Globalisation entry decision-supporting tool for international construction risks

Purpose This study examines how intellectual capital components – human, structural, relational and renewal capital (RNC) – impact service innovation performance (SIP) in Chinese management consulting firms. It also investigates the mediating role of dynamic capabilities (DCs) in transforming intellectual capital into innovative service outcomes. The research aims to provide a comprehensive understanding of how consulting firms can strategically leverage their intangible resources and organizational capabilities to sustain a competitive advantage in a rapidly evolving market. Design/methodology/approach The study employs a quantitative research design using survey data from Chinese management consulting firms. Structural equation modeling is utilized to test relationships between intellectual capital dimensions, DCs and SIP. The analysis focuses on the direct effects of human, structural, relational and RNC on innovation, as well as the mediating effect of DCs. This empirical approach integrates theories from the resource-based view (RBV), enterprise capability theory and service innovation literature. Findings Results indicate all four intellectual capital components positively and significantly influence service innovation, with RNC exerting the strongest effect. DCs mediate these relationships by enabling firms to sense opportunities, seize them and reconfigure resources effectively. Human capital (HC) fosters creativity; structural capital supports knowledge management; relational capital enhances client collaboration and RNC drives continuous learning and adaptability. The findings confirm that strategic orchestration of intellectual capital through DCs is essential for sustaining innovation in consulting services. Research limitations/implications The study is limited by its focus on Chinese consulting firms, which may restrict generalizability to other cultural or industry contexts. The cross-sectional design limits causal inferences, suggesting longitudinal studies for future research. Measurement of intellectual capital and DCs relies on self-reported data, which may introduce bias. Further research could explore sector-specific variations, incorporate qualitative insights and examine external environmental factors influencing the intellectual capital innovation relationship. Despite limitations, the findings offer valuable insights for theory development and practical innovation management in knowledge-intensive service industries. Practical implications Consulting firms should invest in targeted HC development, advanced knowledge management systems and robust client relationship management to drive service innovation. Emphasizing continuous learning and renewal through research and development, foresight activities and collaborative partnerships is critical. Firms must enhance DCs by adopting agile project management and digital tools to quickly sense, seize and reconfigure resources. An integrated innovation strategy combining intellectual capital development with capability building helps firms remain competitive and responsive to rapid market changes. These practices foster sustained innovation, improved client satisfaction and organizational resilience. Social implications By enhancing service innovation, consulting firms contribute to more effective and customized solutions for client organizations, potentially improving overall business performance and economic growth. The promotion of continuous learning and talent development supports workforce skill advancement and knowledge diffusion within the industry. Trust-based client relationships foster transparency and collaboration, encouraging ethical business practices. Additionally, innovation driven by intellectual capital and DCs can lead to sustainable consulting services that better address complex societal challenges. These outcomes collectively promote a knowledge-based economy and strengthen the social fabric of professional service ecosystems. Originality/value This study uniquely integrates intellectual capital theory, DCs and service innovation theory to offer a holistic framework explaining innovation performance in consulting firms. It empirically validates the mediating role of DCs in converting intellectual capital into service innovation, extending the RBV with capability orchestration. By focusing on the Chinese management consulting context, the research provides culturally relevant insights into intangible resource management. The multi-theoretical model advances academic understanding and offers actionable strategies for practitioners to enhance innovation through coordinated development of human, structural, relational and RNC alongside dynamic organizational capabilities.

Inside the Black-box: Analysing the Generation of Core Competencies and Dynamic Capabilities by Exploring Collective Minds. An Organisational Learning Perspective** The paper combines resource-based thinking with perspectives from theories of organisational learning and knowledge management. According to the resource-based view (RBV) strategy can be defined as emergent pattern of interaction generating core competencies and dynamic capabilities. These processes of interaction and their relation to core competencies and dynamic capabilities are of major concern in the presented analysis. A synthesis with learning theories further leads to the basic assumption that processes of knowledge identification, knowledge diffusion, knowledge integration and the enactment of the environment are critical for generating core competencies. Moreover, learning theories show how to approach the causal ambiguityargument that is important in the explanation of core competencies given by RBV. It will be argued that the analysis of the shared mental model of the organisational members is a method to explore critical processes for generating core competencies. A related research instrument will be validated in a case study analysis that was conducted in a medium-sized enterprise aiming at testing the instrument and the aforementioned basic assumption. The instrument can explore the critical processes in which the generation of core competencies and dynamic capabilities is embedded in. It provides a better understanding of the critical processes within the organisation than the RBV. Key words: Causal ambiguity, collective minds, competitive advantages, core competencies, dynamic capabilities, knowledge management, organisational learning, resource-based view, strategic processes 1. Introduction The resource-based view (RBV) of the firm has been thoroughly discussed in strategic management literature. The basic assumptions of this approach have been developed further during the last twenty years, specified for certain organisational functions and validated in hundreds of empirical analyses (see Barney/Arikan 2001; Rouse/Daellenbach 2002; Ray/Barney/Muhanna 2004). As a consequence, the RBV became a leading paradigm in strategic management (Wernerfelt 1995; Bresser 1998). Even though there is considerable theoretical and empirical progress in resourcebased research shortcomings still exist in the theoretical underpinnings of the approach. These restrict related empirical investigations that try to measure critical resources and processes for sustainable competitive advantages. One of the major shortcomings of the RBV is the fact that the organisation remains a black-box even though it is considered as the source of organisational success (Ortmann/Sydow 2001; Priem/Butler 2001). There is a lack in explanations of how heterogeneity arises (Helfat/Peteraf 2003: 997). This is not only a limitation in the eyes of those who regard the RBV as a theory of competitive advantage - if the major interest relies on rules for richness, the causal ambiguity argument of the RBV is somehow dissatisfying. Causal ambiguity means that the link between the resources controlled by a firm, internal processes and sustained competitive advantages can neither be attributed from outside nor from organisational members (Barney 1991). Rather, the causal ambiguity paradox - even though it is inspiring - veils the view on organisational internal processes that might have a strategic impact. The RBV does not only lay emphasis on the internal organisation but also limits a deeper understanding of organisational internal strategic processes. For a further development of strategy research a broader perspective of social action within and between organisations as well as between organisations and environments is essential. As Mintzberg (1978, 1994) points out these processes of forming a pattern of strategic action have been neglected in strategy research (see also Quinn 1984). …

Taking the resource-based view –RBV- and the dynamic capability view –DCV- as an orientation, the main aim of this study is to develop the mediator role that competitive advantages play in the relations between strategic resources, dynamic capabilities and performance. The study takes place in a dynamic and changing sector: the sale of new cars in Portugal. The results show that (a) achieving competitive advantages, which are decisive for business results, depends on the available strategic resources and the generating of dynamic capabilities, (b) in dynamic and changing sectors strategic resources are essential to generate dynamic capabilities, (c) firms must center their attention on, more than results, the generating of sustainable competitive advantages as these act as a mediator variable of the effect of strategic resources and dynamic capabilities on performance. The data scrutiny uses structural equation modeling (SEM) through PLS as the statistical instrument. The sample comprises 89 firms which sell new cars in Portugal.

Purpose This study identifies the critical factors influencing the adoption of artificial intelligence in recruitment processes and examines how such adoption reconfigures the sources of competitive advantage. Design/methodology/approach Drawing on the resource-based view and dynamic managerial capabilities perspectives, we conceptualise managerial capabilities as the applied manifestation of the microfoundations of dynamic managerial capabilities, in the context of artificial intelligence implementation. Data from 245 HR professionals involved in artificial intelligence driven recruitment were analysed using structural equation modelling. Findings HR competency and open innovation, operating through the microfoundations of dynamic managerial capabilities and manifested in managerial capabilities, significantly drive artificial intelligence adoption. Top management support strengthens these relationships by ensuring strategic alignment and resource mobilisation. Artificial intelligence adoption enhances competitive advantage by integrating human expertise with artificial intelligence–enabled capabilities. Research limitations/implications The study does not capture longitudinal dynamics and their generalisability across different cultural and industrial contexts. Practical implications Organisations should build internal capabilities, foster external innovation partnerships and secure leadership commitment to ensure responsible and strategically aligned artificial intelligence adoption. Social implications The adoption of AI in recruitment processes underscores the pivotal role of human-machine collaboration, enhancing HR practices and promoting a competitive edge in the labour market. This shift necessitates a re-evaluation of workforce dynamics and the ethical considerations surrounding AI integration in human resource management. Originality/value This study offers a novel perspective on how intangible resources and managerial capabilities interact to drive artificial intelligence adoption and reshape competitive advantage in recruitment contexts.

Applying the resource-based view (RBV), this article examines two organisational capabilities in the hotel distribution sector: strategic alignment and dynamic capabilities. Exploratory interviews conducted with business managers (BMs) and technology managers (TMs) from the hotel sector allowed to operationalise three constructs used in this research: the maturity of strategic online alignment, the maturity of dynamic online capabilities, and organisational performance. A subsequent questionnaire survey administered among BMs and TMs from 101 hotels in Morocco then allowed to validate the three hypotheses of this research: H1 Strategic alignment maturity has a direct and positive effect on the maturity of dynamic online capabilities; H2 The maturity of dynamic online capabilities is significantly linked to organisational performance; H3 The maturity of strategic online alignment is significantly linked to organisational performance.

Many scholars mentioned various dimensions and complex relations for manufacturing flexibility that implementing all of them is not possible for a manufacturing firm. On the other hand, today’s dynamic environment convinces flexible organizations to create capabilities in order to take over competitors. Hence, the aim of this study is to determine dominant groups of flexibility for manufacturing firms and to prioritize them under the influence of dynamic organizational capabilities. In this research, firstly components of dynamic organizational capabilities and flexibility of manufacturing are identified by content analysis method. Then, based on that, taxonomy for Iran’s manufacturing firms was determined using support vector machine algorithm. In the next step, based on experts’ view using FDEMATEL method, conceptual model for relationship of manufacturing flexibility dimension as well as dynamic capabilities are provided. Conceptual model in three flexibility clusters was tested by structural equation modeling, and dominant groups were prioritized based on dynamic organizational capabilities. Results show that the best number of clusters is three. Results also show that dynamic organizational capabilities not only affect flexibility dimensions of manufacturing but also this influence is different in manufacturing firms with various industry fields.

Linking manufacturing digitalization and technological Innovation: The mediating role of dynamic capabilities

Purpose. This study investigates how supply chain disruptions affect firm productivity and examines the differential mediating roles of proactive and reactive recovery strategies in manufacturing firms operating in emerging economies. Methodology. Drawing on the Resource-Based View and Dynamic Capabilities Theory, the research employs a cross-sectional survey design with data collected from 250 pharmaceutical and automotive manufacturing firms in Ghana. Structural Equation Modelling using SmartPLS 4.0 with bootstrapping procedures (5,000 subsamples) was applied to test direct effects and mediation hypotheses. Results. Supply chain disruptions negatively impact firm productivity (β = -0.247, p = 0.001). Proactive recovery strategies significantly mediate this relationship with a large positive indirect effect (β = 0.396, p < 0.001), indicating that anticipatory capabilities substantially buffer disruption-induced productivity losses. Reactive recovery strategies show no significant mediating effect (β = -0.039, p = 0.452), suggesting that post-disruption responses alone are insufficient for maintaining productivity. Theoretical contribution. The study advances supply chain resilience theory by reconceptualizing recovery strategies as dynamic capabilities with differential effectiveness. It provides empirical evidence distinguishing proactive from reactive mechanisms and demonstrates that the indirect effect of proactive recovery substantially exceeds the direct negative effect of disruptions, indicating that well-developed anticipatory capabilities can more than offset disruption impacts. Practical implications. Supply chain managers should prioritize investments in proactive recovery capabilities, including supply base diversification, contingency planning, scenario analysis, and real-time monitoring systems. For transport and logistics firms, proactive strategies such as alternative routing plans, carrier diversification, and fleet redundancy represent critical resilience investments with measurable productivity returns. Sustainable Development Goals (SDGs): SDG 9: Industry, Innovation and Infrastructure; SDG 12: Responsible Consumption and Production

This study examines how Industry 4.0 (I4.0) technologies enhance supply chain resilience (SCR) in manufacturing firms by testing the mediating roles of supply chain agility (SCAG), supply chain adaptability (SCAD) and the moderating effect of customer integration (CI). Grounded in the Resource-Based View (RBV) and Dynamic Capabilities View (DCV), the research conceptualizes digital technologies—such as the Internet of Things (IoT), big data analytics, and artificial intelligence (AI)—as both strategic resources and enablers of dynamic capabilities in turbulent environments. Survey data were collected from 273 manufacturing firms in Turkey, a context shaped by geopolitical and economic disruptions, and analyzed using structural equation modeling (SEM). The results indicate that I4.0 technologies positively affect SCR directly and indirectly through SCAG and SCAD. However, while agility consistently strengthens resilience, adaptability shows a negative mediating effect, suggesting context-specific constraints. CI significantly amplifies the positive impact of I4.0 on SCR, underscoring the importance of external relational capabilities. Theoretically, this research advances supply chain literature by integrating RBV and DCV to explain how digital transformation drives resilience through distinct dynamic capabilities. Practically, it offers guidance for managers to combine digital infrastructure with collaborative customer relationships to mitigate disruptions and secure long-term performance. Overall, the study provides an integrated framework for building resilient supply chains in the digital era.

Objective: The objective of this article is to investigate the effect of family support (FS) on organisational innovation (OIn), and the intermediary roles of owner-manager competencies (OMC), owner-manager wellbeing (OMW), and customer capital (CC). Research Design & Methods: Based on a resource-based view (RBV), dynamic capabilities (DC), and four market zones, we selected for the study a sample of 723 small retailers in Kumasi, Ghana. Moreover, we adopted a structured interview schedule to collect the data from the respondents. We used partial least squares (PLS) and structural equation modelling (SEM) to test seven hypotheses. Findings: Family support is an important factor that influences OIn and OMC and FS indirectly affects OIn through OMC. The nexus between FS and OIn is also enhanced by OMW and at the same time CC weakens this link. OMC, OMW, and CC also directly influence OIn. Implications & Recommendations: To enhance OIn, policymakers should continue to scout for both internal and external resources. Contribution & Value Added: The contribution of this research is that the results enhance our understanding of how small retailers combine both external and internal resources as proposed by RBV and DC to increase their business innovation.

Quadratic effects of dynamic decision-making capability on innovation orientation and performance: Evidence from Chinese exporters

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.

The intention of this essay is to point out the key weaknesses of the resource-based view (RBV) and provide prescriptions for curing them. The authors begin with Gibbert’s (this issue) question of whether the RBV is ready for generalization and concluded generalizability is an inappropriate goal for the RBV. Furthermore, they believe that the RBV is simply not ready for generalization. They argue that the quest for generalizability is counter productive when applied to the RBV. Generalizability is not only the least relevant of the external validity criteria but also can only be assessed after valid operationalizations for constructs are developed across different contexts, industries, samples, and so on. Because they believe that RBV researchers have yet to achieve construct validity within their empirical testing, it appears to them that the RBV is simply not ready for generalizability. Finally, when they incorporate RBV developments that have occurred since Barney such as the knowledge-based view and dynamic capabilities, many arguments by Gibbert and others are rendered obsolete.

Recent years, Enterprise Dynamic Capabilities is considered as a key of the firm's competition, the more dynamic the competing environment is, and the strategy-making dynamic capabilities of the enterprise are more important. We argue that the dynamic capabilities theory (DCT) is a logical extension of the resource-based view (RBV), and then, we design an identifiable framework of dynamic capabilities, which is based on the interaction-space view, and provide an approach for the application of DCT and RBV.

Despite continuing interest in the role of university incubators in fostering IT entrepreneurship, empirical evidence on the link between incubation and IT startup survival has been mixed. This paper offers a fresh, unifying perspective by examining how university startups' IT-enabled agility relates to their survival. We use the resource-based view, dynamic capabilities and new product development (NPD) literatures to create a conceptual framework of the impact of startup firms' knowledge assets, technology capabilities, agility and innovation on their survival. Our framework suggests that startups' survival rates increase when they use dynamic IT knowledge capabilities to pursue innovations with emerging technology capabilities in rapidly evolving IT markets. Implications for university incubator research, policy and management are discussed.