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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.
... The Resource-Based View indicates that the analysis of ways for strategic value creation by companies goes through understanding the heterogeneity and immobility of internal resources (Wernerfelt, 1984;Barney, 1991). An evolutionary perspective of this line of thought reinforces the need to comprehend resources through dynamic capabilities, seeking to understand, through socially embedded routines and processes, how companies achieve and sustain value generation over time (Alford & Duan, 2018;Cirjevskis, 2019;Fainshmidt, Wenger, Pezeshkan & Mallon, 2019;Teece, Pisano & Shuen, 1997;Eisenhardt & Martin, 2000;Teece, 2007;Peteraf, Stefano & Verona, 2013). Dynamic capabilities are examined as a natural evolution of the internal resource perspective, with a focus on organizational capabilities in this study, linked to the administrative management of internal knowledge flows (Moreira, 2015). ...
... Knowledge flows in this environment are dynamic due to multiple interdependencies, with their control being virtually impossible (Tallman et al., 2004). It's worth mentioning here that the competitive analysis of geographically concentrated companies will allow the identification of dynamic capabilities that will sometimes behave as "best practices," understanding that companies in the same sector may present similar processes and routines, which support the benchmarking practices (Eisenhardt & Martin, 2000); and at other times, they may take on idiosyncratic aspects that make them unique (Teece;Pisano & Shuen, 1997;Teece, 2007). In this regard, it is necessary to recognize that the similarities among cluster companies are influenced by different dynamics of internal resources, which ultimately preserve potential differences in the strategic behavior and performance of each company. ...
... The reports point to a conformity among VSF producers regarding cultural practices, especially concerning table grapes: "[...] it involves pruning, thinning, pinching, dropping, these are steps that must be taken with table grapes" (Company 04_Interviewee2 -27:10). These routines are, therefore, similar, converging around key attributes (Porter & St. John, 1996) and being much more interchangeable than the theory of competitive advantage suggests (Eisenhardt & Martin, 2000). This conformity is related to the pursuit of productivity, with an emphasis on disseminating best practices through consultants present in the region and the strong relationships among producers, in addition to the focus on certifications, which are fundamental requirements for export activities (Institution01PE_Interviewee2 -6:2). ...
Objetivo: Este estudo buscou analisar a dinâmica das capacidades organizacionais de empresas produtoras e exportadoras de frutas frescas do Vale do Rio São Francisco. Metodologia/abordagem: Trata-se de um estudo de caso qualitativo, tendo como unidades de análise empresas produtoras e exportadoras e o clusterde fruticultura. Foram realizadas entrevistas semiestruturadas junto a atores empresariais, institucionais e da indústria de apoio, perfazendo 1182 minutos de gravação. Originalidade/Relevância: Esta pesquisa revela achados singulares a respeito de exportadoras do agronegócio brasileiro quefaz parte do setor expoentequando se trata de divisas internacionais. Principais conclusões: Os resultados reforçam a relação estreita entre o desenvolvimento dos recursos empresariais e os recursos do cluster, ao tempo que destacam homogeneidades e heterogeneidades entre as capacidades organizacionais das empresas. Contribuições teóricas/metodológicas: Os achados científicos desta investigação pretendem servir de base para o aprofundamento de pesquisas futuras no âmbito da área da administração estratégica e negócios internacionais. No curto prazo, os resultados colaboram para subsidiar a tomada de decisão nas empresas exportadoras do agronegócio.
... The theory also underscores the importance of market linking capabilities, which refer to an organization's ability to manage relationships with stakeholders in changing markets (Eisenhardt & Martin, 2000). Additionally, DCT provides insights into how firms with robust capabilities can better navigate regulatory changes, ensuring compliance while leveraging opportunities arising from new regulations (Teece et al.,1997). ...
... High-performing new products reflect an organization's capacity to innovate and respond effectively to market demands. By meeting customer needs more precisely, these products can capture greater market value, driving revenue growth, improving market share, and allowing for premium pricing strategies due to their innovative features and superior quality (Eisenhardt & Martin, 2000). ...
This study examines the mediating role of new product performance in the relationship between service innovation and both financial and non-financial performance in selected banks in Ghana using the dynamic capability theory as the theoretical lens. The study employed a descriptive research design to frame the study’s methodology. The target population consisted of 159 commercial and community banks in Ghana. Utilizing a quantitative research approach, a structured questionnaire was used to gather data from 113 sampled respondents through purposive sampling, Structural Equation Modeling (SEM) was employed to analyze the data and assess the proposed relationships. The results reveal that service innovation has a direct and positive impact on the financial performance of banks, with a b coefficient of 0.316, affirming its importance in enhancing profitability and market share. However, the relationship between service innovation and non-financial performance was negative. Despite this, new product performance emerged as a significant mediator, strengthening the positive impact of service innovation on financial performance, with a b coefficient of 0.245 and a t-statistic of 2.409. The mediation effect of new product performance on the relationship between service innovation and non-financial performance was also validated, indicating that while service innovation alone may negatively affect non-financial outcomes, introducing successful new products can mitigate this impact. These findings contribute to the understanding of how service innovation influences different aspects of organizational performance in the banking sector. The study offers practical insights for bank managers, emphasizing the need to focus on new product development to maximize service innovation's benefits.
... The resource-based view gives rise to the dynamic capabilities theory, which highlights a firm's competitive advantage stemming from its ability to adapt efficiently to changes in turbulent and dynamic environments (Asamoah et al., 2021). The ability of a company to build, integrate, and reconfigure internal and external resources through organizational processes to respond to changes in the competitive environment and develop new strategies that create value is known as dynamic capabilities (Eisenhardt and Martin, 2000;Teece et al., 1997). According to Eisenhardt and Martin (2000) and Singh et al. (2019), dynamic capability, in other words, looks at a company's capacity to recognize and seize opportunities as well as reorganize resource bases for long-term competitive advantage in a volatile environment. ...
... The ability of a company to build, integrate, and reconfigure internal and external resources through organizational processes to respond to changes in the competitive environment and develop new strategies that create value is known as dynamic capabilities (Eisenhardt and Martin, 2000;Teece et al., 1997). According to Eisenhardt and Martin (2000) and Singh et al. (2019), dynamic capability, in other words, looks at a company's capacity to recognize and seize opportunities as well as reorganize resource bases for long-term competitive advantage in a volatile environment. The study is subject to two applications of dynamic capabilities theory. ...
The study examined the mediating role of supply chain security performance on the relationship between supply chain security practices and supply chain disruptions occurrences in the manufacturing industry in Ghana. Drawing on a survey of 336 manufacturing firms, dynamic capability, and contingency theories were applied using structural equation modeling (SEM) to test the conceptual model. It was discovered that both direct and indirect hypotheses supported the findings of the study. The results indicate that Ghanaian manufacturing firms have made progress in implementing supply chain security measures. The findings revealed that the adoption of comprehensive supply chain security practices is positively associated with improved performance metrics, including reduced inventory losses and damages, faster order fulfillment and delivery times, lower costs related to security incidents, and enhanced brand reputation and customer trust. Policymakers can leverage these insights to develop support programs aimed at strengthening the security capabilities of manufacturing firms, ensuring they are equipped to compete effectively in both local and global markets, improving security performance, and reducing the likelihood and impact of supply chain disruptions. In the quest of bridging the gap between theory and practice, this research contributes valuable knowledge to the discourse on supply chain security in developing countries, offering a roadmap for enhancing resilience and performance in the manufacturing sector.
... Indeed, the heterogeneity of organizational capabilities is a cornerstone of resourcebased theory (Barney 1991;Barney et al. 2021;Sirmon et al. 2007). Researchers have analyzed changes in capabilities and resources to understand the dynamics of collective heterogeneity and dynamic capabilities (Ambrosini et al. 2009;Distel 2019;Eisenhardt and Martin 2000;Felin et al. 2012;Kraaijenbrink et al. 2010;Teece 2007;Teece et al. 1997). Capabilities are likely to develop into sets of routines (Becker 2004(Becker , 2005Nelson and Winter 1982;Winter 2003) or paths (Gruber 2010;Sydow et al. 2009;Vergne and Durand 2011) that document experiences and provide guidelines for action. ...
... Hung (2003) support this view, observing general patterns and paths in the evolution of organizational capabilities. Eisenhardt and Martin (2000) argue that organizational capabilities evolve through well-known learning processes such as repeated practice and learning from small failures. Burgelman (1994) conceptualizes organizational capabilities as an evolutionary organizational learning process that affects the accumulation of capabilities and competencies in complex organizations and facilitates various forms of adaptation. ...
This paper explores the evolution of innovative organizational capabilities. Using a longitudinal, embedded case study, we analyze how the Industrial Technology Research Institute (ITRI), a Taiwan-based public research institute, developed and advanced its capability over time through a series of technology development projects from the 1970s to the early 2010s. Our study reveals that capability development is linked to the way organizations exploit and utilize their capabilities and continually renew, develop, and transform their capability paths by exploring and interacting with new technology.
... Os recursos são fontes para que a empresa alcance capacidades (processos de negócios e atividades) necessários ao cumprimento do propósito da organização, denominados de competências. Por outro lado, algumas competências que fazem parte do negócio essencial (core business) sustentando as vantagens competitivas da firma, são denominadas de competências essências (EISENHARDT; MARTIN, 2000). ...
... Elas consistem nas combinações de recursos especiais que uma firma consegue deter, em detrimento das outras firmas de seu mesmo setor. Para criar essas vantagens competitivas é essencial que a firma se utilize das capacidades dinâmicas (EISENHARDT; MARTIN, 2000). ...
Resumo Esse estudo tem o objetivo de analisar como a dinâmica competitiva e as capacidades organizacionais determinam a adoção de estratégias de inovação com foco no mercado e suas implicações para performance empresarial superior. Pesquisa foi realizada em duas etapas: uma pesquisa qualitativa (exploratória) e uma quantitativa, quando aplicou-se um survey com escalas adaptadas da literatura e construídas a partir do estudo exploratório anterior. Os resultados fizeram uma contraposição entre a Visão Baseada em Recursos e a abordagem de Organização Industrial, apontando evidências de maior suporte empírico para a primeira, e identificando pontos de convergência entre teorias de inovação, estratégia e marketing. Entender como se dá esse processo de análise externa e interna tradução da Estratégia com foco no mercado visando criar inovações trata-se então de um tópico de pesquisa de relevância destacada na área de estratégia. A pesquisa demonstra que a busca por estratégias competitivas voltadas a inovação visando atender demandas do mercado produzem resultados acima da média indicadores mercadológicos.
... Still, they do not fully explain the specific mechanisms and temporal order in which they combine with more abstract strategies to ameliorate threats and promote adaptation (Wen and Zhu, 2019;Wang and Miller, 2020;Cutolo and Kenney, 2021, p. 599;Tschang, 2021). Since dynamic capabilities are vital to a firm's adaptive strategies and survival in such high-velocity ecosystems (Teece et al., 1997;Eisenhardt and Martin, 2000;Wang and Ahmed, 2007), we integrate some of its theoretical assumptions in search of more robust explanations (Teece, 2018). ...
... Beyond platform-specific strategies of adaptation, the established strategy literature proposes dynamic capabilities (DCs) as an underlying theoretical framework for exploring a firm's adaptive strategies and survival in high-velocity ecosystems (Teece et al., 1997;Eisenhardt and Martin, 2000;Wang and Ahmed, 2007). Transaction platforms are high-velocity ecosystems from the perspective that governance rules change regularly, creating an atmosphere of Knightian uncertainty that PDEs need to manage (McMullen and Shepherd, 2006). ...
This study investigates the adaptive strategies of platform-dependent entrepreneurs (PDEs) to mitigate venture survival risks associated with power asymmetries on transaction platforms. Using an embedded single case study design, we explore the decade-long survival of a PDE's firm in EdTech, focusing on its relationship with two dominant platforms, Google Search and AdSense. Our findings culminate in a robust framework that elucidates the strategic responses of PDEs to the challenges of power imbalance and its exercise through platform gover-nance. Critically, the study reveals that PDEs assert their self-determination in a two-step process that is best observed over time. Strategic subjectification, followed by multihoming and diversification, can be observed over a long temporal duration, emerging as crucial mechanisms for managing dependency risks. This study contributes to the platform strategy literature by shifting the focus from owners to participants, simultaneously illuminating entrepreneurial resilience amid power-related uncertainties.
... As capacidades dinâmicas possuem diversas definições de acordo com a literatura. Alguns pesquisadores reconhecem as CD's como processos e rotinas tácitas que facilitam o desenvolvimento das empresas (EISENHARDT; MARTIN, 2000;WINTER, 2003). Há estudiosos que entendem como atividades (ALI et al., 2012;TEECE, 2014 ) e outros como recursos, ativos ou a própria organização (NGUYEN; PHAM; FREEMAN, 2022). ...
... A dinâmica encontra-se entre a mudança e a resposta estratégica da empresa, e o fator tempo é crítico quando se refere à natureza de competição e dos mercados futuros que são complexos (TEECE;SHUEN, 1997). Essas mudanças envolvem certo grau de incerteza quanto aos futuros negócios (AMBROSINI; BOWMAN, 2009).A variação das capacidades dinâmicas frente ao mercado está de acordo com a velocidade em que as mudanças ocorrem (EISENHARDT;MARTIN, 2000). Geralmente as mudanças são frequentes, mas em uma trajetória linear e previsível nos mercados moderadamente dinâmicos.As capacidades dinâmicas são reconhecidas como uma extensão da visão baseada em recursos(RBV) (NGUYEN; PHAM; FREEMAN, 2022). ...
A partir das capacidades dinâmicas, as empresas podem reconfigurar de acordo com as mudanças do ambiente externo para obter vantagem competitiva. Diante do exposto, este artigo objetiva identificar os fatores do ambiente externo que influenciaram as capacidades dinâmicas na empresa estudada. Esta investigação foi desenvolvida a partir da abordagem qualitativa. Trata-se de estudo de caso único realizado numa rede hoteleira da Paraíba. Para a coleta de dados adotou-se a entrevista semiestruturada e a obtenção de dados secundários. No tocante aos dados secundários, foram coletadas matérias divulgadas em revistas e jornais. A fim de colaborar na etapa de tratamento de dados, foi utilizado o ATLAS.ti, software indicado para investigação de dados qualitativos, para atender ao objetivo desta pesquisa. Observa-se que fatores do ambiente externo influenciam a empresa no desenvolvimento de capacidades dinâmicas para obter vantagem competitiva. Outro resultado é o investimento em novas tecnologias para se adaptar ao ambiente e estar à frente dos concorrentes. Percebe-se que essencialmente o setor de turismo possui característica de instabilidade, e a realização de investigações que tratem as capacidades dinâmicas é um dos meios para minimizar os impactos negativos nas organizações desse setor. Assim, a comunidade dos destinos turísticos terá a chance de manter seus negócios ativos, ao gerar sustentabilidade econômica e social. Por fim, a temática de capacidade dinâmica relacionada à hotelaria, especificamente, não acaba aqui. Esta pesquisa pode subsidiar outros estudos e auxiliar na construção de estratégias hoteleiras para aqueles que lidam com essa temática, para o benefício dos pesquisadores e gestores.
... The DC view helps firms understand how to develop an organization's resource base over time and focuses on how a firm optimizes and aligns with environmental changes to gain a competitive advantage (VU, 2020). Hence, developing DCs is one of the key factors in achieving and maintaining competitive advantages (Beigi et al., 2022;Hosseinzadeh et al., 2021) to promote a firm's growth (D'Annunzio et al., 2015;Eisenhardt & Martin, 2000;Teece, 2012;Tran et al., 2019). ...
... Numerous factors influence the development of DCs, which in turn can lead to the success or failure of the firm (Eriksson, 2014). The related studies have emphasized the role of resources (Macpherson et al., 2015;McKelvie & Davidsson, 2009), the role of managers (Teece, 2012a(Teece, , 2014, the role of knowledge and learning (Eisenhardt & Martin, 2000;Zahra et al., 2006;Zollo & Winter, 2002) and the role of culture (Inan & Bititci, 2015) in the development of DCs. Also, other research shows that strategic orientation (Li & Zhou, 2010) and network embeddedness (Zheng et al., 2011) are important antecedents of DCs in manufacturing firms. ...
Article type: Research Article Resource limitation has always been an issue discussed in different fields of science. By using dynamic capabilities, companies can respond to environmental fluctuations despite their limited resources. This study aims to understand the development of dynamic capabilities in new ventures. The methodology is a qualitative multiple-case study analysis. It draws on in-depth interviews with 15 new ventures in the field of IT selected using purposive sampling. The results identified four critical factors for the development of dynamic capabilities in new ventures, which are the antecedents of dynamic capability development: characteristics of the management team, resources, and capabilities of the firm, strategic orientations, and the environment. These improve the performance of the firm through radicalness. The results provide valuable insights for managers and researchers on creating and developing dynamic capabilities in new ventures.
... Portanto, a organização deve buscar a eficiência, a efetividade e a conformidade (exploitation) e, ao mesmo tempo, implementar a criatividade e a exploração de seus recursos (exploration). (Eisenhardt et al. 2000). Logo, a ambidestria organizacional é considerada como uma capacidade dinâmica que vai além de passar de uma configuração de competências para outra, mas, ao contrário, trata de múltiplas demandas inconsistentes simultaneamente (Jansen et al., 2009). ...
... As identidades de papéis são a codificação dos valores, crenças, normas e suposições comportamentais assumidas pelo papel. No entanto, indivíduos Eisenhardt et al. 2000). Logo, a ambidestria organizacional é considerada como uma capacidade dinâmica que vai além de passar de uma configuração de competências para outra, mas, ao contrário, trata de múltiplas demandas inconsistentes simultaneamente (Jansen et al. 2009). ...
Com o acirramento do comércio internacional acarretou um significativo aumento da concorrência empresarial, onde, as organizações para continuarem a existirem e crescerem, tiveram que aprender lidar com diversas demandas interna e externa diariamente. Essa combinação de demandas acelerou a necessidade de alcançar a ambidestria organizacional, no qual, pode ser resumido na capacidade da empresa inovar e aumentar sua eficiência através da criação de novas competências (exploration) ou exploração dos produtos, serviços e processos já instituídos (exploitation), ou seja, a organização deve buscar a eficiência, a efetividade e a conformidade (exploitation) e, ao mesmo tempo, implementar a criatividade e a exploração de seus recursos (exploration). Também, a ambidestria organizacional proporciona aprendizagem através do conhecimento interno, incorporado por toda a organização, trazendo retornos mais rápidos, quando for utilizada para soluções de rotina, inovações de caráter incremental e buscas de soluções de menor risco. Entretanto, empresas que se concentram apenas na exploration ou exploitation, correm o risco de ficar presas em produtividade abaixo do ideal, colocando em risco sua sobrevivência organizacional a longo prazo. Portanto, foi observado na literatura atual, que a influência do planejamento estratégico na ambidestria organizacional pouco foi investigada, por isso, o objetivo deste trabalho é rever as últimas abordagens que versem sobre gestão estratégica, principalmente na vertente da ambidestria organizacional. Tal interesse é devido a multiplicidade e a divergência dos papéis nas empresas, aos quais os indivíduos precisam inovar constantemente. Especificamente, apontamos para a relevância de como os indivíduos se identificam e promulgam essa multiplicidade de demandas de papéis com interação com outras funções organizacionais.
... In their seminal paper, Teece et al. (1997) introduce the concept of dynamic capabilities, laying the foundation for understanding how organizations can adapt and innovate in the face of dynamic environments. Eisenhardt and Martin (2000) focus on the essence of dynamic capabilities, providing insights into their nature and importance in a rapidly changing business context. Helfat and Peteraf (2003) explore the lifecycle of capabilities, highlighting how dynamic capabilities evolve over time and contribute to a firm's sustained competitive advantage. ...
... It can be rooted in hidden firm-specific dynamic capabilities or externally unrecognized connections with suppliers or customers (Reed and DeFillippi, 1998;Lippman and Rumelt, 1982;King, 2007). Dynamic capabilities play a pivotal role in achieving firm success and profitability, especially when there are changes in market or technological environmental conditions (Eisenhardt and Martin, 2000;Teece, 2007;Henneke, 2014). Accordingly, three generic dynamic capabilities are deemed essential: ...
The resource-based view (RBV) is a strategic management framework emphasizing a firm׳s internal resources and capabilities as key sources of competitive advantage. Contrasting traditional market-based views, RBV underscores the unique and heterogeneous nature of a firm׳s assets in determining performance and profitability. The RBV suggests that how a firm applies resources (technology, organizational processes, information and knowledge) can create an idiosyncratic competitive advantage. Under the RBV firms develop firm-specific strategies and differ significantly in profitability. Dynamic capabilities, an extension of RBV, stress a firm׳s ability to adapt its internal resources during unpredictable macro-environmental changes. RBV has transformed strategic management by directing attention to internal factors, recognizing the dynamic nature of resources, and guiding strategic decision-making. It provides a practical framework for identifying and leveraging resources, offering a unique perspective on firm-specific competitive advantage.
... Theoretical findings in the strategic management literature have identified absorptive capacity as an important dynamic capability in turbulent environments that call for rapid adaptation to new, changed market conditions (Eisenhardt & Martin, 2000;B. Guo & Wang, 2014;Teece, 2007). ...
... This capability is instrumental in enhancing resilience, which Lengnick-Hall et al. (2011) define as a firm's proficiency in absorbing shocks, developing adaptive responses, and transforming operations to capitalize on disruptive events. The synergy between ACAP and resilience is further illuminated in studies by Eisenhardt & Martin (2000) and Teece (2007), which highlight how ACAP serves as a critical underpinning for resilience by fostering a firm's ability to anticipate and adapt to changes, thereby ensuring sustainability and competitive advantage in dynamic settings. Additionally, Finkelstein et al. (2009) and Tsai & Yang (2017) emphasize that the integration of ACAP into resilience strategies enables organizations not just to withstand market volatilities but to emerge stronger, leveraging learned knowledge for strategic renewal and growth. ...
The COVID-19 pandemic disrupted economies and societies around the world and forced many industries to rethink their operations. While the ambiguity in global economies and adapted modes of operation have considerably affected small businesses in the fitness industry, few insights have been provided into the adjustments that enabled these businesses to remain operational. This study hence adopts a qualitative approach to explore the adjustments made by small fitness businesses based on transitional business models during the COVID-19 pandemic. We conducted semi-structured interviews with key informants from small fitness businesses that had encountered restrictions and limitations due to the pandemic. The findings indicate that small fitness businesses chose a trial-and-error approach while developing their business model that allowed transitional adjustments in their value propositions as they developed resilience during the disruptions. Nevertheless, existing customers’ perceptions of service quality and loyalty served as an important buffer for ensuring customer retention.
... It does this by drawing on theoretical frameworks such as the This Journal is licensed under a Creative Commons Attribution 4.0 International License resource-based view (Barney, 1991) (Wernerfelt, 1984), dynamic capabilities perspective (Teece et al., 2009), and social cognitive theory (Bandura, 1986). It also acknowledges the significance of dynamic capabilities in identifying market opportunities, adjusting to modifications, and revitalizing organizational capacities (Eisenhardt and Martin, 2000) (Zahra and George, 2002). When strategic vision is combined with entrepreneurial activity, businesses can promote innovation, stability, and longterm growth (Ireland et al., 2008) (Zahra and George, 2002). ...
Strategic entrepreneurship indeed plays a crucial role in contemporary business environments. It integrates entrepreneurial actions with strategic management practices to navigate complexities and achieve long-term goals effectively. With an emphasis on trend analysis, collaborative mapping, and future objectives for the subject, bibliometric analysis of strategic entrepreneurship research is attempted to be done comprehensively in this work. The research aims to offer insights into strategic entrepreneurship literature's development and current status by utilizing data from the Scopus database spanning a decade of 2014 – 2024 with the 694 documents. The methodology involves collecting and analyzing data from Scopus using tools like Bibliometrix for data extraction and R-Studio for statistical analysis. VOSviewer is employed for visualizing co-authorship networks, keyword co-occurrences, and bibliographic couplings. The study filters publications using specific criteria related to strategic entrepreneurship, ensuring a focused dataset for analysis. Key metrics such as publication growth rates, international collaboration percentages, citation trends, and keyword frequencies are quantitatively analyzed to uncover patterns and relationships within the literature. By utilizing advanced bibliometric techniques, it provides a detailed visualization of the research landscape, highlighting emerging trends and identifying gaps for future exploration. The emphasis on international collaboration and the identification of influential authors, journals, and institutions offer novel perspectives on the dynamics of strategic entrepreneurship research.
... Dans le contexte de la transformation digitale du reporting et du contrôle de gestion, cette théorie permet d'éclairer les processus par lesquels les entreprises intègrent, construisent et reconfigurent leurs ressources et compétences pour répondre aux défis posés par les technologies émergentes. Eisenhardt et Martin (2000) ont souligné que les capacités dynamiques sont particulièrement cruciales dans les environnements technologiques turbulents, ce qui correspond parfaitement au contexte actuel de la digitalisation. Dans notre étude, nous examinons comment les entreprises développent des capacités dynamiques spécifiques pour adapter leurs pratiques de reporting et de contrôle de gestion aux nouvelles réalités technologiques. ...
... DCV is suitable for this study as it focuses on leveraging strategic approaches, resource management, and building competitive advantages (Teece et al., 1997). DCV focuses on developing dynamic capabilities-internal and external adjustments that allow firms to adapt to changing conditions (Eisenhardt & Martin, 2000;Teece et al., 1997). These capabilities reflect a SC's robustness and resilience (Kwak et al., 2018). ...
Supply chain resilience (SCR) has been a topic of enormous interest among researchers for almost two decades. Still, there’s been limited focus on the impact of digital twin (DT) technologies and supply chain disruption mitigation (SCDM) strategies on SCR. This study addresses this gap by examining how DT and SCDM strategies enhance SCR and whether strategic fit (SF) moderates these relationships. Using the dynamic capability view (DCV) as the theoretical foundation, we developed our conceptual framework and research hypotheses. Data were collected from 200 Bangladeshi manufacturing organizations through a survey-based approach, and the partial least square (PLS) technique was utilized to assess the framework and research hypotheses. The findings reveal that both DT technologies and SCDM strategies significantly boost SCR. Besides, while SF plays a critical moderating role in the relationship between DT and SCR, it does not moderate the association between SCDM strategies and SCR. This study contributes to the theoretical understanding of SCR by integrating DT and SCDM strategies within the DCV framework, offering insights into their roles in managing supply chain disruptions. Additionally, it provides practical guidance for managers on effectively leveraging DT and SCDM strategies to build resilient supply chains while emphasizing the importance of strategic alignment in optimizing digital interventions.
... The organizational and strategic practices that organizations use get new help restructuring as the market emerges, reports, divides, evolves and fall apart are referred to as dynamic competencies. Therefore, by altering the underlying resource base, these capabilities can be understood as practices within leading companies and support the development of the company's capacity (organization) (Eisenhardt and Martin, 2000). According to Wright, Dunford, and Snell (2001), in order to take advantage of these dynamic capabilities. ...
Kenya Revenue Authority (KRA) has on numerous occasions failed to meet its revenue collection targets. Discord in tax compliance between Kenya taxpayers and collectors has been highly witnessed. Most SMEs engage in rampant tax evasion hence this study sought to establish effect of financial literacy on SMEs tax compliance level with a nucleus on the effect of budgeting, financial forecasting, credit management and investment diversification. Four critical theories of knowledge-based view, theory of planned behaviour, dynamic capabilities theory and contingencies theory fastened the research. A correlational research design was employed. 190 SMEs was sampled from the population of 846 manufacturing SMEs registered with KAM. Employing a semi-structured questionnaire, primary data was gathered. It was established that budgeting, financial forecasting, credit management and investment diversification had a positive notable effect on tax compliance. A budget was concluded to curtail SMEs expenditures and ensure tax compliance is on track for the future, accurate financial forecasts enable businesses to identify potential market risks and opportunities, there by facilitating better decision-making, effective credit management plays a crucial role in sustaining a healthy cash flow, minimizing financial risks, and building strong customer relationships. Additionally, investment diversification enables SMEs to attract new clients without requiring significant investments in additional personnel or resources. The study recommends that the SMEs should keep their budgeting flexible for better business results and veracity. The SMEs should project future sales by analysing market trends, historical performance, and other influencing factors. SMEs should properly define their credit management process and head for overseeing credit management and enforcing payment terms including handling late payments. SMEs could also benefit from establishing their own virtual mutual fund by investing in a selection of trusted companies that they regularly engage with in their daily operations.
... Resource-based view, on the other hand, puts stress on the idea that the company's distinctive resources and capabilities contribute to the company's competitiveness in the market, which in turn brings more profits to the firm (Barney, 1991). In this case, the resources are either tangible or intangible assets that the firm possesses and capabilities are the capacity to effectively utilize and combine these resources (Eisenhardt & Martin, 2000). According to RBV, each company's resources must present those features: rareness, valuable, tough to imitate and could not be substituted with another by creating a VRIN framework (Laksmana et al., 2020). ...
This paper explores the interconnection between entrepreneurial leadership and the radical innovation performance of SMEs in China’s web development industry. Applying RBV theory and a quantitative research design with Smart PLS analysis results in an inquiry of entrepreneurial leadership’s impact on innovative outcomes. A quantitative research design was chosen, using SmartPLS 4.0, with the sample population being Chinese internet industry employees working for SMEs. The sample was made up of 268 employees working in Internet related SMEs in China. The study has demonstrated a notable and positive link between entrepreneurial leadership and radical innovation performance, thus highlighting the crucial role of this function in promoting innovation among the highly competitive Chinese Internet possessions. This study highlights the most important moderating role of entrepreneurial orientation which is its being a mental bridge between entrepreneurial leadership and radical innovation outcomes. The research further gives an insight into the rising relationship between entrepreneurial leadership and entrepreneurial orientation as a result of the moderating effect of power distance within Chinese internet SMEs. Thus, this research provides important information for Chinese Internet small and medium-sized enterprises that intend to increase their radical innovation capacity. It is a blueprint for organizational development and leadership which are the key factors needed to foster the sustainable growth of the internet industry in this dynamic environment.
... Successful implementation of business policies ensures consistency and transparency within an organization, helping it navigate complex business environments [11]. Clear business policies can streamline operations and reduce uncertainty, thereby enhancing organizational efficiency. ...
This review explores the key disciplines within strategic management, including corporate strategy, business policy, strategic leadership, competitive strategy, international business strategy, strategic decision making, and innovation and entrepreneurship. Through an extensive analysis of existing literature, this paper provides significant insights into strategic planning and implementation, innovative approaches to competitive advantage, and empirical research that tests the effectiveness of strategic interventions.
... Nevertheless, Zahra et al. (2006) caution that while the effective utilization of dynamic capabilities can enhance enterprise performance, improper use may lead to disadvantages. Eisenhardt and Martin (2000) further emphasize that simply possessing dynamic capabilities does not guarantee superior enterprise performance. In particular, organizational resilience, as a unique form of dynamic capability, enables enterprises to withstand external shocks (Darkow, 2019;Wziatek-Kubiak & Peczkowski, 2021). ...
Organizational resilience is a crucial capability that enables firms to navigate external shocks and achieve sustainability. While it enhances market value, it can also have potential negative impacts on it. Drawing from dynamic capability theory, this study adopts a dual-pathway approach to investigate the dual effects of organizational resilience on firm market value. Utilizing data from Chinese A-share listed firms during 2010–2022, our findings reveal that organizational resilience exhibits both positive and negative pathways on firm market value. Specifically, it can boost firm market value by promoting financial investment (positive pathway) while suppressing it through environmental, social, and corporate governance (ESG) responsibility fulfillment (negative pathway). Moreover, industry competition moderates the indirect effects of organizational resilience on firm market value through financial investment and ESG responsibility fulfillment. In high-competition environments, organizational resilience promotes financial investment, thus facilitating firm market value. Conversely, in low competition environments, organizational resilience enhances ESG responsibility fulfillment, subsequently hindering firm market value. This paper reveals the double-edged sword effect of organizational resilience on enterprise market value, offering a dialectical perspective for understanding their relationship. It also provides valuable insights for enterprises to develop solutions to enhance market value in a competitive industry environment.
... changes implemented rapidly and concurrently can disrupt firms' operations (Kunisch et al., 2017). An accelerated pace of change can prevent managers from learning from prior change, and attempting to overhaul all organizational elements simultaneously can put an organization at risk of failure (Albert et al., 2015;Eisenhardt & Martin, 2000;Klarner & Raisch, 2013). Therefore, leaders must modify visible core organizational operations and cope with the fallout before implementing subsequent changes (Amis et al., 2004). ...
... The significance of this research lies in its ability to shed new light on how organizations can navigate increasingly complex environments. Understanding how the integration of system dynamics into management control can enhance strategic innovation becomes crucial in an era where rapid adaptability is often synonymous with competitiveness (Eisenhardt & Martin, 2000;Pisano, 2015). ...
This article explores the concept of strategic innovation, with a focus on its integration with system dynamics in the field of management control. By examining the synergies between these two domains, the article proposes innovative perspectives to enhance decision-making processes and overall business management. The authors highlight the benefits of adopting a systemic approach in management control, emphasizing how it can foster a deeper understanding of complex interactions within organizations. Practical case studies illustrate how this integration can lead to significant innovations, providing managers with valuable tools to navigate in an ever-evolving business environment. Ultimately, the article underscores the strategic importance of merging systems thinking with management control to promote more effective, resilient, and future-oriented business management.
... Given the increasingly dynamic markets, companies, namely FBs, find themselves obliged to keep up with these changes (Wang, 2016). Dynamic capabilities are identified as a factor that largely contributes to sustainable performance, as they adapt and manage all their resources and processes to ensure sustainable pursuit (Eisenhardt and Martin, 2000;Teece, 2007;Wang, 2016). ...
Many studies have called for more research and increased knowledge about Family Businesses (FB), notably their sustainability. This work aims to reduce this limitation through a narrative literature review and thus contribute to knowledge about FB’s compliance and sustainability design. The results suggest that interest in sustainability practices is growing but still low, and implementation is challenging. This work presents scientific contributions, notably to the Theories of Vision Based on Resources, Dynamic Capabilities, and Stewardship. At the same time, it contributes to the operationalization of FB, as they can design their sustainability practices and compliance strategies similar to those of others. The value of this work culminates in the original proposal of a framework identifying the leading information representative of the main challenges for the sustainability of FB.
... Based on the RBV, firms obtain competitive benefits by employing valuable, rare, and inimitable resources, including BDAC, which helps firms analyze extensive data sets and provide improved decision-making and innovation (Schoenherr & Speier-Pero, 2015). However, DCT draws attention to dynamic capabilities through which firms can reconfigure both internal and external resources in their rapidly changing environments (Eisenhardt & Martin, 2000). Supply Chain Visibility (SCV) being a firm's dynamic capability, enables the manufacturing firms to adopt flexibly, proactively change, and fine-tune their supply chain strategies to boost organizational performance (Wu et al., 2006). ...
Big data has revolutionized how businesses operate today, offering unprecedented insights. By harnessing vast amounts of data, companies can optimize performance, enhance decision-making, and drive efficiency. This research examined the relationship between big data analytics capabilities and organisational performance in the context of supply chain visibility based on sample data collected from 400 manufacturing firms operating in Pakistan. The data were gathered from experienced supply chain professionals with the help of a structured questionnaire while Smart PLS 4.0 was employed to evaluate the research model. The research findings indicate that big data analytics capabilities positively affect supply chain visibility and result in improved organisational performance. The study supports the research hypothesis that though big data analytics capabilities may not have a direct impact on organizational performance, however, they can both indirectly and positively impact organizational performance when mediated by supply chain visibility. The findings recommend that manufacturing sector organisations should focus on improving supply chain visibility to optimise the benefits of big data analytics capabilities. This research extends the existing literature on big data analytics capabilities from a supply chain perspective, showing how they improve the performance of organisations and hence offer valuable insights to researchers and practitioners.
... Similarly, Ferreira et al. (2016) stated that the worth of distinctive competencies contributes to achieving better results and sustainable competitive advantages. Strategic Flexibility (SF) is one of the unique concepts that believe in the flexible use of resources (Eisenhardt and Martin, 2000). Furthermore, Han and Zhang (2021) delineated that SF prioritizes the adaptable utilization of resources and the reorganization of processes, reflecting a form of DC. ...
Purpose
This study aims to investigate the relationship between technology-distinct capabilities (TDC) and innovative work behavior (IWB) through the mediating effect of strategic flexibility (SF), to examine the behavior toward technopreneurship (BTT) among Omani small and medium-sized enterprises (SMEs). Furthermore, technopreneur self-efficacy (TSE) is investigated as a moderating variable between TDC and SF.
Design/methodology/approach
Based on the quantitative research design, the survey questionnaire instrument was used to collect data from SMEs’ owners and managers. Using purposive sampling, the study comprised 285 responses from Muscat, Sohar and Al-Buraimi regions. Responses were analyzed through SPSS 25 and Smart PLS 4 using structural equation modeling (SEM).
Findings
The main findings revealed a positive and significant influence of TDC and IWB on SF. In addition, SF mediates the relationship between TDC, IWB and TBB. Results showed no effect of TSE on TDC and SF. The study outlines significant theoretical and practical implications. Dynamic capability (DC) theory provided a framework for understanding the highly competitive Omani business climate. The diffusion of innovation (DOI) provides the way forward to SMEs that how they embrace and induce novel concepts, including SF.
Originality/value
The findings of the study can be used by academics and policymakers to develop policies that support SMEs’ technological innovation and adaptability. In the Omani context, policymakers and public managers can utilize this research to evaluate the different technopreneurship support programs and encourage SMEs to adopt digital technology to capitalize on the nation’s entrepreneurial dynamic.
... The concept suggests that firms can leverage these capabilities to reconfigure resources and adapt to technological changes (Al-Khatib, 2023;Dubey et al., 2020). Specifically, dynamic capabilities are understood as an organisation's ability to sense opportunities, seize them, and transform both internal and external competencies to navigate rapidly evolving environments (Eisenhardt & Martin, 2000;Teece, 2007). In this vein, within the context of I5.0, this framework becomes particularly pertinent as firms endeavour to integrate advanced technologies such as AI and digital twins to augment operational efficiency and resilience (Dacre, Yan, et al., 2024). ...
Industry 5.0 (I5.0) is increasingly emerging as a prominent paradigm across the global business landscape, with three distinctive core values: human-centricity, sustainability, and resilience. This shift introduces notable changes in multiple aspects and requires academics and practitioners to reexamine the concept of supply chain management. Whilst previous research has identified the potential of I5.0 in enhancing supply chain performance (SCP), there has been insufficient attention paid to the understanding of the nature and implications of human-AI interactions. More specifically, there is a lack of thorough discussion on the mechanism how I5.0 can improve SCP. This exploratory study therefore aims to develop theoretical insights through empirical examination of the relationships between I5.0 and SCP in the manufacturing industry, with supply chain integration (SCI) as a mediator. Adopting a dynamic capabilities perspective, we argue that overcoming the challenges associated with implementing I5.0 may motivate companies to integrate their supply chains and enhance their SCP. Partial least squares structural equation modelling (PLS-SEM) is applied to test the hypotheses using survey data from 230 industry professionals, followed by a fuzzy analytic hierarchy process (FAHP) to quantify and prioritise the impacts of I5.0 challenges on SCP indicators. The results indicate that I5.0 has a direct positive impact on both SCI and SCP. Furthermore, SCI plays a significant role in mediating the relationship between I5.0 and SCP. This research contributes to the body of knowledge by empirically validating the relationships between I5.0, SCI, and SCP in a solitary and holistic model, thereby bridging the gaps in the literature between these distinct research streams.
... Teece et al. (1997) termed dynamic capability as the firms' competence in developing and reconfiguring the competencies to adapt to environmental contingencies. The dynamic capabilities denote firm-level aptitudes to mobilize and reconfigure resources rapidly to cope with the ever-changing environment (Bojesson and Fundin 2020;Eisenhardt and Martin 2000). As firms develop dynamic capabilities, they have to focus on exploring new markets and products as well as bringing innovations to exploit the existing markets and products. ...
Being ambidextrous in the internationalization pathways can help a firm overcome the complex dynamics in a foreign environment. But the extant research into exploring ambidexterity in internationalization in a crisis environment like the COVID-19 context is limited. The main objective of this research is to delineate how the pharmaceutical industry has made ambidextrous internationalization pathways during the COVID-19 transition period. Drawing upon the organizational ambidexterity and dynamic capability (DC) theory, this paper investigates how pharmaceutical companies adopt ambidexterity in internationalization. Four case studies along with a total of 16 semi-structured interviews were conducted with pharmaceutical companies from Bangladesh, an emerging economy. Qualitative content analysis was done to derive the necessary codes and themes using MAXQDA software. From the inductive coding process, the study identified four facets of ambidextrous internationalization: structural ambidexterity, contextual ambidexterity, sequential ambidexterity, and innovation ambidexterity. Besides, the study unveiled several novel ambidexterity implementation approaches, such as adoption of causation and effectual logic, practice of institutional isomorphism, resource partnering, innovation orientation, resource recognition, capability to realign, experiential learning, and adoption of intrapreneurship culture. The study demonstrates how firms from an emerging economy adopted different ambidextrous approaches along with their implementation and resource allocation tactics for internationalizing businesses. Our study contributes to the firm internationalization literature by presenting how ambidextrous approaches can be leveraged while internationalizing within crisis environments.
... Teece, Pisano and Shuen (1997), The theory of Dynamic Capabilities, a framework in strategic management, highlights an organization's capacity to combine, develop, and reorganize internal and external competencies in order to adapt quickly to changing surroundings. The development of dynamic capability as a theory received contributions from several other proponents (Eisenhardt & Martin, 2000;Helfatet al., 2007;Zollo & Winter, 2002). According to Teece (2007), operational capabilities support an organization's technical fitness in terms of ongoing operational sustainability and efficiency. ...
In the fields of business and environmental studies, sustainable entrepreneurship and environmental dynamism are inevitable concepts that drives the economy .Sustainable businesses may need to be especially inventive in highly dynamic circumstances, utilizing their knowledge of sustainability to foresee and adapt to changes.Therefore, the study was designed to investigate sustainable entrepreneurship and environmental dynamism of selected meter manufacturing companies in Lagos State. The study adopted a survey research design and the study relied on primary data through structural self-administered questionnaire. The targeted population of this study is 207 mid-level and top management level employees of MMCs in Lagos state. The list of MMCs was drawn from Directory of Certified Electricity Meters and Instruments Manufacturing /Assembling Companies and Nigerian Electricity Management Services Agency who served as a regulatory body to MMCs in Nigeria. Taro Yamane formula was used to choose 136 participants to which the questionnaires were administered and returned. Multiple regression and Pearson correlation method of analyses were used for hypotheses of the study. Findings revealed that social and economic sustainability are significant predictors of market dynamism of MMCs in Lagos State. The study concludes that both social sustainability and economic sustainability have a positive and significant influence on market dynamism. The study therefore, recommended that MMCs should always come up with both economic and social sustainability policy that can mitigate the effect of market dynamism and improve their operations.
... In this research paper, dynamic capability theory has been implemented to create the relationship among AI capabilities, agility and competitive advantage. It provides a conceptual lens to elaborate the competitive advantage of organizations along with the processes that organizations can develop and configure their AI capabilities so they can respond to the rapid changes happening in the marketplace (Eisenhardt and Martin, 2000). The analysis of organizational agility and growth is supported by dynamic capabilities, which are defined as a combination and configuration of managerial processes, adaptability within the process and resource capabilities. ...
Purpose
This paper aims to analyze the importance of big data analytics (BDA) and supply chain analytics for sustainable supply chain management in all types of enterprises in the footwear industry. The importance and implementation of BDA in supply chain management have been discussed in this research paper, and a conceptual framework is proposed for the implementation.
Design/methodology/approach
The previous research indicates that the application of BDA and supply chain analytics is the key point to establishing sustainable supply chain management. Even though there are several types of research on the implications of BDA, there is still a gap in practical implications in organizations. For a better understanding, comparison of frameworks has been done for literature support. Further, 11 in-depth, semi-structured interviews have been conducted with four organizations from the footwear industry, and a conceptual framework has been proposed.
Findings
This research demonstrates an important gap in the literature through a thorough investigation of how firms can improve operational efficiency and productivity through the framework application and whether it is feasible to apply this within the global footwear industry or not. In conclusion, the research has denoted that despite lack of understanding related to sustainability agendas and not having proper ERP or BDA systems, the organizations operating in Pakistan still met some standards of sustainability and are moving toward achieving more.
Research limitations/implications
The research has pointed out the importance of the integration of all stakeholders in the supply chain through a proposed framework that aligns and guides the stakeholders so that the policies and other constraints may be taken into consideration while revising sustainable supply chain strategies.
Practical implications
This study will help increase sustainability through the application of BDA technology, which will benefit various stakeholders, particularly those in the footwear industry.
Originality/value
This study has proposed a framework based on three stages of the implementation of BDA in the existing supply chain to maintain and achieve sustainability in the organization in the footwear industry. This three-stage framework covers many aspects that were not covered in the literature before.
... Drafting from theoretical frameworks such as the resourcebased view (15,16), dynamic capabilities perspective (5), and social cognitive theory (17), strategic entrepreneurship underscores the necessity of identifying and leveraging valuable, rare, and difficult-to-imitate resources to gain a competitive advantage (16,18). Additionally, it recognizes the role of dynamic capabilities in sensing market opportunities, adapting to change, and renewing organizational capabilities (19,20). By combining entrepreneurial actions with strategic foresight, firms can foster innovation, stability, and long-term growth (20,21). ...
The purpose of this study is to examine the challenges of small businesses in Tamil Nadu face when adopting strategic
entrepreneurship. It seeks to understand how the demographic profiles like Age, gender and educational qualification
are influence the challenges for adopting strategic entrepreneurship. This study used a qualitative approach was
employed, utilizing a Stratified Random Sampling Technique to select the 380 Small businesses across various sectors
in the southern region of Tamil Nadu. Structured Questionnaires were used to gather data on the challenges for
adopting strategic entrepreneurship. The percentage analysis for demographic profile, weighted average for the rank
of the challenges and Kruskal-Wallis test was utilized for the testing of hypotheses. The study revealed the 20 challenges
faced by the small business for adopting the strategic entrepreneurship including limited financial resources, lack of
skilled personnel, etc. The demographic profile of the respondents highlighted a predominance of middle aged and male
entrepreneurs with more business experience. The weighted average shows that mindset of the employee and limited
financial resources are the high mean score and rank. The Kruskal – Wallis test shows the result of the hypotheses. This
study adds to the body of knowledge by highlighting specific challenges that small businesses confront. By considering
demographic profiles, it offers valuable insights for policy makers and business stakeholders to develop targeted
strategies. The utilization of the Kruskal-Wallis test provides a rigorous statistical analysis of the association between
demographic profiles and challenges enhancing the originality and validity of the findings
... The concept suggests that firms can leverage these capabilities to reconfigure resources and adapt to technological changes (Al-Khatib, 2023;Dubey et al., 2020). Specifically, dynamic capabilities are understood as an organisation's ability to sense opportunities, seize them, and transform both internal and external competencies to navigate rapidly evolving environments (Eisenhardt & Martin, 2000;Teece, 2007). In this vein, within the context of I5.0, this framework becomes particularly pertinent as firms endeavour to integrate advanced technologies such as AI and digital twins to augment operational efficiency and resilience (Dacre, Yan, et al., 2024). ...
Industry 5.0 (I5.0) is increasingly emerging as a prominent paradigm across the global business landscape, with three distinctive core values: human-centricity, sustainability, and resilience. This shift introduces notable changes in multiple aspects and requires academics and practitioners to reexamine the concept of supply chain management. Whilst previous research has identified the potential of I5.0 in enhancing supply chain performance (SCP), there has been insufficient attention paid to the understanding of the nature and implications of human-AI interactions. More specifically, there is a lack of thorough discussion on the mechanism how I5.0 can improve SCP. This exploratory study therefore aims to develop theoretical insights through empirical examination of the relationships between I5.0 and SCP in the manufacturing industry, with supply chain integration (SCI) as a mediator. Adopting a dynamic capabilities perspective, we argue that overcoming the challenges associated with implementing I5.0 may motivate companies to integrate their supply chains and enhance their SCP. Partial least squares structural equation modelling (PLS-SEM) is applied to test the hypotheses using survey data from 230 industry professionals, followed by a fuzzy analytic hierarchy process (FAHP) to quantify and prioritise the impacts of I5.0 challenges on SCP indicators. The results indicate that I5.0 has a direct positive impact on both SCI and SCP. Furthermore, SCI plays a significant role in mediating the relationship between I5.0 and SCP. This research contributes to the body of knowledge by empirically validating the relationships between I5.0, SCI, and SCP in a solitary and holistic model, thereby bridging the gaps in the literature between these distinct research streams.
... Post-pandemic, entrepreneurs who deploy necessary DCs can adapt to new business environments. DCs explain how entrepreneurs identify and pursue new opportunities during crises like the COVID-19 pandemic, helping businesses survive (Eisenhardt and Martin, 2000). This concept serves as a useful tool for understanding factors affecting early entrepreneurial activities. ...
This paper seeks to study factors influencing the early stages of entrepreneurship within the context of coronavirus pandemic, specifically within an emerging country. We utilize from a unique dataset collected by Global Entrepreneurship Monitor which is the sole global research repository compiling data on entrepreneurial activities and individual entrepreneurial attributes across 50 countries worldwide. In particular, this study focuses on the GEM survey data pertaining to Turkey during the period coinciding with the COVID-19 pandemic in the year 2021. The analysis is done by binary logistic regression with dependent variable being total entrepreneurship activity. Findings indicate that opportunity-driven respondents, with high-status aspirations, possessing necessary skills and acknowledging the challenges of their entrepreneurial environment, are the ones who show a higher probability of engaging in entrepreneurial activities. While these variables have been scrutinized in existing literature, our contribution lies in examining their effects within an emerging market, a relatively understudied context, particularly in the aftermath of a global pandemic. Results suggest that the individuals reporting a substantial increase in income during the pandemic, and perceiving a harder business environment to start a new venture show elevated probabilities of becoming an entrepreneur. These two are the pandemic-related variables demonstrating statistical significance, which highlights the fact that this period created its entrepreneurs, who exploit high resilience and dynamic capacity to adapt to crisis times. They experienced a significant increase in their income, capitalized on their comparative advantage in entrepreneurial skills within an environment where starting a business is not easy and took advantage of the opportunities seeking for high status using their adaptive capacity. These findings are consistent with Theories of Resilience and Dynamic Capabilities. Finally, younger respondents are more inclined to engage in entrepreneurial activity, which is consistent with the existing literature. In light of these findings, policymakers are encouraged to invest in educational programs for potential entrepreneurs to enhance their self-efficacy, given that the necessary skills for business initiation emerge as a pivotal factor for engaging in entrepreneurial activities. Moreover, creating platforms for successful entrepreneurs to share their experiences could amplify the perceived prestige associated with entrepreneurship, which may attract potential entrepreneurs.
... Syed & Afida (2015) tiết lộ rằng nguồn tài chính không sẵn có cho các doanh nhân nữ ở các nước đang phát triển [25]. Eisenhardt & Martin (2000) đã áp dụng lý thuyết RBV để chỉ ra tầm quan trọng của vốn tài chính đối với sự thành công của doanh nghiệp được xác nhận bởi Eniola & Entebang (2017) [8] [9]. Vốn tài chính giúp doanh nghiệp vận hành trơn tru các hoạt động của mình. ...
Nghiên cứu này nhằm xác định các nhân tố tác động đến sự thành công của các nữ doanh nhân tại thành phố Thanh Hoá thông qua năm biến số: vốn tài chính, vốn nhân lực, vốn xã hội, sự đổi mới và cân bằng giữa công việc và cuộc sống. Để đáp ứng mục tiêu của nghiên cứu này, tác giả đã tiến hành khảo sát 400 doanh nhân nữ trên địa bàn và thu được 369 phản hồi đảm bảo yêu cầu để đưa vào phân tích. Lý thuyết quan điểm dựa trên nguồn lực và lý thuyết xung đột được sử dụng làm nền tảng xác định các nhân tố chính tác động đến sự thành công của doanh nhân nữ. Kết quả nghiên cứu cho thấy cả năm biến độc lập được đưa vào mô hình nghiên cứu đều có mối liên hệ tích cực đến sự thành công của nữ doanh nhân. Từ kết quả nghiên cứu, tác giả đề xuất các hàm ý quản trị thúc đẩy sự thành công của phụ nữ trong kinh doanh.
... Zoals eerder in deze oratie aangegeven, weerspiegelen dynamic capabilities het vermogen van de organisatie om interne en externe middelen en competenties niet alleen af te stemmen en te vernieuwen, maar ook proactief in te spelen op snel veranderende omstandigheden (Felin & Powell, 2016;Kay et al., 2018;Mikalef, Pateli, et al., 2020;Van de Wetering, 2022b;Wang & Ahmed, 2007). Het kunnen inspelen op veranderingen is uiteraard van cruciaal belang, en het ontwikkelen van de benodigde competenties om dit effectief te doen kost tijd en is vanuit strategisch oogpunt iets van de langere termijn (Eisenhardt & Martin, 2000;Teece, 2007 Natuurlijk wil ik mijn ouders bedanken! Fijn dat jullie er zijn! ...
Oratie Rogier van de Wetering: ‘Digitaal-gedreven transformatie is allang geen keuze meer‘
Organisaties moeten een stap verder gaan dan enkel digitale technologieën adopteren. Digitaal- gedreven transformatie is allang geen keuze meer. Volgens Rogier van de Wetering hoogleraar Digitaal-gedreven transformatie aan de Open Universiteit, is het voor organisaties broodnodig om zo te kunnen overleven en gedijen in de huidige economie en te voldoen aan het veranderende gedrag en de verwachtingen van consumenten.
Op vrijdag 6 september 2024 spreekt Rogier van de Wetering zijn oratie met als titel ‘Digitaal- gedreven transformatie’ uit aan de Open Universiteit in Heerlen.
Digitaal-gedreven transformatie:
Digitaal-gedreven transformatie gaat verder dan alleen de adoptie en het gebruik van nieuwe technologische oplossingen. Het vereist een grondige herziening van de bestaande bedrijfsmodellen, die beschrijven hoe een organisatie waarde creëert, levert en behoudt voor hun klanten. Organisaties moeten hun werkwijzen, structuren en cultuur aanpassen om de mogelijkheden van digitale technologieën optimaal te benutten en de organisatie adaptief en responsief te maken.
Opdracht voor organisaties:
Dit vereist niet alleen investeringen in technologie, maar juist ook in menselijk kapitaal om op die manier een omgeving te creëren die innovatie en wendbaarheid van de organisatie bevordert. Dit alles, gaat natuurlijk niet vanzelf. Om de stap naar een digitaal gedreven organisatie te kunnen zetten, zijn behoorlijk wat inspanningen nodig en uiteraard een doordachte strategie. Rogier van de Wetering gaat in zijn oratie dieper in op wat zo’n transformatie precies inhoudt en waarom een goed doordachte aanpak noodzakelijk is.
Toekomstig onderzoek
Toch blijven er nog altijd veel uitdagingen voor organisaties. Zoals hoe ze de beste balans kunnen vinden tussen digitale innovatie en de beheersing van bedrijfsrisico’s. En in hoeverre zijn organisaties in de publieke en private sector bijvoorbeeld bereid en in staat om hun bedrijfsmodellen aan te passen? En dan zijn er nog twee belangrijke randvoorwaarden: de transformatie dient ethisch verantwoord en op een duurzame manier te gebeuren. In al deze vraagstukken verdiept Van de Wetering zich in de komende periode.
Over Rogier van de Wetering:
Prof. dr. Rogier van de Wetering (Rotterdam, 1981) is hoogleraar Digitaal-gedreven transformatie aan de faculteit Bètawetenschappen van de Open Universiteit. Hij studeerde Informatiekunde aan de Universiteit Utrecht en Melbourne University. Vervolgens werkte hij tussen 2005 en 2015 bij Deloitte Consulting in de Strategy & Operations praktijk. Tussen 2007 en 2011 deed hij naast zijn baan bij Deloitte promotieonderzoek bij de Universiteit Utrecht naar de volwassenheid en alignment van Picture Archiving and Communication Systems (PACS), ofwel digitale radiologie, in Nederlandse ziekenhuizen.
In 2015 maakte Rogier de overstap naar de Open Universiteit waar hij startte als universitair docent. In 2017 werd hij universitair hoofddocent en sinds oktober 2022 is hij ook coördinator onderwijs van de faculteit Bètawetenschappen en lid van het faculteitsmanagement. Per januari 2024 maakt hij ook onderdeel uit van het Informatiekunde vakgroepsbestuur. Rogier werd in zowel 2020 als 2021 uitgeroepen tot Informatiekundedocent van het jaar door studenten van de Open Universiteit.
... Given the increasingly dynamic markets, companies, namely FBs, find themselves obliged to keep up with these changes (Wang, 2016). Dynamic capabilities are identified as a factor that largely contributes to sustainable performance, as they adapt and manage all their resources and processes to ensure sustainable pursuit (Eisenhardt and Martin, 2000;Teece, 2007;Wang, 2016). ...
Literature has increasingly highlighted the importance of Family Businesses and their contribution to the economy, to the creation of jobs, and consequently to the creation of wealth.
The idiosyncratic characteristics of Family Businesses certainly have an impact on
their compliance strategy, as well as their sustainability, as different cultures and
management are at stake.
On the one hand, the family, and on the other the business, that is, two subsystems
where harmony between their objectives must be guaranteed, to guarantee the success of the company.
Many studies have called for the need to carry out more research and increase
knowledge about Family Businesses, particularly their sustainability.
In this sense, this work aims to reduce this limitation, and thus contribute to
knowledge about the compliance and sustainability of Family Businesses.
In this way, through a narrative review of the literature, we analyze how the
compliance strategy of family businesses is structured, and how its sustainability is
designed.
The results suggest that there is a growing interest in sustainability practices, as these types of companies seek to guarantee the continuity of the company between
generations.
However, the adoption of sustainability and compliance processes and procedures is
still low, as there is no systematic implementation. There are several implementation
challenges, namely stakeholder involvement, natural resource management, integration of sustainable policies, legislation and enforcement of environmental legislation, implementation of corporate social responsibility, adoption of corporate governance practices, and sustainable business succession.
This work presents, in its genesis, contributions to academia, as it allows for a greater understanding of the topic, and science, particularly for the Theories of Resource-Based Vision, Dynamic Capabilities and Stewardship. At the same time, this study also contributes to the operationalization of Family Businesses, as they will be able to design their sustainability practices and compliance strategy similar to what is practiced by others.
... The dynamic capabilities (DCs) approach, rooted in the RBV, extends it to stress the key role of strategic management in appropriating, adapting, integrating and reconfiguring internal and external organisational skills, resources and functional competences to match the requirements of a changing environment (Ambrosini et al., 2009;Helfat & Peteraf, 2009;Teece et al., 1997). DCs alter a firm's resource base (Eisenhardt & Martin, 2000) and some regard OI as a key DC (Gabler et al., 2015). The link between organisational skills (organisational environmental capabilities and new organisational tools) and eco-innovation is suggested by some empirical studies (see Amui et al., 2017;Gabler et al., 2015). ...
There is a widespread agreement that the current linear economic system is unsus-tainable due to the physical boundaries of our planet and must be replaced by a circular one, that is, by a circular economy (CE). Previous studies have theoretically proposed that eco-innovations (EIs), or innovations that reduce the environmental impacts of consumption and production processes, are a key element to improve the circular use of resources. However, the analysis of the drivers of such a transition to a CE through EI, particularly at the micro-level of firms, has not received attention in the past. The aim of this paper is to cover this gap in the literature. It quantitatively analyses the role of influencing factors (drivers and barriers) in that relationship, with a focus on the company's organisational ('soft') factors, rooted in organisational culture and strategy. With the help of data collected through a survey of Spanish small and medium-sized firms in the industrial sector, a regression-based moderation analysis is carried out. Therefore, four moderation models were defined based on organi-sational factors derived from the previous literature (sustainability, future, stakeholder and learning/knowledge orientation in firms. The results suggest that, indeed, two of those factors (a high level of sustainability and knowledge orientation) are particularly relevant drivers in the transition to the CE through EI. Thus, if the aim of policy makers and corporate decision makers is to increase the circularity of the economy or their firms, policies and measures should be targeted at these two factors.
... The capability theory provides the theoretical lens for this study. The proponents of the capability theory (Eisenhardt & Martin, 2000;Teece et al., 1997) posit that firm performance outcomes center on suitable combinations of resources and capabilities. According to Helfat and Winter (2011), firms without the necessary resources and abilities may be unable to convert their internal and external resources to support superior innovation outcomes. ...
... São capacidades estratégicas necessárias para a revisão contínua das competências e recursos das empresas, que garantem a sustentação das vantagens competitivas. A segunda dimensão é a funcional, que consiste em atividades específicas e boas práticas 16 , como (i) alianças estratégicas e networks para acesso a novos mercados e tecnologias, (ii) inovação e desenvolvimento de produtos e serviços para atender às necessidades dos consumidores, (iii) internacionalização empresarial visando expansão geográfica, (iv) competências operacionais para capturar ganhos de produtividade e (v) gestão do conhecimento e tecnologia da informação com foco nos avanços das novas técnicas de gestão. ...
Como melhorar os resultados dos planos de expansão de PMEs por meio da gestão de capacidades dinâmicas.
... New discoveries, especially those with multi-disciplinary roots, are usually difficult to attribute to existing classification schemas (Fagerberg et al. 2012), but equally, they define the frontier of the innovation process as they combine existing forms of knowledge into something entirely novel (Eisenhardt and Martin 2000;Lee et al. 2015;Schumpeter 1934;1942). Thus, interdisciplinary fields of science can be used to define the emergence of new topics (Chakraborty 2018;Khan and Wood 2015;Lee et al. 2015). ...
Global scientific output is expanding exponentially, which in turn calls for a better understanding of the science of science and especially how the boundaries of scientific fields expand through processes of emergence. The present study proposes the application of embedded topic modeling techniques to identify new emerging science via knowledge recombination activities as evidenced through the analysis of research publication metadata. First, a dataset is constructed from metadata derived from the Web of Science Core Collection database. The dataset is then used to generate a global map representing a categorical scientific co-occurrence network. A research field is defined as interdisciplinary when multiple science categories are listed in its description. Second, the co-occurrence networks are subsequently compared between periods to determine changing patterns of influence in light of interdisciplinarity. Third, embedded topic modeling enables unsupervised association of interdisciplinary classification. We present the results of the analysis to demonstrate the emergence of global interdisciplinary sciences and further we perform qualitative validation on the results to identify what the sources of the emergent areas are. Based on these results, we discuss potential applications for identifying emergence through the merging of global interdisciplinary domains.
El objetivo de este trabajo es mostrar que los microfundamentos de las capacidades dinámicas, no son tres, que sólo dos “Detectar y Reconfigurar” cumplen con la característica capaz de generar capacidades dinámicas en una organización, la capacidad de “Aprovechar” es una consecuencia de las dos anteriores. Por medio de un estudio de caso cualitativo llevado a cabo en una empresa del caribe colombiano, orientados por el enfoque de capacidades dinámicas, especialmente lo relacionado con la Gestión de alianzas, fue posible descubrir esta particularidad de los microfundamentos, con lo cual se nutre el enfoque y permite adelantar estudios que tengan la capacidad de corroborar o falsear lo que se muestra en este documento.
What dynamic capabilities are needed to sucessfully contribute within an ecosystem? Successful companies have opened their boundaries and are leveraging external knowledge, resources, and skills. Macroeconomic developments and regulations, constantly changing customer requirements, and technological advancements lead to high dynamics and complexity. The key to transformation and effective adaptation of business models is an open and permissive organizational culture and new management practices. These are based on synergistic and systemic leadership approaches. Three ecosystem capabilities are highly relevant—openness, agility and ambidexterity. Openness internalizes the open innovation approach and promotes curiosity, motivation, and flexibility within the organizational structure to drive the creation of new ideas and solutions. Agility, precicely inter-organizational agility, is crucial for collaboration and communication and is characterized by adaptability, speed, and customer centricity. Ambidexterity is the ability to bring diametrically opposed things into a holistic context and to tackle them simultaneously. All three key principles are closely intertwined, significantly impacting knowledge, learning, and the innovative capacity of each player, who creates distinct value within an open and digital ecosystem.
In the context of digital transformation, Chinese small and medium sized enterprises (SMEs) face significant challenges and opportunities in adapting to market dynamics and technological advancements. This study investigates the impact of coopetition strategy on the core competencies of SMEs, with a particular focus on marketing, technological, and integrative competencies. Data were collected from a sample of 300 SMEs in Anhui Province through an online survey, and reliability and validity were tested using SPSS and AMOS. The results indicate that dependency and trust significantly enhance the effectiveness of coopetition strategy from an external perspective, while managerial ambidexterity and strategic intent are critical internal factors driving the successful implementation of coopetition strategies. Both external and internal factors positively impact the core competencies of SMEs. Additionally, environmental uncertainty moderates the relationship between coopetition strategy and core competencies, underscoring the need for flexibility and adaptability in dynamic market environments. The findings suggest that SMEs can better integrate internal and external resources, optimize resource allocation, and improve operational efficiency through coopetition strategy, thereby enhancing their core competencies. This study provides valuable insights and practical guidance for policymakers and business practitioners aiming to support the digital transformation of SMEs.
Nascent industries are attracting the attention of researchers due to their innovative potential and ability to shape new markets and transform business models. However, these industries are characterized by high uncertainty and a rapid pace of technological change, which poses significant challenges for businesses. The unmanned aerial vehicle (UAV) industry is a prime example of such a dynamic industry that is growing rapidly, but faces the challenges of chaotic market formation and regulatory uncertainty. The aim of this study is to analyze the manifestations of the dynamism of the UAV industry, in particular, to identify the key factors influencing rapid changes in this industry and their impact on companies’ strategies. The carried out analysis of different approaches to the classification of UAVs revealed a large number of different features, such as type, weight, size, flight distance, etc., which indicates the lack of uniform standards and complicates the process of developing and promoting UAVs on the market. A wide range of UAV applications are analyzed, including logistics, agriculture, public safety, sensing, recreation, and military operations. The multifunctionality of UAVs highlights the uncertainty about major market segments, which creates additional challenges for enterprises in selecting target markets and developing specialized products. The current state of UAV regulation in the world is also considered, which is characterized by terminological confusion (between UAV, UAS, RPA, drone) and the presence of numerous international and national standards, which complicates global market harmonization. The results of the study indicate that the lack of uniform standards and classifications, as well as the variety of characteristics and areas of application, indicate a high uncertainty of the product and the industry as a whole. These factors pose significant challenges for companies to define market strategies, position products, and ensure regulatory compliance, which directly impacts their competitiveness and growth opportunities. Thus, the UAV industry demonstrates manifestations of dynamism and uncertainty typical of nascent industries. This highlights the importance of further analysis and study of the industry to develop effective strategies that take into account the specifics of the market and contribute to the successful consolidation of companies in this dynamic area.
Objetivo do estudo: Descrever o uso de um aplicativo móvel e do Customer Relationship Management (CRM) como estratégias competitivas, alinhadas à teoria das capacidades dinâmicas, em uma empresa do setor de varejo de alimentos durante a pandemia de COVID-19. Metodologia/abordagem: Foi realizado um estudo de caso único, com abordagem qualitativa, em uma empresa de médio porte no setor de varejo de alimentos na Grande São Paulo (SP). Os dados foram coletados por meio de análise documental e entrevistas semi-estruturadas com profissionais-chave envolvidos na implementação do aplicativo móvel. Originalidade/Relevância: Apresenta-se uma abordagem sobre transformação digital, intensificada durante a pandemia do COVID-19, com foco nas Pequenas e Médias Empresas (PMEs) que enfrentaram desafios únicos. Principais resultados: Os resultados demonstraram impactos positivos da implementação do aplicativo, evidenciados por um aumento significativo nas vendas e na visibilidade da empresa no mercado. A integração eficaz de um sistema de e-commerce com um CRM multiplataforma resultou em um aumento no faturamento e no número de clientes que migraram para compras digitais por meio do aplicativo e do site da empresa. Contribuições teóricas/metodológicas: Os resultados contribuíram para a literatura das áreas de transformação digital, CRM e capacidades dinâmicas, apresentando como a integração entre esses constructos pode favorecer a vantagem competitiva da empresa e a adaptação a ambientes de mercado em rápida mudança.
In the field of strategic management, strategies have been so far considered mainly in the long-term horizon, as a deliberately planned process with previously defined goals. Thus, the aspect of spontaneous, sudden, impulsive or even intuition-based actions, encouraging the use of emerging opportunities in the organization’s environment, also in relation to cooperation with other entities, was omitted. At the same time, it has been shown that inter-organizational cooperation is a relationship that may be short-term, temporary, incremental, emerging spontaneously, which is particularly visible among cultural and art institutions due to the specific nature of their activities. The aim of the article is to present the importance of time and the appropriate moment to take action and exemplification of the use of chances in the cooperation of cultural and art institutions based on timing strategies.The study is based on a qualitative, interpretive approach using 50 semi-structured inter-views conducted in the performing arts sector among public and private theaters. The study not only identified but also illustrated the use of four timing strategies in inter-organizational cooperation of cultural and art institutions that relate to the usage of chances in the environ-ment, i.e.: chance-grasping strategy, chance-entraining strategy, chance-riding strategy and chance-creating strategy. The article shows their use in performing arts using specific exam-ples. Research results prove that cultural and art institutions cooperate on a temporary, ad hoc basis, taking advantage of favorable moments and opportunities emerging in the envi-ronment, hence they use different timing strategies, adapted to the current situation and the prevailing needs of the organization.
El propósito de esta investigación es realizar una revisión de la literatura sobre la evolución de la investigación en el desempeño financiero de las multinacionales, (MNE), utilizando análisis bibliométrico y de redes, en un intento de mapear esta área de conocimiento e identificar tendencias emergentes de investigación. Igualmente, este artículo permite establecer las corrientes de investigación que emergen en la actualidad sobre el tema estudiado. A partir de 687 registros recuperados de Web of Science y Scopus, durante el periodo 2000 - 2021, se realizó un mapeo científico para identificar los documentos, autores, revistas, instituciones y países más relevantes en el campo; además, a través de un análisis de redes se establecen los principales grupos de documentos y las direcciones de investigación que están asumiendo. Se identificaron cuatro principales áreas que emergen de la literatura: desempeño financiero de las MNE que realizan actividades de responsabilidad social empresarial (RSE), impacto del aprovechamiento y transferencia de las ventajas competitivas de las MNE, relación de la diversificación de países de la MNE y, finalmente, ventajas de los países en los que la MNE está ubicada frente al desempeño financiero.
در این پژوهش درصدد هستیم تا مفهوم قابلیت پویای بازاریابی را از جنبه دیدگاههای نظری، سطح شکلگیری قابلیتها و زنجیره شکلگیری قابلیتها موردبررسی قرار دهیم. دستیابی به این هدف از یکسو موجب اتصال بیشتر ادبیات قابلیتهای پویا و انواع قابلیتهای بازاریابی میگردد؛ و از سوی دیگر ضمن معرفی برخی رویکردهای جدید و ارائه یک چارچوب نظری از جایگاه سلسله مراتبی انواع قابلیتهای بازاریابی به محققان در زمینه شکلگیری قابلیت پویای بازاریابی کمک مینماییم. پژوهش حاضر بر اساس روش تحقیق کیفی میباشد. با جستجوی مقالات در پایگاههای اسکوپوس، وب.آو.ساینس و گوگل اسکالر در بین سالهای 1994 الی 2023 مبتنی بر روش فراترکیب و استفاده از نمونهگیری نظری درنهایت 51 مقاله مرتبط با این مفهوم انتخاب و با استفاده از روش تحلیل مضمون مورد تحلیل قرار گرفتند. طبق یافتههای این پژوهش شکلگیری قابلیت پویای بازاریابی ناشی از تعامل و درهم تنیدگی انواع قابلیتهای سطوح مختلف سازمان میباشد. لذا استفاده از رویکردهای یکپارچهتر مانند رویکرد سیستمی، سلسله مراتبی و معماری قابلیتها و استفاده از استراتژیهای مطالعه موردی توسط محققان میتواند ضمن کاهش سطح انتزاع مدلهای حوزه قابلیت پویای بازاریابی، چارچوبهای کاربردیتر و قابلاجراتری را نیز به ادبیات تحقیق اضافه نماید. از سوی دیگر مدیران شرکتها نیز میتوانند با استقرار سیستمهای هوش تجاری، استفاده از تیمهای تحقیقات بازار و استفاده از سیستمهای مدیریت ارتباط با مشتری به جذب دانش بازار پرداخته و با تحلیل و کشف انتظارت و نیازهای آشکار و پنهان مشتریان می توانند با ارائه محصولات و خدمات جدید و ارائه ارزش برتر به مشتری به نیازهای بازار پاسخ مناسبتری ارائه نمایند.
This Element aims to build, promote, and consolidate a new social science research agenda by defining and exploring the concepts of turbulence and robustness, and subsequently demonstrating the need for robust governance in turbulent times. Turbulence refers to the unpredictable dynamics that public governance is currently facing in the wake of the financial crisis, the refugee crisis, the COVID-19 pandemic, the inflation crisis etc. The heightened societal turbulence calls for robust governance aiming to maintain core functions, goals and values by means of flexibly adapting and proactively innovating the modus operandi of the public sector. This Element identifies a broad repertoire of robustness strategies that public governors may use and combine to respond robustly to turbulence. This title is also available as Open Access on Cambridge Core.
The diversity of knowledge surrounding behavioural insights (BI) means in the policy sciences, although visible, remains under-theorized with scant comparative and generalizable explorations of the procedural prerequisites for their effective design, both as stand-alone tools and as part of dedicated policy 'toolkits'. While comparative analyses of the content of BI tools has proliferated, the knowledge gap about the procedural needs of BI policy design is growing recognizably, as the range of BI responses grows in practice necessitating specific capabilities, processes and institutional frameworks to be in place for their design. This Element draws on the literature on policy design and innovation adoption to explore the administrative, institutional and capacity endowments of governments for the successful and appropriate integration of BI in existing policy frameworks. Further, we present three illustrative cases with respect to their experience of essential procedural endowments facilitating for the effective integration of BI in policy design.
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.
Business historians have illuminated how first movers in many emerging industries secure an enduring leadership position, but have devoted less attention to the processes by which industry leaders relinquish their dominance. This paper examines why rubber industry leader Firestone Tire & Rubber failed to respond effectively to new technology and foreign competition. The author argues that Firestone did not respond by doing nothing, but rather accelerated activities that had contributed to its past success. Firestone's response was constrained by managers' existing strategic frames and values, and the company's processes and long-standing relationships with customers and employees.
We argue in this paper that when the knowledge base of an industry is both complex and expanding and the sources of expertise are widely dispersed, the locus of innovation will be found in networks of learning, rather than in individual firms. The large-scale reliance on interorganizational collaborations in the biotechnology industry reflects a fundamental and pervasive concern with access to knowledge. We develop a network approach to organizational learning and derive firm-level, longitudinal hypotheses that link research and development alliances, experience with managing interfirm relationships, network position, rates of growth, and portfolios of collaborative activities. We test these hypotheses on a sample of dedicated biotechnology firms in the years 1990-1994. Results from pooled, within-firm, time series analyses support a learning view and have broad implications for future theoretical and empirical research on organizational networks and strategic alliances.•.
We blend network and organizational memory perspectives in a model of technology brokering that explains how an organization develops innovative products. The model is grounded in observations, interviews, informal conversations, and archived data gathered during an ethnography of IDEO, a product design firm. This firm exploits its network position, working for clients in at least 40 industries, to gain knowledge of existing technological solutions in various industries. It acts as a technology broker by introducing these solutions where they are not known and, in the process, creates new products that are original combinations of existing knowledge from disparate industries. Designers exploit their access to a broad range of technological solutions with organizational routines for acquiring and storing this knowledge in the organization's memory and, by making analogies between current design problems and the past solutions they have seen, retrieving that knowledge to generate new solutions to design problems in other industries. We discuss the implications of this research for understanding the individual and organizational processes and norms underlying technology and knowledge transfer more generally.
This paper begins to reconcile competing perspectives on the origins of competitive advantage by examining the adoption of ‘science‐driven’ drug discovery, a performance‐enhancing organizational practice. Science‐driven drug discovery diffused slowly, allowing us to disentangle alternative theories of organizational heterogeneity. Adoption is driven by initial conditions, time‐varying internal and external environmental conditions, and convergence (firms positioned least favorably adopt most aggressively). While accounting for initial conditions is critical, managers are sensitive to idiosyncratic environmental cues. The origins of competitive advantage may therefore lie in the ability to identify and respond to environmental cues well in advance of observing performance‐oriented pay‐offs. Copyright © 2000 John Wiley & Sons, Ltd.
This paper presents a dynamic, firm‐level study of the role of network resources in determining alliance formation. Such resources inhere not so much within the firm but reside in the interfirm networks in which firms are placed. Data from extensive fieldwork show that by influencing the extent to which firms have access to information about potential partners, such resources are an important catalyst for new alliances, especially because alliances entail considerable hazards. This study also assesses the importance of firms’ capabilities with alliance formation and material resources as determinants of their alliance decisions. I test this dynamic framework and its hypotheses about the role of time‐varying network resources and firm capabilities with comprehensive longitudinal multi‐industry data on the formation of strategic alliances by a panel of firms between 1970 and 1989. The results confirm field observations that accumulated network resources arising from firm participation in the network of accumulated prior alliances are influential in firms’ decisions to enter into new alliances. This study highlights the importance of network resources that firms derive from their embeddedness in networks for explaining their strategic behavior. Copyright © 1999 John Wiley & Sons, Ltd.
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.
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.
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.
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.
In this paper, we examine the importance of year, industry, corporate-parent, and business- specific effects on the profitability of U.S. public corporations within specific 4-digit SIC categories. Our results indicate that year, industry, corporate-parent, and business-specific effects account for 2 percent, 19 percent, 4 percent, and 32 percent, respectively, of the aggregate variance in profitability. We also find that the importance of the effects differs substantially across broad economic sectors. Industry effects account for a smaller portion of profit variance in manufacturing but a larger portion in lodging/entertainment, services, wholesale/retail trade, and transportation. Across all sectors we find a negative covariance between corporate-parent and industry effects. A detailed analysis suggests that industry, corporate-parent, and business-specific effects are related in complex ways. © 1997 by John Wiley & Sons, Ltd.
Drawing on work from behavioral learning theory in psychology, this study examines the influence of prior organizational acquisition experience on the performance of acquisitions. This theory, which examines both the conditions preceding organization events and organizational responses, predicts that experience effects may range from positive to negative. Consistent with this theory, data from 449 acquisitions show an overall U-shaped relationship between organization acquisition experience and acquisition performance. In addition, the more similar a firm's acquisition targets are to its prior targets, the better they perform. These findings suggest that relatively inexperienced acquirers, after making their first acquisition, inappropriately generalize acquisition experience to subsequent dissimilar acquisitions, while more experienced acquirers appropriately discriminate between their acquisitions. Behavioral learning theory, then, may enhance understanding of organization experience effects.
Abstract Effective organizational beaming requires high absorptive capacity, which has two major elements: prior knowledge base and intensity of effort. Hyundai Motor Company, the most dynamic automobile producer in developing countries, pursued a strategy of independence in developing absorptive capacity. In its process of advancing from one phase to the next through the preparation for and acquisition, assimilation, and improvement of foreign technologies, Hyundai acquired migratory knowledge,to expand its prior knowledge,base and proactively constructed crises as a strategic means,of intensifying its beaming,effort. Unlike,externally evoked crises, proactively constructed internal crises present a clew performance gap, shift beaming orientation from imitation to innovation, and increase the intensity of effort in organizational learning. Such crisis construction is an evocative and galvanizing device in the personal repertoires of proactive top managers. A similar process of opportunisticlearning is also evident in other industries in Korea. (Organizational Learning; Absorptive Capacity; Crisis Construction; Knowledge; Catching-up; Hyundai Motor; Korea) Organizational learning and innovation have become,crucially important subjects in management. Research on these subjects, however, is concentrated mainly in advanced countries (e.g., Argyris and Schon 1978, Dodgson 1993, Nonaka and Takeuchi 1995, Utterback 1994, von Hippel 1988). Despite the fact that many developing countries have made significant progress in industrial, educational, and technological development, research on learning, capability building, and innovation in those countries is scanty (e.g., Fransman and King 1984, Kim 1997, Kim and Kirn 1985). Models,that capture organizational learning and technological change,in developing countries are essential to understand the dynamic,process of capability building in catching-up in such countries and to extend the theories developed in advanced countries. Understanding the catching-up process is also relevant and important to firins in advanced countries. Not all firrns can be pioneers of novel breakdiroughs, even in those countries. Most firms must invest in second-hand learning to remain competitive. Nevertheless, much less attention is paid to the imitative catching-up process than to the innovative pioneering process. For instance, ABI/Inform, a computerized business database, lists a total of 9,006 articles on the subject of innovation but only 145 on imitation (Schnaars 1994). A crisis is usually regarded as an unpopular, largely negative phenomenon in management. It can,
The ability to transfer best practices intemally is critical to a firm's ability to build competitive advantage through the appropriation of rents from scarce internal knowledge. Just as a firm's distinctive competencies might be difficult for other firms to imitate, its best practices could be difficult to imitate internally. Yet, little systematic attention has been paid to such intemal stickiness. The author analyzes intemal stickiness of knowledge transfer and tests the resulting model using canonical correlation analysis of a data set consisting of 271 observations of 122 best-practice transfers in eight companies. Contrary to conventional wisdom that blames primarily motivational factors, the study findings show the major barriers to internal knowledge transfer to be knowledge-related factors such as the recipient's lack of absorptive capacity, causal ambiguity, and an arduous relationship between the source and the recipient. The identification and transfer of best practices is emerging as one of the most important and widespread practical management issues of the latter half of the 1990s. Armed with meaningful, detailed performance data, firms that use fact- based management methods such as TQM, bench- marking, and process reengineering can regularly compare the perfonnance of their units along operational dimensions. Sparse but unequivocal evidence suggests that such comparisons often reveal surprising perfonnance differences between units, indicating a need to improve knowledge utilization within the firm (e.g., Chew, Bresnahan, and Clark, 1990).' Because intemal transfers typi-
Firms are organizations that represent social knowledge of coordination and learning. But why should their boundaries demarcate quantitative shifts in the knowledge and capability of their members? Should not knowledge reside also in a network of interacting firms?
This line of questioning presents the challenge to state an alternative view to the “theory of the firm,” a theory that has moved from Coase's early treatment of what firms do to a concern with ownership, incentives, and self-interest. We return to Coase's original insight in understanding the cost and benefits of a firm but based on a view that individuals are characterized by an “unsocial sociality.” Does the perception of opportunism generate the need to integrate market transactions into the firm, or do boundaries of the firm lead to the attribution of opportunism?
This basic dichotomy between self-interest and the longing to belong is the behavioral underpinning to the superiority of firms over markets in resolving a fundamental dilemma: productivity grows with the division of labor but specialization increases the costs of communication and coordination. The knowledge of the firm has an economic value over market transactions when identity leads to social knowledge that supports coordination and communication. Through identification, procedural rules are learned, and coordination and communication are facilitated across individuals and groups of diverse specialized competence.
A firm is distinct from a market because coordination, communication, and learning are situated not only physically in locality, but also mentally in an identity. Since identity implies a moral order as well as rules of exclusion, there are limitations and costs to relying upon a firm for exchange as opposed to the market. These costs are not necessarily those traditionally assigned to the category of decreasing returns to hierarchy. For example, an identity implies that some practices, and businesses, may be notionally inconsistent with each other. Norms of procedural justice that are identified with a firm imply that not all technically feasible complements are permissible within the logic of a shared identity. There is consequently a cost to an identity that offsets the benefits. Because the assemblage of elements that compose an organization are subject to requirements of consistency, identities rule out potentially interesting avenues of innovation and creativity.
We illustrate these ideas by returning to the original prisoners’ dilemma game and by an analysis of the coherence of a firm as a search for complements that are consistent with norms of procedural justice. We argue that the underlying dynamic of a prisoners' dilemma game reveals the problems of coordination, communication, and conflicts in norms of justice when players are deprived of social knowledge and shared identity. Similarly, the determination of a firm's coherence arises out of the demand for a moral and notional consistency in the “categorization” of its activities, as opposed to a technological necessity. These ideas are illustrated through an empirical examination of logical complements in high performance work systems.