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Dynamic capabilities: what are they?
Abstract
This paper focuses on dynamic capabilities and, more generally, the resource-based view of the firm. We argue that dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making, and alliancing. They are neither vague nor tautological. Although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence, they have significant commonalities across firms (popularly termed ‘best practice’). This suggests that they are more homogeneous, fungible, equifinal, and substitutable than is usually assumed. In moderately dynamic markets, dynamic capabilities resemble the traditional conception of routines. They are detailed, analytic, stable processes with predictable outcomes. In contrast, in high-velocity markets, they are simple, highly experiential and fragile processes with unpredictable outcomes. Finally, well-known learning mechanisms guide the evolution of dynamic capabilities. In moderately dynamic markets, the evolutionary emphasis is on variation. In high-velocity markets, it is on selection. At the level of RBV, we conclude that traditional RBV misidentifies the locus of long-term competitive advantage in dynamic markets, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high-velocity markets. Copyright © 2000 John Wiley & Sons, Ltd.
... IDMCs represent the methods through which a firm utilises its resources to align with or even instigate market transformations (Barrales-Molina et al., 2014). In more detail, IDMCs describe the procedures by which a firm combines, modifies, acquires, and eliminates resources (Eisenhardt and Martin, 2022). Aligned with this, we adopted the definition of dynamic capabilities as activities that firms can use to acquire, combine, merge and reconfigure their resources and assets to achieve new competencies, products, and strategies to be competitive in the dynamic environment typical of international markets (Teece et al., 1997;Eisenhardt and Martin, 2022;Bargoni et al., 2023). ...
... In more detail, IDMCs describe the procedures by which a firm combines, modifies, acquires, and eliminates resources (Eisenhardt and Martin, 2022). Aligned with this, we adopted the definition of dynamic capabilities as activities that firms can use to acquire, combine, merge and reconfigure their resources and assets to achieve new competencies, products, and strategies to be competitive in the dynamic environment typical of international markets (Teece et al., 1997;Eisenhardt and Martin, 2022;Bargoni et al., 2023). In the context of this study, IDMCs are the high-level, cross-functional capabilities used by firms to utilise available resources to understand and attain the diverse needs of users better and faster than competitors (Day, 2011;Morgan et al., 2018). ...
... With the acceleration of digital transformation, the IDMCs of firms must be substantiated by their AI-enabled marketing capabilities, for example by utilising their actual digital assets and knowledge base to grow internationally (Scuotto et al., 2022;Manis and Madhavaaram, 2023). This is important, as it has been suggested that IDMCs can improve firms' performance in international markets (Morgan et al., 2018;Eisenhardt and Martin, 2022). ...
Purpose
This study aims to develop a theoretical framework that marketing practitioners and scholars can adopt to enhance their understanding of how firms can effectively deploy and use digital human avatars as part of their global digital marketing strategy. By doing so, we inform investors of ongoing digital transformations of marketing practices that will equip marketeers to provide scalable, tailored, reliable and relevant digital self-service interactions to users, consequently improving the user/customer experience.
Design/methodology/approach
Thematic analysis was used to discover factors to enable the successful implementation of digital human avatars, drawing on in-depth interviews with fourteen executives of digital human avatars developer companies worldwide and analysis of ten podcasts and webinars with artificial intelligence (AI) experts.
Findings
Digital human avatars revitalise the international dynamic marketing capabilities (IDMCs) of firms by integrating advanced technologies that transform user interactions, improve engagement and facilitate knowledge acquisition, dissemination and usage across various sectors and business units globally. This integration promotes a dynamic approach to international brands, customer relationships and marketing knowledge management capabilities, offering profound value to users and firms.
Research limitations/implications
Our first limitation is a lack of diversity in data sources. As digital human avatars are an emerging field, we had to limit our study to 14 experts in AI and 10 podcasts. While this method provides deep insights into the perspectives of those directly involved in the development and implementation of digital human avatars, it may not capture the views of end-users or consumers who interact with these avatars, which can be an avenue for further research. Our second limitation is the potential bias in the interpretation of our interview data and podcasts. This study’s approach to data analysis, where themes are derived from the data itself, carries a risk of subjective interpretation by the researchers. Future studies are encouraged to investigate the impact of digital human avatars across different organisational contexts and ecosystems, especially focusing on how these technologies are integrated and perceived in various international markets.
Practical implications
The novel framework has direct implications for innovators and marketing practitioners who aim to adopt digital human avatars in their marketing practices to enhance the effectiveness of international marketing strategies.
Social implications
The adoption of digital human avatars can alleviate loneliest elderly and vulnerable people by being a companion. The human-like characteristics can impact sense of presence and attachment.
Originality/value
The novelty of our study lies in exploring the characteristics of technologies and practical factors that maximise the successful adoption of digital human avatars. We advance and contribute to the emerging theory of avatar marketing, IDMCs and absorptive capacity by demonstrating how digital human avatars could be adopted as part of a firm’s global digital marketing strategy. We focus specifically on six dimensions: outcomes and benefits, enhancements and capabilities, applications and domains, future implications, foundational elements and challenges and considerations. This framework has direct implications for innovators and marketing practitioners who aim to adopt digital human avatars in their marketing practices to enhance the effectiveness of international marketing strategies.
... Dynamic capability theory is used to explain the process of corporate resource management to increase capabilities in order to adapt to environmental changes (Eisenhardt and Martin, 2000) [37]. Dynamic capability theory also refers to the corporate capability to generate and combine knowledge and resources from both internal and external sources (Teece, 2007) [30]. ...
... Dynamic capability theory is used to explain the process of corporate resource management to increase capabilities in order to adapt to environmental changes (Eisenhardt and Martin, 2000) [37]. Dynamic capability theory also refers to the corporate capability to generate and combine knowledge and resources from both internal and external sources (Teece, 2007) [30]. ...
... The first theoretical contribution is that, through innovation output factors, the favorable impact of R&D investment indirectly influences competitive advantage and assists in determining the role that innovation output plays in shaping Thailand's competitive advantage. The study findings indicate how utilizing the resources of an organization can improve its ability to adapt to a changing environment (Eisenhardt and Martin, 2000) [37]. The results can be used as a basis to explain the influence of R&D investment and innovation output in Thailand and other countries with similar environments to Thailand. ...
The study aims to examine the impact of research and development (R&D) investment (the antecedent) on competitive advantage (the consequence) for the innovation output of private firms in Thailand. The population of this study includes all private Thai firms which have registered with the Office of National Higher Education Science Research and Innovation Policy Council. Path analysis and factor confirmation, including correlation matrix, are used to test the mediator effect of innovation output on the relationship between R&D investment and firm performance competitive advantage. The research data are tested and analyzed by the structure equation model. The results reveal that R&D investment was not found to directly influence competitive advantage, while R&D investment indirectly affects competitive advantage through innovation output. The findings of this study demonstrate that innovative output plays a mediating role between R&D investment and competitive advantage. In addition, dynamic capability theory can be used to explain the influences of R&D investment and innovation output on competitive advantage for private firms in Thailand.
... This work is interesting because it considers the process of building dynamic capabilities according to the principle of recurrence. This idea can be found in the work of (Eisenhardt &Martin, 2000), who associate dynamic capabilities with recurrent processes. Taking up this concept, Winter (2003) shows that the dynamic capabilities are the outcome of conscious decision-making rather than improvisation. ...
... Some authors have subsequently developed Teece's definition because of the difficulty of putting it into practice. For example, Eisenhardt and Martin (2000) define it as "organizational and strategic routines through which firms achieve new resource configurations" (p.1107). Organizational processes are then envisaged as "a set of routines" (Grant, 1991, p. 122), (Nelson andWinter, 1982, p. 400). ...
... (1) recurrence (Winter, 2000;Altintas, 2015a;2015b), (2) stability of the process characterizing the CD (Zollo and Winter, 2002), (3) modification of the resource base (Teece, 2007) and (4) performance resulting from the implementation of the process (Eisenhardt &Martin, 2000). ...
In this study, we analyze the role of organizational routines in the construction of the diversification strategy of Cevital agro-industry. Studies on dynamic capabilities allow us to consider the latter as a response to the instability and dynamics of the environment. There is a multitude of definitions of dynamic capabilities in the literature. In this article, we have worked on the basis of the definition proposed by Teece because it goes beyond the definition of dynamic capabilities by the modification of resources and skills; it sets out the components that induce this modification. This work is based on a dual epistimological interpretativist and constructivist approach. The choice of methodology focused on the case method as a strategy for accessing reality. The information is obtained by triangulation between primary and secondary data. The primary data were subject to a thematic content analysis. We have been able to conclude that watch information; market research and the reinvestment of profits are recurrent routines that have enabled the construction of a dynamic capacity for vertical and horizontal diversification in the agri-food industry. 1794
... Strategic adaptability can reform organizations' capabilities with innovative ideas which cope with internal and external changes, which results in an effective and competitive resource [57,58]. Thus, adapting talent ideas, skills, learning, and behavioral flexibility of employees is essential to fulfill organizational environmental changes and problems in order to ensure organizations' functional flexibility [59,60]. ...
... The research model is developed based on the literature review and prior study's findings from different countries, sectors, and environments to assess the impact of HRM strategies (HRMS) on innovation (INN) [5,13,24,25], and to assess the impact of HRM strategies (HRMS) on strategic adaptability (SA) [36][37][38][39][40][41][42][43]50], and to assess the impact of strategic adaptability (SA) on innovation (INN) [58][59][60][61], and finally, to investigate the mediating role of the strategic adaptability (SA) between HRM strategies (HRMS) and innovation (INN) [26,39,42,[69][70][71][72][73]. To sum, by combining the positive associations, the researchers propose the following four hypotheses (H1, H2, H3, andH4). ...
... Moreover, the findings on (H2) indicate a positive significant effect between HRMS and strategic adaptability (SA), which is in constant with [26,[35][36][37][38][39]47,48,54]. Furthermore, the findings on (H3) indicate a positive significant effect between strategic adaptability (SA) and innovation (INN), which is in constant with [19,[57][58][59][60][61]. Additionally, the findings on (H4) indicate indirect partial relationship effect of strategic adaptability (SA) as a mediator between HRM strategies (HRMS) and innovation (INN), which is in constant with [39,68,71]. ...
Dynamic environmental changes continue to impact organizations’ performance and goals, prompting them to adapt and develop strategies that foster innovation continually. Thus, HRMS enables talented, retaining skilled, and innovative employees who contribute with creative ideas and creative problem-solving problems to enhance innovation practices in organizations. Therefore, the findings of previous studies are insufficient and considered as empirical evidence to investigate the research constructs relationship. This study aims to examine the gap in strategic adaptability via HRM strategies and innovation in Jordanian banks. The study employs data analysis and hypotheses testing, descriptive analysis approach, and (SEM) structural equation modeling through SPSS-24 and PLS-SEM-4 software. The research population includes 16 Jordanian banks, and a stratified sampling method conducted on 468 respondents resulted in 455 completed ones, the respondents are middle level managers and department heads. The findings reveal a positive significant impact of HRMS and innovation (INN), a significant positive impact of HRMS and strategic adaptability (SA), and a significant positive effect between strategic adaptability (SA) and innovation (INN). In addition, the findings indicate a partial indirect relationship effect between strategic adaptability (SA) via HRMS and innovation (INN). The conclusion shows that the bank’s performance is highly improved by strategic adaptability, which allows the bank to quickly respond to local and global environmental changes, challenges, crises, and market trends, and provides valuable theoretical and practical insights regarding the role of strategic adaptability (SA) relationship between HRM strategies (HRMS) and innovation (INN). These findings are relevant to the global banking sector due to the similar operating conditions and environments. Moreover, a better understanding of these relationships by practitioners and researchers for future studies in different environments, and sectors.
... This study also contributes to the literature on dynamic capabilities (DCs) (Teece et al., 1990;see Schilke et al., 2018 for a review). Some studies propose that DCs -which are reflected in "best practice" (Eisenhardt and Martin, 2000) -underpin key firm activities such as strategic planning (Salvato and Vassolo, 2018). Other studies propose the reverse (Ara� ujo et al., 2022) while yet others propose that planning complements dynamic capabilities (Ojha et al., 2020). ...
... Still others suggest various other relationships such as equivalence or mediation (see Ara� ujo et al., 2022 for a review). Since specific DCs "exhibit common features that are associated with effective processes across firms" or, in common terms, represent "best practices" (Eisenhardt andMartin, 2000, p. 1108), examining whether the most commonly recommended best practices actually improve the planning-performance relationship may provide some preliminary evidence regarding the relations between DCs and planning. ...
... At the same time, the results highlight the paradoxical nature of DCs. Previous studies note that DCs enable both stability and change (Eisenhardt and Martin, 2000). In the form of best practices, DCs enable firms to conduct stable routines such as planning processes; the outcome of planning, however, may be change. ...
Purpose
This study builds on the practice-based view of strategy to examine whether the three most commonly prescribed strategic planning best practices – scanning, communication openness and participative decision-making – actually strengthen the planning-performance relationship.
Design/methodology/approach
The study uses objective performance data and data from a survey of 159 managers from 43 publicly listed US firms to test the hypothesized moderation effects of best practices. The analysis uses hierarchical regression.
Findings
At high levels of planning, firms high in participative decision-making and low in openness and scanning outperform firms low in participation and high in openness and scanning. The results reverse at low levels of planning.
Research limitations/implications
This is a cross-sectional study with a small sample. The response rate was modest; hence, the results should be treated as exploratory. Since the sample is not random, the results may not be generalizable.
Practical implications
While managers may find a best practice label helpful, the best practices implemented within a firm need to fit existing planning processes in order to increase planning effectiveness.
Originality/value
While academic scholarship sometimes struggles with generating actionable prescriptions for improving strategic planning, recommendations by practitioners lack empirical backing. This study builds on the practice-based view of strategy to bridge this gap. These results are consistent with both academic and practitioner literature on strategic planning in finding that the best practices of scanning, openness and participative decision-making strengthen the planning-performance relationship at different planning levels, possibly by underpinning the firm’s dynamic capabilities.
... Dynamic capabilities refer to a "firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments" (Teece et al., 1997, p. 516). This concept originates from the literature on strategic management and organizational theory and emphasizes the need for organizations to adapt, innovate, and transform in response to the ever-changing business environment (Eisenhardt & Martin, 2000;Teece, 2007;Teece et al., 1997). Dynamic capabilities enable firms to modify their resource base, acquire and dispose of resources, integrate them together, and recombine them to create new value-creating strategies (Eisenhardt & Martin, 2000;Winter, 2003). ...
... This concept originates from the literature on strategic management and organizational theory and emphasizes the need for organizations to adapt, innovate, and transform in response to the ever-changing business environment (Eisenhardt & Martin, 2000;Teece, 2007;Teece et al., 1997). Dynamic capabilities enable firms to modify their resource base, acquire and dispose of resources, integrate them together, and recombine them to create new value-creating strategies (Eisenhardt & Martin, 2000;Winter, 2003). These capabilities are responsible for creating, evolving, and recombining other resources into new sources of competitive advantage (Eisenhardt & Martin, 2000;Teece et al., 1997). ...
... Dynamic capabilities enable firms to modify their resource base, acquire and dispose of resources, integrate them together, and recombine them to create new value-creating strategies (Eisenhardt & Martin, 2000;Winter, 2003). These capabilities are responsible for creating, evolving, and recombining other resources into new sources of competitive advantage (Eisenhardt & Martin, 2000;Teece et al., 1997). As such, dynamic capabilities contrast the static view of firm resources and capabilities grounded in the firm's resource-based view (Barney, 1991;Wernerfelt, 1984). ...
This study examines the motivations for businesses to integrate sustainability into their business models (BMs) and how they can innovate those models to become more sustainable. The concept of business model innovation for sustainability (BMIfS) has emerged as a viable means to help companies innovate sustainable business models (SBMs). However, it remains a "black box" for many companies, and a design-implementation gap has been identified. Utilizing an embedded case study approach, we conducted 49 interviews, observed three meetings, and collected over 1000 pages of archival data. The findings offer practical strategies for BMIfS, clarify the integration between business model innovation and SBM concepts, and provide a framework for adding new SBMs to an existing business portfolio. This research is of interest to scholars and business practitioners involved in integrating sustainability into their business strategies for building a sustainable future.
... Fifth, we assume entrepreneurs and their ventures operate in dynamic (Baron & Tang, 2011;Hmieleski & Ensley, 2007) and/or high-velocity Ott & Eisenhardt, 2020) environments such that the ventures need to adapt to maintain a fit with their environments. These environmental conditions emphasize the importance of changing capabilities (Eisenhardt & Martin, 2000;Zahra et al., 2006) and the ongoing pursuit of growth opportunities (Baron & Tang, 2011;Plummer, Haynie, & Godesiabois, 2007). ...
... Ventures with more robust capabilities are better positioned to create value for customers (Pryor et al., 2016), survive (Tatikonda et al., 2013), and achieve success (Gaimon & Bailey, 2013). In contrast to stable capabilities, dynamic capabilities are "the organizational and strategic routines by which firms achieve new resource configurations as markets emerge, collide, split, evolve, and die" (Eisenhardt & Martin, 2000: 1107. These dynamic capabilities are essential for venture growth in highly dynamic (Schilke, 2014;Zahra et al., 2006) Entrepreneurs' listening behaviors can become part of their ventures' routines, capabilities, and dynamic capabilities. ...
... As their listening capability facilitates the noticing, encoding, and interpreting stakeholder information, these ventures are well situated to use that information to make strategic changes, including changes to their capabilities. For example, listening may yield new information, which serves as a source of new knowledge, and this new knowledge can build or otherwise change ventures' capabilities (Eisenhardt & Martin, 2000;Hodgkinson & Healey, 2011). Furthermore, ventures' listening can provide stakeholder information that improves the ventures' listening capability. ...
While we understand the importance of entrepreneurs listening to stakeholders, we lack a sufficient theory-driven understanding of why some entrepreneurs and their ventures can listen to their stakeholders more effectively than others. We offer a listening model of venture growth based on listening theories and the literatures on new ventures and capability development. Listening is initially facilitated by entrepreneurs’ cognitive and behavioral processes, but continued venture growth creates a paradox for entrepreneurs. Listening to stakeholders may also deplete entrepreneurs’ personal resources, diminishing their listening capacity. This paradox can be overcome by generating their ventures’ listening capability—behavioral routines and attention structures for listening—enabling them to acquire and interpret quality information from stakeholders more effectively to build or adapt the capabilities necessary for venture growth. The ventures’ listening capability acts as a dynamic capability, which itself can be dynamic. This listening model of venture growth contributes to the entrepreneurship literature on stakeholders, entrepreneurs’ abilities, and ventures’ capabilities and dynamic capabilities.
... A dinâmica dos recursos e capacidades representa um elemento importante da estratégia para compreender a vantagem competitiva. As capacidades dinâmicas sozinhas não têm um impacto direto na vantagem competitiva (EISENHARDT; MARTIN, 2000). No modelo aqui desenvolvido, elas dependem da integração com a estratégia como prática e a ambidestria organizacional. ...
... No modelo aqui desenvolvido, elas dependem da integração com a estratégia como prática e a ambidestria organizacional. As variáveis que podem intermediar esse relacionamento são: ativos intangíveis e tangíveis aprimorados, recursos irreplicáveis, capacidade de inovação e rotinas organizacionais que tendem a alterar a base de recursos existente (EISENHARDT; MARTIN, 2000;TEECE, 2007;TEECE et al., 1997) e são utilizadas para desenvolver e operacionalizar uma estratégia. ...
As teorias das capacidades dinâmicas, estratégia como prática e ambidestria organizacional têm na visão dinâmica da estratégia um elemento comum, pois suas categorias essenciais apresentam uma vocação conectiva, complementar e integrativa. Esta pesquisa apresenta uma proposta integrando as teorias das capacidades dinâmicas, da estratégia como prática e da ambidestria organizacional. Este é um ensaio teórico, desenvolvido com abordagem qualitativa, com uso da técnica de análise de conteúdo, com categorias predeterminadas, mas apresentando procedimentos indutivos no desenvolvimento do modelo. Nas bases de dados ScienceDirect, Spell e Capes não foram encontradas publicações abordando a relação simultânea entre essas três teorias. A relevância teórica deste ensaio está na visão dinâmica da estratégia em uma perspectiva inovadora, identificando uma relação complementar entre os elementos epistemológicos das três teorias. A relevância prática é a possibilidade de utilização do modelo teórico analítico para a realização de pesquisas empíricas. Como resultado, foi apresentado um framework integrado que permite operacionalizar a intersecção entre as três abordagens. A proposição deste framework amplia a visão da perspectiva dinâmica da estratégia.
... The elevation of DCs to an upper status, over ordinary capabilities (with a non-dynamic nature) arose from their inner ability to recalibrate other capabilities, thus, being perceived as a 'holy grail' for the formation of competitive-gains, in turn, stretching the competitive boundaries of the firm, endowing it with an added strategic flexibility, and inherently, contributing to better performance outputs. Hence other definitions of a DC encompassed also the agility to respond and adapt to the changing market conditions (Helfat et al., 2007;Adner and Helfat, 2003;Eisenhardt and Martin, 2000;Teece et al., 1997). This is manifested in the definition below of the dominant approach (or Teecian) in this field: "The firm's ability to integrate, build and reconfigure internal and external competences to address rapidly changing environments" [Teece et al., (1997), p.516] ...
... In turn, a myriad of other definitions emerged, some rather focused on new attributes (beyond integration, building or reconfiguration), giving rise to a scenery of conceptual heterogeneity, scope-extension, and subsequently, to the opening of a new research avenue, the DCV various scholars explored new definitions with focus on morphology and rather centred on motion attributes while others focused on their advantages or motion benefits. For instance, some conceptualised it as the bundling/integration, and inherently, their ability to reconfiguration or renewal of them (Kurtmollaiev, 2020;McKelvie and Davidson, 2009;Andreeva and Chaika, 2006;Teece, Pisano and Shuen, 1997;); generating changes in operating routines and operational effectiveness practices (Bygdas, 2006;Zollo and Winter, 2002); governance of ordinary capabilities (Al-Aali and Teece, 2014); problem-solving (Li and Liu, 2014;Teece, 2009;Barreto, 2010); seizing opportunities (Teece, 2007); rapid innovation (Collis, 1994); or responding to change (Helfat et al., 2007;Wang and Ahmed, 2007;Eisenhardt and Martin, 2000). ...
... There are two different schools of thought in dynamic capabilities research grounded in evolutionary elements [22]. Eisenhardt and Martin [23] argue that dynamic capabilities consist of specific processes; therefore, best practices can be identified at an industry or firm level [23]. On the contrary, Teece, Pisano, and Shuen [21] focus on the individual firm level with the role of routines, individual characteristics, and behaviours in achieving variation and adoption as outcomes in disruptive and rapidly changing environments [22]. ...
... There are two different schools of thought in dynamic capabilities research grounded in evolutionary elements [22]. Eisenhardt and Martin [23] argue that dynamic capabilities consist of specific processes; therefore, best practices can be identified at an industry or firm level [23]. On the contrary, Teece, Pisano, and Shuen [21] focus on the individual firm level with the role of routines, individual characteristics, and behaviours in achieving variation and adoption as outcomes in disruptive and rapidly changing environments [22]. ...
Organisations need dynamic capabilities in the ongoing digital transformation to recon-figure knowledge and learning. There is a need to define new concepts and explain mechanisms of relevant factors to build dynamic capabilities. Organisations acting in healthcare experience a dil-emmatic situation. New digital processes and business models are promising benefits for cost-containment measures and, improved patient-centric care, offeringand digital services. However, investments are needed to benefit. The critical question is the following: How can individual actors in healthcare be motivated to engage in this transformational process to build and reconfigure relevant competences and establish new learning routines? Founded on the essence of the existing literature, we assume sustained learning asto be a relevant dynamic capability to seize and sense competences and reconfigure human capital. This paper answers the call for deeper investigations into the mechanisms in new digitally transformed environments and sectors focussing less on performance and competitive advantages, like public administration or the healthcare sector. Based on previous research , validated in qualitative interviews and quantitative testing, we define the new construct of sustained learning with its subdimensions. By providing measures, we build the groundgrounds for further quantitative research.
... Transitioning to a circular economy involves adopting parameters for incorporating processes and solutions that effectively transform the production model (Smol et al., 2017). In this scenario, implementing process innovations is essential because constant changes in the business environment require continuous adaptation to adjust to environmental conditions (Eisenhardt & Martin, 2000), promoting increased efficiency and effectiveness in production processes (Tang et al., 2013). Thus, process innovation meets specific needs to continually improve existing processes and structures, ensuring that scarce resources are utilized in the best possible way (Zhao, 2005). ...
... Thus, their innovation processes require adaptation to ensure proper alignment with environmental conditions (Eisenhardt & Martin, 2000). Although this change is inevitable and normal, continuous adaptation is necessary, which occasionally leads to the requirement of significant adjustments (Naveh, 2005). ...
Objetivo: verificar a relação entre as práticas de economia circular (EC) e a inovação em processos na indústria têxtil. Metodologia: o estudo utilizou um questionário composto pelas dimensões inovação em processos e EC, aplicado em uma amostra de 135 empresas da indústria têxtil. A análise dos dados foi realizada pela Modelagem de Equações Estruturais (MEE). Descobertas: evidencia-se uma relação positiva entre as práticas de EC com a inovação em processos, os resultados apontam uma relação positiva. Os resultados mostram que as indústrias têxteis pesquisadas estão em fase inicial de implementação de suas práticas de EC. Limitação da pesquisa: utilização de uma amostra não probabilística, desse modo, inviabilizando a geração dos resultados obtidos e pela abordagem apenas da inovação em processo. Implicações teóricas: desenvolvimento e validação psicométrica das questões que norteiam o estudo da aplicação da economia circular, por meio do modelo ReSOLVE, bem como, a integração com o constructo de inovação em processos. Implicações sociais: ao aplicar os princípios da economia circular por meio do modelo ReSOLVE há otimização da produção e, aliado ao desenvolvimento tecnológico, as indústrias têxteis obtêm melhores resultados de inovação em processos. Implicações gerenciais: as evidências reais da aplicação do modelo ReSOLVE mostram a relação de causa e efeito entre a economia circular e a inovação em processos. Originalidade/valor: a relação teórica entre EC e inovação e processo de validação psicométrica das questões que norteiam o estudo da aplicação da EC, por meio do modelo ReSOLVE.
... Resources include tangible and intangible assets and capabilities, i.e., the firm's capacity to effectively use its resources to obtain its purposes (Barney and Clark, 2009). RBT pays attention to idiosyncratic firm attributes (Eisenhardt & Martin, 2000). As a result, a company's business plan should be focused on its unique capabilities and resources. ...
... The importance of a firm's capabilities and resources and will support to drive superior performance if the firm can suitably react to its external environment (Barney & Clark, 2009). The firm's capabilities and resources are discriminated by their value, non-substitutability and inimitable nature (Eisenhardt & Martin, 2000). RBT has been applied in recent years by researchers to show the connection between firm resources and capabilities and performance (Feng et al., 2017). ...
The objective of this study was to examine the relationship between knowledge management capability, intellectual capital and business performance through the role of innovation capabilities in tourism companies in Ho Chi Minh City, Vietnam. Especially this study bricks of building determinants of business performance as well as knowledge management capability and intellectual capital for future consideration. The study was conducted by surveying 415 managers who are members of the Board of Directors who directly run tourism companies in Ho Chi Minh City and data was collected from October 2022 to May 2023. Inheriting the researches by Waseem Barkat, Riaz Ahmed, Loo-See Beh & Adeel Ahmed (2018); Ali Junaid Khan, Muhammad Sajid Tufail, Asad Ali (2021); & Aboobucker Ilmudeen, Yukun Bao, Ibraheem Mubarak Alharbi & Zubair Nawaz (2021), the authors used confirmatory factor analysis (CFA) to determine the most common observed variables of each factor. Research findings indicated that knowledge management capability, intellectual capital and innovation capability impacted business performance and confirmed the mediating role of innovation capability towards previous variables by the SEM model. From the above results, the study has suggested managerial implications to further improve the investment in developing knowledge management capability, intellectual capital elements and innovation capacity to achieve high business results in tourism enterprises in Ho Chi Minh City, Vietnam in the future.
... SHCA and generative capability both stand out as dynamic capabilities and are especially suited for new ventures within the broader context of dynamic capabilities. These capabilities are a subset of organizational processes that facilitate sustained advantage through adaptation to changing market conditions (Eisenhardt and Martin, 2000). The resource configurations that produce value for these endeavors are greatly influenced by these dynamic capacities (Samson and Bhanugopan, 2022). ...
... This study has supported evidence that it is integral for new ventures to concentrate on SHCA and that it should be a part of their venture for better and improved performance. These findings also support the scholars' arguments that dynamic capabilities can be utilized to strategically enhance the value of new ventures through understanding significance of critical factors (Eisenhardt and Martin, 2000). Through SHCA, the founders can identify key performance indicators that are relevant to their venture and then align the analytics to the KPIs to enhance performance. ...
Purpose
Strategic human capital analytics (SHCA) has proven to be promising for improved organizational performance; however, research remains unclear about its influence on new venture performance. Building on the dynamic capabilities view (DCV), this study investigates the relationship between SHCA and new venture performance via generative capabilities with the moderating role of dual nationality founding members.
Design/methodology/approach
A quantitative research study has been carried out. Data was collected via a survey form from 313 founding members of new tech ventures and analyzed using Hayes process macro model.
Findings
Research results show that the generative capability mediates the linkages between SHCA and new venture performance. Whereas, the dual nationality of a founding member strengthens the linkages between SHCA and generative capability due to their diverse perspective, larger networks, cognitive flexibility, and resilience, which are important for generative capabilities and SHCA.
Originality/value
The originality of these results lies in the exploration of the linkages between dual nationality and generative capability, as well as the special elements, such as diverse perspectives, larger networks, cognitive flexibility, and resilience, which are highlighted as possible advantages of dual nationality in the context of SHCA and new venture performance.
... After identification of the necessity, the goal should be clarified based on these necessities. Variety of needs and goals should be taken in to consideration optimally in business management (Drucker 2012). In the idea phase, some of thinking techniques can be applied to make the working process more prolific; brainstorming, mind mapping, design thinking, maker thinking, destroy our business, design sprint, hackathons and the magic question, can be some of these methods to be applied based on the product/service planned to be developed. ...
... A controlling system to monitor these resources and their productivity should also be established. Resources include the abilities or 'competencies' that are fundamental to the competitive advantage of a firm (Eisenhardt-Martin 2000, p. 1107. ...
[Andreas Kohne: Business Development – Processes, Methods and Tools Publisher: Springer Vieweg Wiesbaden, Softcover ISBN: 978-3-658-38843-0, Published: 01 Dec-ember 2022, eBook ISBN: 978-3-658-38844-7, Published: 30 November 2022] Business development has been in the center of many researches and prac-tices about business management and business operations for decades and many company experiences in variety of industries have revealed so far that creative and productive (innovative) design and solutions found for goods and services are important factors for reaching planned financial targets. Business development concept is also important for entire economic and social life if considered in total from the aspect of business management culture. Business development is a process of continues planing, producing, controlling and feedback, realized via agile acting approach with speciali-zed mindset, skillset and toolset, in relate to the products to improve them for the client needs and use. With a broad management perspective in ten chapters, the author, Dr. Andrea Kohne, is explaining the business develop-ment concepts and processes in the book titled „Business Development - Processes, Methods and Tools”.
... In reasonably dynamic markets, market agility relies heavily on existing knowledge. In contrast, in high-velocity markets where change is nonlinear and less foreseeable, more prompt and situational new knowledge may be required (Eisenhardt and Martin, 2000). ...
... Finally, as previous research has identified the dependence of dynamic capabilities on knowledge of varying levels of market dynamism (Eisenhardt and Martin, 2000), future research could explore the impact of market dynamism in the framework of this research. For example, one could examine the dimensionality of the knowledge and marketing agility constructs under different market dynamism levels and the strength of the relationship between the knowledge constructs and marketing agility. ...
Purpose
Against the backdrop of dynamic capabilities theory, this research examines the relationship between knowledge and marketing agility in the context of big data marketing analytics (BDMA). The relevant knowledge constructs under investigation are business/marketing, relational, technological and technology management. The level of BDMA deployment is also examined to determine its impact on these relationships.
Design/methodology/approach
A survey was used to gather data from marketing professionals working in firms with at least limited experience in big data (BD) deployment in the United States and Canada. The results were analyzed using partial least squares structural equation modeling (PLS-SEM) with a sample of 236 responses.
Findings
The results indicate that marketing professionals perceived the knowledge and marketing agility constructs differently than the previous research on IT professionals. The knowledge construct was perceived as a two-dimensional construct consisting of broad knowledge skills and specific technical knowledge skills. Only the broad knowledge skills construct was significantly related to the marketing agility construct, with progressively high predictive validity and relevance when the deployment of BDMA progresses.
Originality/value
The paper's originality stems from the different conceptualizations of the knowledge and marketing agility constructs due to the use of a novel sample of marketing professionals in this study. The research also contributes to the dynamic capabilities theory by emphasizing the critical role of vital knowledge when aiming to enhance marketing agility.
... The more entrepreneurial firms engage in sensing and reconfiguring, the more their dynamic capabilities are strengthened and incorporated into organizational memory (George, 2005;Wilden et al., 2019;Wilden & Gudergan, 2015). Further, dynamic capabilities assist companies to adjust their strategies to changing environmental conditions and to improve their operating routines (Ambrosini et al., 2009;Eisenhardt & Martin, 2000;Wilhelm et al., 2015;Zollo & Winter, 2002). Thus, dynamic capabilities, through their sensing and reconfiguring dimensions, assist in strategy formation. ...
... Dynamic capabilities facilitate strategic decision-making (Thomas & Ambrosini, 2015) but may demonstrate different levels of influence on firm strategy under different levels of market turbulence and competitive intensity (Wang et al., 2015;Zahra et al., 2006). Eisenhardt and Martin (2000) argue that in highly turbulent markets, efficient business models are unclear, and firms survive by focusing on the creation of situation-specific knowledge (Sull & Eisenhardt, 2015). In this respect, firms that internationalize their operations are expected to use dynamic capabilities to stimulate exploration (Frank et al., 2017). ...
International entrepreneurial orientation (IEO) and its potential impact on business performance in foreign markets has attracted significant research attention in recent years. However, few studies have attempted to examine how, and under what conditions, IEO results in enhanced performance for international firms. The present study aims to contribute towards filling this gap by investigating the internal mechanism through which IEO influences performance, considering the mediating effects of dynamic capabilities and international business strategy. Using data collected from 258 small‐ and medium‐sized enterprises (SMEs) that engage in international business activities, we find that IEO contributes to the frequent use of sensing and reconfiguring, which in turn fosters international strategy comprehensiveness and implementation speed. Our results also indicate that international strategy comprehensiveness and implementation speed have a positive impact on international market performance. These findings suggest that research on the impact of IEO on performance should explore how it influences firms' dynamic capabilities and examine the effect of these dynamic capabilities on business strategy. For entrepreneurs and managers of emerging market SMEs, our results indicate that IEO should guide international expansion efforts.
... DCV is an extension of RBV theory, which attempts to integrate and acknowledge the utilization of environmental issues related to the surroundings for the purpose of achieving sustainable performance in a volatile business environment [26][27][28]. We specifically draw on DCV and RBV theory to address the study questions by developing and testing a hypothesized concept. ...
... As IT sectors are dealing with very high environmental dynamism, they therefore need to adapt through DT and innovation by DLP. Eisenhardt and Martin [27] expressed that the form of dynamism is different according to the perspective; here, the investigation focuses on what moderating roles ED plays between DLP and DIN. ...
Citation: Mollah, M.A.; Amin, M.B.; Debnath, G.C.; Hosain, M.S.; Rahaman, M.A.; Abdullah, M. Nexus among Digital Leadership, Digital Transformation, and Digital Innovation for Sustainable Financial Performance: Revealing the Influence of Environmental Dynamism. Sustainability 2024, 16, 8023. https://
... The workforce engaged in business constitutes a vital and important asset for the organization, which reflects positively on its efforts for the benefit of the organization. (27) Management capability Eisenhardt and Martin (2000) recommended that companies require and need to employ their managers for their ability to design business and organizational strategies that lead organizations properly and innovatively to get more distinctive performance, which reflects on the growth in performance and competitiveness of the organization. In the same vein, managers with unique business empowerment capabilities are in a much better position than other managers to build, develop, and integrate the organization's resources and competencies. ...
... In the same vein, managers with unique business empowerment capabilities are in a much better position than other managers to build, develop, and integrate the organization's resources and competencies. (28,29) The management capacity defines the effectiveness and ability of the management in applying its skills to deal with threats, changes, and opportunities to develop and motivate employees while optimizing the use of organized resources to work on innovation and achieving the highest levels of performance). (30) In the same vein, these capabilities, which rely on high-level management skills, give diverse senior management teams' face and greater opportunities for a dynamic environment, creating a sound environment capable of maintaining competitive advantages to improve organizational performance. ...
Introduction:The objective of this study is to make active interaction among actual and theoretical outcomes of the view of 100 medical staff and medical supervisors of the university hospital and to study and analyze the effect of important parameters (quality information, employee trust, employee engagement, and management capability) on the hospital performance using the proposed mathematical model. Methods:Primary data were collected from the highest-level medical job position in a hospital (medical doctors, head of the medical department, and medical supervisors). Using convenient sampling, the proposed mathematical model represents the input parameters as information quality, employee trust, employee engagement, and management capability, and output parameters for hospital performance dimensions as output. Results:The identification system depends on the actual outcomes to evaluate the effects of information quality (IQ), employee trust (ET), employee engagement (EM), and management capability (MC) against hospital performance were 60.032%, 43.428%, 78.186%, and 62.817%, respectively. Conclusions:The derived mathematical model has a high accuracy to represent all the active parameters of the system and optimize the conditions to produce high outcomes
... The dynamic capabilities perspective (Teece, et al. 1997), that centers on the specific competencies that enable firms to continuously adjust their strategies to the changes in their respective environments, is highly pertinent to our research problem. Pinpointing the dynamic capabilities associated with environmental uncertainty is important, as they are considered a puissant source for the firms to draw a sustained competitive advantage through ensuring strategic alignment/fit (Haarhaus and Liening, 2020;Eisenhardt and Martin, 2000). The dynamic capability of a firm is regarded as an organizational capability to resolve problems, scan opportunities, and mitigate threats through recreating resources and capabilities, in order to remain relevant and competitive in a turbulent environment through knowledge sharing (Barreto 2010;Di Stefano, et al. 2010;Rungsithong and Meyer, 2020). ...
... Firms' dynamic capability is considered as an institutional capability to deal with challenges, identify opportunities, and minimize potential threats through an amalgamation of resources, capabilities and/or competencies, to secure at least a competitive parity, ideally an advantage (Barreto, 2010;Di Stefano, et al., 2010;Rungsithong & Meyer, 2020). Enumerating dynamic capabilities strapped with EU is crucial, as being a noteworthy source of a sustained competitive advantage (Haarhaus & Liening, 2020;Eisenhardt & Martin, 2000). This study primarily focuses upon investigating the efficacy of SCF (as a dynamic capability) covering the whole range of value chain activities to yield superior FP under varying levels of EU and TC. Figure 1 presents a detailed outlook of our theoretical framework hypothesizing an impact of EU on FP mediated through SCF and moderated by technological complexity (hereafter TC). ...
Whereas the general undertone of environmental uncertainty might feel minacious, it is not always an effing contingency. It might at times lead to the prudent concurrences like supply chain flexibility incrementing. While making appeals to the contingency theory, strategic alignment theory, and the dynamic capability view, this paper elaborates upon the instrumentality of three key facets of supply chain flexibility in enabling firms to secure the much-needed strategic fit in the face of an ever-accelerating environmental uncertainty, to keep performing well. A regression-based approach involving a sample of 280 Thai firms reveals that environmental uncertainty flickers the downstream, system and upstream types of supply chain flexibility that significantly mediate the environmental uncertainty-firm performance association. It has also been found that mediating role of these three constituents of supply chain flexibility swells with rising levels of technological complexity. The paper not enriches existing body of knowledge by exploring the performance-enhancing effects of different forms of supply chain flexibility under varying permutations of technological complexity, but also offers some useful insights on how supply chain flexibility, as a noticeable dynamic capability, could be modulated to yield an effective adaptive response to the organizational crises stemming from environmental uncertainties.
... DCV is an extension of RBV theory, which attempts to integrate and acknowledge the utilization of environmental issues related to the surroundings for the purpose of achieving sustainable performance in a volatile business environment [26][27][28]. We specifically draw on DCV and RBV theory to address the study questions by developing and testing a hypothesized concept. ...
... As IT sectors are dealing with very high environmental dynamism, they therefore need to adapt through DT and innovation by DLP. Eisenhardt and Martin [27] expressed that the form of dynamism is different according to the perspective; here, the investigation focuses on what moderating roles ED plays between DLP and DIN. ...
In the era of digitalization, the role of IT firms and the capabilities of digital leadership for driving digital transformation and managing environmental dynamism for the proliferation of digital innovation and organizational performance for sustainability are still scant, producing a knowledge gap. To fill this gap, this study aims to investigate the role of digital leadership in enhancing organizational performance, with the mediating impact of digital transformation and digital innovation, and the moderating role of environmental dynamism in the relationship between digital transformation and innovation. To investigate the conceptual model, we used survey data of 416 responses from small, medium, and large IT organizations in Bangladesh and deployed the AMOS 24 package software for the analysis of structural equation modeling (SEM). The results showed that digital leadership has a significant impact on digital transformation, digital innovation, and organizational performance. Digital innovation partially mediates the relationship between digital leadership and organizational performance. Although environmental dynamism has no significant effect in relation to digital leadership and innovation, it has an indirect influence on the structural model. The results from before and after moderation proved that environmental dynamism might not have a significant moderating effect on relationships, but it has significant power to change other interrelationships and hamper organizational sustainability.
... Moreover, our study reveals that Thai family businesses often depend on thirdparty providers for developing digital capabilities, which suggests a reliance on external resources to navigate the path of digital transformation. Our finding is in line with the resource-based view, advocating that firms can harness external resources to circumvent internal limitations and expedite their digital transformation endeavors (Eisenhardt & Martin, 2000;Wernerfelt, 1984). However, the lack of a supportive innovation ecosystem for family firms indicates a significant void in enabling knowledge exchange and capacity enhancement, which are pivotal for the sustainability of digital transformation (Cohen & Levinthal, 1990). ...
... Second, in terms of the Resource-Based View (RBV) and external resources, the strategic reliance on third-party providers for digital capabilities, particularly in B2B family firms, underscores a nuanced understanding of the RBV. Our study Wernerfelt's (1984) and Eisenhardt and Martin's (2000) conceptualizations by demonstrating that external resources can be pivotal for family firms lacking inhouse digital expertise. It showcases the RBV's versatility in addressing the competitive advantages through external assets, particularly in scenarios where internal resources are insufficient or inadequately aligned with the demands of digital innovation. ...
With the digital technologies diffusion, low-medium technology firms have been pushed to advance their dynamic capabilities. Through an exploratory multiple-case study, we analyze four Thai family firms assessing their preparedness in pursuing a digital transformation journey and their ability to improve dynamic capabilities. The study shows that LMT firms are in the early stage of their digital transformation, which is led by being part of a global value chain, serving exigent consumers, and imitating startups. Thai firms revitalize business models, while optimizing operations. They build dynamic capabilities through the help of third-party providers prioritizing social media marketing and digital marketing, with a general awareness of environmental, societal, and governance trends. Overall, family firms are still reluctant to pursue strategic agility and rapid prototyping. Thus, in the absence of an innovation ecosystem supporting family firms, it is harder to augment their absorptive capacity and redesign the internal structure of the organization.
... We followed the suggested process of Gioia methods (Braun & Clarke, 2006;Gioia, Corley, & Hamilton, 2013), driving the information distil and insights interpretation of the interview data and other secondary data from the artisan entrepreneurial ventures (Eisenhardt & Martin, 2000;Eisenhardt & Graebner, 2007). As the first step, we assembled all 327-page data in MAXQDA and analysed data extracts with "open coding" individually, in an effort to minimize prior hypotheses and get as closer informants' viewpoints as possible. ...
Our exploratory study aims to investigate the identity tension in the growth and artistic logic that artisan encounters along with their development. We draw on primary and secondary data from 11 artisan entrepreneurs. Our results reveal sources from hybrid organizational dynamics and socio-cultural dynamics that contribute to identity tensions in artisan venture growth. Specifically, we find four sources derived from the sociocultural context, including cultural elements as branding, hybrid social expectation, socio-culture positioning in oversea markets, and external influence in community development. We also identified four sources from organisational identity and individual identity of entrepreneur perspective, including local embeddedness and expanding divergence, integrating artistic and commercial logics, customisation with customer needs, entrepreneur personal identity and brand identity. We elaborate on each source in the following texts. The findings from the current literature on identity tensions of venturing growth, artisan venture hybridity, and increasing studies on artisans.
... The notion of ''complementary assets'' is a significant element of capabilities-based theory, denoting the essential resources and capabilities necessary for the complete actualization of a given capability. For example, possessing a cutting-edge technology may not be enough to generate a sustained competitive advantage, as it also requires complementary assets such as proficient personnel, effective organizational structures, and supportive culture (Eisenhardt & Martin, 2000). Subsequently, a multitude of studies have further expanded the capabilities-based theory and explored its implications in various contexts (Badrinarayanan et al., 2022;Prasad et al., 2010;Trainor, 2012). ...
The aim of this research is to examine the factors that affect the digital transformation (DT) adoption in small and medium-sized enterprises (SMEs) in Danang, Vietnam, using the Technology-Organization-Environment (TOE) framework and PLS-SEM approach. Notwithstanding the growing attention towards the adoption of DT, there is a dearth of comprehensive research that examines the combined impact of environmental, organizational, and technological factors on DT adoption within SMEs. Therefore, this study aims to fill this gap by building upon the existing literature to provide quantitative evidence on the adoption of DT in SMEs. The findings of our study indicate that implementing DT in SMEs is impacted by a confluence of factors, including environmental, organizational, and technological considerations. Specifically, technological factors such as cybersecurity and IT integration capabilities, environmental factors such as clients and partnerships, and organizational capabilities such as top management support and governance, have a significant positive impact on DT adoption. The study also uncovers that technological factors play a mediating role in the relationship between organizational and environmental factors in the adoption of DT by SMEs. The present study enhances the existing knowledge on the adoption of DT in SMEs by conducting a thorough examination of the factors that affect DT adoption. The study underscores the significance of considering both technical and organizational factors while executing DT initiatives and identifies potential areas for further investigation.
... Furthermore, a large part of literature focuses mainly on material and tangible mechanisms of dynamic capabilities such as resources availability (Eisenhardt and Martin 2000), formal procedures (Laaksonen and Peltoniemi 2018; Prange and Verdier 2011) and the implementation of new business models (Laaksonen and Peltoniemi 2018). However, other intangible aspects such as OC are still overlooked (Naslund 2004, Rhee andMoon 2009) despite the existence of several studies on the instrumental role of OC as driver for successful strategic transformation and adaptation (Porter 2019;Wu et al. 2019). ...
This study investigates the influence of organisational culture (OC) on supply chain (SC) readiness and SC responsiveness following the COVID-19 outbreak, as well as the moderation of disruption severity on those relationships. A survey was conducted in 2021 on French organisations, yielding 312 valid answers. Partial least squares structural equation modelling approach and multi-group analysis (MGA) are employed for the analysis. The results highlight
the positive and significant impact of OC on both of SC readiness and SC responsiveness. Specifically, clan and market cultures affect SC readiness, whereas SC responsiveness is influenced
by hierarchy as well as clan and market cultures. The moderating role of disruption severity was not found to be significant. However, the MGA revealed that organisations under low severity disruption had a bigger effect of OC on their SC responsiveness. This study is one of the few studies that examines the impact of OC on SC readiness and responsiveness in the context of unprecedented level of disruption.
... The resource-based theory turns the attention to the internal factors (resources and capabilities) and decisions controlled by the firm, which complement the strategic positioning and thus provide a more complete view of the competitive advantage determinants (Eisenhardt and Martin 2000). It distinguishes between doing (capabilities) and having (resources). ...
This article aims to explore the role of management in translating the external factors’ and internal barriers’ impacts on the level of adoption of digital technologies as a lever for change in business operations and processes in small- and medium-sized enterprises (SMEs). SMEs face a distinct set of challenges when adopting digital technologies, often lacking resources and knowledge. On the other hand, they have certain characteristics, such as simpler organisational structures and processes, that make them more flexible than larger firms in leveraging technologies into new business models. Data for this study are obtained from 989 SMEs in Bulgaria in the manufacturing and services sectors. A PLS–SEM analysis confirms eight hypotheses raised on the relationships between environmental factors and government support and internal factors (management support, organisational flexibility, and risk-tolerant culture) that impact digital business intensity. Environmental factors’ impact is stronger than government support, while internal barriers are found to have no statistically significant relationship. The research findings highlight the important role of management support in guiding digital transformation through supporting organisational flexibility and promoting a risk-tolerant culture.
... The dynamic capabilities approach is an extension of the resource-based view that addresses its limitations, especially with regard to how companies create valuable resource bundles or how the current stock of valuable, rare, inimitable, and non-substitutable resources can be refreshed in the changing environment (Amit and Schoemaker 1993;Teece 2007). The main dynamic capabilities theorists (Teece et al. 1997;Eisenhardt and Martin 2000;Helfat and Peteraf 2003) agree that performance and competitive advantage arise from the reconfiguration of resources in congruence with the environment, and organizational processes are the point of origin. ...
One of the central goals of circular bioeconomy in the Finnish forest-based sector is upgrading the use of wood-based materials, especially wood-based side streams, to higher value-added products. However, despite these ambitions, most wood-based side streams are used in energy production. Within the forest-based sector, innovative solutions for higher value-added production of wood-based side streams are being developed within small and medium-sized companies (SMEs). Therefore, to promote the process of upscaling these solutions, understanding the success of these companies is pivotal. For this end, we conducted a qualitative study with 10 forest-based SMEs utilizing wood-based side streams to understand both the internal and external factors affecting their ability to scale up their business models. By applying the dynamic capabilities approach from management research and the strategic niche management approach from sociotechnical transition studies, we found that even though the companies are internally well positioned to succeed in their growth aspirations, they face barriers from the dominant forest-based regime. The studied SMEs are facing a mismatch between their own business models and the rules and operating principles of the forest-based sector based on linear economy. Overcoming these barriers and challenging the dominant structures within the Finnish forest-based regime would require joint efforts from the companies. However, the companies have a strong technological orientation, which makes them hesitant with regard to horizontal networking. They also operate in diverse markets, making it difficult for them to find common ground. As a result, the pressure for systemic transformation within the forest-based sector remains nominal.
... However, the influence of environmental innovation strategy on company performance may not be direct. For example, a company that can better use its scarce resources to achieve desired results will likely achieve higher performance (Eisenhardt & Martin, 2000;Yu et al., 2017). ...
Goal: This paper aims to identify the influence of stakeholders and top management support on environmental innovation strategy, green product innovation, and environmental performance in the context of the plastics industry of Brazil and Portugal.
Methodology/approach: For the research, a survey was conducted with 94 companies in the industry, using the Partial Least Square (PLS) for data analysis.
Originality/relevance: The study contributes fill the gaps in the influence of top management and external actors on sustainability-related strategies and innovations in companies in the plastics industry in Brazil and Portugal.
Main findings: The results demonstrated that the stakeholders’ pressure and top management support positively influence the environmental innovation strategy of green products, and both innovations influence the environmental performance of companies in the Portuguese and Brazilian plastics industries.
Theoretical contributions: The implications emphasize the impact of external elements and companies that influence environmental sustainability, enabling greater quality of life and sustainability on a global scale.
Management contributions: The practical implications of the results emphasize the need for alignment between top management and the stakeholders for strategies and innovations linked to sustainability.
... No entanto, a influência da estratégia de inovação ambiental no desempenho da empresa pode não ser direta. Por exemplo, uma empresa que pode usar melhor seus recursos escassos para alcançar os resultados desejados provavelmente alcançará um desempenho superior (Eisenhardt & Martin, 2000;Yu et al., 2017). ...
Objetivo: Este artigo tem como objetivo identificar a influência dos stakeholders e do apoio da alta administração na estratégia de inovação ambiental, inovação de produtos verdes e desempenho ambiental no contexto da indústria de plásticos do Brasil e de Portugal.
Metodologia/abordagem: Para efeito da pesquisa foi realizado um levantamento com 94 empresas do setor, utilizando o Mínimos Quadrados Parciais (PLS, Partial Least. Square)) para análise dos dados.
Originalidade/relevância: O estudo contribui para sanar as lacunas na influência da alta gestão e, principalmente, de atores externos para estratégias e inovações relacionadas à sustentabilidade em empresas da indústria de plásticos no Brasil e em Portugal.
Principais resultados: Os resultados demonstraram que a pressão dos stakeholders e o apoio da gestão de topo influenciam positivamente a estratégia de inovação ambiental, a inovação de produtos verdes, e ambas as inovações influenciam o desempenho ambiental das empresas da indústria de plásticos portuguesa e brasileira.
Contribuições teóricas: As implicações destacam o impacto de elementos externos e empresas que influenciam a sustentabilidade ambiental, possibilitando maior qualidade de vida e sustentabilidade em escala global.
Contribuições para a gestão: As implicações práticas dos resultados destacam a necessidade de alinhamento entre a alta administração e as partes interessadas para estratégias e inovações ligadas à sustentabilidade.
... This study develops the DC framework (Eisenhardt and Martin, 2000;Schilke et al., 2018;Teece, 2007;Wilhelm et al., 2015) and deepens our understanding of how managerial IJEBR 30,11 cognitive capabilities are used (Helfat and Martin, 2015;Helfat and Peteraf, 2015). To understand how retail family firm managers enable firm strategy in a context of economic uncertainty, it is important to understand the manifestations of the DC dimensions and how they are facilitated (Schilke et al., 2018). ...
Purpose
This study explores how retail family firm managers’ cognitive capabilities are used to enable firm strategy in a context of economic uncertainty.
Design/methodology/approach
This paper is based on a case study using 31 interviews with family firm managers and archival data from retail micro, small and medium-sized enterprises (MSMEs).
Findings
The results indicate how managerial cognitive enabling mechanisms shape the manifestation of retail family firm dynamic capabilities (DCs) configurations.
Originality/value
Three retail managerial cognitive strategic enabling mechanisms and their microfoundations are identified, explaining how three retail family firm DC configurations are shaped: (1) retail family firm customization-based sensing, (2) retail family firm lateral seizing and (3) retail family firm trust-based reconfiguring. The manifestation of these DC configurations illuminates how retail family firm managers can enable firm strategy in a context of economic uncertainty.
... According to dynamic capability theory, enterprises should constantly adjust, restructure, and modify their resources and capabilities in a changing environment to ensure sustainable competitiveness [46][47][48]. Therefore, in the context of digital transformation, enterprises need to timely adjust their resources, processes and structures according to environment requirement [28]. ...
This paper explores in depth the mechanism of enterprise digital capability effects in supply chain digital development by reconstructing the supply chain cooperation capabilities (digital diffusion capability and digital collaborative capability). We use the questionnaire data covering 272 Chinese manufacturing enterprises and apply a structural equation model to test the hypothesis. The empirical result demonstrates that enterprise digital capability does not directly have a significant impact on supply chain digitalization, and the supply chain cooperation capabilities play a mediating role between an enterprise’s digital capability and supply chain digitalization. The results are robust as we thoroughly consider the direction of enterprise capabilities and verify the systematic requirements of supply chain digitalization and the high order of enterprise digital capability. These provide a theoretical basis for enterprises to promote the digital transformation of their supply chain through digital technology.
... Dynamic capabilities for cyber resilience include "specific strategic and organisational processes like (. . .) strategic decision making that create value for firms within dynamic markets by manipulating resources into new value-creating strategies" (Eisenhardt andMartin, 2000, p. 1106). Therefore, organisations can assess their needs in terms of cyber risks and dynamically develop their own cyber risk capabilities and strategies. ...
Purpose
This empirical study investigates the direct and indirect effects on managers’ perceptions of cyber risks, the implementation of cyber resilience strategies and the perceived effectiveness of these strategies for supply chains. Cyber risks pose significant threats to organisations and supply chains. Yet they remain insufficiently addressed and managed.
Design/methodology/approach
Primary data were collected from a sample of Italian organisations using a survey. The structural equation modelling methodology was employed to empirically investigate cyber resilience strategies in supply chains.
Findings
Results indicate that effective cyber resilience is linked to awareness of the negative impacts of cyber risks, particularly supply chain disruptions. This awareness leads to the adoption of various cyber resilience strategies. According to managers' perceptions, several strategies are identified in the study as the most effective in enhancing the cyber resilience supply chains. The findings offer insights for managers regarding the relationship between cyber risk perceptions, supply chain cyber resilience strategies and their effectiveness. These relationships are studied using the theory of perceived risk and the dynamic capabilities theory.
Originality/value
This study advances knowledge for academics and practitioners in the fields of supply chain resilience and supply chain risk management. It contributes to the development of a risk-based thinking model in organisations and supply chains by drawing upon a dual theoretical perspective.
... La visión de capacidades dinámicas surge con el propósito de explicar cómo y por qué ciertas empresas tienen ventaja competitiva en situaciones de cambios rápidos e impredecibles (Eisenhardt & Martin, 2000). Esto resulta de gran valor en el actual entorno empresarial que está abierto a la competencia global, es dinámico y cambiante, donde las empresas requieren de activos valiosos, únicos y difíciles de replicar, como las capacidades dinámicas que pueden aprovecharse para crear, extender y actualizar continuamente el stock de activos únicos de la empresa (Giniuniene & Jurksiene, 2015;Helfat et al., 2007;Teece, 2007;Torres-Barreto et al., 2018). ...
Las capacidades dinámicas son relevantes para el actuar empresarial ante los cambios repentinos del mercado, modificando la base de recursos y capacidades existentes y alineando estos factores internos con los externos. La presente investigación ahonda en las posibles relaciones entre las capacidades de aprendizaje y de adaptación sobre la capacidad innovadora de las empresas industriales colombianas. Para esto, se tomó la base de datos edit industria 2017-2018, de donde se seleccionaron 1.571 empresas manufactureras colombianas y se consideraron 100 variables. Los datos se analizaron a través del coeficiente de correlación de Mathew y modelos de regresión logística mediante el software estadístico Stata. Como resultado se comprobó que la capacidad de aprendizaje aumenta la probabilidad de adquirir la capacidad para innovar en procesos en un 27,4% a través de la adquisición de información que proviene del departamento de producción y de los proveedores en un 7,9%. Por otra parte, la capacidad de adaptación incrementa dicha probabilidad con las dimensiones de innovación tecnológica (23,3%), estructura organizacional (14,2%), relación organización-ambiente (11,2%) y conceptual (0,6%). Las principales limitaciones corresponden a la escaza literatura acerca de la relación simultánea de las capacidades dinámicas y la dificultad para recopilar datos primarios dadas las restricciones de distanciamiento social vigentes al momento de desarrollar la investigación.
... Drawing upon the concept of dynamic capabilities (e.g. Eisenhardt and Martin, 2000), emphasis has been put on exploring the development of project capabilities and their exploitation on projects or programmes at an operational level and, in turn, how these relate to organizations' dynamic capabilities at a more strategic business level (Davies and Brady, 2016;Zerjav et al., 2018). While most of this work focuses on contractors' project capabilities, recent work has also highlighted the role of clients in developing such capabilities, acting as capable owners driving performance and aiming to ensure that the voice of the customer and its business needs are clearly articulated and met (Winch and Leiringer, 2017;Maytorena-Sanchez and Winch, 2022). ...
... Dynamic capability theory extends this concept, emphasizing an organization's dynamic capabilities: the capacities that enable an organization to identify and capitalize on emerging opportunities to utilize their resources and capabilities, while also being able to adjust, combine, and reorganize these resources and capabilities in reaction to evolving circumstances (Teece, 2014). Dynamic capabilities are essential for organizations to achieve and sustain a competitive advantage over time (Eisenhardt & Martin, 2000;Kindström et al., 2013). ...
Expanding dynamic capability theory, we propose environmental entrepreneurship orientation (EEO) as a dynamic capability to achieve a duality of goals—the simultaneous and synergistic realization of environmental and economic performance. We conceptualize a moderating effect of a company's knowledge base (public or private) on the relationship between EEO and the duality of goals. We test our hypothesis in Spanish companies by applying partial least squares modeling. We find that: a) EEO relates positively to both environmental and economic performance, b) public knowledge enhances the relation between EEO and environmental performance, and c) private knowledge strengthens the relation between EEO and economic performance. The implication of our findings is that firms need to simultaneously access public and private knowledge to optimize the influence of EEO on attaining this duality of goals.
... The RBV explains that companies are a set of resources, capabilities, and competencies that generate CA. Strategic capabilities must be valuable, unique, or rare and difficult to imitate or replace [12,35,43]. In the DCT, dynamic capabilities are described as "the company's ability to integrate, build, and reconfigure internal and external competencies to address rapidly changing environments" [12] (p. ...
This research proposes a model to assess the impacts of transformational environmental leadership and corporate social responsibility on sustainable performance with the mediating effect of competitive advantage in environmentally certified companies in Mexico. Based on a literature review, a measurement instrument was created to evaluate the variables in the model. The sample is composed of 150 certified companies from 29 states. We used factor analysis and path analysis for hypothesis testing. We observed that transformational environmental leadership facilitates the internal changes and decision-making necessary to implement corporate social responsibility practices, develop competitive advantages, and improve sustainable performance. We also observed a positive relationship between competitive advantage and sustainable performance. From a transformational environmental leadership perspective, this study is helpful for researchers, industry experts, policymakers, and managers interested in voluntary environmental certifications in emerging economies. The research model implies a way to strengthen companies’ competitive advantage and sustainable performance through transformational environmental leadership and corporate social responsibility.
... Immigrant entrepreneurs must leverage their unique assets and capabilities within both their home and host country ecosystems. By identifying and exploiting dynamic capabilities, these entrepreneurs can secure their position within the ecosystem and actively shape and transform it to achieve sustained competitive advantage [34]. ...
This paper explores the interaction between immigrant small and medium-sized enterprises (SMEs) and the entrepreneurial ecosystems of their home and host countries. These SMEs, often established out of necessity due to economic hardship or unemployment, contrast with opportunity-driven ventures that seek to exploit new market prospects. Employing a dynamic capabilities framework, the study investigates how immigrant SMEs identify and mobilize critical resources in unstable environments, and how these resources are dynamically adapted and transformed to meet organizational objectives while responding to ecosystem changes, ultimately cultivating competitive advantages. Interviews were conducted with 25 immigrant entrepreneurs from eight countries, and the interviews took place within their business environments, with native speakers of the interviewees′ home countries present to ensure accuracy and authenticity. The findings highlight that immigrant entrepreneurs effectively leverage resources from both home and host country ecosystems, with human capital being the most essential asset. Additionally, the role of immigrants′ social networks is emphasized as a crucial mechanism for resource acquisition. This study further illustrates the positive contributions of immigrant enterprises to entrepreneurial ecosystems, revealing a co-evolutionary relationship whereby the businesses and ecosystems both mutually evolve. This co-evolution strengthens the resilience and sustainability of immigrant ventures, significantly enhancing their long-term success.
... In simple terms, co-evolution is like teamwork between organizations to improve how they handle logistics, especially when things change unexpectedly (Neirotti and Raguseo, 2017). This teamwork helps create new ways of doing things, like introducing new services, which is super important in areas like health where sharing information and being flexible are key (Eisenhardt and Martin, 2000;Matopoulos and Papadopoulou, 2010). ...
Purpose
Globally, health care facilities often fail to respond quickly to health emergencies, resulting in significant deaths. Thus, the study examines the mediating effect of logistics capabilities in the relationship between co-evolution, organization capacity building and operational agility.
Design/methodology/approach
SmartPLS 4.0.8.3, variance-based structural equation models (VB-SEM) were used to test direct and indirect hypotheses across 45 health facilities. The respondents were 140 nurses and doctors. Disproportionate stratified simple random sampling was used based on government and private health facilities in Kampala City, Uganda.
Findings
A significant and positive relationship exists between logistics capability and operational agility. However, co-evolution and organizational capacity are intimately linked to operational agility via logistics capability.
Research limitations/implications
A quantitative cross-sectional survey was conducted using self-administered questionnaires. The results did not show any variation in the operational agility of health facilities during emergency management; thus, qualitative approaches are needed.
Practical implications
During emergency management, health facilities need to cooperate by sharing information, building capacity to increase their responsiveness and flexibility. This should be done by sharing equipment, tools, drugs and medical supplies, and we hope to encourage joint medical research.
Originality/value
A complex adaptive systems (CAS) framework is used in this study to examine how co-evolution, organizational capacity building and logistical capability relate to the operational agility of healthcare during times of emergency.
... This notion extends the Resource-Based View (RBV), offering a new perspective for understanding how firms can maintain and renew their competitive advantage in dynamic environments [59]. Dynamic capabilities form the foundation for firms to continuously adapt and innovate in turbulent environments [60]. Strong dynamic capabilities can enhance a firm's strategic agility, which is key for seizing opportunities and profiting in new business contexts. ...
Encouraging oil and gas (O&G) companies to develop renewable energy sources (RESs) is crucial for China’s energy strategy and sustainable development. The transition from O&G energy to RESs is a complex and systemic process that requires a comprehensive analysis of both internal and external driving factors. This study integrates the theoretical dimensions of energy transition with the operational realities, utilizing structural equation modeling (SEM) to analyze these factors and their influence on the decision-making process for companies in this sector. A multi-group analysis was conducted to explore differences in motivational mechanisms among groups with varying levels of transition willingness. The findings reveal that environmental awareness, economic value estimation, knowledge accumulation, dynamic capabilities, structural overlap, and government actions significantly promote the energy transition, whereas resource endowment acts as a barrier. Moreover, the willingness to transform moderates the effects of government actions and pressures from other stakeholders on corporate environmental awareness and the transition to RESs. This article provides more comprehensive research perspectives on exploring the driving mechanisms behind the transition to renewable energy, emphasizing the importance of governments playing diverse roles based on the specific internal conditions and highlighting the long-term impact of other stakeholders on sustainable development.
... Una estrategia centrada exclusivamente en la explotación limita la ventaja competitiva (Clauss et al., 2021), haciendo esenciales los nuevos modelos mentales para romper con lo establecido y fomentar innovaciones disruptivas (Slater et al., 2006). Lee y Kreiser (2018) consideran que la orientación al emprendimiento corporativo facilita la ambidestreza, la cual es crucial para mantener una ventaja competitiva y está vinculada a las capacidades dinámicas de una empresa (Eisenhardt y Martin, 2000). Un entorno ambidiestro se convierte en un recurso valioso, escaso e insustituible que contribuye a una ventaja competitiva sostenible (Simsek, 2009). ...
In an ever-changing competitive environment, companies must adapt and respond quickly to market fluctuations. In this process, some companies manage to strengthen their competitive advantage by balancing exploration and exploitation activities. Using case study methodology, this research aimed to understand how a traditional company becomes ambidextrous and strengthens its competitive advantage operating in a turbulent environment. The findings indicate that the company balances the exploration of new opportunities with the exploitation of existing ones, promoting sustainability and forging strategic alliances. Key lessons for companies in transformation processes include the importance of strategic collaborations and reconnecting with their original purpose to identify new opportunities and competitive advantages.
... Furthermore, there is an opportunity for cross-fertilization with the dynamic capabilities perspective on strategy. In particular, recent developments in dynamic capabilities have started to examine the micro-foundations of dynamic capabilities, which involve how micro activities, processes, or routines are patterned in a firm's capacity to sense and seize opportunities and reconfigure resources (Eisenhardt & Martin, 2000;Nayak et al., 2020;Teece, 2007). In this regard, SAP research on how important recurrent patterns of activities form, change, or persist can shed light on the micro-foundations of dynamic capabilities. ...
Research Abstract
Strategy as practice is one of the most vibrant approaches to strategy research. Yet, there is significant ambiguity around what characterizes an activity as strategic and thus as falling into the domain of strategy as practice. In this article, we address this fundamental concern by differentiating four distinctive views of what qualifies activities as strategic: (1) activities that have important consequences, (2) activities that are labeled strategic, (3) activities carried out by strategists, and (4) activities that perform an important recurrent pattern. Each of these views is associated with different research questions resulting in different research insights. We discuss how the four views together form a new research framework that expands the notion of strategy and thereby the research domain of strategic management.
Managerial Summary
Strategy as practice is an important approach to studying strategic management that focuses on strategic activities. However, there is significant ambiguity around what characterizes activities as strategic. In this article, we identify four different views on this question: (1) activities that have important consequences, (2) activities that are labeled strategic, (3) activities carried out by strategists, and (4) activities that perform an important recurrent pattern of activities. Each of these views is associated with different questions and thus with different types of insights. We suggest that the four views together form a research framework that reveals distinctive links between strategy as practice and other lines of strategy research and that expands our notion of strategy and thereby the domain of strategic management.
... Furthermore, these dimensions acted as crucial mediators in the relationships between transactional leadership styles and research productivity performance (Garcia-Morales et al., 2006;Jiménez-Jiménez & Sanz-Valle, 2011). As organizational learning capability represents both a dynamic capability and a VRIN resource within RBVT, its effective utilization is essential for universities seeking to sustain their competitive edge in both local and global markets (Zhou et al., 2019;Eisenhardt & Martin, 2000). ...
This study examined the effect of transactional leadership behaviors on research productivity in public universities, with organizational learning capability serving as a mediating factor. A quantitative research approach focusing on correlational design was utilized. Data were collected through a survey questionnaire administered to 519 respondents. Both measurement and structural model analyses were conducted, with deans, colleges, and individual academics serving as units of analysis. The findings revealed that deans' contingent reward leadership behaviors significantly and positively influenced the research productivity of academics and colleges, even when controlling for workplace learning capability. Furthermore, the study demonstrated that deans' contingent rewards and active-by-exception behaviors significantly and positively impacted workplace learning capability, accounting for 44.5% of the variance, with moderate and small effect sizes, respectively. Additionally, organizational learning capability exhibited a significant positive effect, explaining 54% of the variance in research productivity and demonstrating a moderate effect size, which indicates an unexplained variance of 46%. Bootstrapping tests confirmed that workplace learning capability partially and fully mediates the relationship between deans' transactional leadership behaviors and research productivity. Consequently, it is imperative for college deans to enhance their contingent reward leadership behaviors and foster workplace learning capabilities to maximize their impact on research productivity.
... Sometimes reduced to simple organizational routines or best practices (Eisenhardt andMartin, 2000, p. 1106), these capabilities « encapsulate both explicit processes and those tacit elements (such as know-how and leadership) embedded in the processes », « to integrate, reconfigure, renew and recreate its resources and capabilities and, most importantly, upgrade and reconstruct its core capabilities in response to the changing environment to attain and sustain competitive advantage » (Wang et Ahmed, 2007, p. 35). These are highly firm-specifics and therefore hard to imitate. ...
This study analyzes how small French retailers are adapting their front-office to the digitalization of their business environment.
Design/methodology/approach – The qualitative study focuses on dynamic capabilities of 27 independent French retailers, in a wide variety of sectors.
Findings – The digitalization of small retailers does not date from the pandemic health crisis. Small retailers are willing, agile and organized to make controlled progress, ranging from the visibility on social networks to online sales with its specific logistical constraints. Even if their presence on marketplaces is trickier to implement, it represents the culmination of the digitalization process, once their online store has been launched. The digital transformation of independent retailers should be less radical than for large retailers.
Research limitations/implications – By distinguishing between the concepts of adaptive, absorptive and innovative capabilities, this research highlights strong differences between small retailers, i.e. SMEs, and larger companies. In terms of adaptive capabilities, it confirms that small retailers are not embracing digitalization as a fad, but because of real changes in the market, and particularly in demand. In contrast to large companies, small retailers drive it more around external objectives linked to their intimate knowledge of changing customer behavior (customer centricity). In terms of absorptive capabilities, the success or failure of digital transformation weighs directly on the entrepreneur's shoulders, but is less hampered by technological legacy.
Despite interviews only conducted in Paris region, it converges with professional studies carried out on a larger scale in France. Its widespread use is certainly easier in countries at the same stage of commercial development.
Practical implications – In terms of innovative capabilities, independent retailers need to focus on four key areas: reinventing the in-store experience; increasing visibility on social networks; creating an online store; being present in one or two marketplaces, or creating a common platform with other local merchants.
Originality/value – This research is one of the first to analyze the digital transformation experienced by small structures. It draws on the concept of dynamic capabilities, well suited to technologically and commercially dynamic markets. It puts into perspective studies carried out in other countries, on less diversified types of shops. Unlike other studies examining the front office, it does not exclude stores and SEO in marketplaces.
... Adaptability is fundamental in digitalization and globalization, where rapid and frequent changes occur. Therefore, developing and strengthening dynamic capabilities should be a strategic priority for any organization aiming to remain competitive and thrive in the long term [33]. In this context, innovation is a tool for increasing efficiency and a fundamental mechanism for survival and success in a constantly changing business environment. ...
In today’s competitive and globalized world, innovation is essential for organizational survival, offering a means for companies to address environmental impacts and social challenges. As innovation processes accelerate, managers need to rethink the entire value-creation chain, with digital transformation emerging as a continuous process of organizational adaptation to the evolving societal landscape. The research question focuses on how digital technologies—such as artificial intelligence, Big Data, cloud computing, industrial and service robots, and the Internet of Things—influence innovation-driven revenues among enterprises within the European Union (EU). The paper examines, using neural network analysis, the specific impact of each digital technology on innovation revenues while exploring how these technologies affect various types of social innovation within organizations. Through cluster analysis, the study identifies patterns among EU countries based on their digital technology adoption, innovation expenditures, and revenues and the proportion of enterprises engaged in innovation activities. The findings highlight the central role of digital technologies in enhancing innovation and competitiveness, with significant implications for managers and policymakers. These results underscore the necessity for companies to strategically integrate digital technologies to sustain long-term competitiveness in the rapidly evolving digital landscape of the EU.
It is no longer news that organizations had faced serious challenges due to the emergence and rapid development of disruptive technologies. This study explored the relationship between disruptive technology and firm capabilities of oil and gas companies in Port Harcourt, Rivers State Nigeria. The study adopted a survey design, the population of the study is 401, and the sample size was 200 using the sample size formula. The respondents was using the simple random technique. And Pearson Product Moment Correlation technique was used at 0.01 level of significance with the aid of SPSS. Our findings show a positive and significant relationship between dimensions and measures of disruptive technology and organizational capabilities in the companies under investigation. The study showed that there is a correlation between disruptive technology and organizational capabilities in the companies under survey. The researcher concludes that disruptive technology has a positive impact on the organizational capabilities. The researcher recommendations were as follows. The management should adopt cloud services technology to bring flexibility, security to businesses, supporting new investment area of the business and to make the business grow. This will enable the oil and gas companies to rapidly modernize their operating system to lower cost and increase the agility of their management in data storage, backup and complete information accessibility. The oil and gas organizations must invest in security service technology to combats different treats from different quarter and form a collaboration between national security and international security to fostering a safer and more connected business world. Management should ensure they are dynamic in their operations so that they can survive any types of changes that may pose a serious threat to the survival and growth of the organization. Oil and gas companies must furcate the environment and consider which disruptive technology might influence their performance and prepare resources and formulate a strategy that will helps to adjust to the disruptive technology for better performance.
A pandemia da Covid-19 trouxe desafios para as empresas, fazendo com que buscassem alternativas para se manterem competitivas no mercado. Diante disso, estudos sobre capacidades dinâmicas e seus microfundamentos tornaram-se importantes buscando saber quais ações as empresas realizaram para enfrentarem uma crise. O presente trabalho teve como objetivo analisar as capacidades dinâmicas e os seus respectivos microfundamentos que auxiliaram na adaptação durante a pandemia da Covid-19 (2020-2021) em três indústrias do Vale do Rio dos Sinos (RS). Para que o objetivo do estudo fosse atendido, utilizou-se como referência as capacidades dinâmicas e os microfundamentos propostos por Teece (2007). A pesquisa classifica-se em estudo de caso múltiplo, abordagem qualitativa, coleta de dados com entrevistas semiestruturadas. A análise dos dados empíricos foi feita através do software NVivo. Os resultados evidenciaram identificação das capacidades dinâmicas, as quais foram categorizadas em sensing, seizing e reconfiguring, bem como, foi possível identificar os microfundamentos que auxiliaram na adaptação empresarial durante a pandemia, como ajustes de layout e distanciamento de pessoas, utilizando medidas do governo para a manutenção do emprego ou optando por trabalho em turnos.
Objetivo do estudo: Identificar como o domínio de conhecimento da temática transformação digital emergiu e se desenvolveu dentro das áreas de ciências sociais aplicadas, como também mapear as fronteiras do conhecimento e os temas emergentes de transformação digital, possibilitando insights para o desenvolvimento de estudos futuros. Metodologia: Trata-se de uma revisão bibliométrica, realizada por meio de técnicas de cocitação e pareamento bibliográfico, foram elaborados os mapas de cocitação e pareamento dos 727 artigos da amostra que foram coletados na base de dados Web of Science (WoS), os mapas foram elaborados por meio da utilização do software VOSviewer. Relevância/originalidade: A pesquisa pode ser vista como um esforço preliminar que amplia nossa compreensão sobre a formação e evolução de um campo científico. Ela delineia as fronteiras atuais do conhecimento e estabelece uma base para futuras investigações descritivas e causais. Principais resultados: A pesquisa realizada possibilitou mapear por meio do mapa de cocitação o domínio de conhecimento sobre transformação digital no campo de ciências sociais aplicadas, foram identificados oito Clusters, com relação ao pareamento bibliográfico também foram mapeados oito Clusters. Contribuições teóricas/metodológicas: Nossas contribuições têm origem em dois grupos: resultados descritivos e mapeamentos gráficos. Nossos resultados descritivos incluíram evolução de trabalhos por ano, publicações por autor e publicações por periódico, revelando as frequências relacionadas à temática ao longo dos anos. Nossos mapeamentos gráficos foram divididos em mapa de análise de cocitação e mapa de acoplamento bibliográfico. Entre nossos principais resultados, identificamos 8 Clusters de bases-teóricas (cocitação) e 8 Clusters de fronteiras-teóricas (acoplamento bibliográfico). Contribuições sociais: O estudo possibilita que os gestores identifiquem barreiras e desafios na implantação de processos de transformação digital, como também percebam benefícios estratégicos no que se refere ao aumento da competitividade da empresa e na percepção do valor dos clientes.
Purpose
This study aims to extend the dynamic capabilities (DCs) perspective to the project management context. The authors present supporting evidence for analyzing the creation process of DCs during the redesign of the software development process, and they examine the impact of those capabilities on organizational performance and transformation.
Design/methodology/approach
An action design research approach, combined with simulation and qualitative analysis, is adopted to examine the emergence of technology-enabled DCs supported by their microfoundations and the modernization of the software development process in the target firm.
Findings
Analyzing the successful internal transformation of a software development company that was facing a slow and inconsistent product development process reveals the effectiveness of extending the DC perspective to a project-based setting. The implementation of a new project methodology and the introduction of an innovative document-handling system facilitated the renewal of the company's software development process. This led to improvements in lead time and total costs, resulting in enhanced project performance as well as customer and employee satisfaction.
Practical implications
This study draws managerial attention to the microlevel activities of technology-enabled DC formation, such as precise calculations, external expert consultations and tool deployment.
Originality/value
By applying the sensing–seizing–transforming framework with concomitant microfoundations in a longitudinal way, this article explains the role that technology plays as the basis for DCs and analyzes the cost–benefit balance of DC development in project-based organizations.
Este artigo tem como objetivo analisar as divergências e as convergências das teorias relacionadas com a Visão Baseada em Recursos (VBR) e as Capacidades Dinâmicas (CD) na tentativa de explicar aspectos fundamentais acerca das fontes de vantagem competitiva das organizações do setor público e sua sustentabilidade, considerando os conceitos aplicáveis ao setor privado. A revisão da literatura estudada buscou traçar a evolução da teorização dos conceitos e visões para evidenciar que essas duas abordagens são importantes contribuições das pesquisas acadêmicas na área de Administração Estratégica, tanto no setor público, quanto no privado. Na busca por relacionar as escolas VBR e CD com o setor público, concluiu-se que a vantagem competitiva nas organizações públicas remete a uma lógica de priorização dos resultados das políticas públicas, por meio das dimensões de desempenho, quais sejam efetividade, eficácia, eficiência e economicidade. Além disso, foi possível constatar que a presença de pessoas com habilidades e competências essenciais – atuando em sinergia com rotinas e processos administrativos bem definidos – favorece o alcance de elevados níveis de sustentação na gestão estratégica no setor público.
El presente estudio tiene como objetivo efectuar un análisis bibliométrico de la producción científica relacionada con las capacidades dinámicas para la innovación en las organizaciones. Se busca identificar la evolución y las tendencias emergentes a partir de registros publicados en revistas indexadas en Scopus entre 2009 y 2024. Se adoptó un enfoque cuantitativo, combinando investigación documental y bibliométrica. Se emplearon métodos inductivo, deductivo, descriptivo, analítico y sintético, junto con técnicas bibliométricas. Se identificaron 63 registros publicados. Finalmente, se seleccionaron 45 registros en la base de datos de Scopus y se utilizó Scopus Analyze para el procesamiento de los resultados. El análisis destaca la evolución de la producción académica en países como Brasil, Colombia y España. Las investigaciones analizan las capacidades dinámicas en diversos contextos organizacionales, aportando valiosas contribuciones tanto a la teoría como a la práctica. Los autores coinciden en que el desarrollo de las capacidades dinámicas influye positivamente en el desempeño organizacional. Además, se identificaron diferentes dimensiones interrelacionadas con otros factores a través de VOSviewer. Las investigaciones abarcan un amplio rango de estudios publicados en revistas con factor de impacto, extendiéndose sobre áreas temáticas como negocios y gestión, ciencias sociales, economía y ciencia de decisiones.
Much of the prior research on interorganizational learning has focused on the role of absorptive capacity, a firm's ability to value, assimilate, and utilize new external knowledge. However, this definition of the construct suggests that a firm has an equal capacity to learn from all other organizations. We reconceptualize the Jinn-level construct absorptive capacity as a learning dyad-level construct, relative absorptive capacity. One firm's ability to learn from another firm is argued to depend on the similarity of both firms' (1) knowledge bases, (2) organizational structures and compensation policies, and (3) dominant logics. We then test the model using a sample of pharmaceutical-biotechnology RED alliances. As predicted, the similarity of the partners' basic knowledge, lower management formalization, research centralization, compensation practices, and research communities were positively related to interorganizational learning. The relative absorptive capacity measures are also shown to have greater explanatory power than the established measure of absorptive capacity, R&D spending. (C) 1998 John Wiley & Sons, Ltd.
As a potential theory, the elemental resource-based view (RBV) is not currently a theoretical structure. Moreover, RBV proponents have assumed stability in product markets and eschewed determining resources' values. As a perspective for strategic management, imprecise definitions hinder prescription and static approaches relegate causality to a "black box." We outline conceptual challenges for improving this situation, including rigorously formalizing the RBV, answering the causal "how" questions, incorporating the temporal component, and integrating the RBV with demand heterogeneity models.
Theorists debate whether organizations are inertial or adaptable, but mounting evidence shows they are both, provoking questions about how shifts occur between inertia and change. Research shows performance crises can trigger reactive change, but proactive revolutions in organizations are poorly understood. In project groups, temporal pacing triggers proactive change. This longitudinal study of a venture capital-backed start-up company explored whether temporal pacing could regulate momentum and change in an organization's strategy, as it does in groups. Two forms of pacing were discovered, one time-based, with reorientations initiated at temporal milestones, the other event-based, with actions initiated when the right event occurred. The two pacing types fostered systematically different patterns of momentum and change.
This paper investigates the mechanisms through which organizations develop capabilities in a dynamic sense (Teece, Pisano & Shuen, 1997) and reflects upon the role of (1) experience accumulation, (2) knowledge articulation and (3) knowledge codification processes in creating and constantly reshaping organizational routines. The argument is made that dynamic capabilities originate from the co-evolution of these three mechanisms. At any point in time firms adopt a mix of learning behaviors constituted by a semi-automatic accumulation of experience and by increasingly deliberate investments in knowledge articulation and codification activities. Further, the relative effectiveness of these capability-building mechanisms is analyzed here in their interaction with selected features of the task to be learned, such as its frequency, homogeneity and degree of causal ambiguity. Testable hypotheses are developed in the context of a theoretical model of dynamic capability building, and some preliminary empirical evidence in support of the arguments made is reviewed. Finally, implications of the analysis for evolutionary economics and for the emerging knowledge-based view of the firms are discussed and an agenda for future research efforts on these issues is advanced.
We build on an emerging strategy literature that views the firm as a bundle of resources and capabilities, and examine conditions that contribute to the realization of sustainable economic rents. Because of (1) resource-market imperfections and (2) discretionary managerial decisions about resource development and deployment, we expect firms to differ (in and out of equilibrium) in the resources and capabilities they control. This asymmetry in turn can be a source of sustainable economic rent. The paper focuses on the linkages between the industry analysis framework, the resource-based view of the firm, behavioral decision biases and organizational implementation issues. It connects the concept of Strategic Industry Factors at the market level with the notion of Strategic Assets at the firm level. Organizational rent is shown to stem from imperfect and discretionary decisions to develop and deploy selected resources and capabilities, made by boundedly rational managers facing high uncertainty, complexity, and intrafirm conflict.
Significant theories of organization pose fundamental questions about the nature of organizations. Transaction cost theory, for example, asks, “Why do organizations exist?”, while ecology queries, “Why are there so many kinds of organizations?”. Although complexity theory is among the newest organization theories, it nonetheless poses a fundamental question that is equally central: Why do some organizations adapt? In particular, complexity theory seeks to explain how organizations adapt, especially in high‐velocity (i.e., ambiguous, fast‐paced, and uncertain) environments. As such, the theory complements evolutionary theories of adaptation and provides a particularly promising avenue for understanding the coevolutionary interplay of adaptation and selection among and within organizations.
This research examines the role played by the ‘causally ambiguous’ nature of knowledge in the process of knowledge transfer between strategic alliance partners. Based on a cross-sectional sample of 147 multinationals and a structural equation methodology, this study empirically investigates the simultaneous effects of knowledge ambiguity and its antecedents—tacitness, asset specificity, prior experience, complexity, partner protectiveness, cultural distance, and organizational distance—on technological knowledge transfer. In contrast to past research that generally assumed a direct relation between these explanatory variables and transfer outcomes, this study’s findings highlight the critical role played by knowledge ambiguity as a full mediator of tacitness, prior experience, complexity, cultural distance, and organizational distance on knowledge transfer. These significant effects are further found to be moderated by the firm’s level of collaborative know-how, its learning capacity, and the duration of the alliance. Copyright © 1999 John Wiley & Sons, Ltd.
Irreversible processes are the source of order: hence 'order out of chaos.' Processes associated with randomness (openness) lead to higher levels of organisation. Under certain conditions, entropy may thus become the progenitor of order. The authors propose a vast synthesis that embraces both reversible and irreversible time, and show how they relate to one another at both macroscopic and minute levels of examination.-A.Toffler
How do you create and sustain a profitable strategy? Many approaches have focused managers' attention inward, urging them to build a unique set of corporate resources and capabilities. In practice, however, identifying and developing core competence too often becomes a feel-good exercise that no one fails. Collis and Montgomery, of Harvard Business School, explain how a company's resources drive its performance in a dynamic competitive environment, and they offer a framework that moves strategic thinking forward in two ways. The resource-based view of the firm comprises a pragmatic and rigorous set of market tests to determine whether a company's resources are truly valuable enough to serve as the basis for strategy and integrates that market view with earlier insights about competition and industry structure. Where a company chooses to play will determine its profitability as much as its resources do. The authors spell out in clear managerial terms why some competitors are more profitable than others, how to put the idea of core competence into practice, and how to develop diversification strategies that make sense. To illustrate the power of resource-based strategies, the authors provide many examples of organizations - including Disney, Cooper, Sharp, and Newell - that have been able to use corporate resources to establish and maintain competitive advantage at the business-unit level and also to benefit from the attractiveness of the markets in which they compete.
Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously distributed across firms and that these differences are stable over time, this article examines the link between firm resources and sustained competitive advantage. Four empirical indicators of the potential of firm resources to generate sustained competitive advantage-value, rareness, imitability, and substitutability are discussed. The model is applied by analyzing the potential of several firm resources for generating sustained competitive advantages. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other business disciplines.
The promise of synergy is the prime rationale for the existence of the multi-business corporation. Yet for most corporations, the 1 + 1 = 3 arithmetic of cross-business synergies doesn't add up. Companies that do achieve synergistic success use a corporate strategic process called coevolving; they routinely change the web of collaborative links among businesses to exploit fresh opportunities for synergies and drop deteriorating ones. The term coevolution originated in biology. It refers to the way two or more ecologically interdependent species become intertwined over time. As these species adapt to their environment, they also adapt to one another. Today's multibusiness companies need to take their cue from biology to survive: They should assume that links among businesses are temporary and that the number of connections - not just their content - matters. Rather than plan collaborative strategy from the top, as traditional companies do, corporate executives In coevolving companies should simply set the context and then let collaboration (and competition) emerge from business units. Incentives, too, are different than they are in traditional companies. Coevolving companies reward business units for individual performance, not for collaboration. So collaboration occurs only when two business-unit managers both believe that a link makes sense for their respective businesses, not because collaboration per se is useful. Managers in coevolving companies also need to recognize the importance of business systems that support the process: frequent data-focused meetings among business-unit leaders, external metrics to gauge Individual business performance, and incentives that favor self-interest.
Increasingly, strategy scholars are exploring the relationships between innovation, competition, and the persistence of superior profits. Sustained high profitability may result when a firm repeatedly introduces valuable innovations that service previously unmet consumer demands. While the returns to the firm from each innovation may erode over time, innovation ensures that, overall, the firm maintains a high performance position. At the same time, sustained high profitability may also accrue to firms that innovate less often, but effectively avoid the competition that otherwise erodes high returns. This paper elaborates these relationships before presenting an empirical analysis of the effects of differential innovative propensities and differential rates of competition on pharmaceutical firms' abilities to sustain profit outcomes that are above those earned by competing firms. The analysis, which is situated within the U.S. pharmaceutical industry, finds support for the expected relationship between high innovative propensity and sustained superior profitability, but no support for a link between persistence and the ability to avoid competition.
Business strategy is a complex subject and is usefully examined from several perspectives. This paper applies the lenses of governance and competence to the study of strategy. Both the governance and the competence perspectives have had the benefit of distinguished antecedents. They have also had to deal with tautological reputations. I begin with the governance perspective, with emphasis on the six key moves through which it has been operationalized. I then examine the competence perspective in these same six respects. Governance challenges the competence perspective to apply itself more assiduously to operationalization, including the need to choose and give definition to one or more units of analysis (of which the 'routine' is a promising candidate). The research challenges posed by competence to which governance can and should respond include dynamic transaction costs, learning, and the need to push beyond generic governance to address strategy issues faced by particular firms (with their distinctive strengths and disabilities). A lively research future for these two perspectives, individually and in combination, is projected.
Organizational learning theory is used to explain and predict whether and when acquirors learn from their direct acquisition experience. Acquisitions of 120 acquirors are tracked from 1985-1995 to explore this issue. Results suggest that acquirors experience better acquisition performance when they are managed by CEOs with longer tenure at the firm; there is a moderate temporal interval since the prior acquisition; they have previously undertaken acquisitions of different sizes; and they have made small prior acquisition mistakes; and when they are managed by executives with longer tenure at the firm who do not use acquisition advisors.
A model of the determinants of strategic decision-making pace that incorporates the role of individual differences among executive decision makers, organizational structural characteristics, and industry effects is developed. Drawing on data from 151 firms, we found that chief executive officers' cognitive ability, use of intuition, tolerance for risk, and propensity to act associated positively with speedy decisions. Decision pace appeared to be faster in centralized organizations and slower in formalized organizations. Our results also suggest that the construct of comprehensiveness has both cognitive and organizational structural aspects, with cognitive comprehensiveness relating positively and organizational comprehensiveness, negatively, to strategic decision-making pace.
How do business organizations make decisions? What process do they follow in deciding how much to produce? And at what price? A behavioral theory of the firm is here explored. Using a specific type of duopoly, a model is written explicity as a computer program to deal with the complex theory implicit in the process by which businesses make decisions. This model highlights our need for more empirical observations of organizational decision-making.
Neue Technologien, globale Wettbewerber und flexible Produktionseinrichtungen führen zur Aufheizung der Märkte überall auf
der Welt. Mit dem Wort „Hyperwettbewerb“ wird dieses Umfeld des äußerst häufigen und intensiven Wandels bezeichnet, das die
Vorteile etablierter Anbieter erodiert. Generische Wettbewerbsstrategien wie Kostenführerschaft, Differenzierung und Fokussierung
erweisen sich als instabil — sind angestammte Wettbewerbsvorteile noch nachhaltig? Welche Wettbewerbsstrategien sind in einem
solchen Umfeld noch erfolgreich?
This study investigates the role of gatekeepers in the transfer of information within a single R&D location by comparing directly the performance of project groups with and without gatekeepers. The results show that gatekeepers performed a linking role only for projects performing tasks that were ‘locally-oriented’ while ‘universally-oriented’ tasks were most effectively linked to external areas by direct project member communication. Gatekeepers also appear to facilitate external communication by their locally-oriented project colleagues. A follow-up study five years later showed that almost all gatekeeping project leaders had been promoted up the managerial ladder; in contrast, one half of the non-gatekeeping project leaders had ascended the technical ladder. This implies that higher managerial levels demand strong interpersonal as well as technical skills.
Why do some organizations learn at faster rates than others? Why do organizations "forget"? Could productivity gains acquired in one part of an organization be transferred to another? These are among the questions addressed in Organizational Learning: Creating, Retaining and Transferring Knowledge. Since its original publication in 1999, this book has set the standard for research and analysis in the field. This fully updated and expanded edition showcases the most current research and insights, featuring a new chapter that provides a theoretical framework for analyzing organizational learning and presents evidence about how the organizational context affects learning processes and outcomes. Drawing from a wide array of studies across the spectrum of management, economics, sociology, and psychology, Organizational Learning explores the dynamics of learning curves in organizations, with particular emphasis on how individuals and groups generate, share, reinforce, and sometimes forget knowledge. With an increased emphasis on service organizations, including healthcare, Linda Argote demonstrates that organizations vary dramatically in the rates at which they learn-with profound implications for productivity, performance, and managerial and strategic decision making. © Springer Science+Business Media New York 2013. All rights are reserved.
This paper studies redeployment of resources between target and acquiring businesses following horizontal acquisitions. The analysis draws from perspectives that emphasize the strategic importance of resources that are subject to market failure. We define a five-part typology of R&D, manufacturing, marketing, managerial, and financial resources. We show that targets and acquirers frequently redeploy resources following horizontal acquisitions, especially resources that frequently face market failure. We then show that the magnitude of redeployment of each type of resource increases with the asymmetry of the merging businesses' relative strength on the resource dimension. The research stresses evolutionary perspectives on business organizations that emphasize the importance of organizational differences in competitive markets. The central premise of our research is that the market for businesses is often more robust than the market for resources.
The essence of strategy formulation is coping with competition. Yet it is easy to view competition too narrowly and too pessimistically. While one sometimes hears executives complaining to the contrary, intense competition in an industry is neither coincidence nor bad luck.
This comparative study of the evolution of Intel Corporation's strategic position in two semiconductor memory businesses and in the microprocessor business provides insight into the forces that drive strategic business exit in dynamic environments. Inertial forces caused Intel's distinctive competence to diverge from the evolving basis of competitive advantage in the memory business. Inertial forces also caused Intel's corporate strategy to diverge from strategic actions taken by middle-level managers. Intel's internal selection environment played a key role in the strategic business exit process by causing it to shift the allocation of scarce manufacturing resources from the memory business to the emerging microprocessor business before corporate strategy was officially changed. The paper contributes to the development of theory about the role of strategy in firm evolution by offering insight into how the internal selection environment mediates the coevolution of industry-level sources of competitive advantage and firm-level sources of distinctive competence and into the link between corporate strategy and strategic action.
Based on an intensive and inductive study of a Fortune 100 corporation, this article describes how dynamic capabilities that reconfigure division resources - that is, architectural innovation - may operate within multibusiness firms. We suggest envisaging corporate divisions as combinations of capabilities and product - market areas of responsibility (charters) that may be recombined in various ways, highlighting the interplay of economic and social imperatives that motivate such recombinations. We detail the microsociological patterns by which such recombinations occur and then theorize about an organizational form, termed "dynamic community," in which these processes are embedded.
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.
This paper elucidates the underlying economics of the resource-based view of competitive advantage and integrates existing perspectives into a parsimonious model of resources and firm performance. The essence of this model is that four conditions underlie sustained competitive advantage, all of which must be met. These include superior resources (heterogeneity within an industry), ex post limits to competition, imperfect resource mobility, and ex ante limits to competition. In the concluding section, applications of the model for both single business strategy and corporate strategy are discussed.