The bidirectional complementarity between market orientation and launch proficiency affecting new product performance

Purpose Based on the resource-based view and dynamic capabilities theory, this study aims to examine the complementarity between market orientations and launch proficiency as a driver of new product performance. Design/methodology/approach In this research, an on-site survey of Iranian, research and development- intensive, manufacturing firms was carried out to examine the proposed hypotheses. Based on the 179 workable survey responses, a covariance-based structural equation modeling was applied to verify the proposed theoretical model. Findings The empirical findings reveal that the effects of market orientation or launch proficiency alone are not significant while the complementarity between them significantly influences new product performance. These research outcomes suggest that this complementarity leads to a bidirectional co-specialization relationship in firms, promoting both market intelligence generation processes and product-launch capabilities, and therefore resulting in superior new product performance. Originality/value The current characterization of the resource-based theory signifies that strategic resources merely have potential value and actualizing this value needs complementary organizational capabilities. Furthermore, the literature notably lacks empirical findings supporting these complementarities. Therefore, the findings concerning the bidirectional co-specialization between market orientation and launch proficiency not only provide empirical support for the dynamic capabilities theory but also address recent research calls to identify and calibrate the importance of dynamic capabilities for leveraging market orientation on new product performance.

Tracing the economics behind dynamic capabilities theory

Purpose The purpose of this paper is to trace the evolution of dynamic capabilities theory in the primal theories of economics and strategic management. Then a comprehensive research framework is proposed to grapple with the dynamics of the contemporary global markets, incorporating the quintessential elements of the theory, i.e. absorptive capability, innovation capability and adoptive capability. Design/methodology/approach The paper is conceptual in nature. It tries to review various economic systems of the world since 1770s till the present era. It also evaluates various theories of international business against dynamic capabilities theory and thus proposes various propositions for future empirical testing. Findings The study has delineated various theories tracing in them the roots of dynamic capabilities. Capitalism, communism and socialism is explained to reach the present state of world economy. Various theories such as the theory of creative destruction, transaction-cost approach, resource-based view and knowledge-based view of the firm have been elaborated to identify their features and shortcomings. Finally, the contemporary theory of dynamic capabilities has been elucidated to integrate the shortcomings of the previous theories. A research framework has also been proposed to overcome the recent criticism of the dynamic capabilities theory of having under-specified constructs. Originality/value Very few studies have elaborated various economic systems and theories to trace the evolution of dynamic capabilities theory. Thus, this study is original in nature and the proposed research model is also novel which induces further empirical evidence as proposed by the authors.

Dynamic capabilities for SME participation in public procurement

PurposeAlthough small- and medium-sized enterprises (SMEs) play major roles in most economies in terms of job creation, innovation and contribution to national income, they are often underrepresented in public procurement markets. This paper aims to explore how the dynamic capabilities theory can improve SME participation in public procurement.Design/methodology/approachThrough a systematic literature review, the paper identifies common barriers to the effective participation of SMEs in public procurement and explores the applicability of the dynamic capabilities theory in addressing these barriers.FindingsA theoretical analysis was conducted to identify possible relationships between the factors reported in the literature as barriers to SME participation in public procurement and different components of the dynamic capabilities of firms (i.e. sensing, seizing, reconfiguring and learning). Seven key propositions were generated to guide future research.Research limitations/implicationsDespite its contributions, this paper is based solely on a systematic literature review and theoretical analysis. Future studies could use meta-analysis to review multiple studies relating to the nexus between SMEs and public procurement, hence improving methodological rigour.Practical implicationsThe paper contributes to the ongoing debate about whether and how SMEs can leverage their resources and capabilities to develop self-help strategies to improve participation in public procurement, an area yet underexplored in the literature.Originality/valueThis is one of the few studies examining the implications of firm-level capabilities of SME activity in public procurement markets. The findings may be beneficial to SME managers/owners, particularly regarding firms' ability to leverage resources and capabilities to participate effectively in public procurement.

Assessing the role of dynamic capabilities in local food distribution: a theory-elaboration study

Purpose The food industry and its distribution solutions often lie at the center of sustainability-related arguments. However, little is known about the dynamic role of business capabilities for sustainable transformations in the context of local food distribution. Accordingly, this study aims to investigate how dynamic capabilities drive sustainable supply chain management (SSCM) business practices in short food supply chains (SFSCs) through the professionalization and expansion of online distribution channels. Design/methodology/approach The present study analyzes sustainability-related practices at six online distribution channels selling local food products in Germany and Austria. By applying a cross-case study and theory-elaboration approach, the study analyzes empirical data derived from these businesses and provides insights into how dynamic capabilities can facilitate SSCM practices within SFSCs. Hereby, potential pathways for a sustainable transformation in this industry context are deduced through abductive reasoning. Findings The empirical findings provide evidence that supply chain orientation, coordination, innovation practices and strategies are highly relevant for SFSCs seeking to reach upscaling effects in regional markets. However, because SFSCs may not be able to reach mass markets without weakening their own sustainability performance, the present study recommends addressing sustainability inefficiencies in the region and developing further expansion potentials through replication in other regions. In this approach, related and necessary SSCM dynamic capabilities were identified and validated based on the empirical findings. Originality/value Although SFSCs include sustainability aspects at their core – particularly regarding resource usage, environmental friendliness and social-standard assurance – missing distribution-related capabilities limit growth such that these businesses often remain in a niche. To address this issue, the study builds on dynamic capabilities theory by identifying and describing core SSCM practices and capabilities; moreover, this study is among the first to elaborate empirically on the use of dynamic capabilities theory in this specific industry context.

Big data management: implications of dynamic capabilities and data incubator

PurposeBig data management research and practice, however, have received enormous interest from academia and industry; the extant literature demonstrates that the authors have limited understanding and challenges in this knowledge-stream to fully capitalize with its potentials. One of the contemporary challenges is to accurately verify data veracity, and developing value from the verified data for an organization and its stakeholders. Consequently, the purpose of this paper is to develop insights on how the authors could strategically deal with the contemporary challenges in strategic management of big data, related to data veracity and data value.Design/methodology/approachThe inductive–constructivist approach is followed to develop insights at the intersection of dynamic capabilities theory and stakeholder relationship management concept, in order to strategically deal with the contemporary challenges in big data management, related to data veracity and data value.FindingsAt the intersection of dynamic capabilities theory and stakeholder relationship management concept, an implication is acknowledged, which has research and practical significance to strategically verify data source, its veracity and value. Following this implication, a framework of a data incubator is proposed to proactively develop insights on veracity and value of data. Empirical insights are also presented in this study to support this initial framework.Practical implicationsFor future research in strategic management of big data, academics will have contextual understanding on the particular interconnected and interdependent attributes from dynamic capabilities and stakeholder relationship management research streams to further enhance the understanding on big data management. For practice, these insights will be useful for executives to focus on specific attributes of the proposed data incubator to confirm data veracity and develop insights on how to design, deliver and evaluate stakeholder value based on the verified data.Originality/valueFollowing a synthesis at the intersection of dynamic capabilities theory and stakeholder relationship management concept, this study introduces a data incubator to meaningfully deal with the big data management challenges, related to veracity and value of data.

Work, Human Rights, and Human Capabilities

This chapter examines the value of work and the requirements of the content of work against two normative frameworks: first, human rights, and second, human capabilities. Its main question is whether working like a robot should be prohibited. The chapter identifies certain overlaps in the requirements imposed by the two frameworks, such as a duty to create opportunities to work and the prohibition of being forced to work. When it comes to the content of work, both frameworks prohibit workers’ exploitation, and both recognize the value of self-development in the workplace, up to a certain extent. The overlap is justified given that there are connections between human dignity and human flourishing, both values that are also linked to human rights. However, the chapter also suggests that capabilities theory, as a theory of human flourishing, requires the promotion of meaningful work for everyone. This requirement is more demanding than the duties imposed by human rights, which are primarily about identifying and addressing moral wrongs. Whether boring and monotonous jobs should be prohibited as a moral wrong, though, is not specifically addressed within capabilities theory. The lack of specificity as to the duties imposed is a weakness of the capabilities approach.

Explaining logistics social responsibility from a dynamic capabilities perspective

Purpose So far, most of the literature on logistics social responsibility (LSR) has prioritized the examination, classification of and adaption toward positive LSR practices instead of investigating necessary logistics service providers’ capabilities to implement LSR strategies. Therefore, the purpose of this paper is to contribute to theory by an assessment of LSR and its linkages to dynamic capabilities theory to gain insights into how logistics service providers can foster an enhanced application of LSR practices. Design/methodology/approach The paper is conceptual and grounded on dynamic capabilities theory. Relevant literature from logistics management, supply chain management and sustainable supply chain management (SSCM) as well as dynamic capabilities was examined to build upon existing theory by conceptualizing LSR from a dynamic capabilities perspective. In addition, propositions for future research are presented based on the conceptual model. Findings With regards to the controversial discussion in the literature about the direct link between dynamic capabilities and competitive advantage as well as the necessary degree of heterogeneity of dynamic capabilities, the conceptualization of LSR from a dynamic capabilities perspective adds new elements to this discussion. Considering long-term or even sustainable competitive advantage, the current degree of homogeneity across logistics services might hinder a sustainable advantage in the long run and demands for more advanced logistical capabilities. In this line, it is important to understand and utilize the causal relationships between different logistical resources and capabilities to achieve a unique long-term advantage allowing logistics service providers to further enhance LSR practices. Practical implications Due to the current role of logistics service providers, they should not just foster their resources focusing on the relationship to the focal firm, but they should also develop and implement new logistical capabilities derived from SSCM-related dynamic capabilities to design alternative service portfolio extensions and new business models. Originality/value Although dynamic capabilities have been studied intensively in the last two decades, the causal relationships between different logistical resources and necessary dynamic capabilities to achieve advantages by enhancing LSR practices still lack conceptualization. To build on the understanding of LSR, the paper at hand presents a conceptual framework explaining LSR and SSCM practices through the lens of dynamic capabilities theory.

Explaining Organic Growth Performance

Why are some firms consistently able to grow faster than their rivals in the same industry? We employ dynamic capabilities theory to show that organic growth leaders excel because they have innovation prowess. Their prowess is gained by combining discipline in their growth-seeking activities with an organizational ability to innovate. Empirical indicators of these constructs were assessed by a sample of senior leaders in 168 companies. We found that innovation ability (comprising the interconnected elements of innovation culture, innovation capabilities, and how the firm is organized to enable innovation) explained most of the performance differences between growth leaders, average performers, and growth laggards. However, it is the interaction of innovation ability and discipline in pursuing the growth strategy that explains why growth leaders outperform the average organic growth rate of their industry.