Role of Dynamic Capabilities in Innovation Output of High-Technology Firms

2016 ◽  
Vol 25 (4) ◽  
pp. 401-425
Author(s):  
Krishna Aniruddha ◽  
Amita Mital
Keyword(s):  
Dynamic Capabilities ◽  
High Technology ◽  
Technology Firms ◽  
High Technology Firms ◽  
Innovation Output

A study of how ICT capabilities can influence dynamic capabilities

2016 ◽  
Vol 29 (2) ◽  
pp. 179-201 ◽  
Author(s):  
Vinit Parida ◽  
Pejvak Oghazi ◽  
Stefan Cedergren
Keyword(s):  
Small Firms ◽  
Dynamic Capabilities ◽  
High Technology ◽  
Business Environment ◽  
Alternative View ◽  
Content Type ◽  
Internal Resources ◽  
Technology Firms ◽  
Ict Use ◽  
High Technology Firms

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.

How environmental turbulence influences firms’ entrepreneurial orientation: the moderating role of network relationships and organizational inertia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ming-Chao Wang ◽  
Pei-Chen Chen ◽  
Shih-Chieh Fang
Keyword(s):  
Entrepreneurial Orientation ◽  
High Technology ◽  
Environmental Turbulence ◽  
Firm Level ◽  
Content Type ◽  
Technology Firms ◽  
Organizational Inertia ◽  
High Technology Firms ◽  
The Relationship

Purpose Environmental turbulence represents a double-edged sword, simultaneously fueling and hindering a firm’s entrepreneurial orientation (EO). Drawing on the theories of EO and network relationships, this study aims to develop and test a conceptual model that provides a nuanced account of the relationship between environmental turbulence and firm EO. Design/methodology/approach Data for this study were collected using a survey of high-technology firms in Hsinchu Science Park (HSP) in Taiwan. Questionnaires were mailed to 297 high-technology firms in the semiconductor, photoelectric and communication industries within HSP. Completed questionnaires were received from 94 firms, which included responses from 94 research and development managers and 462 employees. Findings The results reveal that the degree of environmental turbulence exhibits an inverted U-shaped relationship with a firm’s EO. Moreover, this relationship is positively moderated by network relationships between firms, but negatively moderated by organizational inertia. Originality/value The empirical and conceptual findings have important implications for understanding EO, because the findings explain causal relationships that transform a firm’s interactive and inner control capabilities into firm-level results.

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