Dynamic capabilities and performance: How has the relationship been assessed?

2019 ◽  
pp. 1-30
Author(s):  
Elisabeth P. Baía ◽  
João J. M. Ferreira

Abstract The contribution of dynamic capabilities (DCs) to firm performance remains unclear and at the centre of debate. Based on a systematic literature review of 92 quantitative articles, the purpose is to explore how the DC–performance relationship have and should be assessed in the future. The most promising approach seems to be indirect, as it appears that DCs primarily causes change and intermediate outcomes, though far from being the most hypothesized relationship. Moreover, investigations employ a continuum of conceptualizations, ranging from very specific DCs to generic sets with theoretical divergences and overlapping. The same applies to the varied performance measures adopted, evidencing that the literature still has a long way to go. Based on a structured synthesis and analysis of existing studies, a conceptual model, recommendations and future avenues are proposed, along with areas of attention, which have both managerial and practical relevance, contributing to advancement within this research stream.

2019 ◽  
Vol 0 (0) ◽  
Author(s):  
Euncheon Lim ◽  
Dohyeon Kim

Abstract Although a cumulative body of literature explains entrepreneurial orientation (EO) and firm performance, there remain differing views on the mechanisms underlying this relationship. The purpose of this study is to investigate the effect of EO on firm performance by considering the roles of dynamic capabilities (DC) and corporate entrepreneurship (CE). We propose that DC and CE mediate the relationship between EO and firm performance, and our empirical results support these propositions. This study fills a gap in the literature on the EO–performance relationship by considering the linkages among disposition, capabilities, and activities in the South Korean context.


2021 ◽  
Vol 4 (1) ◽  
pp. p78
Author(s):  
Maimako Livinus Nkuri ◽  
Ahmed Razman Abdul Latiff ◽  
Wan Fadzila Wan Yusoff

Purpose The purpose of this study is to explore a model to measure the money deposit bank financial sustainability based on ownership structure and to examine the moderating role of managerial intention on managerial ownership and foreign ownership. Design/ Methodology/ Approach An elaborate literature review was conducted to identify the variables and a proposed conceptual model was conceived. Findings A conceptual model was presented after the discussion of relationship and literature review that examined ownership structure, managerial intention and financial sustainability. Originality/Value Many scholars have investigated the different dimensions of ownership structure, managerial intention and performance, however little research has been done on the integration of ownership structure and financial sustainability. Furthermore, there is also a dearth in literature that examine the moderating role of managerial intention on the relationship between ownership structure and financial sustainability.


2021 ◽  
pp. 1069031X2110306
Author(s):  
Nilay Bicakcioglu-Peynirci ◽  
Robert E. Morgan

We investigate how strategic resource decisions—concerning slack resources and strategic marketing ambidexterity—influence the relationship between internationalization and firm performance of emerging market firms. Based upon the resource-based view, we synthesize two dominant, yet divergent, perspectives that explain the respective resource slack advantages and liabilities in the internationalization literature: the flexible capacity and the efficient capacity perspectives. We also explore the moderating role of strategic marketing ambidexterity which comprises a bundle of marketing activities covering both exploitation-dominant actions and exploration-dominant actions. We empirically examine our hypothesized relationships with data from a sample of 1,683 firm-year observations for the period between 2005 and 2018 and find that distinct forms of resource slacks have contrasting effects on the relationship between internationalization and performance. Our results provide strong evidence for positive moderation effect of unabsorbed slack resources and a negative moderation effect of absorbed slack resources on the internationalization-performance relationship. We also indicate nonsignificant moderating effect of strategic marketing ambidexterity, demonstrating that internationalization attains higher firm performance regardless of its exploration-dominant or exploitation-dominant strategic emphasis in emerging economies.


2014 ◽  
Vol 21 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Lidija Breznik ◽  
Robert D. Hisrich

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.


2018 ◽  
Vol 6 (04) ◽  
pp. 319-327
Author(s):  
Bett, Alfred Kipyegon ◽  
Dr. Johnmark Obura ◽  
Dr. Moses Oginda

In the 21st century where economies are driven majorly by knowledge and information-based service businesses, telecommunication industries are playing a critical economic role both regionally and globally. In Kenya, with a combined subscription rate of 37.8 million based on a 2016/17 Communication Authority of Kenya report of 2017, Safaricom Kenya Limited controls about 71.2% of the subscribers, Airtel Kenya Limited is second with 17.6% with Telkom Kenya coming third with 7.4%. Finserve East Africa (Equitel) a new entrant in the market controls 3.8% of subscribers. These figures points to the fact that only Safaricom seems to be the only firm performing well. This reality forms the basis of establishing whether their difference in performance is attributable to their information systems capabilities. The purpose of this study was to analyse the relationship IS capabilities and performance of firms in the telecommunications industry in Kenya. It was anchored on Resource-Based Theory and guided by a conceptual framework with the dependent variable being firm performance while independent variable was IS capabilities. Correlational and survey research designs were used. The population of the study was 408 staff comprising all executive, management and operational level managers from the business and IT sections in each firm. A sample of 202 staff was drawn through proportionate stratified random sampling method. Primary data was collected using structured questionnaire and an interview schedule. Reliability of the research instrument was tested against Cronbach’s alpha coefficient where a reliability score of 0.814 was achieved while validity was gauged through research experts’ opinions. Data was analysed using both descriptive and inferential statistics. The findings established that IS capabilities and firm performance have a weak relationship (r = 0.409, p<0.05) which means that whenever firms in industry invested on market based IS capabilities there was a small improvement on their performance and therefore firms should invest in the development of market based IS capabilities since they have significant influence on their performance. This study may be useful to industry players by gaining better understanding on various information system resources that they can utilize to improve and sustain their performance besides policy formulation. By advancing a model that depicts the relationship between information systems resources and firm performance, this study may make a significant contribution to theory building in the field of information systems.


Webology ◽  
2021 ◽  
Vol 18 (Special Issue 03) ◽  
pp. 261-273
Author(s):  
Dibyendu Pal ◽  
Kumar Shalender

The objective of this theoretical paper is to explore the relationship of market orientation (MO) and organizational performance in the context of Indian textile processing industry. The study also aims to construct a conceptual model which can hypothesize the relationship between market orientation, firm performance, and entrepreneurial orientation (EO). The conceptual model is drawn with the help of extant literature review of studies conducted by various authors in the area of market orientation and entrepreneurial orientation. The study presents a model depicting the inter-relationship among MO, EO and firm performance. The proposed model also propounds that the relationship between market orientation and firm performance is mediated by entrepreneurial orientation. This work will be helpful for different stakeholders of textile processing industry to understand the importance of MO and EO and their impact on the performance of the organization. Also, the proposed conceptual model showing inter-relationship among MO, EO and firm performance is an addition to the existing pool of knowledge.


2021 ◽  
Vol 11 (4) ◽  
pp. 56
Author(s):  
Muhammad Ahmad ◽  
Rohani Mohd Rus

This study sheds light on the differences in intellectual capital (IC) efficiencies across non-financial sectors in Pakistan and determines the relationship between IC and firm performance. The study used sample of 155 non-financial firms from the manufacturing and service industries of Pakistan for the period 2009-2018. This study contributes to IC research by applying modified value-added intellectual capital (MVAIC) model with relationship to firm performance (return on assets and Tobin’s Q) of Pakistani non-financial firms which was overlooked by the previous researchers. In addition, to deal with endogeneity, the dynamic panel generalized methods of moments regression is applied to test the relationship between IC and performance. Findings provide evidence that different sectors in non-financial industries manage IC components differently. IC increases both market-based performance and accounting-based performance of Pakistani firms. Among all IC components, human capital efficiency is an important determinant of firm performance. The implication can provide help managers and investors to understand the IC to increase the firm performance.


10.28945/3756 ◽  
2017 ◽  
Author(s):  
Clara A. Nkhoma ◽  
Mathews Nkhoma ◽  
Irfan ulhaq ◽  
Sang Q Mai

Aim/Purpose: Development of a conceptual model linking early class preparation to improve class participation and performance. Background: Class preparation and class participation are precursors for the students’ performance. Methodology: Literature review. Findings: In a student-centered class environment, class preparation remains essential for the successful collaboration and participation. The literature review in this stream reveals that little attention has been paid to undergraduate class levels. Recommendation for Researchers: The literature review shows that there is a need for more research using undergraduate classes. Future Research: Validation and application of model in different educational program and discipline settings


2020 ◽  
Vol 1 (2) ◽  
pp. 83-90
Author(s):  
Rebi Fara Handika

Abstract   This paper discussed the company's motive to join a strategic alliance from the institutional theory point of view. The theory views that strategic alliances are considered as the medium to acquire legitimation from the environment. Such legitimation then improves the company’s competitive positions and performance. Further, we propose the framework to discuss the relationship between strategic alliances and a company’s performance. The paper proceeds as follows: in the next section, we discuss the institutional theory, the strategic alliance, and firm performance. Afterward, we develop the propositions and discuss the implications for future empirical research.   Abstrak   Artikel ini membahas motif perusahaan untuk bergabung dengan aliansi strategis dari sudut pandang teori institusional. Teori ini memandang bahwa aliansi strategis dianggap sebagai media untuk memperoleh legitimasi dari lingkungan. Legitimasi tersebut kemudian dipercayai akan meningkatkan posisi kompetitif dan kinerja perusahaan. Selanjutnya, kami mengusulkan framework untuk membahas hubungan antara aliansi strategis dan kinerja perusahaan. Artikel ini akan dilanjutkan sebagai berikut: pada bagian berikutnya, kita membahas teori institusional, aliansi strategis, dan kinerja perusahaan. Setelah itu, kami mengembangkan proposisi dan membahas implikasi untuk penelitian empiris di masa depan.


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