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Journal articles on the topic 'Dynamic Capabilities for Innovation'
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Schoemaker, Paul J. H., Sohvi Heaton, and David Teece. "Innovation, Dynamic Capabilities, and Leadership." California Management Review 61, no. 1 (2018): 15–42. http://dx.doi.org/10.1177/0008125618790246.
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The world in which today’s businesses operate has become not only riskier but also more volatile, uncertain, complex, and ambiguous (VUCA). Organizations that hew too closely to traditional ways of operating will be hampered in their ability to succeed. In contrast, those that focus on new product and process developments coupled with business model innovation will leverage their dynamic capabilities. An essential overlay is entrepreneurial leadership from top management teams. Strong dynamic capabilities are impossible without it. This article examines how business model innovations, dynamic capabilities, and strategic leadership intertwine to help organizations thrive in VUCA worlds.
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Gullmark, Petter. "Do All Roads Lead to Innovativeness? A Study of Public Sector Organizations’ Innovation Capabilities." American Review of Public Administration 51, no. 7 (2021): 509–25. http://dx.doi.org/10.1177/02750740211010464.
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Although much has been written about public sector innovation in the last two decades, we still do not fully understand how public sector organizations become innovative. Therefore, this study inductively explored how four Norwegian municipalities developed innovation capabilities. I found that public sector organizations develop two forms of innovation capability in a path-dependent manner: low-routinized innovation capability and highly routinized innovation capability. In the former, dynamic managerial capabilities in the form of individuals’ entrepreneurial and leadership skills comprise the source of innovation capability. In contrast, in the latter, innovation capability emerges from dynamic organizational capabilities, that is, a set of innovation-stimulating routines, processes, tools, and structures. Notably, I found that regardless of the form of innovation capability, both spur the continuous development and implementation of various radical and incremental public sector innovations. Based on these findings, this study offers several contributions to the literature on public sector innovation and to the dynamic capabilities research agenda.
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Strønen, Fred, Thomas Hoholm, Kari Kværner, and Linn Nathalie Støme. "Dynamic capabilities and innovation capabilities: The case of the ‘Innovation Clinic’." Journal of Entrepreneurship, Management and Innovation 13, no. 1 (2017): 89–116. http://dx.doi.org/10.7341/20171314.
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Alves, André Cherubini, Denise Barbieux, Fernanda Maciel Reichert, Jorge Tello-Gamarra, and Paulo Antônio Zawislak. "INNOVATION AND DYNAMIC CAPABILITIES OF THE FIRM: DEFINING AN ASSESSMENT MODEL." Revista de Administração de Empresas 57, no. 3 (2017): 232–44. http://dx.doi.org/10.1590/s0034-759020170304.
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ABSTRACT Innovation and dynamic capabilities have gained considerable attention in both academia and practice. While one of the oldest inquiries in economic and strategy literature involves understanding the features that drive business success and a firm's perpetuity, the literature still lacks a comprehensive model of innovation and dynamic capabilities. This study presents a model that assesses firms' innovation and dynamic capabilities perspectives based on four essential capabilities: development, operations, management, and transaction capabilities. Data from a survey of 1,107 Brazilian manufacturing firms were used for empirical testing and discussion of the dynamic capabilities framework. Regression and factor analyses validated the model; we discuss the results, contrasting with the dynamic capabilities' framework. Operations Capability is the least dynamic of all capabilities, with the least influence on innovation. This reinforces the notion that operations capabilities as "ordinary capabilities," whereas management, development, and transaction capabilities better explain firms' dynamics and innovation.
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Trivellato, Benedetta, Mattia Martini, and Dario Cavenago. "How Do Organizational Capabilities Sustain Continuous Innovation in a Public Setting?" American Review of Public Administration 51, no. 1 (2020): 57–71. http://dx.doi.org/10.1177/0275074020939263.
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Just as private organizations rely on dynamic capabilities to sustain their innovative capacity and competitive advantage, the public sector may resort to them to improve its ability to address citizens’ needs. But how do innovation and organizational capabilities interact in a public setting? This analysis of the Congestion Charge Zone implemented by the Municipality of Milan in Italy explores this issue, and highlights the role played by interorganizational and cross-sector collaborative innovation. Results show that multi-actor engagement within a multilevel collaborative environment enhances the system’s ability to understand the problems to be addressed, to create and implement appropriate solutions, and to foster ownership of the innovation. They confirm that sharing knowledge and engaging in interorganizational learning are central to the development of innovation; however, they also highlight that these dynamics strengthen collective capabilities at the organizational and system’s level, thereby producing a reinforcing effect on innovative capacities at both levels. Based on these findings, a framework for continuous public innovation through collaboration is proposed which, first, provides a tool for mapping the factors and dynamics that shape collaborative innovation in a public setting and, second, explains how the process of collaborative innovation fosters organizational dynamic capabilities that, in turn, sustain the organizations’ capacity to innovate in the longer run.
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LAWSON, BENN, and DANNY SAMSON. "DEVELOPING INNOVATION CAPABILITY IN ORGANISATIONS: A DYNAMIC CAPABILITIES APPROACH." International Journal of Innovation Management 05, no. 03 (2001): 377–400. http://dx.doi.org/10.1142/s1363919601000427.
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This paper draws together knowledge from a variety of fields to propose that innovation management can be viewed as a form of organisational capability. Excellent companies invest and nurture this capability, from which they execute effective innovation processes, leading to innovations in new product, services and processes, and superior business performance results. An extensive review of the literature on innovation management, along with a case study of Cisco Systems, develops a conceptual model of the firm as an innovation engine. This new operating model sees substantial investment in innovation capability as the primary engine for wealth creation, rather than the possession of physical assets. Building on the dynamic capabilities literature, an "innovation capability" construct is proposed with seven elements. These are vision and strategy, harnessing the competence base, organisational intelligence, creativity and idea management, organisational structures and systems, culture and climate, and management of technology.
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Mushtaq, Naveed, Aziz Javeed, Ahmed Saeed, and Mohsin Altaf. "RECONNOITERING THE INTERVENING ROLE OF DYNAMIC CAPABILITIES BETWEEN HIGH-PERFORMANCE WORK SYSTEMS AND INNOVATION PERFORMANCE." Humanities & Social Sciences Reviews 9, no. 3 (2021): 1202–11. http://dx.doi.org/10.18510/hssr.2021.93118.
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Purpose of the study: This study explores the Impact of High-Performance Work System practices (HPWS), on innovation performance, through the intervening role of dynamic capabilities and innovation culture among the rapidly growing cement industry of Pakistan, which is the backbone of Pakistan's construction industry.
 Methodology: This is a self-administrative survey, and data were analyzed using Smart PLS 3.0, SPSS.
 Main Findings: HPWS has a positive impact on a firm's innovation performance. Furthermore, dynamic capabilities mediated the association between HPWS and innovation performance.
 Applications of this study: The study is essential for the cement industry, where traditional HRM has long been applied. Using HPWS would create a more innovative environment and establish dynamic capabilities that can trigger innovations such as administrative, incremental, radical, and marketing in the face of dynamic customer demands.
 Novelty/Originality of this study: This study has enriched our understanding of how organizations can improve their innovation performance in a complex and ambiguous environment, which is crucial to gaining competitive advantages. This study also suggests that developing a system of HPWS practices in organizations, particularly the cement industry, will help the organizations flourish and stay competitive in the marketplace and help elicit the right employee attitudes by fully mediating dynamic capabilities. Therefore, organizations should establish developed HPWS and create an innovation culture that will ultimately benefit the organization creates an innovation culture.
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Krzakiewicz, Kazimierz, and Szymon Cyfert. "Imovation in shaping dynamic capabilities of organisations." Management 20, no. 2 (2016): 8–22. http://dx.doi.org/10.1515/manment-2015-0047.
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Summary The underlying assumption of the article is that imitation is as important as innovation when creating a long-term competitive advantage, and that a systematic, strategic approach to imitation is necessary to ensure efficient and effective innovation. Viewed in this light, imitation is a rare and complex dynamic capability which organisations should properly develop and skillfully use. Imitators provide customers with products that are both better and cheaper. This article contributes to a discussion of innovative processes and their role in shaping dynamic capabilities of organisations. It attempts to portray the essence and nature of imitation and identifies benefits which copying what other organisations do can bring in terms of dynamic capabilities.
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ELLONEN, HANNA-KAISA, ARI JANTUNEN, and OLLI KUIVALAINEN. "THE ROLE OF DYNAMIC CAPABILITIES IN DEVELOPING INNOVATION-RELATED CAPABILITIES." International Journal of Innovation Management 15, no. 03 (2011): 459–78. http://dx.doi.org/10.1142/s1363919611003246.
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The purpose of this study is to explore the role dynamic capabilities have in the development of innovation-related operational capabilities. As dynamic capabilities by nature are processes and practices that advocate change, we aim to uncover the actual practices through which change strategies are implemented. Our research includes a single case study from the publishing industry. Building on a data set of interviews and secondary data we track down the development of the capabilities over the time period of five years. The results of the study imply that dynamic capabilities act as a catalyst and spark off the mechanisms of operational capability development. Our study demonstrates how different types of dynamic capabilities (sensing, seizing and reconfiguring) all have an impact of the development of market and technological capabilities.
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Rotjanakorn, Atichat, Pornrat Sadangharn, and Khahan Na-Nan. "Development of Dynamic Capabilities for Automotive Industry Performance under Disruptive Innovation." Journal of Open Innovation: Technology, Market, and Complexity 6, no. 4 (2020): 97. http://dx.doi.org/10.3390/joitmc6040097.
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Dynamic capabilities are creating dramatic change for the industry around the world. Resource-Based View (RBV) theory and Operational capability theory are the basic capabilities of an organization under a normal changing environment. This creates a competitive advantage and organizational success in a relatively short period of time, in which the dynamic environment is not sufficient to cope with this change. Dynamic capability is a concept for managing change under this dynamic environment. Past research supports a direct positive relationship between dynamic capability and firm performance but it did not focus on the mediator variables. This research emphasizes the influences of competitive advantages and innovation capabilities as mediators of dynamic capabilities and firm performance were investigated. A cross-sectional design study was utilised and questionnaires were submitted to 326 firms to test the proposed relationships. IBM SPSS Statistics Base 26, IBM SPSS AMOS 21, and PROCESS macro 3.6 were used for statistical analysis. Results revealed that competitive advantages and innovation capabilities were partially mediated by dynamic capabilities and firm performance. Findings contribute to the literature on empowering leadership and innovative firm performance by highlighting that competitive advantages and innovation capabilities act as mediators to improve dynamic capabilities and enhance innovative firm performance.
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Lin, Ping, Xiaosan Zhang, Shuming Yan, and Qingquan Jiang. "Dynamic Capabilities and Business Model Innovation of Platform Enterprise: A Case Study of DiDi Taxi." Scientific Programming 2020 (July 17, 2020): 1–12. http://dx.doi.org/10.1155/2020/8841368.
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Internet has revolutionized business model and given birth to sharing economy. A large number of platform enterprises are growing rapidly but with sustainability problems. Platform enterprises have to continue innovating business models in order to obtain sustainable competitive advantages. In complex and varying environment, dynamic capabilities help enterprises overcome core rigidity and promote business model innovation. This article analyzes the elements of business model innovation of platform enterprises and also the relationship between dynamic capabilities and business model innovation. It concludes that the elements of business model innovation are value proposition, product, partnership, and profit model innovation. Dynamic capabilities promote business model innovation which has different guiding effects on the cultivation of dynamic capabilities. An exploratory case study was conducted, using DiDi taxi as an example, and verified the theory model.
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VU, Hieu Minh. "A Review of Dynamic Capabilities, Innovation Capabilities, Entrepreneurial Capabilities and Their Consequences." Journal of Asian Finance, Economics and Business 7, no. 8 (2020): 485–94. http://dx.doi.org/10.13106/jafeb.2020.vol7.no8.485.
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Martins Cruz Pirotti, Tatiane, Cláudia Cristina Bitencourt, Kadígia Faccin, and Caroline Kretschmer. "The Process of Social Innovation Scalability: What is the Role of Dynamic Capabilities?" Journal of Innovation Management 9, no. 2 (2021): 21–38. http://dx.doi.org/10.24840/2183-0606_009.002_0004.
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Social innovations are important tools for minimizing or solving social problems. However, significant challenges remain in managing social innovation development for long-term survival and expanding its social impacts to generate scalability. This process can be supported by dynamic capabilities and their microprocesses. By conducting a single case study, we aim to contribute to the stream of research on management of social innovation that analyzes the ways in which dynamic capabilities can influence the scalability process of social innovation. Our contribution arises from generating an understanding of how and why dynamic capabilities influence the social innovation scalability process.
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Steen, John, Jerad A. Ford, and Martie-Louise Verreynne. "A Dynamic Capabilities Model of Innovation in Large Interfirm Projects." Project Management Journal 52, no. 5 (2021): 488–503. http://dx.doi.org/10.1177/87569728211033132.
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Large-scale projects often involve hundreds or even thousands of businesses. There are opportunities for these firms to produce innovations to solve problems and improve the project’s outcomes, but the time-bounded nature of the project and technical interdependencies also constrains innovation. Using quantitative analysis of data from firms in large oil and gas projects, we show that Teece’s sensing, seizing, and reconfiguring model of dynamic capabilities theorizes innovation in this interfirm project context. We also identify connections between these microfoundations that are not captured in Teece’s linear model, where sensing activities moderate the relationship between seizing activities and innovation.
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de Aro, Edson Rodrigues, and Gilberto Perez. "Identification of dynamic capabilities in open innovation." Innovation & Management Review 18, no. 2 (2021): 118–28. http://dx.doi.org/10.1108/inmr-10-2019-0120.
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Purpose This study aims to understand the interaction between capabilities inherent in open innovation and dynamic capabilities (sensing, seizing and transforming) as a source of competitive advantage. Design/methodology/approach Qualitative method and grounded theory were used as guidelines for data collection and analysis. Findings The study identifies a set of capabilities in the practice of open innovation related to dynamic capabilities, which indicates the importance of developing dynamic capability in the strategic management of internal and external knowledge in the company. Research limitations/implications The number of interviewees approached herein do not allow generalizations, but the use of grounded theory through various strategies of data collection in the interviews allowed the triangulation of the data, increasing the credibility, validity and quality of the research. Originality/value This study presents capabilities identified in open innovation and their relationship with dynamic capabilities, identifying the importance of the dynamic capability in the strategic management of internal and external knowledge in the company as a source of competitive advantage.
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Tsai, Shu Pei. "Dynamic marketing capabilities and radical innovation commercialisation." International Journal of Technology Management 67, no. 2/3/4 (2015): 174. http://dx.doi.org/10.1504/ijtm.2015.068223.
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Michailova, Snejina, and Wu Zhan. "Dynamic capabilities and innovation in MNC subsidiaries." Journal of World Business 50, no. 3 (2015): 576–83. http://dx.doi.org/10.1016/j.jwb.2014.10.001.
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Moccia, Salvatore, Shuming Zhao, and Patrick Flanagan. "Innovation, dynamic capabilities, leadership, and action plan." Journal of Enterprising Communities: People and Places in the Global Economy 14, no. 1 (2019): 113–27. http://dx.doi.org/10.1108/jec-10-2019-0108.
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Purpose The purpose of this paper is to propose a new model of leadership in a volatile, uncertain, complex and ambiguous (VUCA) context, paying special attention to human resource management. Design/methodology/approach The paper is conceptual. It presents the challenges of the VUCA environment that from which technically empowered democracy movements around the world have emerged, needing a new leadership model that aligns human resources tools to the new leadership model. Findings New tools for human resource management are proposed. Originality/value The paper links technological changes and leadership skills, providing a novel framework that can provide a basis for further research into the profound nature of leadership. Implications useful for managers and leaders are discussed.
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Teece, David, and Sohvi Leih. "Uncertainty, Innovation, and Dynamic Capabilities: An Introduction." California Management Review 58, no. 4 (2016): 5–12. http://dx.doi.org/10.1525/cmr.2016.58.4.5.
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Kindström, Daniel, Christian Kowalkowski, and Erik Sandberg. "Enabling service innovation: A dynamic capabilities approach." Journal of Business Research 66, no. 8 (2013): 1063–73. http://dx.doi.org/10.1016/j.jbusres.2012.03.003.
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Shang, Shari S. C., Se Hwa Wu, and Chen Yen Yao. "A dynamic innovation model for managing capabilities of continuous innovation." International Journal of Technology Management 51, no. 2/3/4 (2010): 300. http://dx.doi.org/10.1504/ijtm.2010.033807.
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CASTIAUX, ANNICK. "DEVELOPING DYNAMIC CAPABILITIES TO MEET SUSTAINABLE DEVELOPMENT CHALLENGES." International Journal of Innovation Management 16, no. 06 (2012): 1240013. http://dx.doi.org/10.1142/s1363919612400130.
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Dynamic capabilities are recognized as key factors for the adaptation of the firm to its changing environment. For two decades, a new pressure has been added on the shoulders of firms: they have to integrate sustainable development considerations in their strategy. This paper explores the impact of those new sustainability requirements on the dynamic capabilities that a firm should develop and sustain to remain competitive in turbulent environments. In particular, which new innovation capabilities are required to integrate environmental, social and financial objectives? To answer this question, we first consider the dynamicity levels identified in the literature in relationship with the turbulence of the firm's environment and we study what level is required for which type of sustainable innovation. Secondly, we look at the three fundamental natures of dynamic capabilities (sensing, seizing, transforming) and identify typical new requirements coming from sustainability challenges. We apply this reflection to Green IT innovations.
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Cheng, Colin C. J., and Ja‐Shen Chen. "Breakthrough innovation: the roles of dynamic innovation capabilities and open innovation activities." Journal of Business & Industrial Marketing 28, no. 5 (2013): 444–54. http://dx.doi.org/10.1108/08858621311330281.
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Salim, Norhuda, Mohd Nizam Ab Rahman, and Dzuraidah Abd Wahab. "The Influence of Proactive Capabilities and Knowledge-Based Dynamic Capabilities on the Competitive Advantage of Manufacturing Firms." International Journal of Trade, Economics and Finance 12, no. 2 (2021): 43–47. http://dx.doi.org/10.18178/ijtef.2021.12.2.691.
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Achieving and sustaining competitive advantage is a goal among firms, but it is increasingly challenging in a rapid changing and sophisticated environment. Most of the environmental management undertaken by firms in developing countries are not able to increase the competitive advantage of the product. Hence, this study investigates proactive capabilities that need to be developed in a dynamic environment where it involves green product innovation, environmental proactivity, alliance pro-activeness, and knowledge-based dynamic capabilities that impact on competitive advantage performance. This study involved a survey of 157 manufacturing firms with ISO 14001 certification throughout Malaysia. By implementing structural equation modelling approach, the results provided evidence of positive and significant direct effects of green product innovation and environmental pro-activity on firm’s competitive advantage. The relationship of alliance pro-activeness was fully mediated by the presence of knowledge-based dynamic capabilities as a condition to survive and prosper in a competitive market.
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Valdez-Juárez, Luis Enrique, and Mauricio Castillo-Vergara. "Technological Capabilities, Open Innovation, and Eco-Innovation: Dynamic Capabilities to Increase Corporate Performance of SMEs." Journal of Open Innovation: Technology, Market, and Complexity 7, no. 1 (2020): 8. http://dx.doi.org/10.3390/joitmc7010008.
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Currently, small and medium enterprises (SMEs) play a leading role in most of the world’s economies. For this reason, they seek technological competitiveness and improvement of their innovation activities. In this context, open innovation and eco-innovation are important elements to achieve these goals. With this background, the purpose of this paper is to analyze the relationship between technological capability, open innovation, and eco-innovation in corporate performance, testing a structural equation model using SmartPLS in a sample of 684 small and medium-sized companies in Mexico. The main results show that technological capability significantly influences open innovation and eco-innovation practices, not directly in corporate performance, but through open innovation or eco-innovation. Our results also confirm the positive effects that eco-innovation and open innovation have on SMEs’ corporate performance. These results have important implications in the literature on dynamic capabilities that have not been previously tested. For companies and decision-makers, it shows why these practices in small and medium-sized companies should be encouraged.
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Wendra, Wendra, Ernie Tisnawati Sule, Joeliaty Joeliaty, and Yudi Azis. "Exploring dynamic capabilities, intellectual capital and innovation performance relationship: evidence from the garment manufacturing." Business: Theory and Practice 20 (March 15, 2019): 123–36. http://dx.doi.org/10.3846/btp.2019.12.
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The notions of dynamic capabilities, intellectual capital, and innovation performance have been examined in many competitive advantage scholarly papers. However, there have been small numbers of management studies that consider the link of dynamic capabilities and intellectual capital in respect of innovation performance. Previous studies tend to argue that dynamic capabilities played a mediator or moderator role on intellectual capital and innovation performance linkage. Therefore, this study seeks to propose a new perspective that dynamic capabilities are the antecedents of intellectual capital leading to innovation performance. Thus, the rationale for this study is to propose a conceptual model and to provide empirical support on the mediator role of intellectual capital in dynamic capabilities and innovation performance linkage. By using accidental and snowballs sampling techniques, this study distributed questionnaires to 297 small and medium enterprises of the garment manufacturing in Indonesia. Partial least square offers the main statistics methodology for data analysis. Results show that dynamic capabilities had a significant influence on intellectual capital and innovation performance. Moreover, intellectual capital partially mediated dynamic capabilities’ influence on innovation performance. Therefore, it is expected that organisations should grow, implement and maintain their dynamic capabilities in order to improve their intellectual capital and innovation outcomes. Lastly, some future studies are suggested.
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Petricevic, Olga, and Alain Verbeke. "Unbundling dynamic capabilities for inter-organizational collaboration." Cross Cultural & Strategic Management 26, no. 3 (2019): 422–48. http://dx.doi.org/10.1108/ccsm-02-2019-0044.
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Purpose The purpose of this paper is to explore two distinct subsets of dynamic capabilities that need to be deployed when pursuing innovation through inter-organizational activities, respectively, in the contexts of broad networks and specific alliances. The authors draw distinctions and explore potential interdependencies between these two dynamic capability reservoirs, by integrating concepts from the theoretical perspectives they are derived from, but which have until now largely ignored each other – the social network perspective and the dynamic capabilities view. Design/methodology/approach The authors investigate nanotechnology-driven R&D activities in the 1995–2005 period for 76 publicly traded firms in the electronics and electrical equipment industry and in the chemicals and pharmaceuticals industry, that applied for 580 nanotechnology-related patents and engaged in 2,459 alliances during the observation period. The authors used zero-truncated Poisson regression as the estimation method. Findings The findings support conceptualizing dynamic capabilities as four distinct subsets, deployed for sensing or seizing purposes, and across the two different inter-organizational contexts. The findings also suggest potential synergies between these subsets of dynamic capabilities, with two subsets being more macro-oriented (i.e. sensing and seizing opportunities within networks) and the two other ones more micro-oriented (i.e. sensing and seizing opportunities within specific alliances). Practical implications The authors show that firms differ in their subsets of dynamic capabilities for pursuing different types of inter-organizational, boundary-spanning relationships (such as alliances vs broader network relationships), which ultimately affects their innovation performance. Originality/value The authors contribute to the growing body of work on dynamic capabilities and firm-specific advantages by unbundling the dynamic capability subsets, and investigating their complex interdependencies for managing different types of inter-organizational linkages. The main new insight is that the “linear model” of generating more innovations through higher inter-firm collaboration in an emerging field paints an erroneous picture of how high innovation performance is actually achieved.
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Петренко, Людмила А. "ФОРМУВАННЯ КОНКУРЕНТНИХ ПЕРЕВАГ ПІДПРИЄМСТВ НА ОСНОВІ ІННОВАЦІЙ В УМОВАХ ЕКОНОМІКИ ЗНАНЬ". Bulletin of the Kyiv National University of Technologies and Design. Series: Economic sciences 141, № 6 (2020): 47–59. http://dx.doi.org/10.30857/2413-0117.2019.6.5.
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The article explores the role of innovations in enhancing business competitiveness. An emphasis is put on rapidly growing need for innovations in modern economic realia. It is argued that innovations are critical for raising enterprise capitalization, in particular, while business is expanding the effect from innovations is also increasing, thus spurring innovation processes within companies. The mechanism of innovation effects on company financial performance is mediated by the market which shapes competitive advantages. Accordingly, the specified mechanism for developing competitive advantages for businesses based on innovation is crucial for value creation. Given that in the knowledge economy environment the organizational learning has become a key driver for development, it is assumed that the organizational learning capability triggers its capacity to generate innovations which in turn contributes to gaining competitive edge and market success in the future. Accordingly, this study aims to determine the key components in the process of building competitive advantages based on innovation in the contemporary knowledge economy settings. In the frameworks of this study, an in-depth analysis of scholarly publications in the area of competitive advantage theory and innovation has been carried out. To attain the research objectives, the methods of analysis and synthesis were applied. A nexus that underpins the basis for developing a unified synthetic theory of innovation-based competitive advantages is the resource-based view (RBV) along with its derivative, the dynamic capability-based view (DCV). The study findings have identified a range of factors that have strong influence on creating competitive advantages for a company based on innovations in a knowledge economy. Among them are the following: firstly, entrepreneurship as a driving force for innovation, the search for new combinations of resources (combinatorial capacity) and further development of competitive advantages; secondly, organizational learning, which in terms of the dynamic capabilities theory could be interpreted as "learning capabilities" in such priority areas for an innovative business as: 1) learning capability based on comprehension of previous experience and using it to develop innovations; 2) the capability to learn in the process of interaction with key stakeholders (partners, suppliers, consumers, competitors) and implementation of ideas gleaned from such interaction to create innovations. The research results provide evidence that companies with effectively developed internal entrepreneurship practices and innovation policies as the key areas of their competitive strategy should also design and boost a set of dynamic capabilities (learning capabilities) that will contribute to enhancing innovative development and gaining sustainable competitive advantages in the future.
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Nielsen, Peter, René Nesgaard Nielsen, Simon Grandjean Bamberger, et al. "Capabilities for Innovation: The Nordic Model and Employee Participation." Nordic Journal of Working Life Studies 2, no. 4 (2012): 85. http://dx.doi.org/10.19154/njwls.v2i4.2306.
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Technological developments combined with increasing levels of competition related to the ongoing globalization imply that firms find themselves in dynamic, changing environments that call for dynamic capabilities. This challenges the internal human and organizational resources of firms in general and in particular their ability to develop firm-specific innovative capabilities through employee participation and creation of innovative workplaces. In this article, we argue that national institutional conditions can play an enhancing or hampering role in this. Especially the norms and values governing relations between employers and employees are expected to be of vital importance. This article will follow a resource-based perspective on developing dynamic capabilities in order to test the importance of enhancing human and organizational capabilities for innovation in firms. In particular, the article will focus on some of the important institutional conditions in Danish firms derived from the Nordic model, such as the formal and informal relations of cooperation between employers and employees in firms and their function in building capabilities for innovation. The foundation of the empirical analysis is a survey that collected information from 601 firms belonging to the private urban sector in Denmark. The survey was carried out in late 2010.
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Breznik, Lidija, and Robert D. Hisrich. "Dynamic capabilities vs. innovation capability: are they related?" Journal of Small Business and Enterprise Development 21, no. 3 (2014): 368–84. http://dx.doi.org/10.1108/jsbed-02-2014-0018.
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Purpose – The purpose of this paper is to provide insights into the relationship between dynamic capabilities and innovation capabilities. It links dynamic capability with innovation capability and indicates the ways they can be related. Design/methodology/approach – The relationships between dynamic and innovation capability were investigated through a systematic literature review. Findings – The review indicates that common characteristics exist between of the both fields, which demonstrate six relationships. Additionally, findings show some inconsistencies and even contradictions. Originality/value – In this paper, the authors have compared dynamic capabilities, a relatively new approach in the field of strategic management, with innovation capabilities, a widely recognised crucial domain for sustained competitiveness. Since both areas address issues that are essential to today's environment, future research should seek to clarify both concepts, by undertaking some new research and developing comprehensive and unambiguous framework.
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Vézina, Martine, Majdi Ben Selma, and Marie Claire Malo. "Exploring the social innovation process in a large market based social enterprise." Management Decision 57, no. 6 (2019): 1399–414. http://dx.doi.org/10.1108/md-01-2017-0090.
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PurposeThe purpose of this paper is to investigate the organising of social innovation in a large market-based social enterprises from the perspective of dynamic capabilities and social transformation.Design/methodology/approachThis paper analyses the process by which Desjardins Group launched the Desjardins Environment Fund as the first investment fund in North America to integrate environmental screening. It uses longitudinal single case analysis and a theoretical framework based on Teece’s three dynamic capabilities.FindingsResults show that dynamic capabilities can be conceived as stages in the process of social innovation. Sensing refers to the capability to identify a societal demand for social transformation. Seizing capability is about shaping societal demand into a commercial offer. Reconfiguring concerns organisational innovation to integrate actual and new knowledge through innovative routines. Microprocesses of both path dependency and path building are in action at each of the three stages.Practical implicationsThis paper shows that managing dynamic capabilities is central to social innovation in the context of a large social business and provides genuine managerial input via an analysis of the microprocesses at work in the social innovation process.Originality/valueThis paper contributes to the operationalization of Teece’s dynamic capabilities model. In mobilising a framework in the field of management of innovation, it contributes to the understanding of the process of social innovation and develops the organisational mechanism for multiscalarity of social innovation as a condition for social transformation.
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Čiutienė, Rūta, and Emil William Thattakath. "Influence of Dynamic Capabilities in Creating Disruptive Innovation." Economics and Business 26 (February 11, 2015): 15. http://dx.doi.org/10.7250/eb.2014.015.
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Janssen, Matthijs J., Carolina Castaldi, and Alexander Alexiev. "Dynamic capabilities for service innovation: conceptualization and measurement." R&D Management 46, no. 4 (2015): 797–811. http://dx.doi.org/10.1111/radm.12147.
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Caniato, Federico, Antonella Moretto, and Maria Caridi. "Dynamic capabilities for fashion-luxury supply chain innovation." International Journal of Retail & Distribution Management 41, no. 11/12 (2013): 940–60. http://dx.doi.org/10.1108/ijrdm-01-2013-0009.
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Heaton, Sohvi, Donald S. Siegel, and David J. Teece. "Universities and innovation ecosystems: a dynamic capabilities perspective." Industrial and Corporate Change 28, no. 4 (2019): 921–39. http://dx.doi.org/10.1093/icc/dtz038.
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AbstractUniversities play an important role in innovation ecosystems. In addition to developing human capital and advancing technology, they are increasingly expected to participate as economic development partners with industry and local, state, and national governments. Models such as the “Triple Helix” have been advanced to frame the assessment of interactions among academia, industry, and governments that may foster economic development. Such models highlight the boundary-spanning roles of universities and provide a predetermined list of actions universities could take to strengthen their ecosystem. Unfortunately, the flexible and entrepreneurial management of universities required to make this model work has virtually been ignored in the academic literature. We propose the dynamic capabilities framework to guide how universities might manage their innovation ecosystems. We use this framework to analyze the role of the university throughout the ecosystem lifecycle. These concepts are then illustrated with three case studies of universities that have engaged with partners in local economies to launch new industries, fostering entrepreneurship, and revitalize neighborhoods.
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Alford, Philip, and Yanqing Duan. "Understanding collaborative innovation from a dynamic capabilities perspective." International Journal of Contemporary Hospitality Management 30, no. 6 (2018): 2396–416. http://dx.doi.org/10.1108/ijchm-08-2016-0426.
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PurposeThis paper aims to understand the key factors affecting collaborative innovation in a destination management organisation from a dynamic capability perspective.Design/methodology/approachAn in-depth case study was conducted using semi-structured interviews with the CEO and Chairman of the destination management organisation (DMO) and internal DMO documents from 2011 to 2016. Thematic analysis was carried out on the data both deductively, with generic themes identified and informed by theory, and inductively, where detailed subthemes were developed from the data.FindingsThe success of innovation in the context of a DMO depends on having a strong base of microfoundations that underpin the DMO’s capabilities to sense and seize opportunities and reconfigure its assets for competitive advantage. Collaboration with the key players in the sector has been the essential elements of these microfoundations.Research limitations/implicationsThis study has been conducted within a single DMO case study. Future research should test the proposed models in different types of organisations and collaborative contexts.Practical implicationsThe proposed dynamic capability framework helps managers achieve collaborative innovation, leading to competitive advantage through better development of relevant capabilities.Originality/valueThe study represents a first attempt to understand the key factors enabling successful collaborative innovation in the context of DMOs, from a dynamic capability perspective. The unique opportunity of accessing information and witnessing the changes in a DMO over a period of five years enabled the authors to gain in-depth insights and comprehensive understanding as to why and how a UK DMO has been successful in enhancing its business performance through a successful collaborative innovation.
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Lavrenenko, V., H. Makhova, and V. Vostriakova. "DEVELOPMENT OF THE ENTERPRISE’S INNOVATIVE POTENTIAL ON THE BASIS OF RESOURCE THEORY." Financial and credit activity: problems of theory and practice 3, no. 38 (2021): 397–408. http://dx.doi.org/10.18371/fcaptp.v3i38.237473.
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Abstract. Innovations play great role in the economic growth and development. And question of explanation enterprises’ ability to generate and implement them are topical as from scientific, as from applied points of view. The article is dedicated to the issues of innovative potential and its development. Authors explain its essence on the basic of resource theory and propose to determine its main components such as innovative resources, innovative capabilities, innovative competencies and innovative project. Based on this it is proposed to define innovative potential as set of integrated characteristics, which let use innovative resources with help of innovative competencies on the basic of innovative organizational capabilities. Innovation resources include both traditional and intellectual resources. Innovative competencies are sets of personnel features to generate innovative ideas and provide their implementation. Innovative organizational capabilities characterize ability of enterprise use innovative resources by development of modern business-models, processes and procedures. Innovative projects are main tool of innovative potential realization. Research shows expediency for evaluation and monitoring of innovative potential development to use four-component matrix. These components are resources, competencies, capabilities and projects. First three are components of innovative potential, fourth — embodiment of the realization of innovation potential. These components are evaluated on the basic of binary logic of economic processes analysis. Dynamic model of innovative potential development is proposed. This model consists of such stages: analysis of innovative potential components; selection of target innovative projects; identification of correspondence between components of innovative potential and target projects; creation of innovation potential development program.
 Keywords: innovation, development, innovation potential, resources, capabilities, competencies, innovative project, evaluation of innovative potential model.
 JEL Classification O31, O32, O33
 Formulas: 2; fig.: 6; tabl.: 0; bibl.: 17.
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Bogers, Marcel, Henry Chesbrough, Sohvi Heaton, and David J. Teece. "Strategic Management of Open Innovation: A Dynamic Capabilities Perspective." California Management Review 62, no. 1 (2019): 77–94. http://dx.doi.org/10.1177/0008125619885150.
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Open innovation has become well established as a new imperative for organizing innovation. In line with the increased use in industry, it has also attracted a lot of attention in academia. However, understanding the full benefits and possible limits of open innovation still remains a challenge. We draw on strategic management theory to describe some of these benefits and limits. More specifically, we develop a dynamic capabilities framework as a way to better understand the strategic management of open innovation, which can then help to better explain both success and failure in open innovation. With this background, as guest editors we introduce select papers published in this Special Section of California Management Review that were originally presented at the fifth annual World Open Innovation Conference, held in San Francisco, California, in December of 2018.
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Pranciulytė-Bagdžiūnienė, Ilma, and Monika Petraitė. "The Interaction of Organizational Capabilities and Individual Competences for Open Innovation in Small and Medium Organizations." Informacijos mokslai 85 (October 28, 2019): 148–75. http://dx.doi.org/10.15388/im.2019.85.21.
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Open innovation serves as a principal paradigm for success in diverse and dynamic business environments, as it gives the promise of a better-marked acceptance, a higher level of novelty, and managed innovation risks. However, SMEs face a critical challenge in developing open innovation capabilities and establishing new organizational processes that would empower employees to perform in open innovation regimes. We analyze the mediating role of organizational capabilities for employing and facilitating individual competences for innovation performance improvement as based on a survey of 266 SMEs. This study aimed to identify links between organizational capabilities and individual comp etences in AI for innovation performance in SMEs. The results of our study showed that organizational capabilities in AI at the level of organizations play a role as a mediator between competences for AI at the individual level and the progress of innovations. Considering that organizational skills in AI (organizational culture openness, organizational learning and trust, knowledge management systems, etc.) are strong organizational tools that help to increase the efficiency of AI and individual competences (to enhance employee creativity, enhance interaction with partners) as well as management competences (flexibility, ability to work with various professional communities, strategic thinking, etc.). This study partially refutes the assumptions that SMEs can only achieve innovative progress through individual competences in AI. Organizational capabilities in AI are also very important for AI implementation.
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Luna-Reyes, Luis, Carlos Juiz, Isis Gutierrez-Martinez, and Francois Bernard Duhamel. "Exploring the relationships between dynamic capabilities and IT governance." Transforming Government: People, Process and Policy 14, no. 2 (2020): 149–69. http://dx.doi.org/10.1108/tg-09-2019-0092.
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Purpose Information technology (IT) constitutes an important driver for innovation in the public sector. However, taking advantage of IT to innovate requires the existence of other organizational and institutional capabilities within the public organization. Using absorptive capability theory, the purpose of this study is to explore the relationship between principles for IT governance and dynamic capabilities across semi-urban (between 10,000 and 149,000 inhabitants), urban (between 150,000 and 600,000 inhabitants) and metropolitan (more than 600,000 inhabitants ) municipal governments in Mexico. Design/methodology/approach This study reports on three workshops involving 34 chief information officers (CIOs) from semi-urban, urban and metropolitan municipalities. The workshop agenda included a series of brainstorming exercises to discuss – among other topics – the capabilities required for digital government innovation. The capabilities collected during the workshops were codified by the authors based on their relationship to the six IT governance standardized principles and the four dynamic capabilities identified in the literature. The authors used descriptive and correlation analyses to show the importance of governance principles and dynamic capabilities for innovation, as well as the relationships between those two dimensions, in each type of municipality. Findings This study shows that specific IT governance principles may enhance innovation capabilities linked with knowledge acquisition, assimilation, transformation and exploitation. Moreover, the ways in which IT governance principles support innovation are linked to size, resources and complexity of the local government. In conclusion, this study discusses the primary IT policy implications to improve possibilities to innovate in the public sector. Originality/value Although researchers and practitioners agree that following principles of good governance may enhance performance and innovation in the provision of public services, the link between the principles of IT governance and capabilities to spur innovation has not yet been fully established in the literature. Thus, in this study, empirical evidence of this linkage is provided.
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Babelytė-Labanauskė, Kristina, and Šarunas Nedzinskas. "Dynamic capabilities and their impact on research organizations’ R&D and innovation performance." Journal of Modelling in Management 12, no. 4 (2017): 603–30. http://dx.doi.org/10.1108/jm2-05-2015-0025.
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Purpose The purpose of this paper is to reveal and justify influential factors of dynamic capabilities on research organizations’ R&D and innovation performance. Design/methodology/approach Adoption of seminal D. Teece’s (1997) concept of dynamic capabilities and operationalized matrix of key performance indicators in the area of R&D and innovation allowed the construction of the strategic management model for research organizations, consequently tested by methods of statistical analysis. Findings The empirical findings reveal that there exists positive influence of the dynamic capabilities on research organizations’ R&D and innovation performance. Explicitly, sensing, seizing and re-configuring dimensions of dynamic capabilities have positive impact on R&D and innovation results; consequently, the peculiarities of their inter-dependencies are identified. Research limitations/implications Delivered research is based on the investigation of Lithuanian research organizations’ dynamic capabilities and their impact on their R&D and innovation performance. Therefore, further research could be extended to foreign countries. Practical implications The model on management of research organization’s dynamic capabilities with the aim for better R&D and innovation performance is conceptualized and specified hereinafter. In the course of the research, constructed toolkit to eventually measure research organization’s R&D and innovation performance or use it as the set of key performance indicators in the benchmarking exercise is suggested. Originality/value The paper is one of the first to suggest novel application of dynamic capabilities’ view within the domain of research organizations.
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Zhou, Steven S., Abby J. Zhou, Junzheng Feng, and Shisong Jiang. "Dynamic capabilities and organizational performance: The mediating role of innovation." Journal of Management & Organization 25, no. 5 (2017): 731–47. http://dx.doi.org/10.1017/jmo.2017.20.
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AbstractHow firms’ dynamic capabilities lead to their competitive advantage and improved firm performance has been a core issue and full of debates. In this research, we theorize that dynamic capabilities, which could be defined by three distinct dimensions (sensing capability, integration capability, and reconfiguration capability), facilitate different types of innovation that in turn improve firm performance. Based on a sample of 204 Chinese firms, results from partial least squares structural equation modeling analyses generally support our arguments despite some nuanced differences existing among different dimensions of dynamic capabilities. This study contributes to dynamic capabilities literature by reducing the scarcity of empirical research and by uncovering the mechanisms through which dynamic capabilities influence firm performance.
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Čirjevskis, Andrejs. "What Dynamic Managerial Capabilities Are Needed for Greater Strategic Alliance Performance?" Journal of Open Innovation: Technology, Market, and Complexity 5, no. 2 (2019): 36. http://dx.doi.org/10.3390/joitmc5020036.
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Despite the rising interest in the nature of open innovation and its implications for greater strategic alliance performance, limited attention has been paid to what the dynamic managerial capabilities underpinning those processes are. Moreover, only limited research has examined how open innovation is practiced by firms working within various network forms (ecosystems, platforms, and strategic alliances) and what dynamic managerial capabilities ensure such networks’ collaborations. We need to further develop the concept of the coupled (collaborative) type of open innovation and to show how open innovation mechanisms, such as strategic alliances, are underpinned by dynamic managerial capabilities and to understand what their “micro-foundations” are. Thus, the goal of this article is to understand the role of sub-capabilities (how managers think and decide) of dynamic managerial capabilities as drivers of successful alliance performance.
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Carvalho Proença, Joaquim Jose, and Fernando Jiménez Sáez. "Processes and organizational innovation for small businesses." Cuadernos de Administración 34, no. 62 (2019): 82–93. http://dx.doi.org/10.25100/10.25100/cdea.2018v34n62.6283.
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Dynamic capabilities to innovate can be acquired regardless of the size of a company, but this requires that users participating in innovation processes be identified (value proposition segments) and the way organizations interact with these users be understood (processes). Small businesses can innovate with fewer financial and human resources using Customer Discovery, environment scanning, immersion, customer journey mapping, Customer Validation with validation of ideas and solutions in dynamic group sessions, Gamification, Design Thinking and prototyping workshops. The methodology used herein is that of literature review in the areas of process, products and dynamic capabilities innovation of companies. The objective of this research is to explore innovative processes that take into account and involve greater user collaboration that small businesses can exploit, which are targeted at the end user. Innovation does not have to be uncertain or expensive and can be developed through organizational innovation and innovation of collaborative processes with users.
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CABRAL, JOSÉ EDNILSON DE OLIVEIRA, ARNALDO FERNANDES MATOS COELHO, FILIPE JORGE FERNANDES COELHO, and MARIA DA PENHA BRAGA COSTA. "CAPABILITIES, INNOVATION, AND OVERALL PERFORMANCE IN BRAZILIAN EXPORT FIRMS." RAM. Revista de Administração Mackenzie 16, no. 3 (2015): 76–108. http://dx.doi.org/10.1590/1678-69712015/administracao.v16n3p76-108.
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ABSTRACT This article extends the current research on innovation by investigating the relationship between innovative capabilities and export firms’ overall performance. From the perspectives of the resource-based view (RBV) and dynamic capability, we examine the differential and interactive effects of exploration and exploitation capabilities in product innovation for external markets and overall performance (direct and mediated by a new product). In addition, we test the moderating effect of market dynamism and the controlling effect of firm size on these relationships. Hence, the main contribution of this article is developing and empirically testing an original model, by combining these constructs that address new relationships, in an emerging country. This model was tested with data from 498 Brazilian export firms, distributed throughout all Brazilian manufacturing sectors, by firm size, and in states. The analysis was made with application of the structural equation modeling (SEM). As a result, we found support for the assumptions that exploitation capabilities influence product innovation and overall performance, whereas exploration capabilities and their interaction to exploitation capabilities influence overall performance, but not product innovation. Additionally, the relationship between exploitation capabilities and overall performance is mediated by product innovation. Unlike hypothesized, market dynamism does not moderate the relationship between product innovation and overall performance. Furthermore, firm size works as a controlling variable in the relationships analyzed. Regarding the implications for theory, this study contributes to grasp that exploitation capabilities influences a firm’s overall performance, both directly and indirectly (via product innovation), and highlights the various direct and mediatory effects of innovation on overall performance. These insights show the importance of considering the role of mediating and moderating variables in theory and research models that address the determinants of overall performance to avoid overestimation of certain constructs. Finally, the paper provides original empirical support for the hypothesis of the interdependency of product innovations for external markets and overall performance.
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Fallon-Byrne, Lucy, and Brian Harney. "Microfoundations of dynamic capabilities for innovation: a review and research agenda." Irish Journal of Management 36, no. 1 (2017): 21–31. http://dx.doi.org/10.1515/ijm-2017-0004.
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Abstract This paper provides a conceptual overview of the microfoundations of dynamic capabilities for innovation. A critical evaluation of dynamic capabilities theory highlights its contested nature and significant limitations in its application. Notably, there is little understanding of the mechanisms determining the origin and evolution of dynamic capabilities, while the role of employees has been neglected. In an effort to address this deficiency, the paper draws on literature from HRM and innovation management to trace the microfoundations of dynamic capabilities for innovation. This highlights the importance of incorporating the perspectives and motivation of employees as a central part of analysis and as a basis for more direct managerial interventions in building capabilities.
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Strøm-Andersen, Nhat. "Incumbents in the Transition Towards the Bioeconomy: The Role of Dynamic Capabilities and Innovation Strategies." Sustainability 11, no. 18 (2019): 5044. http://dx.doi.org/10.3390/su11185044.
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This study explored incumbents’ roles in the transition towards the bioeconomy by examining what goes on inside firms, what strategies they practiced, and how these affected the way incumbents engaged in the transition, as well as their ability to innovate. The study focused on the Norwegian meat-processing sector, investigating how dynamic capabilities affected incumbent firms in the transition process, and the management strategies adopted in response to external pressures (local and global) and to innovation opportunities. The analytical approach builds on two theoretical pillars: Multi-level perspective and dynamic capabilities. The findings showed that the incumbent exercised different modes of behavior—first-into-niche and follow-into-niche—in response to innovation pathways during the transition, mobilizing various dynamic capabilities—learning, financing, and organizational restructuring. The study sheds light on the underlying business dynamics of incumbent firms within a given regime and on intra-regime dynamics concerning innovation opportunities, and notes the proactive roles of incumbents in the sustainability transition.
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Ju, Ki-Jung, Byeonghwa Park, and Taikyoo Kim. "Causal Relationship between Supply Chain Dynamic Capabilities, Technological Innovation, and Operational Performance." Management and Production Engineering Review 7, no. 4 (2016): 6–15. http://dx.doi.org/10.1515/mper-2016-0031.
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AbstractThe aim of this study is to empirically examine the impact of supply chain dynamic capabilities on operational performance, and the mediating effect of technological innovation between dynamic capabilities and operational performance. This study is based on empirical data collected from a survey of 206 small- and medium-size firms in Korea. Structural equation modeling is used to test the research questions. The results show that supply chain dynamic capabilities positively influence technological innovation and operational performance of an enterprise. Additionally, structural equation analyses reveal that technological innovation plays a role as a partial mediator of the relationship between supply chain dynamic capabilities and operational performance. In a dynamic and ever-changing environment, the enforcement of dynamic capabilities in a sustainable supply chain is important for the innovation of technology and the improvement of operational performance. Further investigation is required to understand the differences by industries, characteristics of enterprises, and positions in a supply chain.
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Ren, Rongwei, Lei Yu, and Yunxia Zhu. "Innovation-orientation, dynamic capabilities and evolution of the informal Shanzhai firms in China." Journal of Entrepreneurship in Emerging Economies 8, no. 1 (2016): 45–59. http://dx.doi.org/10.1108/jeee-01-2015-0003.
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Purpose – This paper aims to study the evolution of innovation-based dynamic capabilities in informal copycat-style firms. As a kind of informal economical organizations, copycat-style firms in many emerging economies play an important role in their development of the economics. The development of Shanzhai firms, Chinese-style copycat firms, from imitation to innovation has become an important micro-foundation of China’s economic growth and the manufacturing development. With the cluster development of the Chinese mobile phone industry as the macro and industrial environment background, this paper chose Beijing Tianyu Communication Equipment Co. Ltd as the typical example of innovation in Shanzhai firms and studied the evolution of innovation-based dynamic capabilities in this company. Design/methodology/approach – This paper chose Beijing Tianyu Communication Equipment Co. Ltd as the typical example of innovation in Shanzhai firms and studied the evolution of innovation-based dynamic capabilities in this company by adopting the leading-edge dynamic capability theory, innovation theory and industrial cluster theory. The authors further discussed how to improve the dynamic capabilities in Shanzhai firms in China. Findings – It is finally suggested that Shanzhai firms should reduce innovation failures and lower damage degree of dynamic capabilities through consistent innovation and paying attention to their innovation improvement. Originality/value – It will be very significant to research the survival or diminishing of Shanzhai firms from a theoretical perspective, which will eventually enhance property right protection and innovation development in China.
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Parida, Vinit, Pejvak Oghazi, and Stefan Cedergren. "A study of how ICT capabilities can influence dynamic capabilities." Journal of Enterprise Information Management 29, no. 2 (2016): 179–201. http://dx.doi.org/10.1108/jeim-07-2012-0039.
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Purpose – Prior studies have argued that small firms with dynamic capabilities can revise and reconfigure their internal resources to meet the uncertainties of their business environment. However, there is a lack of understanding of how they can develop such critical capabilities. The purpose of this paper is to propose that small firms can employ information and communication technology (ICT) capabilities as a facilitator for developing dynamic capabilities. Thus, the study builds on resource-based view (RBV) literature and information systems (IS) literature by examining the influence of ICT capabilities on the dynamic capabilities of small firms. Design/methodology/approach – Several hypotheses were tested by analysing the survey data from 291 small high-technology firms in Sweden. Findings – The results reveal that ICT capabilities influence dynamic capabilities of small firms. More specifically, the ICT use for internal efficiency positively influences adoptive capabilities, collaborative use of ICT positively influences networking capabilities, and ICT use for communications positively influences both adaptive and innovation capabilities. Consequently, the results suggest that the different components of ICT capabilities facilitate the development of the different organizational capabilities that together represent dynamic capabilities and thus, can contribute to a small firm’s competitive advantage. Practical implications – This study has few implications for the managers and CEO’s of small high-technology firms. First, by prioritizing ICT capabilities, small firms can benefit from the development of dynamic capabilities that will support them to meet the challenges of turbulent business environment. Second, because small firms usually lack internal resources (i.e. financial resources and competence), the study provides more specific direction on how they can strategically invest and build different components of ICT that will positively influence their adaptive, absorptive, innovative, and network capabilities. Originality/value – The study provides an alternative view of how ICT capabilities influence the performance of small firms, and outlines how such capabilities influence the development of dynamic capabilities. Therefore, the study in hand contributes to the RBV and IS literature by specifically linking the components of ICT capabilities to dynamic capabilities and its related sub-capabilities.