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Abstract

The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difftcult-to- trade knowledge assets and complementary assets), and the evolution path(s) it has aflopted or inherited. The importance of path dependencies is amplified where conditions of increasing retums exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding intemally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.

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... In addition, there is scant quantitative research design about SEs (Gupta et al., 2020), and this study contributes to the bridging of this gap by conducting a survey. Second, this research extends the understanding and applicability of the dynamic capability perspective (Teece, 2007;Teece et al., 1997) to the context of SEs by investigating whether a sensing dynamic capability should be combined with a seizing dynamic capability to improve economic and social performance of SEs. Finally, this study allows SE managers to understand whether they should pursue learning orientation and new product development capability in their organizations to achieve not only financial sustainability but also better social performance. ...
... Dynamic capabilities are processes that enable firms to build and reconfigure their resources to respond to or even create environmental changes to exceed the performance of their competitors (Teece, 2014;Teece et al., 1997). Teece (2007) explains that there are two types of dynamic capabilities: 1) sensing capability, and 2) seizing capability. ...
... In line with the latter studies, we have employed the four items measuring learning orientation from Hult (1998 Scholars suggest that older firms can have better access to resources than new firms, which can influence firm performance (Dobbs and Hamilton, 2007). According to McKelvie and Davidsson (2009), access of a firm to technical expertise improves dynamic capabilities, which has proved to be crucial for a firm to achieve improved performance (Eisenhardt and Martin, 2000;Teece et al., 1997). Similarly, prior studies (Wiklund and Shepherd, 2005) demonstrate that access to financial resources is crucial for a firm to achieve improved performance. ...
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Abstract Purpose – Social enterprises (SEs) offer a unique context as they have the challenge of finding solutions that not only improve their economic performance but also their social performance, simultaneously. The purpose of this paper is to investigate whether learning orientation and new product development capability can support SEs to enhance both their economic and social performances. Design/methodology/approach – A quantitative research design has been employed and data has been collected from a sample of 164 SEs in the UK. Findings – Our findings illustrate that if SEs want to enhance their economic performance, they should ensure that learning orientation leads to new product development capability. Otherwise, learning orientation cannot improve their economic performance. However, surprisingly, learning orientation can impact SEs’ performance not only by developing new product development capability but also by having a direct impact on their social performance. Originality/value – This article contributes to the social entrepreneurship literature by illustrating the role of learning orientation and new product development capability in enhancing the economic as well as the social performance of SEs. Keywords: Social enterprise, learning orientation, new product development capability, performance
... The dynamic capabilities perspective proposes that markets are dynamic and that, rather than being heterogenous in their resource endowments, firms exhibit differences in the capabilities through which they acquire and deploy resources (Teece et al., 1997;Teece, 2014). By exploiting their own dynamic capabilities, firms can implement new strategies that reflect changing market conditions by combining and transforming their resources in new and unique ways (Eisenhardt & Martin, 2000). ...
... By exploiting their own dynamic capabilities, firms can implement new strategies that reflect changing market conditions by combining and transforming their resources in new and unique ways (Eisenhardt & Martin, 2000). That is to say that dynamic capabilities are change-oriented ones through which resources can be redeployed and competencies can be renewed in order to sustain competitive advantages with shifting business landscapes (Teece et al., 1997;Teece, 2014). Research based on the dynamic capabilities perspective suggests that the development of an e-business dynamic capability is vital to engage in cross-border e-commerce activities and achieve sustained competitive advantages in international markets (Daniel & Wilson, 2003;. ...
... Future scholarly work could build upon this study and integrate dynamic capabilities and knowledge based approaches to examine how sharing economy-based e-commerce platform firms combine heterogeneous ecosystem knowledge assets and create and capture value (cf. Teece et al., 1997;Teece, 2007;Grant 1996;Grant & Phene, 2022;Felin & Hesterly, 2007). It would also be interesting to examine the role played by national and global institutions and managerial actions in the scaling up of global business models of e-commerce firms. ...
Article
The rise of digitization and information and communication technologies (ICT) is playing a vital role in facilitating global trade and business activities and in overcoming cross-border transaction costs. In so doing, it offers firms significant benefits and opportunities to compete on a global scale, as witnessed during the ongoing COVID-19 pandemic. The growth and widespread diffusion of internet-enabled technologies and platforms have created numerous opportunities for firms to provide products and services across both developed and developing markets. Yet, limited research has been conducted in the international business domain to explore the rise of ecommerce and its implications for international business scholarship. In this focused issue, we present an examination of the role played by e-commerce in international business, paying particular attention to the policy aspect of e-commerce and issuing a call for a greater integration of e-commerce policy in international business research.
... Over the past two decades, the DC approach (Teece et al., 1997) has become one of the most influential research areas in the field of strategic management (Helfat & Peteraf, 2015;Schilke, 2014). The concept of the DC approach is rooted in the thought that markets, consumers' preference and demand and other business environments keep changing, and it is not possible to sustain in such environments with static capabilities (Kumar et al., 2018). ...
... The concept of the DC approach is rooted in the thought that markets, consumers' preference and demand and other business environments keep changing, and it is not possible to sustain in such environments with static capabilities (Kumar et al., 2018). The DC approach acts as a vehicle for creating or renewing organisational capabilities or special technological capabilities of firms (Eisenhardt & Martin, 2000;Teece et al., 1997). In the extant literature, various DC at different levels have been reported. ...
... Load versus capacity strategies are used to analyse customer demand against plant asset capacity where bottleneck constraints exist (Hinckeldyn et al., 2014). According to previous studies, the appropriability regime depends on the features of the previous core experience and tacit knowledge in process capabilities (Teece, et al., 1997). The appropriate types of product architecture and business model is the other main micro-foundation of seizing capacity. ...
Article
In turbulent business environments, building and exploiting competitive advantages necessitate manufacturing companies to start new strategic initiatives. For this purpose, new product development (NPD) should be seen as dynamic capabilities (DC) that enable companies to create a better match between the configuration of a firm’s resources and changing conditions. This study aims to make use of the operationalised DC model including sensing, seizing and reconfiguration capacities in a hierarchical decision structure. A multi-case-studies approach is employed for validation of the DC assessment model on automotive companies which are categorized as European, Japanese and American. The qualitative analysis reveals the appropriate management practices underlying the micro-foundation of DC at the operational management level, which can help chief executives to implement the appropriate strategy for enhancing NPD performance. Managers can creatively leverage their companies’ DC components by conceiving of different ways to integrate these DC components into NPD projects.
... A thorough and systematic review of the literature also reveals that the majority of the studies related to foresight of organizational capabilities have examined the association based on management and technological capabilities of organizations, using the resource-based view (RBV) (Murphy, 2021). However, the theory of dynamic capabilities was presented by Teece et al. (1997), where the authors addressed the limitation of RBV as an inflexible theoretical model. The authors argued that the dynamic capabilities view (DCV) moves the discussion forward, by suggesting that organizations will have dynamic capabilities if they can sense opportunities and challenges, and then seize upon them, and transform their organizational systems and structures in order to address these changes. ...
... The perspective of dynamic capabilities explains why some businesses are able to predict and leverage possibilities through technological developments and rapid changes in their market space while others are struggling or going out of business (Teece et al., 1997). The ways in which businesses sense and capture possibilities lie at the heart of the theory of dynamic capabilities. ...
... Scenario planning has been recognised as a dynamic skill Phadnis et al., 2015) for example, addressed scenario planning as distinct dynamic capabilities and early warning scanning work. On the other hand, Teece et al. (1997), in terms of sensing and shaping new opportunities, narrowly defined dynamic capabilities; related capabilities such as SF scanning, learning, and perception indicate that these activities can be interpreted as dynamic capabilities . ...
Article
Strategic Foresight (SF) is required for an organisation in facing Volatility, Uncertainty, Complexity and Ambiguity (VUCA) environment to maintain relevant in future. There are many studies on application of SF by organisations in preparing for the unexpected. Especially, the relationship between SF and dynamic capabilities (DC) of an organisation. Thus, this study developed a mediation model which comprises of five exogenous constructs namely environmental scanning (ES); scenario planning (SP); knowledge creation (KC); culture (CU) and formal organization (FO), one endogenous construct of dynamic capabilities and one mediator construct of organisational learning capability (OLC). The data use to develop the model was derived from 209 respondents that participated in the questionnaire survey. The respondents were selected using a purposive random sampling technique amongst individuals who involved in decision-maker position of UAE organizations. The model was evaluated at measurement and structural components to achieve the fitness criteria values. It was found that the model has achieved GoF value of 0.8423 which indicates high overall validatingpower. This means that the model is rated as a high-quality model. After achieving these fitness criteria, hypothesis testing was conducted through bootstrapping function of the software. It was found that only two out of five of the direct effect relationships are significant, which are knowledge creation and formal organisation have significant relationships with the dynamic capabilities of the organisations. For mediation/indirect effect, it was found that organisational learning capacity as the mediator has significant effects toward three relationships which are scenario planning with dynamic capabilities; culture with dynamic capabilities and formal organisation with dynamic capabilities.
... O fenômeno da pandemia do Corona Vírus (Covid-19) i interferiu negativamente em todo o Turismo global, principalmente na hotelaria (Škare, Soriano & Porada-Rochón, 2021). Tornou-se relevante investigar como ocorre o desempenho das empresas hoteleiras ii (Beni, 2008), de modo a verificar se, por meio das capacidades dinâmicas (Teece & Pisano, 1994;Teece, Pisano & Shuen, 1997;Teece, 2014), há efetivamente o desenvolvimento de vantagens competitivas que possam ser sustentadas (Winter, 2003;Teece, Pisano & Shuen, 1997;Vasconcelos & Cyrino, 2000;Teece, 2007Teece, , 2009Teece, , 2014Wang & Ahmed, 2007). ...
... O fenômeno da pandemia do Corona Vírus (Covid-19) i interferiu negativamente em todo o Turismo global, principalmente na hotelaria (Škare, Soriano & Porada-Rochón, 2021). Tornou-se relevante investigar como ocorre o desempenho das empresas hoteleiras ii (Beni, 2008), de modo a verificar se, por meio das capacidades dinâmicas (Teece & Pisano, 1994;Teece, Pisano & Shuen, 1997;Teece, 2014), há efetivamente o desenvolvimento de vantagens competitivas que possam ser sustentadas (Winter, 2003;Teece, Pisano & Shuen, 1997;Vasconcelos & Cyrino, 2000;Teece, 2007Teece, , 2009Teece, , 2014Wang & Ahmed, 2007). ...
... Empresas hoteleiras atuam na gestão de serviços de hospitalidade, o que torna relevante estudar como ocorre a relação de desempenho dos hotéis (supostamente positiva vii ), por meio da teoria das capacidades dinâmicas, utilizando o modelo teórico da estrutura lógica de Teece (2014). Além deste, outros elementos são utilizados para o desenvolvimento de capacidades dinâmicas que podem configurar a construção de uma vantagem competitiva sustentável (Winter, 2003;Teece, Pisano & Shuen, 1997;Vasconcelos & Cyrino, 2000;Teece, 2007Teece, , 2009Teece, , 2014Wang & Ahmed, 2007). ...
Article
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O município de Gramado-RS possui grande relevância no cenário turístico do Brasil, sendo um dos principais destinos turísticos. O fenômeno da pandemia do Corona Vírus (Covid-19) interferiu negativamente em todo o Turismo global, principalmente na hotelaria. O presente trabalho tem como objetivo apresentar a caracterização das empresas hoteleiras na localidade no ano de 2020. A pesquisa ocorreu nos meses de fevereiro a junho de 2021 e obteve um total de 274 respostas entre 36 hotéis diferentes. A caracterização das empresas hoteleiras apresenta dados relevantes quanto ao porte dos hotéis, perfil dos respondentes, e dados comparativos entre os anos de 2019 e 2020 para indicadores de desempenho como diária média, ocupação média e RevPar. Os elementos metodológicos deste trabalho; ao abordar o campo de estudo, universo de pesquisa, elementos da coleta de dados e descrição da caracterização da amostra; podem contribuir com pesquisas acadêmicas na área do Turismo e da Hospitalidade. A sintetização dos procedimentos voltados para a utilização de Modelagem de Equações Estruturais (MEE), como procedimentos estatísticos, tratamento dos dados e passos para validação de modelos teóricos baseados em MEE, também constitui outra contribuição importante.
... The integration of knowledge of employees converts tacit knowledge (Polanyi, 1966) into organizational activities to create customer value. The most important knowledge resources are inimitable, unique, and immobile and reflect organizational styles (Dierickx and Cool, 1989;Grant, 1991Grant, , 1996Nonaka, 1994;Teece et al., 1997) which reflect organizational abilities to do tasks related to organizational capacities to create value of born global companies (Knight and Cavusgil, 2004, pp. 125-126) through influencing transformation of inputs into outputs (Nelson and Winter, 1982;Teece and Pisano, 1994). ...
... When employees combine their specialist knowledge, organizational capabilities emerge related to development of organizational routines and competences (Grant, 1991;Teece and Pisano, 1994). Competences are performance-enhancing, knowledge-intensive activities where the company is skilled (Teece et al., 1997). Routines are consistently practiced, regular patterns of behaviors of an organization and employees which institutionalize organizational and individual knowledge about profit creating activities (Nelson and Winter, 1982;Dosi, 1988;Teece and Pisano, 1994). ...
... (2) strategic management to adapt, integrate, and re-configure knowledgebased capabilities toward the turbulent environment. Capabilities are 'dynamic', and reflect managerial abilities to renew organizational competences to be congruent with the turbulent environment (Teece et al., 1997). Replication of organizational capabilities transfer capabilities between organizational settings to improve organizational performance in new ways of doing business, product categories, and markets (Nelson and Winter, 1982;Teece et al., 1997) (Knight and Cavusgil, 2004, p. 127). ...
Article
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The purpose of this study is to search the mediator roles of unique product development and global technological competence in the effect of international entrepreneurial orientation on company performance in international markets for born global companies. The study was conducted on born global companies which started its international activities in its first 7 years and operate in technoparks in Turkey. Data was collected by a questionnaire from 158 born global companies. According to the method proposed by Baron and Kenny, three models were created and compared with each other. The Structural Equation Modeling (SEM) method was applied because it is more appropriate for complex models. According to the findings of the study, unique product development and global technological competence do not have mediator roles in the effect of international entrepreneurial orientation on company performance in international markets. However, there is a direct effect of international entrepreneurial orientation on company performance in international markets. Global technological competence has a direct effect on performance in international markets. On the other hand, unique product development does not have a direct effect on performance in international markets but unique product development has a direct effect on global technological competence.
... In light of the preceding discourse, this study proposes a conceptual framework that suggests that digitalization moderates the relationships between strategic foresight and both strategic agility and organizational ambidexterity. The framework is developed by, leveraging the theoretical lens offered by the dynamic capabilities view (Teece et al. 1997). In doing so, the study hopes to lay the foundation for future empirical research to test and validate such a framework. ...
... The theory of dynamic capabilities or the dynamic capabilities view (DCV) developed by Teece et al. (1997) was both an extension to and a reaction against the limitations of the resource-based view (RBV), to interpret the development and re-development of resources and capabilities to address rapidly changing business environments (Bala et al., 2019). DCV attempts to overcome the limited notion offered by RBV that competitive advantage is achieved when a firm acquires resources that are valuable, rare, and inimitable by its' competition, while the organization is able to exploit these qualities (Newbert, 2008). ...
Article
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Purpose: The primary goal of this study is to present a conceptual framework that posits that digital transformation of organizations in the Industry 4.0 ecosystem influences the relationships between strategic foresight and two other constructs: strategic agility and organizational ambidexterity. Design/Methodology/Approach: The study presents an overview of digitalization in the Industry 4.0 era, followed by a thorough discourse on the theory of dynamic capabilities or dynamic capabilities view (DCV). The framework is developed by leveraging the micro-foundations of DCV and accordingly positing relationships between the constructs with support of empirical evidence. Findings: Based on the support from theory and empirical literature, the framework suggests that strategic foresight which represents an organization's ability to sense emerging opportunities and threats in the horizon, influences the organization's abilities to seize upon such emerging changes and to transform itself to take effective action, represented by strategic agility and organizational ambidexterity. Furthermore, the above relationships are moderated by the degree of digitalization by such organizations. 2 Research Implications: In terms of implications for the body of knowledge related to digitalization and organizational capabilities, the outcome of this study presents a theoretically justified framework that will pave the path for future researchers to validate and further expand the framework to develop empirically sounds models. Practical Implications: In terms of significance of this study for industry practitioners, the research presents clues to strategic managers that are trying to determine whether migrating to advanced technologies under the Industry 4.0 ecosystem contributes to the organization's strategic goals through a better understanding on how strategic foresight is likely to influence the agility and ambidexterity of their organizations. Originality and Value: The extant literature indicates a dearth of sufficient models that explain how high-level organizational capabilities such as strategic foresight, strategic agility and organizational ambidexterity relate to each other in the Industry 4.0 environment. The conceptual framework presented in this study attempts to address this gap in terms of how digitalization interacts with organizational capabilities.
... • role switching capabilities as similar to the dynamic capabilities, which enable the orchestrators to create, extend and modify themselves for living through alterations in their resources, the scale and scope of business, products, customers, ecosystems and other features of their external environments (Teece et al., 1997) • role augmentation capabilities that enable the orchestrator to change itself and acquire new capabilities based on new situations and development innovations. Hara and Kobayashi (2015) has conducted that even the peripheral actors, for example the governments, could block the orchestration so that the ecosystem implementation could be failed if the integration and cooperation are not successful. ...
... Since an AD-ecosystem with problem-solving features and innovation survives only with its stable resource base, a dynamic approach is essential. Literature extended this static view by introducing the dynamic capability view (DCV) as an expansion of the RBV Ambrosini and Bowman, 2009; also compare Teece et al., 2016;Teece et al., 1997;Teece, 2018). ...
Thesis
It is widely recognised that autonomous driving (AD) ecosystems represent a fundamental dis-ruption in the automotive industry and will be a key driver of future innovation. The benefits achieved through innovation, such as increasing the efficiency and safety of the transport sys-tem, avoiding traffic accidents, assisting (e.g., in case of driver fatigue or driver impairment) the driver, and optimising traffic flow, demonstrate the disruptive nature of this new technology. In addition, AD ecosystems will also be a very important business model in the future and many innovative companies will be benefited from the transformation. In order to achieve a high level of acceptance, overcome insurance problems and meet high ethical requirements, the require-ments on the reliability of autonomous driving systems are dramatically higher than in the driv-er-based automotive industry. Furthermore, the predicted sustainability of the AD ecosystem integrates not only technological aspects, but will also influence and be affected by non-technological factors such as the environment, climate change as well as the use of space (AD will create efficiencies that require fewer cars on the road or parked on city streets). Conse-quently, AD ecosystems have proven to be the focus of research activities in the automotive industry and public institutions, as well as in business and academic circles. Building on three research articles, this thesis contributes to business research by (1) exploring a model to identify the structure and evaluate the critical success factors (CSFs) of total quality management (TQM) in AD business models. (2) highlighting a framework to determine the needed capabilities for the orchestrator of an AD ecosystem and discuss who should be the or-chestrator (s). The first part includes two published research articles that define an ecosystem of autonomous driving, provide the new potential CSFs of AD-TQM according to the Verband der Automobilindutrie (VDA) and International Automotive Task Force (IATF) 16949 standards, as well as the more than 100 theoretical papers about TQM in journals, conduct a quantitative em-pirical study to prioritise the new potential CSFs of AD-TQM between Germany and China as two of the most strategic marketing of autonomous driving in the world. The second part con-sists of a published research article that determines the needed capabilities for the orchestrator and discusses who could be the orchestrator of an AD ecosystem. This thesis shows that different layers must be integrated to implement a successful AD ecosys-tem. Therefore, new CSFs of TQM, especially based on the interactions between different layers must be considered. In addition, the understandings and the plannings for a reliable AD-TQM as well as the AD ecosystem could be different because of the culture difference, for example be-tween Germany and China. To lead and implement the AD ecosystem, different layers, especial-ly the Internet of Things Platform Providers (IoTPPs), the traditional original equipment manu-facturers (OEMs) and the government would have different dominations based on the different needed capabilities as well as different cultures. The thesis highlights the need for further re-search on collecting many more interviews and data to identify how the new CSFs of AD-TQM could be realized and who exactly should take the orchestrator responsibilities in AD ecosystems (both) under considering of different country specifications.
... The BE is a critical factor in determining the success of an organization (Porter, 1981;Teece et al., 1997). The strategy emerged from the need of organizing the events in a BE into a systematic framework, which made it easy for organizations to interpret the environment and take decisions (Porter, 1981). ...
... "Technology Policy" is a key element of an organization's business strategy in the long term to encourage the implementation of new projects and stimulate innovations in services and products (Ettlie and Bridges, 1987). It also contributes to organizational strategy to develop customer service capabilities (Teece et al., 1997). ...
Article
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Purpose-Academic dialogue related to 'organizational performance' in strategic management has primarily centred around the industrial organization theory (IO) and resource-based view (RBV). Both perspectives, though conceptually dialectic, have served as primary competing theories governing research studies in the domain of strategic management. However, the confluence of these theoretical perspectives has not been adequately explored to advance a shared view of competitive advantage. This study aims to explore the likelihood of embedded commonalities between RBV and IO. Design/methodology/approach-A bibliometric analysis was conducted to visualize the intellectual map of studies and knowledge development encompassing these theories. This was followed by a comprehensive literature review to understand how the business environment (BE) and organizational capabilities have contributed towards attaining competitive advantage. Findings-This study established that connecting the intellectual boundaries of these theoretical perspectives would facilitate better comprehension of the processes and outcomes in organizations. Integrating the knowledge emerging out of this methodological blend, a convergence framework connecting the intellectual boundaries of both theories was presented. Practical implications-The framework that emerged from this study would help in better understanding of organizational behaviour from a dual theoretical lens. It would also motivate future studies to consider RBV and IO as complementary theories rather than the current narrative of competing theories. Social implications-This study added to the efforts to achieve equilibrium between the BE and internal capabilities of organizations so as to maximize positive social externalities. Originality/value-This study contributed to the limited attempts to leverage shared knowledge from a dual perspective using a comprehensive literature review in sequential combination with bibliometric analysis.
... GDC provides an organization with the ability to develop its competitive innovative advantage through organizational routines that affect change in its resources. In the face of a volatile environment, organizations must build, integrate and reshape internal and external competences to adapt to and create a differentiation (Teece et al., 1997) as well as leverage the development of green innovation. ...
... Innovation might yield a competitive edge to increase competitiveness in organizations and countries (Roberts, 2007), but it can be seen as a specific and strategic organizational process considered part of the dynamic capacity of an organisation; one of many resources that enable organizations to achieve a sustainable competitive advantage (Eisenhardt and Martin, 2000;Teece, 1986). Organizations need to combine multiple resources and capabilities to achieve a sustainable competitive advantage (Teece et al., 1997;Teece, 2012). Meanwhile, their employees should also adopt open behaviours in the search for innovation to leverage green absorption and green innovation capacities that exploit external knowledge more effectively (Lane et al., 2006). ...
Purpose This study aims to discuss the influences of green innovation processes on sustainable development and proposes a research model linking green absorptive capacity, green dynamic capabilities and green service innovation with the aim of clarifying how these interactions operate within universities. Design/methodology/approach Supported by a survey of sustainability researchers in Brazilian universities, a mediation‐moderation analysis and partial least squares structural equation modelling approach is used to examine the influence of green absorptive capacity and green dynamic capabilities on green service innovation. Findings This study reinforces that greening processes and products are relevant to an organization and provide information on the mechanisms for achieving greater sustainable performance. Research limitations/implications Considering one of the dimensions of administrative science as being university management, this study provides information on the mechanisms to achieve better sustainable development in universities. Practical implications This study contributes to the debate by adding the perception of university managers and provides guidance on new forms of management, which allows them to face changes while minimizing the disruption to the formation of organizational knowledge. Social implications Universities are becoming increasingly active in promoting societal changes toward sustainable development. It is intended that the results of this research contribute to future research and act as a reference for researchers, professionals and policymakers. Originality/value The concept of green absorption capacity in universities is relatively new and has not yet been investigated completely with respect to its association with university management and organizational structures.
... RBV is inadequate to explain the ways and the reasons why specific firms have competitive advantages in the case of fast and unpredictable changes (Dubey et al., 2019). Thus, DCV seeks to explain how a firm maintains the competitive advantages of organizational resources and capabilities within a changing environment (Teece et al., 1997). DCV has led to further advancements in understanding how firms respond to resource deficits or weaknesses. ...
... In the current highly volatile and unpredictable business environment, it is only through dynamic capabilities that a company can get the most out of its resources and other organizational capabilities (Teece et al., 1997). Dynamic capabilities do not provide sustainable competitive advantages on their own; rather, they facilitate the creation of sustainable competitive advantages through the use of other organizational capabilities (Eisenhardt and Martin, 2000). ...
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Supply chains generate huge amounts of data (i.e., Big Data) that companies can turn into intelligence through analytics. Big Data usage and Big Data Analytics (BDA) deployment can deliver competitive advantages across various supply chain decisions as it builds multiple capabilities for supply chain networks. This paper explains how Big Data usage and BDA capabilities contribute to improving supply chain performance, based on the Dynamic Capabilities View (DCV). The BDA is a type of dynamic capability of an organization, and its deployment in supply chain operations effectively manages demand volatility, efficiently handles cost fluctuations, and improves the visibility, flexibility, and integration of supply chain processes across the networks. BDA as a dynamic capability enables firms to respond to changing external environment by reconfiguring resources and capabilities of supply chain networks.
... A reversal of the suspension decision (e.g., due improved economic conditions) implies that existing capabilities will be needed again after the idling period. However, research on capabilities has predominantly focused on building and developing new capabilities when responding to changing environments (e.g., Teece, Pisano, & Shuen, 1997;Zollo & Winter, 2002). Few research studies in the resource-based view have alerted us to the challenges of an intertemporal knowledge transfer when idling and reactivating technologies (Garud & Nayyar, 1994). ...
... While prior work has provided initial theoretical arguments for the potential vulnerabilities of resources and capabilities (e.g., Garud & Nayyar, 1994;Le Breton-Miller & Miller, 2015;Rahmandad & Repenning, 2016), we integrate resource idling into such considerations and provide empirical evidence on how resource idling contributes to anticipated capability erosion and thus firms' decisions to idle versus persist in the first place. By devoting attention to capability trajectories at the maturity stage of the capability lifecycle, which traditionally has received much less attention relative to building and developing new capabilities to adapt to changing environments (e.g., Teece, Pisano, & Shuen, 1997;Zollo & Winter, 2002), we enhance our understanding of how firms make investment decisions and how these decisions bear upon their existing capabilities over time. ...
Article
Why would some firms persist with continued operations when facing unfavorable economic conditions? Although prior studies have investigated the roles of uncertainty and sunk costs as sources of inertia, an unacknowledged type of sunk cost associated with temporary suspensions of operations is related to the erosion of existing capabilities. Building on the resource-based view and real options theory, we argue that resource idling contributes to capability erosion and that the anticipated capability loss motivates firms to refrain from idling their resources under demand uncertainty in the first place. The negative effects of uncertainty on resource idling are likely to be particularly strong for firms with superior capabilities and for those having a greater reliance on human capital. Using data on oil-drilling contractors in Texas, the empirical evidence lends support to our theoretical arguments. Our insights suggest that resource idling shapes the development path of capabilities and risks jeopardizing firms’ competitive advantages. The seemingly operational decision of temporarily idling resources can therefore be quite strategic for a firm, and hysteresis, or inertia in continuing operations, can preserve firms’ capabilities.
... The dynamic capability perspective offers a powerful lens for us to uncover this relationship (Kay, Leih, & Teece, 2018;Wilden et al., 2016). The concept of dynamic capabilities is initially developed at the firm level (Teece, Pisano, & Shuen, 1997;Eisenhardt & Martin, 2000). Building on the early conceptual work, Teece (2007) disaggregated dynamic capabilities into three firm-level capabilities, including sensing, seizing, and reconfiguration capabilities. ...
... The notion of dynamic capabilities is initially proposed by Teece et al. (1997) to underscore the importance of firms' capacity to integrate and reconfigure resources to maintain competitive advantages in the changing business environment. To specify the composition of dynamic capabilities, Teece (2007) further disaggregated them into three firm-level capabilities, namely sensing opportunities, seizing opportunities, managing threats and reconfiguration. ...
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While research on the cross-cultural experience of entrepreneurs has demonstrated that exposure to diverse cultures is beneficial for new venture growth, it has neglected the performance implications of entrepreneurs’ cross-cultural experience at the ecosystem level. This study endeavors to explore the micro-macro link between cross-cultural entrepreneurs and the performance of entrepreneurial ecosystems in which they are embedded. Building on the dynamic capability perspective, we argue that entrepreneurial ecosystem orchestrators can leverage entrepreneurs’ cross-cultural experiences to develop ecosystem dynamic capabilities and consequently improve entrepreneurial ecosystem performance. Based on multi-wave survey data of 2,981 business incubators in China, our findings show that cross-cultural entrepreneurs are positively associated with entrepreneurial ecosystem performance via increased ecosystem innovation. Moreover, the integrative capability of ecosystem orchestrators moderates the relationship between cross-cultural entrepreneurs and ecosystem innovation. Our findings contribute to the literature on cross-cultural experience by extending it to the ecosystem level and inject fresh insights into the dynamic capability literature by uncovering the formation process of ecosystem dynamic capabilities.
... Organisational theorist Teece, Pisano, and Shuen (1997) developed this further into the 'dynamic capabilities' of the firm as the ability to 'integrate, build, and reconfigure internal and external competences to address rapidly changing environments'. The emphasis on internal capabilities meant paying less attention to the external environment of a firm. ...
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The corporate community has rediscovered an old idea: stakeholder value. The concept’s history is rooted in the literature on varieties of capitalism. Within that scholarship it has served to delineate institutional and relational differences between capitalist systems and forms of corporate governance. Today, stakeholder value is being used to argue for the redirection of capitalism to deliver on key goals related to inclusion and sustainability. This paper argues that the concept – and thus the endeavour to change capitalism – will remain weak unless it goes to the centre of how we create value. Moralistic exhortations to business leaders are not enough to bring about a true stakeholder form of capitalism. For this we must have stronger theory and practice on how to restructure finance, production, and public-private partnerships in new ways that recognise the state’s market-shaping role and support equitable distribution of value across stakeholders.
... Local handicraft entrepreneurs arguably find it challenging to compete with industrial production due to their small size and lack of resources. Therefore, they must improve their innovation capabilities to seek and utilize external resources for higher performance and to improve competitiveness (Teece et al., 1997) so that they can effectively and efficiently compete in the market (Keskin, 2006;Lawson and Samson, 2001;Shou and Shao, 2017). In this study, the theory indicates that product design, motif, style, and culture are engaged in adaptation for innovation to improve product performance. ...
... This technological trajectory somehow contributes to validating and extending Barras' reverse cycle model (Barras, 1986) that describes the life cycle of innovation in services as the reverse of the traditional industrial innovation cycle, as (incremental then radical) process innovations precede product innovation (e.g., teleservices, cyberservices). In this sense, dynamic capabilities, and their relationship with organizational strategy, proposed by Teece et al. (1997), reinforce the importance of organizations identifying market opportunities, structuring internal processes to meet new demands, and offering innovative services to the market that is increasingly experiencing the transformations of the new digital economy. ...
... This model also focuses on the categorisation of the resource and relates to the external environment to generate profitability. Similarly, the dynamic capability model helps the organisation to recollect and identify the resource and abilities that meet the requirement of the external environment (Teece et al., 1997). Porter (1985) presented the concept of positioning school that also focused upon the competitive advantage that focuses upon the external environment features. ...
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The main objective of this research is to assess the power of effective HRM to gain a sustainable competitive advantage in the financial institutions of Pakistan. Specifically, HR strategic contribution and HR administrative support have been used as the key dimensions of HR effectiveness while customer satisfaction, market effectiveness, and profitability have been used as the dimensions of sustainable competitive advantage. This is a cross-sectional study with a survey from 164 senior HR professionals by using structural five-point Likert scale questionnaire. Results found that effective HR has significant power to achieve sustainable competitive advantage. HR strategic contribution and HR administrative support are significant to improve customer satisfaction, market effectiveness, and profitability. HR strategic contribution has the foremost power to improve profitability whereas HR support has the foremost power to improve customer satisfaction. Managerial implications, limitations, and directions for future research are also discussed.
... B. wie ein bestehendes Wertversprechen durch ein neues ersetzt werden kann, wann neue Ressourcen und Fähigkeiten erworben werden sollten und wann neue Partnerschaften eingegangen werden können. Die ständige Notwendigkeit für Veränderung ist für Unternehmen, die in einem sich schnell wandelnden Umfeld verortet werden können, entscheidend -insbesondere hinsichtlich des Wettbewerbsvorteils (Teece, Pisano und Shuen, 1997) [99]. Die Folgen sind, dass Unternehmen zur ständigen Anpassung gedrängt werden, was bedeutet, in einem volatilen Umfeld flexibel zu werden und zu bleiben (Schneider und Spieth, 2013) [93]. ...
... Within the extant literature regarding offshoring (for a structured literature review, see Schmeisser, 2013), several theoretical perspectives have been adopted to investigate such a phenomenon. Among them are the Internationalization Process Model (Johanson and Vahlne, 1977;Johanson and Wiedersheim-Paul, 1975); the Resource Based View (RBV) (Barney, 1991;Wernerfelt, 1984); Dynamic Capabilities (Teece et al., 1997;Teece, 2007); Transaction Cost Economics (TCE) (Williamson, 1975); Dunning's "eclectic paradigm" (1988); Resource Dependence Theory (RDT) (Pfeffer and Salancik, 1978); and Contingency theory (Lawrence and Lorsch, 1967;Pennings, 1992). Based on these theories and concepts, scholars identified a large set of offshoring drivers for both offshore outsourcingwhen production activities are managed by a contractor -and captive offshoring -when manufacturing is performed within the firm's plants. ...
Article
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After decades of offshoring, in recent years, companies have sometimes revised their location decisions implementing one of the three alternatives of the so-called ?relocations of the second degree?. More specifically, they have relocated manufacturing activities either in their home country (back-shoring), in their home region (near-shoring), or in a further away location (further offshoring). While offshoring and relocations of the second degree have been heavily analysed in US and Western European countries, there is no evidence regarding companies in Central and Eastern Europe. This paper focuses on Polish companies belonging to the fashion and electromechanical meta-sectors. More specifically, it investigates the relocation of both manufacturing and supply activities. Based on 602 questionnaires collected during 2020-2021, it emerges that Polish companies rarely offshored their production activities in both the investigated industries. This is mainly explained by concerns in terms of reduced responsiveness, higher coordination and quality appraisal costs, and patriotism. Finally, some differences emerged in terms of geographical location between the two meta-sectors, inducing speculation that fashion companies were mainly boosted by efficiency-seeking aims, while electro-mechanical companies by market-seeking aims. Due to scant evidence of offshoring strategies, relocations of the second degree are very few. However, differences emerge between the two investigated meta-sectors. More specifically, when considering ?relocations of the second degree?, fashion companies preferred to back-shore, while electromechanical companies decided to relocate to a second host country.
... In this regard, the hypotheses of this meta-analytic research (i.e., H1 -H8) are built upon the central premises of the dynamic capabilities (DC) view. According to the DC view, the term 'dynamic' represents the ability to replenish competencies to fit the requirements of the altering environment; the concept 'capabilities' highlights the importance of strategic management to respond to the conditions of a dynamic environment through adapting and coordinating intrinsic and extrinsic organizational skills (Teece, Pisano, & Shuen, 1997). Within this context, the DC view embraces and draws attention to both the MO and EO constructs. ...
Article
Although the related streams of research have witnessed a burgeoning interest in recent decades, empirical evidence on how strategic orientations are relevant to export performance remains inconclusive. Therefore, this research aims to review and quantitatively synthesize the existing literature on the relationship between strategic orientations and export performance by investigating the moderating effects of home country institutions and measurement factors. Meta-analyzing 42 empirical articles containing 11,518 firms with 185 effect sizes, this study provides strong support for the favorable effects of both market and entrepreneurial orientation on the multiple facets of export performance. Besides, the meta-analysis has uncovered that the magnitude of the correlation between market orientation and export performance is contingent upon the uncertainty avoidance dimension of national culture; but not upon the formal institutions in the home country. Further, the association between entrepreneurial orientation and export performance has been found to be moderated by formal as well as informal institutions of the home country. Significant variations in the influences of market and entrepreneurial orientation on export performance have also been spotted depending on measurement factors, particularly upon objective and subjective measures for assessing export performance and the dimensional nature of the strategic orientation scales.
... For example, Roper and Hewitt-Dundas (2015) argue that firms focus on technological development rather than commercialisation, and the existing patent stocks act as a constraint for the new knowledge to be absorbed within the current knowledge is the reason for this negative impact. In contrast, the studies that articulate positive relationships argue that the difficulty in creating and imitating the knowledge and ability to develop new capabilities enhance firm performance (Chen et al., 2016;Lee and Huang, 2012;Teece et al., 1997). They further argue that knowledge stock influences firm performance through organisational ambidexterity (Lee and Huang, 2012;Lee et al., 2017). ...
Article
This study examines the relationships between business relatedness of parent firms and international joint venture (IJV), accumulated knowledge stock, and parent firm performance with the moderating effect of organisational culture. Drawing on the knowledge-based view, the Growth curve model is used to investigate parent firms’ performance in 210 IJVs in the UK and USA between 2006 and 2015. Our study shows that the impact of business relatedness on firm performance is time-variant and subject to a mediated effect. We argue that accumulated knowledge stock generated from business relatedness mediates the relationship between business relatedness and the parent firm’s performance. Moreover, the benefits of accumulated knowledge stock are more pronounced with the supportive organisational culture of parent firms. We advocate that by concentrating on the accumulation of knowledge stock, the parent firm can improve its performance. The findings provide profound implications to the top management to integrate knowledge that yields superior values and performance in the long run and forgoing marginal values in the short run.
... In this study, we single out the strategic location effect as an essential factor in a deductive theoretical approach to inquire location strategy. Using the deductive approach of agent-based simulation (ABS), we focus only on strategic location effects, assuming that the influence of internal management resources held by MNEs is constant (Penrose 1959;Teece et al. 1997). ...
Article
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The global research and development (R&D) location strategy of multinational enterprises (MNEs) is examined using agent-based simulation (ABS) modeling. This study focuses on the positioning strategy of MNEs to understand the impact of their R&D location strategy. In ABS modeling, agents search for knowledge owners or universities in the global host market using Hotelling’s location model algorithm. We measure the result of increasing the number of entry agents from 2 to 121. Three types of equilibria are found in our agent-based simulation model: pure equilibrium, saturated equilibrium, and quasi-saturated equilibrium. Core locations attract MNEs, while peripheral countries in the global market are the least preferred. As a result, peripheral countries experience a paucity of foreign R&D investments. Even though emerging economies absorb foreign direct investment (FDI) inflows from MNEs, least-less developed countries (LLDC) may experience a dearth in FDI. Thus, the optimal location strategy of MNEs leads to economic disparities between the core and peripheral countries. This study suggests the need for developing official assistance to attract FDI inflows to LLDCs so that peripheral countries emerge as attractive global market destinations for MNEs.
... Grant, 1996) or 'architectural capabilities' (cf. Teece, Pisano, & Shuen, 1997): in our context, the former concern the integration of the specialized know-how that a firm can access to manage collaborations that have been initiated; the latter emphasize procedures to identify, evaluate, establish, or change collaborative ventures. In either case, such alliance management capabilities are made up of organizational routines that guide the conduct of activities in collaborative ventures (Al-Tabbaa, Leach, & Khan, 2019). ...
... To move forward clusters need to revise their approach to organisational ambidexterity consisting of exploitative and exploratory approach to learning (March 1991) and leading to inside-out, outside-in and coupled open innovation processes (Gassmann, Enkel 2004). But they also need to target their dynamic capabilities (Teece et al. 1997) such as absorptive capacity, innovative capacity, and adaptive capacity (Wang, Ahmed 2007) related to sensing, seizing, and reconfiguring (Teece 2007) skills, resources, and competencies. So that they could remain ahead or up to date with the nature of the sector, product, and technology life cycle curve as well as source from and contribute to sustainable innovation (with transformative focus) and sustainable innovation systems (Gerstlberger 2004, Kebir et al. 2017, Chaminade, Randelli 2020. ...
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In the paper, we analyse trends that impact the transition of the MedTech clusters in Europe to formulate growth scenarios and propose associated policy measures addressing the MedTech ecosystems while on their way to supporting Sustainable Development Goals. The study directly builds on the lessons learned within the S3martMed alliance, grouping the renowned European cluster organisations in MedTech. The research-oriented objectives of the paper are (i) to present the scenario method as a collaborative, knowledge-enabling tool for clusters and cluster policies and (ii) to identify contemporary scenarios for the MedTech sector willing to add value to transition paths of Regional Innovation Systems. Thus, the presented method and the paper itself are not retrospective but future-oriented to envisage new opportunities for SMEs, business support organisations, RTOs, and the users of MedTech products and services. The paper posits that sustainable ecosystems can be fostered by collaborative achievements of MedTech stakeholders on the condition that they keep on foreseeing the external driving forces to help policymakers to converge them into evidence-based policies.
... As is known to all, the breadth, depth, and efficiency of emerging markets are not as developed as those of developed markets (OECD, 2018;World Economic Forum, 2012), thus resources from parent banks may be insufficient for emerging-market subsidiaries to survive and prosper in developed markets, not to mention generating meaningful knowledge spillovers among each other. Besides, firms make strategic choices based on their resource endowments which means firms with similar resource profiles are more likely to adopt similar market strategies and develop similar competitive capabilities (Collis, 1991;Teece et al., 1997). According to Porter (1980), firms who adopt same market strategies are positioned in the same strategic group, in which the intense competition arise if firms have a higher level of resource similarity. ...
Article
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Extant research on Foreign Direct Investment (FDI) spillovers mainly focuses on how local firms benefit from foreign firms. Our study examines the reverse spillovers in multinational banks. More specifically, we study how emerging-market multinational banks (EMMNBs) can receive reverse efficiency spillovers from local banks when investing in developed markets. We hypothesize that, when operating in developed markets, EMMNB subsidiaries receive positive spillovers from local banks by means of absorbing advanced technological knowledge and managerial expertise. By contrast, EMMNB subsidiaries receive negative spillovers from other EMMNB subsidiaries from the same home country because they compete for similar markets and resources. Empirical analyses, based on a worldwide panel dataset of emerging-market bank subsidiaries in developed markets from 2000 to 2014, support our hypotheses. Our findings enrich the FDI spillover literature as we examine how EMMNBs learn from local banks in developed countries, and extend the learning theory by incorporating the multinational banks context.
... L'approche par les capacités dynamiques postule que « le potentiel interne de l'entreprise détermine l'avantage concurrentiel à travers le développement d'une capacité à faire face aux changements de l'environnement » (Teece, et al., 1997, p.509). Les capacités dynamiques sont définies par Teece et al., (1997) en se basant sur le concept aptitude à intégrer, former et façonner nos habilités, qualités et capacités internes et externes afin de pouvoir affronter les changements de l'environnement (Noblet & Simon, 2010). ...
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This paper attempts to shed light on the absorption capacity of family SMEs operating in the city of Agadir, more particularly the contribution of its dimensions to improve this capacity. Based on the contributions of Zahra & George (2002), we have developed a hypothetical model that relates absorptive capacity to its four dimensions, in this case acquisition; assimilation; processing and exploitation. In this sense, we have tried to define the latent variables and the measuring instruments, making reference to the theoretical literature. To carry out an empirical verification, we opted for a questionnaire survey conducted among a sample of 62 companies, drawn randomly according to the Normal law. The data were transposed and analyzed using structural equation modeling. Roughly speaking, we have noticed that there is a strong relationship between the variables acquisition, transformation with absorptive capacity, unlike the other two dimensions, assimilation and exploitation. Thus, the hypothesis related to the contribution of the acquisition dimension was partially confirmed while the other three hypotheses were rejected.
... In like manner, all associations are frameworks and that all frameworks are a piece of a bigger framework. How a subsystem fits the requirements of a bigger framework at last decides whether the subsystem flourishes or is left to shrink (Teece et al., 1997). This clarifies why a few associations fall flat where others thrive. ...
Article
Governments settle their financial obligations and pay for the public expenditures largely through finances generated from taxes and so the issue of taxation is as old as taxes itself. Formulating of new laws that govern taxation, changes in tax administration as well as minimizing loop holes of tax evasion are some of the factors that lead to improvements in tax revenue collections in Indonesia. In developing countries especially in Asia, tax reforms revolves around matters to do with economic policies while focusing particularly on the design of taxation structure and the tax management. Despite the tax reforms and increasing need to increase revenue collection and enforcement so as to provide public services, Indonesia still faces the challenges of low tax collection and tax administration. The purpose of this study was thus to assess the impact of tax reforms on the financial performance of Indonesian Tax authority between 2017 and 2021. This study was informed by two theories; Optimal Tax Reform Theory and Open Systems Theory. The study was a literature based and the findings indicated that the implementation of the new tax systems to replace older tax systems leads to increased revenue collection compared to the past years before the implementation process. It has also been shown that the introduction of administrative tax reforms increased corporate tax compliance in several ways that included the self-assessment system and voluntary compliance which consequently reduced the number of queues at the Indonesia Tax Authority and huge savings on human resource who used to collect tax prior to the tax reforms. The study thus concluded that, electronic tax registration, and electronic tax identification number, electronic filing of tax return and electronic tax payment and administrative reforms have statistical positive significant relationship with revenue performance, implying that digitalization has a positive and a statistically significant influence on revenue performance. The study thus suggested that policy makers in Indonesia should ensure that there is stable equilibrium for the exchange rates as they adversely affect the tax collection process. Moreover, the laws governing tax collection in Indonesia should be reviewed and criminal liability for those delinquent tax payers, the government also need to offer some support with regards to tax offenders. Keywords: Tax reforms, tax authority, financial performance, revenue collection, Indonesia
... As resource redeployability is contingent on the level of their plasticity, we should expect that the higher the degree of plasticity, the larger the set of opportunities for reallocating those resources to other business opportunities with higher value creation prospects. (e.g., Kim & Kung, 2017;Sakhartov, 2017;Teece et al., 1997;Kensinger, 1980). 8 Diversification is a commonly used strategy for firms redeploying their resources so that they are in place to achieve their best usages. ...
... And if it works successful it allows for competitive product innovation that can exploit 'Schumpeterrents' (seeTsai/Ghoshal 1998, p. 467). The creation of such social capital represents an intangible resource that is best described as a dynamic capability (seeTeece/Pisano/Shuen 1997 andKogut/Zander 1993). It represent a 'bundle of real options' for future strategic choices (seeBowman/Hurry 1993, p. 762) developed by the FoC's former stakeholder network-based investments into knowledge and dynamic capacities. ...
Conference Paper
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The paper examines motives of small and big family-owned firms for their engagement in social activities that are addressed to two stakeholder-groups: employees and customers. The paper starts with a comprehensive review of family-firm literature related to CSR. By combining stakeholder theory, resource-based view, and moral intensity models special emphasis is put on how CSR can be understood as dynamic capabilities that contribute to a firm’s financial performance. Two size-dependent variables are then identified: degree of internationalization and kind of competition. Subsequently, the effects of these variables and the firm-size itself on addressing CSR related issues to either employees or customers are discussed and related hypotheses are derived. Empirical research with German firms was conducted on the basis of a self-completion questionnaire. The test of hypotheses confirmed that large family firms exhibit a strong incentive to prioritize employee-specific CSR as an investment into human and social capital. The companies’ goal is to maintain and to extend their competitive positions in global markets via innovation capacities of employees.
... Potential AC utilizes this new knowledge along with the organization's prior knowledge and exploits it via innovations, new processes or new business models. Another important contribution of the authors is that AC is a dynamic capability (Teece et al., 1997), meaning that it is a set of routines and tasks that the company learns. Arbuss a and Coenders (2007), with an approach similar to that of Zahra and George (2002), divided AC into scanning the environment and the KA of the knowledge acquired. ...
Article
Purpose This study aimed to examine the similarities and differences between the ability to analyze the environment and exploit new knowledge (absorptive capacity) and the skills to generate value from innovation (appropriation). These fields have similar origins and are sometimes confused by practitioners and academics. Design/methodology/approach A review was conducted based on a full-text analysis of 681 and 431 papers on appropriation and absorptive capacity, respectively, from Scopus, Science Direct and Lens, using methodologies such as text mining, backward citation analysis, modularity clustering and latent Dirichlet allocation analysis. Findings In business disciplines, the fields are considered different; however, in other disciplines, it was found that some authors defined them quite similarly. The citation analysis results showed that appropriation was more relevant to absorptive capacity, or vice versa. From the dimension perspective, it was found that although appropriation was considered a relevant element for absorptive capacity, the last models did not include it. Finally, it was found that studies on both topics identified the importance of appropriation and absorptive capacity for innovation performance, knowledge management and technology transfer. Originality/value This is one of the first studies to examine in-depth the relationship between appropriation and absorptive capacity, bridging a gap in both fields.
... Organizational CQ is a key driver for success in global arena and this domain has been the subject of latest study supported by some existing literature (Akgun, Keskin, Byrne, &Aren, 2007;Teece, Pisano, & Shuen, 1997), (Ang & Inkpen 2008).Cross cultural environments are characterized by dynamic complexity (Lane, Maznevski, &Mendenhall, 2004). The dynamic complexity and capriciousness incross culturalcontexts require firms topossess dynamic capability, but specificto culturally diverse situations. ...
... Several research scholars, professionals and practitioners, including Wiggins and Ruefli (2005), Singh et al. (2013), have examined the different capabilities to improve an organization's performance in this unstable business and economic environment. Teece et al. (1997) stated that organizational capabilities enable firms to respond better to uncertain situations and integrate their resources into their external environment. For es and Camis on (2016) categorized organizational capabilities into three categories, adaptation, absorption and innovation. ...
Article
Purpose-Drawing upon information processing theory (IPT) and natural resource-based view (NRBV), this study analyses the role of social media technologies (SMT) on internal and external environmental collaboration and green innovation (green product, process and managerial innovation). Design/methodology/approach-This study took in-depth empirical research by developing a survey questionnaire to identify the relationship between SMTs, environmental collaboration and green innovation. The respondents of the questionnaire were supply chain professionals working in the manufacturing industry of Pakistan. The survey collected 475 responses, which were tested through PLS-SEM using Smart-PLS. Findings-The study results indicate that SMTs positively influence both internal and external environmental collaboration. Furthermore, internal environmental collaboration (IEC) fosters green products and green managerial innovation. In contrast, external environmental collaboration (EEC) fosters green processes and green managerial innovation. This study has also tested the mediation of IEC and EEC, which shows that both IEC and EEC mediate all the relationships except green process and green product innovation. The results also revealed that innovation capabilities moderate the relationship between environmental collaboration and green innovation. Research limitations/implications-Though this study has various practical implications, it is not free of limitations. First, the data were collected from Pakistan, and the results may only be compared with other developing countries. Second, few social media platforms have been considered, but they are increasing in numbers and could be used in upcoming studies. Third, green innovation in the context of products, processes and management is considered, but the concept is evolving, and its other indicators can be taken in upcoming studies. Practical implications-This study addresses the implication of SMTs, environmental collaboration, innovation capabilities and green innovation, which are helpful for managers and policymakers to design policies. Impact of social media Ethics approval and consent to participate: We got informed consent and approval from participants. Originality/value-This study provides the seminal operationalization of SMTs in environmental collaboration and green innovation. This study emphasizes innovation capabilities that firms should adopt.
... Covin and Wales, 2019;Wales et al., 2011). However, the EO-financial performance relationship proposed in this study lies in dynamic capability theory (Teece et al., 1997). The concept of dynamic capability is defined as "the firm's ability to integrate, build and reconfigure internal and external competencies to address rapidly changing environments". ...
Article
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Purpose Scholars and practitioners alike are paying attention to entrepreneurial orientation (EO) as an antecedent of the financial performance of SMEs. Other factors foster and improve SMEs' financial performance. This paper aims to shed the light on other two different strategic orientations that may help enhance SMEs' financial performance in addition to EO, namely; market orientation (MO) and brand orientation (BO). Design/methodology/approach The three different important strategic orientations are explored through two different studies. The first study was conducted to determine the different effects of the three orientations on SMEs' financial performance. Data were collected using a questionnaire among a convenient sample (131) of business owners/managers, and next PLS-SEM was used for data analysis. The financial performance of firms in the second study is hypothesized to be an outcome of a combination of different strategic orientations; therefore, the fsQCA method is applied to explore the causal recipes of those orientations. Findings The paper concluded that the three different strategic orientations are collectively, of paramount importance to strategic managers of SMEs. Originality/value The brand, market and EOs have been discussed discretely in previous studies and this study attempted to provide managers/owners of SMEs with a holistic view of the three different orientations and the amalgamation among them to be beneficial for better financial performance.
... The second perspective moves from a strategic to a process level, with a focus on how organizations react to digital technology by (re)structuring their operations as part of the digital transformation initiative. Some studies emphasize the importance of developing dynamic capabilities (Teece et al., 1997) to be able to sense, seize, transform, and react to pressures from digital transformation initiatives (Karimi & Walter, 2015;Orlandi, 2016;Warner & Wäger, 2019). Other studies stress the need to cultivate an experimental mindset across the organization to facilitate change (Kane, 2019), including how managers make use of tailored changemanagement procedures to help overcome inertia and cope with emergent tensions, workarounds, and paradoxes in digital transformation (Alter, 2014;Currie & Guah, 2007;Smith & Beretta, 2020;Svahn et al., 2017;Tallon et al., 2019). ...
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Researchers and practitioners are increasingly interested in understanding how organizations transform their value proposition and practices using digital technologies. While extant literature offers important empirical and theoretical insights into digital transformation in individual organizations, we know little about how adopting organizations within an organizational field react differently over time to the same digital transformation initiative. This is unfortunate, as such insights can help scholars and managers understand option repertoires and constraints in handling digital transformation ideas that travel into organizations. Against this backdrop, we had access to a unique case over an eighteen-year period, which shows how organizations within the Danish homecare field reacted differently to a nationwide digital transformation initiative on mobile technology use. To analyze this case, we applied the Virus Theory as a promising perspective for examining how and why the same digital technology and transformation idea occasions different reactions in similar contexts. Our analysis highlights the emerging, fluctuating, and consequential nature of digital transformation within the Danish homecare field that led to very different reactions across the adopting organizations. Drawing on this analysis, we contribute to the expanding literature on digital transformation by providing theoretical and practical knowledge about variations in how organizations within an organizational field react over time to digital transformation ideas. [Senior editor name] was the accepting senior editor. This research article was submitted on [manuscript submission date] and went through [number of revisions] revisions.
... Bahkan dengan menerapkan kapabilitas dinamis menjadi strategi perusahaan menuju keberlanjutan (Wu et al., 2012). Kemampuan dinamis mengacu pada teori dynamic capabilities view (DCV) (Teece et al., 1997) Ekosistem kewirausahaan menunjukkan bahwa wirausahawan mempraktikkan kemampuan dinamis untuk mempertahankan kesuksesan mereka. Perubahan ekosistem akibat covid-19 menimbulkan banyak ancaman bagi pengusaha kecil. ...
Article
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This research adopts a dynamic capability lens to study how small business entrepreneurs try to survive and grow in the entrepreneurial ecosystem affected by covid-19. The research method is using a qualitative design, 5 MSMEs in Malang City have been interviewed to assess how the entrepreneurial ecosystem in Malang City has been affected by covid-19. This allows a contemporary and realistic understanding of how small entrepreneurs are adapting to crises. The findings suggest that the entrepreneurs in this study can leverage their capabilities in terms of how they scan the current business environment and make decisions accordingly. Furthermore, small business entrepreneurs adopt a flexible approach to be able to react to the unexpected changes of covid-19 and the affected market environment. Business agility will help entrepreneurs to respond to internal and external changes in an efficient manner. Many business functions cannot resume due to the covid-19 pandemic. Marketing techniques that were considered profitable and successful before 2020 will not develop now. This is because small businesses work with fewer resources and are under financial pressure. To get the most out of fewer resources is to adapt to more digital-based functions.
... Teece and Pisano (2003) stated that in the past, firms used a resource-based strategy to obtain significant technological properties, with a protective approach to intellectual property being reserved for success. The Dynamic Capability Theory defines an organization's ability to assimilate, develop, and reconfigure internal and external abilities to address dynamically changing surroundings (Teece, Pisano, & Shuen, 1997). Companies' ability to achieve new creative forms of competitive advantage, given path dependencies and market positioning, is reflected in dynamic capacities. ...
... This study provides several theoretical contributions to extant BDA literature. First, in theoretical model structuring, we applied a DCV, which is interpreted to be a firm's ability to integrate, build, and reconfigure organizational capabilities to collect necessary data for responding to changing market conditions in highly dynamic business environments, such as emerging markets (Teece et al. 1997). DCV can serve as the internal process through which firms transform data and deploy digital resources to match market demand and develop a competitive advantage (Eisenhardt and Martin 2000). ...
Article
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The effect of big data analytics on firm performance and the effects of intermediary variables on this relationship are not yet clearly understood. Drawing on the dynamic capability view (DCV), this study investigates the mediating effect of a data-driven culture on the relationship between big data analytics management capability and firm performance (i.e., operational and financial performance). Drawing on survey data from 432 big data experts across 132 firms operating in Turkey, our findings indicate that big data analytics management capability and a data-driven culture have significant positive effects on both the operational and financial performance of a firm. In addition, a data-driven culture significantly mediates the links between big data analytics management capability and the measures of both operational and financial performance. Hence, our findings offer a valuable guide for managers utilizing big data or making big data investments to increase firm performance.
... Az esettanulm ¶ any fel ¶ ep ¶ ³t ¶ es ¶ en ¶ el az ¶ un. dinamikus k ¶ epess ¶ egek (DK) elm ¶ elet ¶ utmutat ¶ asait hasznos ¶ ³tjuk, amely a szervezeti meg ¶ ujul ¶ asra, ¶ eszszer} ubb er} oforr ¶ as-felhaszn ¶ al ¶ asra ¶ es a hat ¶ ekonyabb m} ukÄ od ¶ es el ¶ er ¶ es ¶ ere Ä osszpontos ¶ ³t [38,65,69]. A DK ¶ uj elj ¶ ar ¶ asokat ¶ es folyamatok bevezet ¶ es ¶ et teszi lehet} ov ¶ e, m ¶ ³g ezzel szemben a nem dinamikus, azaz m} ukÄ od ¶ esi k ¶ epess ¶ egek a kiegyens ¶ ulyozott napi Ä uzletvitelre ¶ es a bels} o folyamatok ¶ alland ¶ os ¶ ag ¶ ara tÄ orekednek [26]. ...
... The search, selection, and deployment capabilities are the dynamic capabilities from which firms may outperform their rivals (Helfat et al., 2007). Still, the main one is the ability to refund resources and capabilities continuously to address environmental threats (Teece et al., 1997). A firm's responses should fit with limited existing resources (Rumelt, 1987); they should be mobilized and integrated with the knowledge and skills of employees to respond to, soften, or decline external threats (Wright & McMahan, 1992). ...
... A dynamic capability approach can be used to address the considerations on supplier involvement in product development and building supply chain resilience. It is defined as 'the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments' (Pereira et al., 2014;Teece et al., 1997). This study also follows the resource-based view (RBV), as it has become a complementary element in studies focusing on both SIPD and supply chain resilience. ...
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Background. Covid-19 has affected almost all areas of public policy. The European Union has activated funding programs and instruments to respond to the crisis triggered by Covid-19 and become resilient. Additionally, interest in education for sustainable development and climate change has increased in recent years (Wals, 2009; Anderson, 2012). However, there is little clarity on what education for sustainable development and awareness of climate change entail (Tilbury & Mulà, 2009) and how the political response to the crisis could change the education sector. Research question. How does the EU’s policy response to the pandemic invest in education for sustainable development and awareness of climate change? Methods. A qualitative research design with a documents analysis was chosen. The population from which the documents were sampled was composed by European Union law and other public documents of the European Union on education for sustainable development and awareness of climate change. The data was collected through ten policy documents. Results. Learning for environmental sustainability prevails in EU internal politics, while peace education and Global Citizenship education appear in the EU’s external policy action. Furthermore, European institutions are convinced that a systemic change in education is necessary to effectively invest in education for sustainable development and awareness of climate change. Universities, a certain set of knowledge and skills and an education that combines formal, non-formal and informal modalities are believed to be at the center of this systemic change. Conclusions. Researchers could consider analysing more documents published by European institutions on education for sustainable development and climate change awareness. Moreover, policies and practices for learning that cross the environmental, economic and social pillars of sustainable development should be further stimulated and supported by Member States.
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Based on the natural‐resource‐based view and capability theory, this study explores the impact of green entrepreneurial orientation (GEO) on financial performance, the separate and joint moderating effects of stakeholder engagement and green absorptive capacity (GAC). Using data obtained from 230 Chinese manufacturing firms, it was found that GEO has positive influence on financial performance, supplier engagement and GAC strengthen the positive effect of GEO on financial performance while customer engagement has not. In addition, our empirical findings show that when a high level of supplier engagement combined with a high level of GAC, the positive effect of GEO on financial performance is increased. These findings provide important theoretical and practical implications for Chinese manufacturing firms to achieve sustainable development.
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La evolución del enfoque de capacidades dinámicas permite analizar, a través de este marco teórico, los fenómenos actuales de las organizaciones, considerando las oportunidades de innovación a través de herramientas digitales y la capacidad de gestión como fuentes de ventajas competitivas. Derivado de lo anterior el propósito de esta investigación es realizar un análisis bibliométrico de los conceptos de capacidades dinámicas y gestión tecnológica dentro del área de economía, negocios e ingeniería desde una metodología cuantitativa y descriptiva, evidenciando la evolución de la producción científica del tema. La búsqueda realizada en la base de datos Scopus consideró todo el periodo de análisis disponible en la plataforma. Como resultado se encontró la evolución de los documentos producidos por año, su procedencia, los autores más sobresalientes con publicaciones de alto impacto y las diferentes definiciones para el concepto en estudio. Derivado de la búsqueda bibliométrica fue posible plantear una propuesta de constructo derivado de los entornos dinámicos para el estudio en las pymes mexicanas.
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Unlabelled: This paper examines the impact of data-driven innovation (DDI) on firm performance, based on an exploratory case study of a manufacturing firm in China's textile and apparel industry. It explores the influence of various contextual variables on the firm's DDI and suggests ways to enhance DDI and thereby firm performance. Extending the literature on DDI, the paper proposes and validates a theoretical framework that incorporates the influence of various contextual factors on firms' DDI. The findings show that (1) individual context is associated with DDI; (2) organizational context is associated with DDI; and (3) DDI is associated with firm performance. This paper extends our understanding of how firm performance can be improved through DDI and shows that DDI should match a firm's contextual environment. Supplementary information: The online version contains supplementary material available at 10.1007/s10479-022-05038-y.
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This paper presents a study on innovative digital technology factors affecting UAE healthcare service practices performance. The innovative digital technology factors are clustered in four domains namely systemdevelopment; IT base innovation; technology services and process integration. Data collection was conducted through questionnaire survey among healthcare employees from managers to operational workers in Dibba Hospital, Masafi Hospital, and Fujairah Hospital in UAE. The selection of respondents was carried out in two sampling approaches which are stratified sampling random sampling technique methods. A total of 300 questionnaire sets were distributed but only 281 sets of completed questionnaire were returned for the analysis. This represents the responses rate of 94%. Before conducting the ranking analysis, the collected data was characterised for its reliability and normality patterns and found that the data has achieved the reliability and normality criteria. The ranking analysis found that the most influential innovative digital technology factor is TS2 of the technology services domain. TS2 is concerning the connectivity with an extranet.The second factor is TS3 in the technology services domain which is efficient human resource management system. The third rank is SD2 system development domain which is updates the technological features of existing system to improve healthcare services. The fourth rank is BIN1 in IT base innovation domain which is adds new capabilities to the existing system. Finally, the fifth rank is BIN2 in IT base innovation domain which isnew features are often added to the existing system.
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Klima, Biodiversität, Demokratien: Krisen, wohin der Blick fällt. Und jetzt: Corona. Was tun und was können Unternehmungen, die Krisen nicht aussitzen, sondern gestalten: die ihre Strategien und Geschäftsmodelle wie ihre Arbeits- und Geschäftsprozesse so reformulieren, dass sie zur Lösung dieser Krisen beitragen? Der Band fragt mit dem Begriff dynamic capabilities danach, wie ökonomische Organisationen die Corona-Krise wahrnehmen, deuten und verarbeiten. Anhand von sechs empirischen Studien diskutiert er die Möglichkeiten und Grenzen unternehmerischer Verantwortung für den jetzt notwendigen Wandel in Wirtschaft und Gesellschaft.
Thesis
Les grandes entreprises évoluent dans un environnement social, climatique, économique et désormais sanitaire, complexe et incertain qui remet en cause le déterminisme mécanique et la logique cartésienne. A cela, s’ajoute une 4ème révolution industrielle. Pour survivre, elles doivent donc évoluer et accroitre leur capacité d’innovation. La majorité des études existantes se sont alors concentrées sur l’innovation technologique, négligeant la dimension non technologique de l’innovation, couramment nommée : « innovation organisationnelle ». Pourtant, cette dernière permet aux grandes entreprises de prendre en compte un ensemble de facteurs qui favorisent leur capacité d’innovation et l’ancre dans leurs routines. L’objectif est alors, grâce à une approche systémique et transdisciplinaire, d’identifier ces facteurs, que nous nommons « capacités d’Innovation Organisationnelle ». Elles regroupent les capacités dynamiques de l’entreprise ainsi que les antécédents de l’innovation organisationnelle. En effet, bien souvent l’innovation non technologique est perçue comme un concept flou et hétéroclite. Il apparait donc nécessaire de doter les entreprises de modèles, méthodes et d’outils qui permettent de rendre le concept concret et opérationnel. Néanmoins, de nos jours, la modélisation d’entreprise présente des limites pour d’une part, la représentation d’une grande entreprise que nous assimilons à un système« Organique » sociotechnique complexe et ouvert et d’autre part pour la représentation et pilotage des capacités d’Innovation Organisationnelle. Ainsi, dans le cadre d’une convention CIFRE avec l’entreprise SNCF Réseau, le laboratoire IMS de l’Université de Bordeaux et le laboratoire Icube de l’Université de Strasbourg, nous proposons un cadre conceptuel de la grande entreprise, de l’innovation organisationnelle ainsi qu’une démarche d’analyse et de préconisation des capacités d’Innovation Organisationnelle, basée sur notre propre modèle de l’innovation organisationnelle pour une grande entreprise.Ce travail de thèse a donc abouti à l’élaboration d’un méta-modèle qui permet à la grande entreprise d’avoir une vision systémique d’elle-même dans le but d’améliorer sa capacité d’innovation. Le modèle se compose de trois systèmes « Organisation-Territoire- Réseau d’acteurs, » et permet de mettre en évidence les capacités d’Innovation Organisationnelle au sein des systèmes dans une logique de caractérisation et de pilotage de celles-ci notamment grâce à l’évaluation de leurs impacts et de leurs priorités. Notre démarche repose sur une étude de cas basée sur une méthodologie quantitative multicritères.Au final, cette thèse est à l’origine de plusieurs contributions. Tout d’abord, le décloisonnement des sciences nous permet d’étudier les antécédents de l’innovation organisationnelle liées au territoire, et aux réseaux d’acteurs, au-delà des approches classiques qui privilégient en général les antécédents internes à l’organisation. Ensuite, nous concédons une place centrale aux dimensions humaines et sociales qui s’avèrent essentielles tout comme l’est une meilleure compréhension de leurs interactions à la fois formelles et informelles (ex : culture d’entreprise, climat social, connaissances, leadership…). Enfin, l’étude de l’impact des capacités d’Innovation Organisationnelle que nous proposons n’a jamais été réalisée auparavant pour une grande entreprise (des travaux sur les PME existent). Ainsi, la capacité d’innovation d’une grande entreprise est dépendante des interactions entre le territoire, les systèmes qui le composent, ses réseaux d’acteurs et les systèmes socio technique de l’organisation. Ces résultats débouchent sur des recommandations pour un meilleur pilotage des capacités d’Innovation Organisationnelle favorisant la capacité d’Innovation qui s’ancre dans la culture de l’entreprise.
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Research on business strategy suffers because it often relies on retrospective case studies. Strategic alternatives are discussed without information on the range of existing practices. In addition, the rate at which new strategies are adopted and implemented is unknown. Studying populations of organizations over time avoids these problems and offers promise for a more sophisticated and methodologically rigorous approach to strategic studies for both researcher and practitioner.
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An expanded paradigm is needed to explain how competitive advantage is gained and held. Firms resorting to 'resource-based strategy' attempt to accumulate valuable technology assets and employ an aggressive intellectual property stance. However, winners in the global marketplace have been firms demonstrating timely responsiveness and rapid and flexible product innovation, along with the management capability to effectively coordinate and redeploy internal and external competences. This source of competitive advantage, 'dynamic capabilities', emphasizes two aspects. First, it refers to the shifting character of the environment; second, it emphasizes the key role of strategic management in appropriately adapting, integrating, and re-configuring internal and external organizational skills, resources, and functional competences toward changing environment. 5 Only recently have researchers begun to focus on the specifics of developing firm-specific capabilities and the manner in which competences are renewed to respond to shifts in the business environment. The dynamic capabilities approach provides a coherent framework to integrate existing conceptual and empirical knowledge, and facilitate prescription. This paper argues that the competitive advan is tage of firms stems from dynamic capabilities rooted in high performance routines operating inside the firm, embedded in the firm's processes, and conditioned by its history. It offers dynamic capabilities as an emerging paradigm of the modern business firm that draws on multiple disciplines and advances, with the help of industry studies in the USA and elsewhere.
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The resource view of the firm has made substantial progress in identifying what attributes of a firm may provide a source of competitive advantage; however, the literature has far less to say about the emergence of these distinctive capabilities. We develop a simple framework based on the role of positive feedback effects of market activity, organizational factors that cause a firm to focus on a particular capability trajectory, and lastly the role of managerial choice with respect to anticipated feedback effects, which we term feedforward effects. We apply this framework to the emergence of competitive positions in the mutual fund-processing business from its inception to 1984.
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The resource-based approach is an emerging framework that has stimulated discussion between scholars from three research perspectives. First, the resource-based theory incorporates traditional strategy insights concerning a firm's distinctive competencies and heterogeneous capabilities. The resource-based approach also provides value-added theoretical propositions that are testable within the diversification strategy literature. Second, the resource-based view fits comfortably within the organizational economics paradigm. Third, the resource-based view is complementary to industrial organization research. The resource-based view provides a framework for increasing dialogue between scholars from these important research areas within the conversation of strategic management. Resource-based studies that give simultaneous attention to each of these research programs are suggested.
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The capabilities of a firm, or any organization, lie primarily in the organizing principles by which individual and functional expertise is structured, coordinated, and communicated. Firms are social communities which use their relational structure and shared coding schemes to enhance the transfer and communication of new skills and capabilities. To replicate new knowledge in the absence of a social community is difficult. A classic demonstration is the well-studied problem of the transfer across country borders of manufacturing capabilities that support production of new product innovations. We show in this article that the degree of codification and how easily capabilities are taught has a significant influence on the speed of transfer. What makes the question of knowledge codification particularly interesting is that firms compete not only through the creation, replication, and transfer of their own knowledge, but also through their ability to imitate the product innovations of competitors. The capacity to speed the internal transfer of a production capability to new markets (e.g., those in other countries) is, consequently, of fundamental significance in a competitive environment. In the attempt to speed the internal transfer of knowledge, the dilemma arises that capabilities which can be easily communicated within the firm are more likely to be easily imitated by competitors. This relationship is tested by analyzing the effects of the ease of codifying and communicating a manufacturing capability not only on the time to its transfer, but also on the time to imitation of the new product. ’The determinants of the time to imitation are found to be the extent to which knowledge of the manufacturing processes is “common” among competitors, and the degree of continuous recombination of capabilities leading to improvement of the product or the manufacturing process. We support this interpretation by a discussion of the results from field research. A wider implication of these findings is the proposition that the transfer and recombination of organizational capabilities are the foundation of an evolutionary theory of the firm. A critical element limiting the expansion of a firm is that the competitive value of codifying knowledge leads to the selection of organizing principles that are not functional in all competitive environments. The pressure of speed is of critical importance to understand the evolutionary advantage of nonoptimal rules of coordinated action within a social community.
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This paper develops a framework for analyzing the competitive implications of innovation. The framework is based on the concept of transilience - the capacity of an innovation to influence the established systems of production and marketing. Application of the concept results in a categorization of innovation into four types. Examples from the technical history of the US auto industry are used to illustrate the concepts and their applicability. The analysis shows that the categories of innovation are closely linked to different patterns of evolution and to different managerial environments. Special emphasis is placed on the role of incremental technical change in shaping competition and on the possibilities for a technology based reversal in the process of industrial maturity.
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This article reviews the contribution of economic analysis to issues in strategic management. It explores why orthodox economic theory has an uneasy tension with the concerns of strategic managers, outlines some important recent contributions from industrial organizations, and attempts to develop some normative principles from recent theoretical and empirical work in transactions cost economics. The article also attempts an assessment of the respective contributions of different industrial organization paradigms to strategic management issues.
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SEMATECH (SEmiconductor MAnufacturing TECHnology) was established in 1987 as a not-for-profit research consortium with an original mission to provide a pilot manufacturing facility where member companies could improve their semiconductor manufacturing process technology. Since its inception, SEMATECH's mission has become more general. This paper presents the findings from a quantitative case-based analysis of the returns to member companies from their investments in SEMATECH. The findings suggest that SEMATECH has provided an organizational structure in which important processes and technologies have been advanced which could not have been justified on economic grounds outside of a collaborative research arrangement.
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This article explores the nature of international technology transfer and the operation of the market for know-how. It begins by examining the relationship between codification and transfer costs and then analyzes various imperfections in the market for know-how. The special properties of know-how are shown to confound various aspects of the exchange process when arms-length contracting is involved. The internalization of the exchange process within multinational firms serves to bypass many of these difficulties, and explains why the multinational firm is of such importance. Several forms of regulation of technology imports and exports are examined. It is discovered that the process is insufficiently well understood to permit the design of effective regulation that, moreover, appears unlikely to eliminate inefficiency. An efficiency focus is maintained throughout since I feel no qualification to pontificate on complex and confused distributional issues.
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There is a large intellectual discrepancy between most formal growth models described by economists and descriptions of growth in economic history. This paper draws on an evolutionary theory of economic growth that brings together appreciative theorizing regarding growth and formal theorizing. It aims to piece together a relatively coherent appreciative theoretical account of economic development at a sectoral level by laying out a story of the growth, and development, of a manufacturing sector, from birth to maturity, and perhaps until death, that seems to fit many cases and which can serve as a target for formalization. The paper first describes and tries to link two broad bodies of appreciative evolutionary theoretic writing. The first proposes that a new technology develops along a relatively standard track from the time it is born, to its maturity, and that firm and industry structure 'coevolve' with the technology. The other is concerned with the development of institutions in response to changing economic conditions, incentives, and pressures. The paper then considers 'punctuated equilibrium' before concluding with a consideration of two economic developmental implications that appear to flow from the analysis. One concerns the pattern of change of productivity, of capital intensity, and relative variables associated with economic growth, as a technology and industry structure develop. The other is concerned with implicitly cross-country comparisons, and is focused on how 'comparative advantage' develops in a new industry.
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The existence of capital that is specific to an industry (its investment cost exceeds its value-in-use in other industries) radically alters the equilibrium in an otherwise straight-forward neoclassical model. In particular, as demand ofalls exit is impeded and as demand rises the entry of new capital is also impeded in the sense that a positive rate of profit at a given point in time need not induce investment. This paper investigates the interplay between capital mobility, demand uncertainty, industry investment, and price. In particular, the existence and uniqueness of a competitive equilibrium in a stationary environment is established. The equilibrium is fully characterized by two thresholds L≤H: entry occurs when the ratio of intrinsic demand to capital is above H and exit occurs when this ratio is below L. Whether or not exit is reversible (it is not when the act of exit renders the capital unsuitable for future use in the industry), equilibrium demands that L increase and H decrease with mobility.
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This problem solver offers a wealth of remedies for American industry's neglect of competitive manufacturing strategies and its resulting loss of productivity. Drawing upon the example of world-class and foreign manufacturers, the book illustrates what American industry must do in terms of manufacturing capability to regain a preeminent spot in the marketplace.
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It is management, and particularly managers' willingness to learn and change -- not unfair competition or unsupportive economic policies -- that is at the heart of America's manufacturing crisis, contend Robert Hayes, Steven Wheelwright, and Kim Clark. These world-renowned authorities on manufacturing and technology base their conclusion on studies of hundreds of American and foreign firms. Writing for general managers in this long-awaited successor to their award-winning Restoring Our Competitive Edge, the authors go beyond the structural decisions -- the "bricks and mortar" of facilities and equipment -- to the infrastructure of a manufacturing company: the management policies, systems, and practices that must be at the core of a world-class organization. Most importantly, they address the difficulty of creating that infrastructure, emphasizing the management leadership and vision that are required. This thorough and comprehensive volume points out the weaknesses of traditional management practices, which are built into authoritarian, hierarchical organizations. The authors show dramatically how many companies today are breaking out of this "command and control" mentality and creating a whole new set of relationships involving workers and managers, engineering, marketing and manufacturing, and suppliers and customers, which is giving them a competitive advantage in the international marketplace. Comparing the companies that are winning with those that are losing market position, Hayes, Wheelwright, and Clark conclude that the key differences are that the winners focus on creating value for customers, continual improvement, quick adaptability to change, and extracting the full potential of their human resources. They constantly strive to be better, placing great emphasis on experimentation, integration, training, and the building of critical organizational capabilities. They are, in short, "learning" organizations. Dynamic Manufacturing explores in depth such key infrastructure issues as capital budgeting, performance measurement, organizational structure, and human resource management, demonstrating how they interact to foster productivity growth, new product development, and competitive advantage. The book shows today's managers how to implement the changes that must be made if they want to create a truly superior manufacturing company. Taking concerned, committed managers step-by-step on the path toward better products, lower costs, and increased profits, this seminal work provides a road map for manufacturing firms seeking to build a competitive advantage through manufacturing excellence.
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A study seeks to examine the mechanics of international corporate technology transfer and to provide evidence on the level and determinants of technology transfer costs. A rather precise ''resource cost'' definition of costs is employed. The focus of the study is limited to transfers both outward from and inward to but one country: the U.S.A. The transferors are corporations, generally U.S. multinational corporations. The study covers a range of corporate transfers, including the licensing of technology to independent corporations and to governments, to joint ventures, and to wholly owned subsidiaries. It does not include the transfer of technology that might occur, for instance, through the export of capital goods. The analysis highlights features common to transfers that are domestic in scope. The domain of this study is restricted to horizontal transfers falling into the design phase. Data on twenty-nine international technology transfer projects are given in briefs in Appendix A. (MCW)
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With all the time and resources that American manufacturing companies spend on strategic planning, why has their competitive position been deteriorating. Certainly not because the idea of doing such planning is itself misguided. Nor because the managers involved are not up to the task. Drawing on his long experience with the nuts and bolts of operations deep inside American and foreign companies, the author proposes a different answer. Perhaps the problem lies in how managers typically approach the work of planning: first by selecting objectives or ends, then by defining the strategies or ways of accomplishing them, and lastly by developing the necessary resources or means. A hard look at what the new industrial competition requires might suggest, instead, an approach to planning based on a means-ways-ends sequence. 7 references.
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This paper reviews the literature on organizational learning. Organizational learning is viewed as routine-based, history-dependent, and target-oriented. Organizations are seen as learning by encoding inferences from history into routines that guide behavior. Within this perspective on organizational learning, topics covered include how organizations learn from direct experience, how organizations learn from the experience of others, and how organizations develop conceptual frameworks or paradigms for interpreting that experience. The section on organizational memory discusses how organizations encode, store, and retrieve the lessons of history despite the turnover of personnel and the passage of time. Organizational learning is further complicated by the ecological structure of the simultaneously adapting behavior of other organizations, and by an endogenously changing environment. The final section discusses the limitations as well as the possibilities of organizational learning as a form of intelligence.
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We propose a new criterion for equilibria of extensive games, in the spirit of Selten's perfectness criteria. This criterion requires that players' strategies be sequentially rational: Every decision must be part of an optimal strategy for the remainder of the game. This entails specification of players' beliefs concerning how the game has evolved for each information set, including informaiton sets off the equilibrium path. The properties of sequential equilibria are developed; in particular, we study the topological structure of the set of sequential equilibria. The connections with Selten's trembling-hand perfect equilibria are given.
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Whether and why members of the same strategic group would experience different performance results has received little attention in previous research. These questions are addressed in this paper. First, conventional theory on the relationship between firm performance and strategic group membership is reviewed. Then a theory is developed as to how historical differences among strategic group members may result in performance differences. An empirical analysis of risk and return relationships is conducted, centered on the nature of environmental change characterizing the industry. The empirical setting throughout is the U.S. pharmaceutical industry over the period 1963–82.
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The paper explores the usefulness of analysing firms from the resource side rather than from the product side. In analogy to entry barriers and growth-share matrices, the concepts of resource position barrier and resource-product matrices are suggested. These tools are then used to highlight the new strategic options which naturally emerge from the resource perspective.
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The time-series behavior of ROI is examined to assess a central element of competitive markets, the lack of persistence of abnormal profits. The analysis first determines the aggregate dynamic process of ROI and then examines how strategic and market factors influence this process. Consistent with abnormal returns resulting from a disequilibrium phenomenon, a mean reverting time-series process approximates the behavior of ROI. While a variety of factors influence the persistence of return, the conditions under which market forces do not drive return back to its competitive rate seem remote, if present at all. Nonetheless, these factors can insulate a firm from competitive forces and so result in longer-term abnormal profits.
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This article argues that strategy, like charity, begins at home. Specifically, economy is the best strategy. That is not to say that strategizing efforts to deter or defeat rivals with clever ploys and positioning are unimportant. In the long run, however, the best strategy is to organize and operate efficiently.
Article
Four antecedents, it is argued, are necessary precursors for a firm to capture rents from innovation. The antecedents are causal understanding; innovation team proficiency; emergence and mobilization of new competences; and creation of competitive advantages, each of which are conceptually distinct and precisely defined in the paper. These constructs are linked together in a stage model and subsequently operationalized and tested using LISREL. Substantial support is found for the central thesis, that achieving each of the four antecedent processes increases the predicted rents from an innovation project.
Article
Discussions of the link between firm size and innovation are outmoded because the boundaries of the firm have become fuzzy in recent decades. Strategic alliances — constellations of bilateral agreements among firms — are increasingly necessary to support innovative activities. Such alliances can facilitate complex coordination beyond what the price system can accomplish, while avoiding the dysfunctional properties sometimes associated with hierarchy. Antitrust law and competition policy need to recognize that these new organizational forms are often the functional antithesis of cartels, though they may have certain structural similarities. A more complete understanding of bilateral contracts and agreements ought to reveal when and how cooperation can support rather than impede innovation and competition.
Article
This paper applies transactions cost principles to the multinational enterprise in order to ascertain its distinctive properties as a mode of economic organization. The analysis helps identify just when and where contractual alternatives to the multinational firm are likely to be viable. This turns out to depend upon the nature of the technology, the regime of appropriability within which the firm operates, and the characteristics of the markets in question. Transactions cost analysis is also extended to the multinational enterprise-host country relationship. Implications for management and public policy are derived.
Article
An alliance is a flexible organization that allows firms with complementary strengths to experiment with new technological, organizational, and marketing strategies. The flexibility is valuable because the project undertaken through the alliance is uncertain. Flexibility is traded off against the weak incentive structure of the alliance. Although the principle goal of the experimental set-up is to learn more about technical and market parameters, learning also occurs about working in an alliance and could lead to greater competence in managing alliances, partially alleviating incentive problems. Through demonstration and externality effects, a few successful alliances can trigger more widespread alliance formation.
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This study develops an evolutionary theory of the capabilities and behavior of business firms operating in a market environment. It includes both general discussion and the manipulation of specific simulation models consistent with that theory. The analysis outlines the differences between an evolutionary theory of organizational and industrial change and a neoclassical microeconomic theory. The antecedents to the former are studies by economists like Schumpeter (1934) and Alchian (1950). It is contrasted with the orthodox theory in the following aspects: while the evolutionary theory views firms as motivated by profit, their actions are not assumed to be profit maximizing, as in orthodox theory; the evolutionary theory stresses the tendency of most profitable firms to drive other firms out of business, but, in contrast to orthodox theory, does not concentrate on the state of industry equilibrium; and evolutionary theory is related to behavioral theory: it views firms, at any given time, as having certain capabilities and decision rules, as well as engaging in various ‘search' operations, which determines their behavior; while orthodox theory views firm behavior as relying on the use of the usual calculus maximization techniques. The theory is then made operational by the use of simulation methods. These models use Markov processes and analyze selection equilibrium, responses to changing factor prices, economic growth with endogenous technical change, Schumpeterian competition, and Schumpeterian tradeoff between static Pareto-efficiency and innovation. The study's discussion of search behavior complicates the evolutionary theory. With search, the decision making process in a firm relies as much on past experience as on innovative alternatives to past behavior. This view combines Darwinian and Lamarkian views on evolution; firms are seen as both passive with regard to their environment, and actively seeking alternatives that affect their environment. The simulation techniques used to model Schumpeterian competition reveal that there are usually winners and losers in industries, and that the high productivity and profitability of winners confer advantages that make further success more likely, while decline breeds further decline. This process creates a tendency for concentration to develop even in an industry initially composed of many equal-sized firms. However, the experiments conducted reveal that the growth of concentration is not inevitable; for example, it tends to be smaller when firms focus their searches on imitating rather than innovating. At the same time, industries with rapid technological change tend to grow more concentrated than those with slower progress. The abstract model of Schumpeterian competition presented in the study also allows to see more clearly the public policy issues concerning the relationship between technical progress and market structure. The analysis addresses the pervasive question of whether industry concentration, with its associated monopoly profits and reduced social welfare, is a necessary cost if societies are to obtain the benefits of technological innovation. (AT)
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Economic theory has suffered in the past from a failure to state clearly its assumptions. Economists in building up a theory have often omitted to examine the foundations on which it was erected. This examination is, however, essential not only to prevent the misunderstanding and needless controversy which arise from a lack of knowledge of the assumptions on which a theory is based, but also because of the extreme importance for economics of good judgment in choosing between rival sets of assumptions. For instance, it is suggested that the use of the word “firm” in economics may be different from the use of the term by the “plain man.” Since there is apparently a trend in economic theory towards starting analysis with the individual firm and not with the industry, it is all the more necessary not only that a clear definition of the word “firm” should be given but that its difference from a firm in the “real world,” if it exists, should be made clear. Mrs. Robinson has said that “the two questions to be asked of a set of assumptions in economics are: Are they tractable? and: Do they correspond with the real world?” Though, as Mrs. Robinson points out, “more often one set will be manageable and the other realistic,” yet there may well be branches of theory where assumptions may be both manageable and realistic.
Article
Incl. bibliographical notes and references, index, biographical note on the author
Article
Thesis (Ph. D. in Business Administration)--University of California, Berkeley, May 1994. Includes bibliographical references.
Article
In this model, the effects of advertising are infinitely durable, fixed (and sunk) costs give rise to economies of scale, post-entry behavior is noncooperative, and pre-entry expectations are rational. Despite the obvious resemblance to work on the use of investment in production capacity to deter entry, here the incumbent monopolist never finds it optimal to advertise more if entry is possible than if it is not. This result and other features of this model indicate the dangers of analyzing advertising with analogies to other sorts of investments. The results make clear the need for more theoretical work on advertising and entry deterrence.
Article
This paper attempts to relate the role of information in production to the organization of industry, particularly the organization into firms and the competitive behavior of these firms. Its emphasis is technical information or the knowledge needed to produce goods. Information is an economic good but it has many characteristics which differentiate it from the goods usually modeled in economics. In particular, it is surprising to find how poorly current theories apply to the situation of high fixed costs which arises when information acquisition becomes a major part of a firm's activity. The paper concludes by conjecturing an increasing tension between legal relations and fundamental economic determinants. In addition, unresolved problems in the economic theory of pricing and competition arise in an economy in which information is important for both cost and utility, producing conditions of competition between firms that are conducted under large fixed costs. Standard paradigms for modeling this competition are inadequate since they postulate a market price in the sense that buyers can buy at their pleasure at a fixed price. s The role of information requires a new approach to the theory of oligopoly.
Article
This paper is a preliminary report on a study of the comparative evolution of several major high tech industries in the US, Japan and Western Europe. In general the paper examines similarities and differences in the ways these industries developed in different countries, and the factors explaining those differences. The project especially focused on understanding the instances when firms in a particular country gained a strong competitive advantage over firms based in other countries. The industries studied are: organic chemical products, computers, semiconductors, software, numerical controlled machine tools, pharmaceuticals in the age of biotechnology and medical devices.
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A common observation in the informal literature of economics (and elsewhere) is that is multistage “games,” players may seek early in the game to acquire a reputation for being “tough” or “benevolent” or something else. But this phenomenon is not observed in some formal game-theoretic analyses of finite games, such as Selten's finitely repeated chain-store game or in the finitely repeated prisoners' dilemma. We reexamine Selten's model, adding to it a “small” amount of imperfect (or incomplete) information about players' payoffs, and we find that this addition is sufficient to give rise to the “reputation effect” that one intuitively expects.
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This paper outlines a theory of the multiproduct firm. Important building blocks include excess capacity and its creation, market imperfections, and the peculiarities of organizational knowledge, including its fungible and tacit character. A framework is adopted in which profit seeking firms are seen to diversify in order to avoid the high transactions costs associated with using various markets to trade the services of various specialized assets. Neoclassical explanations of the multiproduct firm are shown to be seriously deficient.
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This paper develops a framework for analyzing the competitive implications of innovation. The framework is based on the concept of transilience — the capacity of an innovation to influence the established systems of production and marketing. Application of the concept results in a categorization of innovation into four types. Examples from the technical history of the US auto industry are used to illustrate the concepts and their applicability. The analysis shows that the categories of innovation are closely linked to different patterns of evolution and to different managerial environments. Special emphasis is placed on the role of incremental technical change in shaping competition and on the possibilities for a technology based reversal in the process of industrial maturity.