitations/implications

The developed conceptual model must be verified and enhanced through further empirical research.

Practical implications

The conceptual model can be used by procurement leaders as a starting point and framework when strategizing about digitally transforming the procurement organization.

Originality/value

The study is the first to synthesize previous research findings on procurement digitalization through an SLR in order to develop a fine-grained conceptual model that supports practitioners and researchers alike in better understanding the capabilities required for and potential performance outcomes of DPT.

Relational resources for innovation ambidexterity within coopetitive relationships: the contingent role of managerial ambidexterity

Purpose

While the performance benefits of relational resources and managerial ambidexterity have been widely discussed in coopetition literature, there is only limited evidence that illustrates the underlying relationships between these relational resources and managerial ambidexterity. Against this background, this paper aims to investigate how managerial ambidexterity moderates the innovation ambidexterity effects of relational resources (i.e. reciprocal investments and complementary resources).

Design/methodology/approach

This study forwards various hypotheses that are grounded within the theoretical tenets of the relational view and the dynamic capabilities perspective. To test the hypotheses, this study uses survey data provided by 313 firms that pursue horizontal coopetition relationships.

Findings

The research findings offer important insights in that while reciprocal investments lead to innovation ambidexterity, complementary resources do not result in such benefits. Additionally, managerial ambidexterity complements the relational resources to develop innovation ambidexterity if and only if both managerial exploration and exploitation are applied simultaneously.

Originality/value

As opposed to widely-held beliefs, this study finds that firms' use of complementary resources is not likely to lead to innovation ambidexterity even though such resources can help in developing strong relationships. In addition, although often overlooked, managerial ambidexterity plays a vital role in transforming relational resources into useful innovations for firms involved in coopetition relationships. It is crucial for firms that their managers balance their ambidextrous activities of exploration and exploitation so as to develop innovation ambidexterity.

Adapting to dynamic business environments: a comparative study of family and non-family firms operating in Western Australia

Purpose

The purpose of this study is to examine adaptation to a dynamic business environment from the perspective of family and non-family firms. Furthermore, the study provides a comparative component and proposes a theoretical framework to understand firm adaptation, incorporating the dynamic capabilities approach.

Design/methodology/approach

Semi-structured, in-depth, face-to-face interviews were undertaken predominantly with firm owners and managers of family and non-family-owned firms operating in Western Australia.

Findings

Regardless of firms’ family or non-family background, valuable, rare, imperfectly imitable and non-substitutable attributes were strongly associated with both groups. Moreover, expertise, tacit and new knowledge, innovation or established brand image emerged as key adaptive responses to challenges posed by new trends, consumer expectations, increased demand or competition. These attributes allowed firms to sense and seize opportunities, and experience transformational processes to remain competitive. Implications of the findings and future research directions will be discussed.

Originality/value

First, and empirically, the study’s objectives contribute to addressing extant research gaps, including scant research on methodologies and innovative approaches used by family firms to adapt to contemporary challenges. Thus, the study complements entrepreneurship scholarly discourses on firms’ adaptation. Second, the chosen inductive approach results in the development of a framework, which also exhibits various relationships with the adopted dynamic capabilities approach. Both the findings and the developed framework enhance the understanding of adaptive behaviour among both family and non-family firms. Finally, the study contributes to the literature examining firms operating in geographically dispersed and isolated regions.

Dynamic capabilities in tourism businesses: antecedents and outcomes

This paper examines dynamic capabilities as a second-order construct and the antecedents and outcomes of dynamic capabilities. Analyzing data collected from 242 tourism firms in Vietnam, this paper finds a positive influence of firms’ human capital, organizational learning, environmental dynamism, and digital marketing on the dynamic capabilities. Dynamic capabilities have a significant and positive impact on these firms’ competitive advantage. The paper contributes to ongoing efforts to measure dynamic capabilities and explore the micro-foundations of dynamic capabilities.

Entrepreneurs Can Know More Than They Can Tell: Conceptualizing and Measuring Tacit Entrepreneurial Knowledge

Organizational knowledge components dominate research on tacit knowledge. In order to overcome this dominance, we introduce Tacit Entrepreneurial Knowledge (TEK). TEK is conceptualized as one's experiential learning from past experiences and insights that result in tacit knowledge regarding entrepreneurship that is implicit, personal, and uncodified. For this study the situational judgment test (SJT) approach is adopted to overcome the common limitations in quantifying an individual's tacit knowledge. The SJT is a scenario-based measurement instrument that allows us to quantify an individual's TEK. The SJT is developed using three steps: first, scenarios were collected through interviews, followed by formulating responses to the scenarios, and finally, the effectiveness of the responses for each scenario was evaluated. The outcome of this research article is threefold; first, a comprehensive conceptualization of TEK, including delineation of its nomological network. Second, the development of a measurement instrument for TEK and subsequent scoring method. Finally, an antecedent-consequence model which includes potential contingencies associated with these relationships. In the debate on tacit knowledge, our measurement is innovative and relevant, as previous research failed to uncover an individual's tacit knowledge in the context of entrepreneurship, despite its importance in various entrepreneurial processes. This study aspires to ignite research into TEK by demonstrating important research opportunities unlocked by our conceptualization and subsequent measurement, offering future researchers a wide range of avenues to uncover the black box of tacit knowledge in entrepreneurship.

A real options approach to growth opportunities and resilience aftermath of the COVID-19 pandemic

Purpose

Facing the challenges posed by the pandemic of COVID-19, this paper aims to contribute to the resilience of businesses through the development of a real options approach (ROA) that provides alternatives and opportunities for a decision process under situations when future events and outcomes are unknown and not capable of being known from current information.

Design/methodology/approach

This paper involves a stochastic modelling process in generating a set of absolute option values, using available data and scenarios from the COVID-19 pandemic event. The modelling and simulations using ROA suggest how strategic portfolios resolve the growing problem during the endemic to all but in the most isolated societies.

Findings

This study finds the emergent correlation between circuit breakers and lockdowns, which have brought about a “distorted gravity” effect (inverse growth of global businesses and trades). However, “time-to-build” real options (i.e. deferral, expand, switch and compound exchange) start to function in the adaptive-transformative capabilities for growth opportunities of both government and corporate sectors. Significantly, some sectors grow faster than others while the compound exchange remains primarily challenging. Clearly, the government and corporate sectors are entangled, inevitably, the decoherence allows for the former to change uncertainty in the latter; therefore, government sector options change option values in the corporate sector.

Originality/value

The ROA by empirically focusing on both government and corporate sectors demonstrates under conditions of uncertainty how options in decision-making generate opportunities that hitherto have not been recognised and exercised upon by research in the immediate context of the COVID-19 pandemic. Importantly, the ROA provides an insightful concatenation (capability–behaviour approach) that drives resilience.

Offsite Sustainability—Disentangling the Rhetoric through Informed Mindset Change

The construction sector and concomitant supply chain has been acknowledged in the literature as a major contributor to environmental “stress”, from the design, sourcing and extraction of raw materials through to transportation, design, construction and demolition. Clear indicators/solutions have been showcased as vehicles for reducing this stress, ranging from lifecycle costing through to waste reduction strategies, carbon assessment and “green” environmental assessment tools to name but a few. However, this paper argues that whilst some of these (intervention strategies) may have had some positive effects, the main challenge rests with people—inter alia, the key decision-makers and leadership structures with the “position power” to effect change. Acknowledging this as a supposition, this paper uses three discreet construction organisations engaging in offsite construction as a micro-study (cf. cross-case study) to evaluate sustainability perceptions. In doing so, it focuses specifically on sustainability practices and business processes underpinning technology (adoption, absorption and diffusion), including the perceptions of different stakeholders involved in each of these three companies. In total, 30 respondents from three organisations (cases) participated in this study, representing three tiers of management (top, middle and first line). Priority areas are highlighted, along with the reasons supporting these perspectives. Findings from this work present a new technology diffusion sustainability model for offsite construction. This model identifies sustainability causal links, super catalysts, actuators, barriers, forces and facilitators. More importantly perhaps, this work presents a clear case for “conjoined thinking” in order to instill a collective mindset change and common purpose for those wishing to evidence offsite sustainability.

Entrepreneurial Leadership, Supply Chain Innovation, and Adaptability: A Cross-national Investigation

This study investigates the effects of entrepreneurial leadership on supply chain innovation and supply chain adaptability. Based on theoretical foundations of the upper echelon theory and the dynamic capability theory, it also assesses the mediating role played by supply chain innovation in the relationship between entrepreneurial leadership and supply chain adaptability. Partial least squares structural equation modeling (PLS-SEM) was performed on survey data collected from 139 firms in Sudan, Japan, and China. The results reveal that entrepreneurial leadership had positive effects on supply chain innovation and supply chain adaptability despite varying business environments. The results also provided interesting findings regarding the moderating role of supply chain innovation as a mediator of the relationship between entrepreneurial leadership and supply chain adaptability. The findings of the study stress the importance of entrepreneurial leadership for firms’ adaptability across nations. Although the number of countries included in this study was limited, these countries exhibit different cultural and structural settings. These findings suggest the possibility of the generalizability of the results. The findings also imply that firms should place greater emphasis on improving their supply chain processes and upgrading relevant technologies in order to facilitate the development of adaptable supply chains.

The Impact of Resources on the Adaptability of State Forest Companies. Some Evidence from the State Forests National Forest Holding

Structural, economic, and climate changes human activity and the growing complexity of the business environment significantly affect the forestry sector, which faces the need to adapt to the dynamically changing environment by strategic development of appropriate resources and skills. In this paper, we attempted to take on the managerial lens of dynamic capabilities, i.e., the abilities to adapt to the changes in the business environment to analyze whether the forestry sector is able to strategically develop resources that influence adaptability. We have attempted to demonstrate how the resources of the forest enterprises affect the adaptability described by the dynamic capabilities construct. Bearing in mind the importance of State Forests, we collected data from 129 forest districts in Poland and applied the ordered logistic regression to identify models that show the impact of specific categories of resources onto the forestry sector adaptability, described by the construct of dynamic capabilities. The results suggest that the forest districts strategically investing in technological, as well as human resources and skills, have higher chances of maintaining and developing the ability to adapt to the constantly changing economic environment. At the same time, our findings show that financial, reputational, and marketable resources and skills have no impact on the adaptability of the State Forests National Forest Holding.

Impact of organizational dynamic capability on international expansion and the moderating role of environmental dynamism

Purpose

The purpose of this study is to examine the impact of dynamic capability (DC) of organizations on international expansion and further investigate the moderating role of environmental dynamism in the same context.

Design/methodology/approach

Based on the dynamic capability view (DCV) theory and related literature on international business strategy, a theoretical model is developed. This model is subsequently validated with the structural equation modelling technique through a survey of 324 respondents from Indian organizations. The study also examines the moderating impacts using the multigroup analysis method.

Findings

The study finds that organizations’ sensing, seizing and transformational capabilities impact positively and significantly on international marketing capability, as well as on technological innovation capability, which positively and significantly impacts organizations’ international expansion ability. The study also finds that there is a significant moderating impact of environmental dynamism on organizations’ international expansion.

Research limitations/implications

This study has provided a unique theoretical model which can explain the factors impacting organizations’ ability toward international expansion. The study also provides vital insights and directions to practitioners, researchers and academicians on the international business strategy for the expansion of organizations. The theoretical model, however, cannot be generalized, as data was taken only from Indian firms.

Originality/value

The study adds to the body of knowledge of international business strategy, international marketing strategy and technological innovation, adding to the scant research on the relationship between organizations’ DC and the international expansion strategy through a unique and tested model with an explanative power of 73%.

When Reflection Hurts: The Effect of Cognitive Processing Types on Organizational Adaptation to Discontinuous Change

Technological breakthroughs, institutional disruptions, and natural disasters often alter the course of organizations and entire industries. Such discontinuous changes threaten organizations’ survival by affecting the value of the knowledge accumulated in routines and capabilities. Although it is widely acknowledged that managerial cognition is a critical antecedent of organizational responses to discontinuous change, the role of type 1 (intuitive) and type 2 (reflective) processing in the adaptation of shared patterns of behavior, that is, routines, remains understudied. Drawing on dual-process theory, we propose that particular features of type 1 processing render this approach superior to type 2 processing, especially in highly ambiguous environments in which information is limited and difficult to verify. We tested our hypotheses in a longitudinal experiment linking individual-level factors with organizational-level practices of routine adaptation. Experienced managers, paired in 80 groups, developed routines in a first round of a simulation game; in a second round, we then introduced a discontinuous change making previous routines obsolete in order to observe how they adapted. The data show that priming type 1 processing facilitates organizational adaptation more than type 2 processing by providing faster, more routinized, efficiently coordinated, and optimal responses. In addition, type 1 appears to be more functional in highly ambiguous environments, whereas type 1 and type 2 processes yield similar levels of performance under low levels of ambiguity. Overall, our study advances the understanding of the nondeliberative dimension of organizational adaptation to discontinuous change.

Understanding big data-driven supply chain and performance measures for customer satisfaction

Purpose

Supply chain analytics with big data capability are now growing to the next frontier in transforming the supply chain. However, very few studies have identified its different dimensions and overall effects on supply chain performance measures and customer satisfaction. The aim of this paper to design the data-driven supply chain model to evaluate the impact on supply chain performance and customer satisfaction.

Design/methodology/approach

This research uses the resource-based view, emerging literature on big data, supply chain performance measures and customer satisfaction theory to develop the big data-driven supply chain (BDDSC) model. The model tested using questionnaire data collected from supply chain managers and supply chain analysts. To prove the research model, the study uses the structural equation modeling technique.

Findings

The results of the study identify the supply chain performance measures (integration, innovation, flexibility, efficiency, quality and market performance) and customer satisfaction (cost, flexibility, quality and delivery) positively associated with the BDDSC model.

Originality/value

This paper fills the significant gap in the BDDSC on the different dimensions of supply chain performance measures and their impacts on customer satisfaction.

Measuring the Sustainable Entrepreneurial Performance of Textile-Based Small–Medium Enterprises: A Mediation–Moderation Model

This research aimed to examine the role of knowledge management practices in sustainable entrepreneurship performance. This study also investigated the relationships between six concepts: knowledge sharing behavior, innovative capacity, absorptive capacity, dynamic capability, opportunity recognition, and sustainable entrepreneurship. A self-administered questionnaire was used for data collection from 486 entrepreneurs randomly selected from textile-based SMEs in the Democratic Republic of the Congo (DRC). The findings show that knowledge management practices positively and significantly impact sustainable entrepreneurship performance and SMEs’ dynamic capabilities. Moreover, opportunity recognition strengthens the relationship between SMEs’ dynamic capabilities and sustainable entrepreneurship performance. This study offers valuable insights and directions for researchers and practitioners interested in the field of entrepreneurship.

The Influence of Knowledge Management on Dynamic Capabilities

This study evaluates the relationship between knowledge management (KM) and dynamic capabilities. This goal stems from a lack of research regarding the impact of KM on strategic organisational aspects, particularly in firms from emerging economies. Theoretically, the link between KM and dynamic capabilities (DC) is based on the knowledge-based view of the firm (KBV). This posits that knowledge, when appropriately managed, is the main source of strategic renewal for organisations. As such, hypotheses about the relationship between KM and the dimensions of DC were both formulated and tested, in 93 knowledge-intensive organisations in Colombia, using structural equation modelling. The results indicate that KM has a significant impact on dynamic capability dimensions. For practitioners, this study sheds light on the relevance of the implementation of KM initiatives, in order to activate DC in organisations.

Understanding IT Value at the Managerial Level

Managerial ambidexterity is an important precursor to managerial seizing ability. However, ambidexterity can impose substantial costs. Yet information systems may help reduce these costs. We develop a model that includes an inverted U-shaped relationship between managerial ambidexterity and seizing ability. We propose that a manager's effective use of management support systems will mitigate the decline in seizing ability at higher levels of ambidexterity. We test our model with data collected over two time periods from 172 managers. Our results support our model, thereby generating implications for research and practice in IT value, managerial ambidexterity, and dynamic managerial capabilities.

Barriers To Strategy Implementation In Turkey's Healthcare Industry: Hospital Manager Perspectives

Although strategy implementation has profound implications for delivering efficient service, it has been largely neglected in the healthcare management literature. This study explores the barriers to effective implementation of strategic plans in healthcare organizations. To achieve this end, empirical data were collected from 185 hospital managers in Turkey using a survey-based methodology. A descriptive analysis was undertaken of the survey responses to determine the most important barriers to strategy implementation. The most significant barriers undermining strategy implementation efforts were found to be: low employee motivation, an exclusive focus on financial performance and lack of consensus among decision makers.

Dynamic capabilities, value creation and value capture: Evidence from SMEs under Covid-19 lockdown in Poland

Dynamic capabilities, resulting from activities that allow conscious and skillful modification of a firm's strategic potential, are seen as one of the key drivers of a firm's value creation, competitive advantage and above-average performance in changing environments. However, little is known about how dynamic capabilities can shape business survival and performance during crises. The research objective of this paper is twofold. First, through a literature review, we seek to identify which first-order dynamic capabilities-managerial decisions under uncertainty-are vital for rapid response to a crisis. Second, we present the results of research carried out among 151 small and medium-sized companies in Poland immediately after the beginning of the economic lockdown (April 2020). The survey that we developed identifies which dynamic capabilities were essential for businesses to survive during this unexpected black swan event. We also present dependence and regression analyses showing the links between the identified dynamic capabilities and value creation, understood as retaining employees and production levels, as well as value capture, understood as maintaining cash flow and current revenues.

Toward an integrated framework of corporate venturing for organizational ambidexterity as a dynamic capability

In times of changing business environments, firms must constantly renew their competitive advantage by establishing dynamic capabilities. While often attempting to employ this in corporate venturing activities, they face the challenge of simultaneously exploring new and exploiting existing business opportunities. Examining possible approaches to mastering this feat of ‘organizational ambidexterity’ reveals an extensive but scattered picture. To better integrate this effort by assessing how corporate venturing is linked with organizational ambidexterity in the literature and identifying possible organizational setups, this systematic literature review builds on a sample of 172 studies. Based on different dimensions of dynamic capabilities, the analysis indicates that corporate venturing may take a solely explorative or an exploitative role, or balance both, to directly enable organizational ambidexterity, following a ‘trade-off’, respectively ‘paradox’, school of thought. As a result, this paper identifies four different setups of corporate venturing in an integrated framework, based on the ability and approach to enabling organizational ambidexterity. Here, the synthesis in the proposed framework of the studies examined allows differentiating between not directly ambidextrous separated or integrated corporate venturing and directly ambidextrous contextual or interlinked corporate venturing. As a novel contribution to the fields of strategic management, organizational change and corporate entrepreneurship, this integrated perspective suggests an often overlooked, potentially more strategic role for corporate venturing in the strategic renewal of a firm’s competitive advantage, thus building the basis for further empirical research on strategic corporate venturing approaches for organizational ambidexterity and their application in practice.

The process of developing dynamic capabilities: The conceptualization attempt and the results of empirical studies

While most researchers interested in the concept of dynamic capabilities focus their attention on analyzing how companies transform their resources to compete in their environment, the process of developing dynamic capabilities is treated as a marginal issue. Although the literature suggests various approaches to developing dynamic capabilities, they are formulated in general terms, and doubts can be raised about the links between actions. There is also a lack of empirical research indicating the links between activities in the process of developing dynamic capabilities and their influence on the effectiveness of an organization. The aim of the study is to formulate a proposal for a model of the process of developing dynamic capabilities aimed at increasing the economic effectiveness of a company and to determine the links between the activities in the model. The theoretical contribution of the paper consists in presenting a model of the process of developing dynamic capabilities aimed at increasing the economic effectiveness of the company. The results presented in the paper refer to an empirical examination of the model of developing dynamic capabilities, covering five activities: searching for opportunities; knowledge management and learning; coordination; configuration and reconfiguration; and organizational adaptation. The study also includes an examination of the possible impact the components of the dynamic capabilities building process have on a company’s performance. The study uses the survey method and data was obtained from top managers. The conclusion, based on data from 471 Polish companies, was made using structural equation modelling. The results of the empirical research suggest that the individual activities in the process of developing dynamic capabilities are interconnected, and through mutual interactions and couplings, they positively affect the economic effectiveness of an enterprise. The results indicate that searching for opportunities is the precursor, and the main factor influencing the other activities in the process, which suggests that managers should focus on improving activities in this area.

Toward dynamic capability views of entrepreneurial growth intention: perspective of floricultures industry in Sri Lanka

Purpose

It is aware that entrepreneurial growth has gained some attention in the literature, yet the debate in respect of the determinants of entrepreneurial growth intention (EGI) is far from being complete. The purpose of this study is to identify the key dynamic capabilities that foster EGI in floriculture industry in Sri Lanka.

Design/methodology/approach

The study used quantitative approach. The owners of farms who possess commercial experience in floriculture cultivation in Sri Lanka were selected as a target population. A self-administrated structured questionnaire was used to collect data. Valid and reliable indicators were developed to conceptualize five key capabilities and EGI.

Findings

Based on the responses from 206 farm owners, results of the multiple regression analysis indicate that organizational learning, technological and alliance formation capabilities are significantly associated with EGI of floriculture farm owners.

Originality/value

The need for common conceptualization of dynamic capabilities and EGI represents a major gap in the literature. The study expands the current debates on entrepreneurial growth and institutional environment, which allows the mapping out of dynamic capability development.

Development of Emergent Knowledge Strategies and New Dynamic Capabilities for Business Education in a Time of Crisis

The current pandemic is, above all, a crisis of knowledge—Humanity had to find a vaccine, and now we are not sure how to behave socially to minimize the pandemic bad effects. For organizations, this situation requires an update in the reflection regarding both the strategy and the actions that should be performed. Therefore, the current crisis requires new ways of applying knowledge strategies and dealing with dynamic capabilities. We first analyze the two questions (knowledge strategies and dynamic capabilities) in abstract and general terms, and then we specifically focus on business education during the COVID-19 crisis. We conclude that COVID-19 creates a need for all knowledge strategies in terms of business education. Data, information, knowledge, and wisdom will be needed; above all, it requires the Unknown-Knowns, which is the basis for Knowledge Sharing, and the Unknown-Unknowns that base Knowledge Exploration because both Knowledge Exploitation and Knowledge Acquisition are strategies business schools use to perform in times of crisis. They are more difficult to implement because both the Known-Knowns and the Known-Unknowns are less valuable to solve a crisis like this one: all this will result in “agile universities”, which will be (and already are) those that will use the right strategies and the right dynamic capabilities and will have better results. The paper is original because we link Knowledge Management and Human Resources Development Concepts to generate a broader and more comprehensive understanding of the organizational behavior about a very specific problem—business education—in a very specific time of the COVID-19 crisis. The limits of the paper relate to the evolution of society itself; we do not know when the crisis will end, and we are not sure how much of the “new normal” will remain in the “post-COVID-19” situation. The topic and analysis are of interest for practitioners because daily, they experience how their reality changed and their need to adapt, yet they do not know how. This topic and analysis are also of interest to scholars because science is based on questions, explaining and providing ways to improve one’s reality. COVID-19 has shown us, dramatically and uniquely, the need for new solutions in times of peace.

Relational embeddedness in home-based network and dynamic capabilities: evidence from Chinese MNCs

Purpose

Prior studies have argued that multinational firms with dynamic capabilities can reconfigure and upgrade their internal and external resources and adapt to an ever-changing competitive global environment. The impact of home country networks exerting on multinational corporations’ (MNCs) dynamic capabilities has been rarely discussed in extant research. This paper aims to explore how two types of home country networks’ relational embeddedness (from domestic firms and foreign firms) affect Chinese MNCs’ dynamic capabilities.

Design/methodology/approach

Several hypotheses were tested by analyzing the survey data from 204 multinational companies in china.

Findings

The results reveal the impact mechanism of the home country network on dynamic capabilities. Embeddedness in domestic networks positively affects embeddedness in the foreign network; embeddedness in foreign firms exerts positive effects on the three dimensions of MNC’s dynamic capabilities. Additionally, the effect of domestic firms’ relational embeddedness on resource reconfiguring capability is mediated by foreign firms’ embeddedness. Consequently, this study provides a theoretical introduction for MNCs from emerging economies.

Practical implications

This study has several managerial implications for emerging MNCs’ international operations. For MNCs from emerging economies, close cooperation with domestic firms helps firms to develop a close relationship with foreign firms; meanwhile, developing a close relationship with foreign firms can obtain spillover about technology and management experience better, improving dynamic capability. Specifically, domestic embeddedness, through foreign embeddedness, can extend the impact to focal firms in developing resource reconfiguring capability.

Originality/value

This study provides an alternate view of how home country networks influence the dynamic capabilities of Chinese MNCs and outlines its impact mechanism. Therefore, the study contributes both to the international business literature and social network literature.

Influence of middle management on dynamic capabilities

Purpose

The dynamic capabilities (DC) literature focuses primarily on top managers. Although recent studies have drawn attention to middle management's (MM) relevance, these professionals have not been the focus of much attention in the DC literature. The purpose of this paper is to investigate whether and how MM influences DC dimensions.

Design/methodology/approach

Through a qualitative strategy and case-study method, 13 MM professionals from four Brazilian companies embedded in competitive and dynamic contexts were investigated. The “micro-practices” approach was used to operationalize the DC construct.

Findings

The evidence shows that MM influences DC dimensions. This influence appears to emanate from 19 identified and named micro-practices.

Practical implications

By examining how micro-practices (micro-level) influence macro-level DC dimensions, this article raises the significance of including the micro-practices identified herein in management-training programs.

Originality/value

The first relates to the identification of micro-practices within the MM scope. The second relates to the association of micro-practices with management functions. The third relates to the association of micro-practices with DC dimensions. Thereby, this article highlights how DC work in organizations' daily activities. The fourth is the construction of a framework that demonstrates how to integrate the DC micro (micro-practices), meso (managerial functions) and macro (DC dimensions) scopes. Fifth, this paper affirms the emerging research stream that stresses MM's relevance for DC generation.

Role of information technology in enabling managerial dynamic capabilities

Purpose

The purpose of this conceptual paper is to explicate the role played by information technology (IT) in enabling managerial dynamic capabilities. By doing so, this paper seeks to address a critical theoretical gap regarding IT’s role in enabling dynamic capabilities (DCs). DCs are knowledge-intensive and information-intensive processes and play a crucial role in facilitating strategic renewal of firms operating in volatile, uncertain, complex and ambiguous business environments. Although managers play a central role in the DCs framework, extant research has only focused on the role of IT in enabling firm-level and process-level DCs.

Design/methodology/approach

This conceptual paper uses the literatures on dynamic managerial capabilities, individual-level information system use, social capital, human capital, managerial cognition and technology-enabled learning to build propositions that link managerial IT use with the enablement of dynamic managerial capabilities.

Findings

This paper introduces a new construct called individual IT leveraging capability (IILC) and provides theoretically grounded arguments that link IILC with managerial social capital, managerial cognition and managerial human capital. It also explicates the relationships between managerial social capital, managerial cognition and managerial human capital and the dynamic managerial capabilities of sensing, seizing and reconfiguring.

Research limitations/implications

The establishment of the linkage between IT and dynamic managerial capabilities extends the literature on the business value of IT. This work also adds to the literature on dynamic managerial capabilities by providing a theoretically grounded argument that IT can act as an antecedent of such capabilities.

Originality/value

To the best of the authors’ knowledge, this paper is arguably the first to theorize the role of IT in enabling managerial DC and thus addresses a critical gap in academic research literature.

KESAN INTEGRASI KELAKUAN KUMPULAN PENGURUSAN ATASAN KE ATAS KETANGKASAN ORGANISASI DI MALAYSIA: KAPASITI PENYERAPAN SEBAGAI PEMBOLEH UBAH PENGANTARA (The Effects of Top Management Team Behavioural Integration on Organisational Agility in Malaysia: Absorp

Kajian ini dijalankan untuk mengenal pasti kesan langsung dan tak langsung yang dimiliki oleh integrasi kelakuan kumpulan pengurusan atasan (KPA) ke atas dua keupayaan dinamik firma iaitu keupayaan pembelajaran dengan keupayaan konfigurasi semula, yang kedua-duanya diterjemahkan melalui pemboleh ubah kapasiti penyerapan dan ketangkasan organisasi. Analisis Partial Least Square ke atas maklum balas soal selidik daripada 159 buah firma perkilangan bersaiz besar dan sederhana di Malaysia menunjukkan terdapat hubungan positif yang signifikan antara integrasi kelakuan KPA dan kedua-dua kapasiti penyerapan serta ketangkasan organisasi. Hasil analisis juga menyokong hipotesis bagi hubungan tak langsung antara integrasi kelakuan KPA dan ketangkasan organisasi dengan kapasiti penyerapan sebagai faktor pengantara. Penemuan kajian ini menggesa KPA agar menonjolkan sikap yang mementingkan tingkah laku berkolaboratif, pertukaran maklumat yang berkualiti dan pembuatan keputusan secara bersama kerana ketiga-tiga aspek ini didapati secara kolektif memberi kesan yang positif kepada keupayaan dinamik firma. Dapatan kajian ini turut memberi isyarat kepada pengurusan atasan kepentingan untuk memastikan ketiga-tiga ciri ini dimiliki oleh calon yang bakal dipilih sebagai ahli KPA. Hasil kajian ini juga mampu menjadi titik rujuk kepada kajian lanjut yang dijalankan secara kualitatif yang dijangka dapat menyediakan gambaran lebih jelas mengenai peranan KPA dalam pembangunan keupayaan dinamik firma di Malaysia. Abstract This study was conducted to examine the direct and indirect effects of top management team (TMT) behavioural integration on two dynamic capabilities, that is, the learning capability and reconfiguration capability which have been translated through the absorptive capacity and organisational agility. The Partial Least Square analysis on the survey responses from 159 large- and medium-sized manufacturing firms in Malaysia shows that there are significant positive relationships between the TMT behavioural integration and both the absorptive capacity and organisational agility. The analysis results also support the hypothesis of an indirect relationship between the TMT behavioural integration and organisational agility with absorptive capacity as the mediator. The findings reveal the need for the TMT to emphasise collaborative behaviour, quality information exchange and collective decision-making as the three aspects are collectively found to have positive impacts on the firm's dynamic capabilities. The TMT also has to ensure that the candidates selected as its team members must have these characteristics. The results of the study can also be a reference point for qualitative studies conducted which can provide a clearer picture of the role of TMT in the development of dynamic capabilities of firms in Malaysia. Keywords: Top management team behavioural integration, absorptive capacity, organisational agility, dynamic capabilities of firms, Malaysia.  

Microfoundations of firm capabilities in the context of international business

Purpose

This study aims to investigate how employees in export departments help firms develop dynamic capabilities that drive firm performance in global markets. It draws from the previous scholarship in organizational behavior and international business.

Design/methodology/approach

Since microfoundations of firm capabilities have not received adequate attention in the context of international business, a qualitative research was carried out by conducting semistructured interviews with export managers to provide new theoretical and practical insights about the role of export department employees in developing firm capabilities.

Findings

The results show that organizational citizenship behavior and communication skills are the most highlighted characteristics of export department employees that underpin the improvement of firm capabilities, which in turn, boosts export performance. In addition, teamwork emerged as another contributing factor to firm capabilities.

Originality/value

This study addresses the microlevel foundations of firm capabilities within the context of international business by uncovering the characteristics of export department employees and their team-level contributions to the capabilities of exporting firms.

Microfoundations approach to strategic agility – Exploration to operationalization

Strategic agility (SA) has become an established construct in strategic management literature. SA has been an existential element in firms for superior firm responsiveness towards market requirements. The presence of SA in organizations resulted in achieving competitive superiority. However, there has been dearth of literature regarding the enablers of SA in organizations. The authors explored this based upon an exploratory study by anchoring the study in the banking industry, which was witnessing dynamic shifts in both the operating environment and the industry landscape. The research purpose was to build a process level understanding of SA through microfoundation approach. Data were collected from 34 expert bankers. Using content analysis technique, the researchers found 11 microfoundations. The two meta-capabilities of SA were strategic sensitivity and resource fluidity. Identification of these microfoundations would help managers to promote organizational SA and undertake effective and sustainable firm initiatives towards market response.

Relational resources, tacit knowledge integration capability, and business performance

Purpose

This study aims to investigate how relational resources, such as the buyer’s trust in its suppliers and the level of supplier involvement, affect the level of tacit knowledge integration capabilities (TKICs) of the firm, which, in turn, is hypothesized to affect business performance.

Design/methodology/approach

Based on the dynamic capabilities theory and the relational view, this paper examines how TKIC, a special case of dynamic capability, influences business performance. The research context is the Brazilian automobile industry, in which firms are currently experimenting with modular production and increasing their interactions with suppliers. Using a sample of automobile suppliers, this investigates how relational resources, such as the buyer’s trust in its suppliers and the level of supplier involvement, affect the level of TKIC, which, in turn, is hypothesized to affect business performance. In addition, this paper examines the moderating effect of various communication media on the TKIC-business performance relationship. The findings confirm the importance of relational resources and TKIC on business performance. Finally, this paper explores various theoretical and managerial implications to encourage future research.

Findings

The results suggested that the two relational resources (supplier involvement and buyer’s trust) are important drivers of TKICs and that the level of supplier involvement in the production process mediates the relationship between buyer’s trust and TKIC. Moreover, this study found that TKIC leads to superior firm performance, but the degree of media naturalness does not seem to facilitate knowledge transfer. The results confirm that supplier involvement is a pivotal process in that the buying firm’s internal resources and the major suppliers’ resources and capabilities are combined to achieve a competitive advantage – TKIC.

Research limitations/implications

This study is subject to the typical limitations inherent in cross-sectional research designs using subjective measures. That said, this still has some important implications indicating that relational resources, such as buyer’s trust and supplier involvement, are critical in developing TKIC that “seize” opportunities from interfirm relationships and integrate knowledge across and within firm boundaries. Moreover, while knowledge management tools can resemble face-to-face interactions to the largest extent, the research suggested that it cannot substitute face-to-face communications in transferring tacit knowledge.

Practical implications

Managers deal with complex interactions and linkages due to tacit knowledge from components, systems and modules, which are critical in developing organizational capabilities. Relational resources are important strategic assets facilitating resource combination and coordination. Managers must coordinate among multiple sources of learning and partner with their suppliers at an earlier stage to develop the relational capabilities and efficiently steer the process of boundary redefinition. Finally, managers must have the ability to manage tacit knowledge within the interface with suppliers using organizational mechanisms (i.e. TKIC) to help them absorb external knowledge from their supplier network and integrate it with specific internal competences.

Social implications

Recent disruptive technological developments pressure organizations to become more flexible by requiring firms to adapt quickly to constantly changing markets and to have the ability to apply different resources and capabilities to specific unique situations. All this with a huge impact on the firm’s employees and society in general. Thus, interfirm relationships and the role of knowledge integration is especially crucial, given the current industry trend in favor of experimenting with innovative production methods (e.g. flexible manufacturing and modular production) that can help managers to rethink work conditions in a more meaningful and flexible for society.

Originality/value

While prior research treats integrative capability mainly as a mechanism that explains superior firms’ performance in an interfirm relationship, few research efforts have explicated what shapes TKICs. By examining the relationship between relational resources, TKIC and performance, this study fills this research gap and develops and tests a theoretical framework.

Dynamic capabilities in humanitarian supply chain management: a systematic literature review

Purpose

The main purpose of this paper is to examine the extant literature of humanitarian supply chain management (HSCM) which specifically use dynamic capabilities (DCs) view. By this means, the objectives of this study are to identify and assess the DCs used in the HSCM context, the factors positively and negatively affecting the DCs and how the DCs affect humanitarian supply chain (HSC) operations. Furthermore, this research aims to give directions for future research in the field of HSCM.

Design/methodology/approach

This study adopts systematic literature review (SLR) approach proposed by Denyer and Tranfield (2009). Based on a SLR, this study synthesizes and compares the evidence, has a specific focus and research questions, has certain inclusion and exclusion criteria and provides evidence-based implications to the researchers and practitioners. This is a method which is replicable, transparent and auditable. The SLR methodology provides scholars and practitioners a basis for comprehending the current situation of relevant topic and taking correct steps in their future actions.

Findings

This SLR deduces that applying DCs view is still in its infancy in the HSCM literature. The result of this SLR reveals that supply chain agility (SCA), supply chain resilience (SCR), reconfiguration/transformation, integration, (short-term) collaboration, sustaining, sensing, seizing and knowledge access DCs have been used in the HSCM literature. In addition, it is determined that only one paper analyzed the influence of DCs on predisaster performance while rest of the papers focused on the postdisaster performance.

Originality/value

The result of the exhaustive literature search indicates that this is the first SLR that specifically analyzes the application of DCs view in the HSCM domain. This investigation determined the DCs used in HSCM and revealed the relations between the dependent and independent variables through the comprehensive model. In this way, this review provides a guidance to researchers in conduct their future investigations and practitioners to carry out supply chain (SC) operations by considering the factors affecting their operations.

Entrepreneurial Orientation (EO), Integrated Marketing Communications (IMC), and Performance in Small and Medium-Sized Enterprises (SMEs): Gender Gap and Inter-Country Context

Expanding and maintaining the number of Small and Medium-sized Enterprises (SMEs) is directly related to sustainable economic, social, and individual development. However, SMEs are vulnerable to competition. Thus, this study focusses on the analysis of entrepreneurial orientation (EO) as an antecedent of integrated marketing communications’ (IMC) successful implementation directed at improving SMEs’ performance, with additional focus on the institutional inter-country context. Considering the role of owner-managers in SMEs, analysis of the gender gap is also applied. The data from 315 managers’ surveys (in Spain and Belarus) is analyzed using Structural Equation Modelling (SEM). The results show a positive relationship between EO, IMC, and performance among SMEs in both markets. However, these connections are significantly stronger in the case of male, rather than female managers in a developed market (Spain). There is no gender gap in an emerging market (Belarus). Moreover, and conversely, in a developing market, the EO-IMC-performance relations are more intensive when the manager is female. Further implementations are provided for practitioners and government organizations with a focus on the gender gap and inter-country differences.

When strategic consensus matters: dynamic managerial capabilities and firm internationalization as seen by TMT

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.

Organizational Re-Design for Business Model Innovation while Exploiting Digital Technologies: A Single Case Study of an Energy Company

Digital technologies are bringing a wide spectrum of business opportunities as well as significant organizational challenges for incumbent companies operating in traditional industries such as the energy one. The diffusion of new technologies is changing the way energy solutions are consumed and experienced, while consumers increasingly take ownership of their consumption, acting as “prosumers”. In this evolving scenario, incumbents are urged to reshape their business models, explore new opportunities and change their organizational structures accordingly. Still, the required organizational re-design process that enables companies to undergo business model innovation (BMI) while exploiting digital technologies is partially neglected in literature. Hence, this study explores how established companies embrace organizational re-design process to innovate their business model. To this end, we leverage a single case study methodology focused on an incumbent energy company. Our findings show how the establishment of a business unit dedicated to digital technologies exploitation has enabled the company’s BMI. More specifically, we point at the critical role played by the know-how and the industrial capabilities to sustain not only the innovation activities of the new business unit, but also the overall company performance and the shift towards a renewed business model.