The role of management control and integrated information systems for the resilience of SMEs

This paper investigates the resilience of small and medium-sized enterprises (SMEs) in relation to the COVID-19 pandemic, particularly the influence exerted by certain factors related to management control, integrated information systems (enterprise resource planning [ERP]), information and communication technology (ICT) systems, and financial resources. For this purpose, leveraging from the dynamic capability theory, in late spring 2020, a questionnaire was sent to limited-liability SMEs in Verona and Vicenza provinces in Italy operating in the manufacturing, construction, and distribution sectors. Respondents were asked to answer a set of questions and to evaluate the resilience of their firms as of January 1, 2020; May 1, 2020; and one year later, as of July 2021. Using a multivariate regression model to analyze data from the 143 questionnaires received, we found a positive influence of budgeting, business continuity tools, availability of supplementary financial resources, and resilience of the entrepreneur on both COVID-19 resilience and the organizational resilience of SMEs. SMEs with a high intention to use ERP systems also had high resilience levels. ICT use for smart working was not statistically significant. Despite the limitations concerning the sample and period considered, we believe that this study contributes to both academic debate, by illustrating the influence of certain managerial and organizational factors on the resilience of SMEs, and practice, by supporting a greater empirical use of management control tools, such as budgets and contingency plans, and integrated information systems (ERP). Our study supports the creation of financial buffers and strengthening the entrepreneur’s resilience for improving SME resilience.

How recreational farm operators use dynamic capabilities to respond to COVID-19 pandemic

The outbreak of the COVID-19 Pandemic has devastated economic activities around the world. The tourism industry is facing severe challenges, such as reduced tourist flow and the lack of tourist consumption at destinations. Recreational farms are one of the business types of agricultural tourism in Taiwan and have the characteristics of small and medium-sized agriculture businesses. The operator is facing an uncertain environment in the epidemic market, and the operator's dynamic capability is considered to be effective in coping with the current environment. In this study, 20 selected recreational farms were interviewed to explore how operators use dynamic capabilities to make responses. The results show that recreational farms have the three elements of dynamic capabilities: sense, seize, and transform, to change farm marketing channels and develop new products or services to respond to the new market. Recreational farm operators adopted resource optimization, computerization, and cost control strategies to respond to the market.

Management implications

A successful implementation of recreational farm offers requires-

the reallocation of resources,

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the planning of new products and services, and - the improvement of service processes to create new business and to address additional target groups.

The COVID-19 pandemic forces a systematic positioning or repositioning of the business.

Leadership's long arm: The positive influence of digital leadership on managing technology-driven change over a strengthened service innovation capacity

Introduction

In this qualitative study, we examine digital leadership (DL) capabilities and their positive influence on the management of technology-driven change by leveraging service innovations. The context of digital transformation (DT) has triggered a new leadership paradigm, among others referred to as digital leadership (DL). However, despite its practical relevance, leadership research has yet paid little attention to conceptualise DL as an approach to digitally transform organisations.

Methods

Drawing on mid- and top-level mangers' experiences with service innovation projects, and based on Grounded Theory, we develop a taxonomy of DL-related capabilities and a conceptual framework which exemplifies their influences on dynamic service innovation capabilities (DSICs). DSICs build on the dynamic capabilities view (DCV) and represent the "organisational muscle" to repeatedly deliver service innovations indicating an effective management of technology-driven change.

Results and Discussion

Taxonomy results show that aggregated dimensions in terms of a digital leader's personal, social, and organisational capital serve as underpinnings (DL-related capabilities) to drive strategic change in DT contexts. The conceptual framework further reveals that especially the personal and organisational capital of a digital leader owns several strong and moderate influences on DSICs which demonstrates DL's "long arm" on the management of technology-driven change. Our findings contribute to leadership research by advancing the conceptualisation of DL and by adding a novel micro-foundational perspective towards the DCV discourse. As organisations struggle to realise the full benefits of DT initiatives, our results also provide a valuable contribution for practitioners by supporting them to strategically prepare for the human-related challenges of DT.

Reviewing the relationship between organizational performance, dynamic capabilities and strategic behavior

Current business challenges mean that understanding elements that can affect organizational performance represents a differential factor in maintaining competitiveness. In this context, the objective of this article is to conduct a Systematic Literature Review (SLR) of the relationship between dynamic capabilities, strategic behavior, and organizational performance. For this, A three-stage SLR protocol was used: (i) planning, (ii) conduct, and (iii) knowledge development. A total of 118 articles covering the publication period of 2006–2021 were included, which evidenced: (i) the grouping of words into three classes: “Knowledge Management,” “Measurement Instrument,” and “Organizational Environment”; (ii) the methodological framework; (iii) directions for future research. The findings reinforce the importance of the theoretical, methodological, and empirical relationship between the three constructs. Furthermore, the results indicate the relationship between the set of terms selected in each class, highlighting the strong connection between dynamic capabilities and competitive intensity. The main findings of the research show that organizations can expand or modify their processes by building and using dynamic capabilities as institutional factors, shaping strategic behavior to advance better performance.

The role of enterprise architecture-driven dynamic capabilities and operational digital ambidexterity in driving business value under the COVID-19 shock

This article builds upon the dynamic capabilities view and argues that firms that developed their dynamic capabilities using enterprise architecture (EA) are better equipped to cope with the COVID-19 shock. An online survey collected data from 414 senior practitioners, business and IT managers, and executives. The study’s research model containing three hypotheses was assessed by applying Partial Least Squares (PLS) structural equation modeling (SEM), PLS-SEM. Outcomes point out that dynamic capabilities driven by EA enhance the firm’s digital dynamic capability and, therefore, the competencies to manage digital technologies. This capability subsequently enhances the firms' operational digital ambidexterity. Also, outcomes show that operational digital ambidexterity significantly impacts business value. This study advances our knowledge and insights on developing EA-driven dynamic capabilities under COVID-19 and unfolds key areas where decision-makers should invest in enhancing business value.

Realizing supply chain agility under time pressure: Ad hoc supply chains during the COVID‐19 pandemic

When the COVID‐19 pandemic began in 2020, the medical product industry faced an unusual demand shock for personal protective equipment (PPE), including face masks, face shields, disinfectants, and gowns. Companies from various industries responded to the urgent need for these potentially life‐saving products by adopting ad hoc supply chains in an exceptionally short time: They found new suppliers, developed the products, ramped‐up production, and distributed to new customers within weeks or even days. We define these supply chains as ad hoc supply chains that are built for a specific need, an immediate need, and a time‐limited need. By leveraging a unique sampling, we examined how companies realize supply chain agility when building ad hoc supply chains. We develop an emergent theoretical model that proposes dynamic capabilities to enable companies building ad hoc supply chains in response to a specific need, moderated by an entrepreneurial orientation allowing firms to leverage dynamic capabilities at short notice and a temporary orientation that increases a company's focus on exploiting the short‐term opportunity of ad hoc supply chains.

SMEs navigating COVID-19: The influence of social capital and dynamic capabilities on organizational resilience

Building the resilience capacity of businesses is important for economic, social and community recovery during the COVID-19 pandemic, yet organizational resilience is under-examined in the marketing literature. Crises and disasters can significantly impact small and medium enterprises (SMEs), affecting their ability to mitigate, respond and recover. Social capital (SC) is a key resource that can be mobilized by SMEs to tap the resources embedded in internal and external relationships to respond to disruptions, yet the mechanism through which SC facilitates organizational resilience is not clear. Using middle-range theorizing, we propose dynamic capabilities (DC) as the key sensing, seizing and reconfiguration resources that transform SC into organizational resilience. The results from a sample of SMEs (n = 419) in Australia and New Zealand demonstrate that internal SC has a positive effect on external SC (customer-focused). Only internal SC has a direct effect on organizational resilience. DC partially and fully mediates the relationship between internal and external SC and organizational resilience respectively. Implications for theory and practice are offered.

Dynamic Capabilities and an ESG Strategy for Sustainable Management Performance

This research explores the dynamic capabilities required for firms to implement environmental, social, and governance (ESG) strategies, and investigates sustainable management performance that can be created based on them. By using dynamic capabilities theory, we integrate sustainable management and the ESG literature to suggest a research model and identify the factors that act as the catalysts achieving sustainability. The data used for the analysis were collected from 78 firms listed on the Korea Exchange (KRX) with assets totaling more than 2 trillion Korean won. In this study, the partial least squares structural equation model (PLS-SEM) is applied. We found that absorptive capability and adaptive capability significantly affect sustainable management performance through implementation of the ESG strategy as a mediating variable. In particular, a firm's implementation of an ESG strategy is a significant determinant that impacts sustainable management performance. We also believe our model contributes to the current knowledge by filling several research gaps, and our findings offer valuable and practical implications not only for achieving sustainable growth but also for creation of competitive advantage.

Assessing the Effect of Dynamic Capabilities on the ESG Reporting and Corporate Performance Relationship With Topic Modeling: Evidence From Global Companies

The primary purpose of this study is to examine the relationship between the dynamic capabilities (DCs) embedded in ESG management, which are being pursued by global companies, and corporate performance amid increasing uncertainty. Furthermore, the secondary purpose is to examine the function of environmental uncertainty moderating the DCs-performance relationship. Concerning the analysis tool, this study employs topic modeling with Word2Vec embedding that analyzes unstructured data. This was employed as an alternative method beyond the limitations of the traditional approach, i.e., survey or interview. A DCs dictionary was constructed by redesigning the 12 detailed dimensions of Teece’s DCs into 10 dimensions, and then time series scores of individual global companies were extracted by applying this dictionary to the sustainability reports of 97 companies. Sustainability reports of 153 companies among Fortune Global 500 companies announced in 2020 were originally collected, but in the process of collecting additional financial data about these companies from OSIRIS, a total of only 97 companies was selected in the end due to omission of data. A fixed effect panel analysis was conducted, and the main findings are as follows: First, the DCs embedded in ESG management have a positive or negative direct effect on corporate performance. In particular, a statistically significant relationship was not observed in the innovation (technology) oriented capabilities, whereas a statistically significant positive relationship was observed in the customer (market) oriented capabilities. Second, uncertainty moderates the relationship between DCs and corporate performance positively or negatively. Interestingly, the moderating effect of uncertainty only appears in the function of the sensing and reconfiguring capabilities. From this, it can be seen that the function of DCs, which is embedded in the ESG management of global companies, is limited due to the imbalance between the sensing-seizing-reconfiguring capabilities. These findings imply that, despite the positive function of DCs embedded in ESG management, costs and benefits occur at the same time, and DCs can improve performance only if there is an organizational adaptation strategy suitable for uncertainty. Accordingly, business managers need to recognize the importance of pursuing sensing-seizing-reconfiguring capabilities in a balanced way to improve corporate performance through ESG management under uncertainty.

Performance stability among small and medium-sized enterprises during COVID-19: A test of the efficacy of dynamic capabilities

COVID-19 wreaked havoc on public health and the global economy. Small and medium-sized enterprises (SMEs) were hit especially hard. In this research note, we test the ability of dynamic capabilities (DCs) to predict SME performance during the pandemic. Based on our analysis of data from a survey conducted in the United States, we find that DCs meaningfully predicted both operational levels and revenue. Furthermore, while the empirical literature suggests that SME size is positively related to DC efficacy, we found that this effect was reversed during COVID-19, as the positive link between DCs and performance was stronger for smaller SMEs.

How do digital technologies influence the dynamic capabilities of micro and small businesses in a pandemic and low‐income country context?

It is not clear how extreme disruptions like COVID‐19 pandemic affects the dynamic capabilities (DCs) of micro and small businesses (MSBs) in the context of low‐income countries. Therefore, this study makes sense of how MSBs leverage DCs through digital technologies (DTs). Using mixed‐method and interpretive research approaches, the first phase of the study applied a deductive coding technique to analyze interviews from 30 MSB managers in Ghana. Coding activities revealed 21 DC constructs of MSBs in Ghana. Next, we contextualized and simplified the DC framework by proposing an interpretive blueprint of DC framework applicable to Ghana and other low‐income countries. The second phase, through a questionnaire, progressed the research by assessing how DTs influence the 21 DC constructs. Findings suggest that collective DCs of MSBs as a business sector did not change in a pandemic situation; nonetheless, the extent to which MSBs demonstrate DCs increased by up to 82%; and the use of DTs such as mobile payment and social media tools increased significantly. Interpretive reflections on the research outcomes argued that whilst the collective DCs of MSBs remain the same, each MSB uniquely explored opportunities by manifesting different combinations of DC constructs and DTs, at varying extents, and the knowledge of how MSB combines DCs could promote MSB management and digital innovation as low‐income countries seek to recover from the COVID‐19 economic downturn. Consequently, this research extends literature and progresses the UN sustainable development goals 8.3 as it helps to enhance policies that promote digital innovation, entrepreneurship, and growth of MSBs.

The Relationship between the Chief Executive Officer's (CEO) Social Capital and Dynamic Capabilities: A Meta-Analysis of its Moderators

CEO social capital has shown a positive association with dynamic capabilities, although correlations have considerable heterogeneity among them. This meta-analysis estimates the correlation between CEO social capital and dynamic capabilities, and analyses moderator variables in explaining the heterogeneity in the results. Moderators are classified across four levels from macro to micro variables: country variables, firm environment, firm characteristics, and CEO variables. We apply a systematic search for studies in the Web of Science, Scopus, EBSCO, ProQuest, and Google Scholar databases. Additionally, we used a three-level random-effect meta-analysis on 89 correlations published between 2008 and 2021 from 9,272 CEOs. Findings indicate a positive correlation between CEO social capital and dynamic capabilities. Furthermore, we identified a moderator effect in the country and firm environment level. We found that the country of the study, the perception of transparency and legality in the country, and the environmental dynamism in the market moderate the size of the correlations. We also reject other moderators, including the individualism-collectivism national culture, firm size, the sources of social capital (business or political ties), and the dimension of the social capital (structural, relational or cognitive). This study contributes to the exploration of the sources of dynamic capabilities from the micro-foundation, identifies moderator variables that explain the heterogeneity in the results, and highlights the social nature of management activities which always evolve in a social context.

Information Technology Ambidexterity, Digital Dynamic Capability, and Knowledge Processes as Enablers of Patient Agility: Empirical Study

BACKGROUND

There is a limited understanding of information technology's (IT) role as an enabler of patient agility and the department's ability to respond to patients' needs and wishes adequately.

OBJECTIVE

This study aims to contribute to the insights of the validity of the hypothesized relationship among IT resources, practices and capabilities, and hospital departments' knowledge processes, and the department's ability to adequately sense and respond to patient needs and wishes (ie, patient agility).

METHODS

This study conveniently sampled data from 107 clinical hospital departments in the Netherlands and used structural equation modeling for model assessment.

RESULTS

IT ambidexterity positively enhanced the development of a digital dynamic capability (β=.69; t4999=13.43; P<.001). Likewise, IT ambidexterity also positively impacted the hospital department's knowledge processes (β=.32; t4999=2.85; P=.005). Both digital dynamic capability (β=.36; t4999=3.95; P<.001) and knowledge processes positively influenced patient agility (β=.33; t4999=3.23; P=.001).

CONCLUSIONS

IT ambidexterity promotes taking advantage of IT resources and experiments to reshape patient services and enhance patient agility.

Chief Executive Officers Entrepreneurial Orientation, Dynamic Capabilities, and Firm Performance: The Moderating Effect of the Manufacturing Industry

This study explores the implications of CEO entrepreneurial orientation for firm performance through corporate dynamic capabilities. It explores the moderating effects of firm industry type on the above indirect effect. Based on 188 matched sample data collected from vice chief executive officers (CEOs) of Chinese firms, this study found that CEO entrepreneurial orientation was positively related to corporate dynamic capabilities and firm performance and that corporate dynamic capabilities mediated the positive relationship between CEO entrepreneurial orientation and firm performance. Firm industry type moderated the direct effect of CEO entrepreneurial orientation on corporate dynamic capability, and the indirect effect of CEO entrepreneurial orientation on firm performance through corporate dynamic capability. Both direct and indirect effects were stronger in manufacturing enterprises. The findings enrich the CEO entrepreneurial orientation literature by extending the existing knowledge on its underlying mechanism and its impact on firm performance, as well as its boundary conditions.

Innovation Model of China's High-End Equipment Industry: Do Social Capital and Dynamic Capabilities Matter for the COVID-19 Crisis?

This paper explores the different model combinations of enterprise innovation in China based on the roles of social capital and dynamic capabilities. We implement Qualitative Comparative Analysis to understand the non-linear asymmetric relationships better. We use the data of 44 Listed Companies in China's high-end equipment manufacturing industry and find that three innovation models (the market-oriented independent innovation, government-supported technological innovation and industry-supported learning innovation models) are valid. Social capital, dynamic capabilities, and intra-industry networks are the main determinants of these innovation models. We also discuss the implications of these innovation dynamics on Chinese enterprises as a way to sustain the economy's high-quality development, including during the era of the COVID-19 pandemic crisis.

Managing intrapreneurial capabilities: An overview

In recent decades, there has been growing interest in intrapreneurial capabilities. The intrapreneurship and strategic management literatures have insights for entrepreneurs about how to apply entrepreneurial and strategic techniques and concepts in creating competitive advantage. More specifically, the dynamic capabilities framework has emerged as a useful tool for managers to better develop and manage intrapreneurial capabilities. Our essay and the papers in this special issue provide a timely opportunity to assess the rise of intrapreneurship and address organizational and policy implications.

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Intrapreneurial capabilities bridges intrapreneurship and dynamic capabilities.

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Dynamic capabilities help managers to develop intrapreneurial capabilities.

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Intrapreneurship comprise new opportunities and internal organizing.

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Intrapreneurial capabilities comprise quick and innovative reaction to changes.

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Intrapreneurial capabilities help to adapt and shape new environments.

COVID-19 and public-sector capacity

The paper argues that to govern a pandemic, governments require dynamic capabilities and capacity—too often missing. These include capacity to adapt and learn; capacity to align public services and citizen needs; capacity to govern resilient production systems; and capacity to govern data and digital platforms.

Endowing university spin-offs pre-formation: Entrepreneurial capabilities for scientist-entrepreneurs

University spin-offs are important mechanisms for creating and capturing value from scientific inventions. Academic scientists are uniquely positioned to shape such opportunities long before the university spin-off is founded. To better understand how science-based university spin-offs can be endowed for success, the pre-formation stage of 30 ventures co-founded over a 40 year period by a star-scientist-entrepreneur is analysed by matching his 363 co-invented US patents granted to 1476 co-authored publications and these 30 ventures. Employing the extended case method, including the analysis of extensive archival data, iterative interviews, and this unique, longitudinal, multi-level dataset, existing dynamic capabilities theory is confronted and extended with evidence as to how a star-scientist-entrepreneur senses and shapes and seizes opportunities to endow university spin-offs pre-formation. A process model is developed depicting four pre-formation entrepreneurial capabilities with which these science-based university spin-offs are endowed for success. Recommendations are made for scientist-entrepreneurs, investors, university leadership, and for innovation policymakers.

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The pre-formation stage of 30 ventures co-founded by a star-scientist-entrepreneur is analysed.

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363 co-invented US patents granted are matched to 1476 co-authored publications and to these 30 ventures.

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Dynamic capabilities theory is extended to show how a star-scientist-entrepreneur senses, shapes, and seizes opportunities.

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A process model is developed depicting four pre-formation entrepreneurial capabilities.

The digitalization and public crisis responses of small and medium enterprises: Implications from a COVID-19 survey

The COVID-19 outbreak is a global crisis that has placed small and medium enterprises (SMEs) under huge pressure to survive, requiring them to respond effectively to the crisis. SMEs have adopted various digital technologies to cope with this crisis. Using a data set from a survey with 518 Chinese SMEs, the study examines the relationship between SMEs’ digitalization and their public crisis responses. The empirical results show that digitalization has enabled SMEs to respond effectively to the public crisis by making use of their dynamic capabilities. In addition, digitalization can help improve SMEs’ performance. We propose a theoretical framework of digitalization and crisis responses for SMEs and present three avenues for future research.

Organizational knowledge and capabilities in healthcare: Deconstructing and integrating diverse perspectives

Diverse concepts and bodies of work exist in the academic literature to guide research and practice on organizational knowledge and capabilities. However, these concepts have largely developed in parallel with minimal cross-fertilization, particularly in the healthcare domain. This contributes to confusion regarding conceptual boundaries and relationships, and to a lack of application of potentially useful evidence. The aim of this article is to assess three concepts associated with organizational knowledge content—intellectual capital, organizational core competencies, and dynamic capabilities—and to propose an agenda for future research. We conducted a literature review to identify and synthesize papers that apply the concepts of intellectual capital, organizational core competencies, and dynamic capabilities in healthcare settings. We explore the meaning of these concepts, summarize and critique associated healthcare research, and propose a high-level framework for conceptualizing how the concepts are related to each other. To support application of the concepts in practice, we conducted a case study of a healthcare organization. Through document review and interviews with current and former leaders, we identify and describe the organization’s intellectual capital, organizational core competencies, and dynamic capabilities. The review demonstrates that efforts to identify, understand, and improve organizational knowledge have been limited in health services research. In the literature on healthcare, we identified 38 papers on intellectual capital, 4 on core competencies, and 5 on dynamic capabilities. We link these disparate fields of inquiry by conceptualizing the three concepts as distinct, but overlapping concepts influenced by broader organizational learning and knowledge management processes. To aid healthcare researchers in studying and applying a knowledge-based view of organizational performance, we propose an agenda for future research involving longitudinal comparative case studies.

The Relationship Between HR Capabilities and Quality of Patient Care: The Mediating Role of Proactive Work Behaviors

Based on theoretical frameworks of resource-based theory, dynamic capabilities, and behavioral perspective on human resource management, we developed a multidimensional construct of human resource (HR) capabilities and tested its relationship with quality of patient care using a national sample of U.S. hospitals. The data on HR capabilities were collected from senior managers (421 individuals nested in 279 hospitals) representing both the administrative and clinical sides of the hospitals. The data on quality of patient care were gathered from two unique sources - patients of 207 hospitals who reported the data via the Hospital Consumer Assessment of Healthcare Providers and Systems Survey and 421 senior managers of 279 hospitals. Our analyses using structural equation modeling suggests that the positive relationship of HR capabilities with quality of patient care is mediated by proactive behaviors of health care workers. Implications of the study findings for research and practice are discussed.

Evolutionary mechanics: new engineering principles for the emergence of flexibility in a dynamic and uncertain world

Engineered systems are designed to deftly operate under predetermined conditions yet are notoriously fragile when unexpected perturbations arise. In contrast, biological systems operate in a highly flexible manner; learn quickly adequate responses to novel conditions, and evolve new routines and traits to remain competitive under persistent environmental change. A recent theory on the origins of biological flexibility has proposed that degeneracy-the existence of multi-functional components with partially overlapping functions-is a primary determinant of the robustness and adaptability found in evolved systems. While degeneracy's contribution to biological flexibility is well documented, there has been little investigation of degeneracy design principles for achieving flexibility in systems engineering. Actually, the conditions that can lead to degeneracy are routinely eliminated in engineering design. With the planning of transportation vehicle fleets taken as a case study, this article reports evidence that degeneracy improves the robustness and adaptability of a simulated fleet towards unpredicted changes in task requirements without incurring costs to fleet efficiency. We find that degeneracy supports faster rates of design adaptation and ultimately leads to better fleet designs. In investigating the limitations of degeneracy as a design principle, we consider decision-making difficulties that arise from degeneracy's influence on fleet complexity. While global decision-making becomes more challenging, we also find degeneracy accommodates rapid distributed decision-making leading to (near-optimal) robust system performance. Given the range of conditions where favorable short-term and long-term performance outcomes are observed, we propose that degeneracy may fundamentally alter the propensity for adaptation and is useful within different engineering and planning contexts.