Pursuing sustained competitive advantage through the use of process management

The transition to net-zero emissions is a critical goal for the global energy sector, with the oil and gas industry playing a pivotal role in achieving this target. This paper explores the implications of leveraging artificial intelligence (AI) and innovative financial models to support small and medium-sized enterprises (SMEs) in the oil and gas sector in their efforts to reduce carbon emissions. The study highlights the potential of AI technologies, such as predictive maintenance, emission monitoring, and energy management systems, to optimize operations, improve energy efficiency, and reduce the carbon footprint of oil and gas SMEs. In parallel, various financial mechanisms, including green bonds, sustainability-linked loans, and carbon trading, are examined as tools that can provide the necessary capital and incentives for decarbonization efforts. The paper discusses the challenges SMEs face in accessing these technologies and financial solutions, proposing strategies to overcome barriers such as high initial costs, lack of technical expertise, and limited access to financing. Additionally, the role of policymakers and financial institutions is emphasized in creating favorable conditions for SMEs to access AI technologies and sustainable finance. By combining AI-driven technologies with innovative financial instruments, oil and gas SMEs can make significant strides toward achieving net-zero emissions while enhancing operational efficiency and maintaining competitiveness. The study concludes by offering recommendations for future research in areas such as the long-term impact of AI on sustainability and the development of new financial instruments tailored to the unique needs of SMEs in the energy sector.

Labour research continuously develops new findings on the design of work. It also aims at translat-ing research results into practical products such as guidelines, checklists or implementation tools. These products can support small and medium-sized enterprises (SMEs) in overcoming current challenges such as the skills shortage, digital transformation or the energy and climate crisis while ensuring good working conditions. But recent scientific contributions show that there is still an ex-isting transfer gap (for an overview, see Borowski et. al. 2023). Research findings and products from the field of ergonomics are often unknown in business practices. Links to „everyday business“ in SMEs and intermediary organisations (e.g. consultants or associations) are not evident or are hindered by difficulties in translating these findings and products into the respective application context.Due to limited time and personnel resources, SMEs often do not have the necessary means to thoroughly search for labour science and ergonomics insights or products and to check their rele-vance and practical suitability. At the same time, intermediaries also have major gaps in their knowledge, even though considering labour research topics to be highly relevant for their work and aspiring to have more customised tools (Cernavin, Joerißen 2022). Thus, how can research findings be processed more effectively and disseminated more successful-ly? What could be suitable concepts for relevant stakeholders (scientists, works councils, SMEs and intermediaries) to enable them to use the (technical resp. medial) products and results from labour research effectively? In order to answer these research questions, there is ongoing investigation in the project WIN:A (Knowledge and Innovation Network for Labour Research). This investigation aims at deducing and suggesting different instruments for effective knowledge transfer, including a qualification concept differentiated by target groups and a software platform – the “Transfer-Plattform – „’Management – Arbeit – Forschung’“ – with a network and topic graph as well as a mixed methods toolbox. In order to manifest the importance of labour science results and findings to SMEs and intermediar-ies, the stakeholders need to be qualified to use the products prepared by WIN:A in their daily work. For this purpose, a training module will be designed that will be integrated into the existing qualification structures of intermediary organisations. Due to specific needs according to the re-spective group of stakeholders, it is necessary to understand their requirements towards those training module as a qualification measure. In order for it to be easily accessible and comprehensi-ble for the target group, their semantics have to be met on the one hand. On the other hand, it is considered useful to provide the possibility for interaction and participation as it is assumed foster learning and knowledge transfer. As a basis for this qualification, a training guide („Qualifizierung Arbeitsforschung“) is being developed together with intermediary organisations that will also be accessible to further stakeholders. Initial insights into the training module will be presented in the paper available. Sources:Borowski, E.; Cernavin, O.; Hees, F.; Joerißen, T. (Hrsg) (2023): Erfolgreicher Transfer in der Arbeits-gestaltung - Wie Dienstleistungen zur präventiven Arbeitsgestaltung und Ergebnisse der Arbeitsfor-schung die Akteure in den Unternehmen wirkungsvoll erreichen. Münster, New York: Waxmann Verlag (erscheint Ende 2023)Cernavin, Joerißen (2022): Arbeitsforschung in der KMU-Praxis - Untersuchungsergebnisse zum Transfer von Kompetenzzentren Arbeitsforschung in der Region, Stiftung Mittelstand Gesellschaft Verantwortung, Schriftenreihe 1 8/2022.

The competitive environment within which organizations operate is evolving faster than ever, prompting organizations to change to keep up with the environmental changes. The dynamic capabilities (DCs) view seeks to answer how organizations attain and sustain competitive advantage in changing environments. In the past two decades, there has been a proliferation of research in the DCs domain; yet much remains to be investigated regarding the antecedents and outcomes of DCs. The term “dynamic marketing capabilities” (DMCs) refers to a subset of DCs with the emphasis on customer value. This research studies four DMCs: proactive market orientation, agility, opportunity creation, and value innovation. The development of DCs may be triggered by the necessity to reconfigure resources in dynamic environments or by managers’ decisions to change the current way of doing things in an attempt to improve performance. Therefore, environmental dynamism and dynamic managerial capabilities are antecedents of DCs. To achieve competitive advantage, organizations can employ two distinct but complementary strategies. First, they can match environmental demands by reconfiguring and renewing their organizational resource base. Second, they can create market turbulence. Therefore, these two strategies act as mediators between DMCs and organizational outcomes. A conceptual framework is developed in order to examine the relationship between DMCs, their antecedents, and outcomes. A sample of 270 usable responses was obtained from top and senior managers working in Australia. After ensuring the constructs’ reliability and validity, the hypotheses were tested by means of hierarchical regression analysis and structural equation modeling. The results indicate that environmental dynamism and dynamic managerial capabilities positively affect the studied DMCs; however, the effect of dynamic managerial capabilities is stronger. Moreover, DMCs have a positive impact on operational marketing capabilities and induced market turbulence; these in turn positively affect organizational outcomes. The multi-mediation tests confirmed that operational marketing capabilities and induced market turbulence mediate the effect of DMCs on organizational outcomes. This study contributes to and extends the knowledge of DCs by proposing an integrative conceptual framework, explaining the antecedents of DMCs and the mechanism by which DMCs are linked to organizational outcomes. The findings re-emphasize the need for DCs in dynamic environments and highlight the critical role of dynamic managerial capabilities. Another contribution is that the study incorporates the element of induced market turbulence, hitherto missing in the literature pertaining to DMCs. This study also emphasizes that operational marketing capabilities mediate the relationship between DMCs and organizational performance. Moreover, four distinct DMCs (i.e., proactive market orientation, agility, opportunity creation, and value innovation) are identified, and scales are developed and validated to measure them. The findings suggest that these DMCs perform as anticipated. This research provides several insights for managers regarding DCs and how to apply them to organizations. The results of this study demonstrate that it is necessary for organizations to invest in developing DMCs, not to achieve performance improvement directly, but to optimize their operational marketing capability configuration. This, in turn, improves organizational outcomes. Moreover, managers are encouraged to invest in the development of DCs as a strategic rather than tactical approach. Another implication is that in ambiguous environments, organizations need to not only adapt to the environment, but also to employ strategies of environment constructing.

The paper presents the Sustainability compass, which aims at supporting small and medium-sized enterprises (SMEs) to improve the performance of their sustainable development; hereafter called the SME Sustainable compass (SME-SC). Firstly, the paper introduces the result of the first step of the project that proposes the Sustainability compass as an online diagnostic tool. Thus, the paper continues with the second step of the project, which uses the data captured in the previous step to develop a recommender system to suggest the models to follow, and specific recommendations of those role models. Accordingly, a general architecture for the SME-SC is presented. Finally, the paper ends with a discussion, conclusion, and further research directions.

This paper presents a dialog-based AI financial assistant designed to support small and medium-sized enterprises (SMEs) in interpreting their financial indicators. The system combines a modular multi-agent architecture with context engineering techniques (explicit agent roles, controlled function calls, and structured hand-offs) to analyze and explain financial data in natural language. A prototypical cash-flow analysis, embedded within a production platform, demonstrates how the assistant enables interactive communication of financial information, thereby improving access to managerial and financial knowledge for non-experts.

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). …

Purpose Indonesian woven craft small- and medium-sized enterprises (SMEs) have encountered several difficulties in sustaining their success in the digital era. The performance of the business is contingent upon its ability to gain competitive advantage through traditional knowledge capabilities. The purpose of this research is to study the role of traditional knowledge management processes towards competitive advantage and sustainable performance for woven craft SMEs. Design/methodology/approach This research used a quantitative approach with a survey strategy. Confirmatory research was conducted to test five hypotheses to determine the causal relationship of four variables, namely, traditional knowledge management, dynamic capabilities, competitive advantage and sustainable performance. This study used a purposive sampling strategy and gathered data from 385 respondents. The sample was selected based on predetermined criteria, including operation for more than five years and entrepreneurial activity using traditional knowledge as a resource to manage product innovation. The analytical technique used was structural equation modelling with the support of the AMOS programme. Findings The findings indicated that traditional knowledge management processes directly affect dynamic capabilities and sustainable performance. This study also found traditional knowledge management processes play a significant role in enhancing competitive advantage mediated by dynamic capabilities. However, traditional knowledge management processes have no significant effect on competitive advantage. Hence, there is a significant effect contributed by the relationship between traditional knowledge management processes and sustainable performance. Therefore, in the context of craft woven SMEs, the higher the traditional knowledge-based capabilities, the higher their sustainable performance. Originality/value The novelty shows a direct relationship between traditional knowledge management processes and sustainable performance. This study also found traditional knowledge management processes meditated by dynamic capabilities have a relationship with competitive advantage. Traditional knowledge management processes will trigger an increase in dynamic capability which is a source of business development; those conditions will increase sustainable performance. Traditional knowledge-based capability is an antecedent of sustainable performance. The benefits of this research can be used as scientific literature regarding the link between traditional knowledge management processes, competitive advantage and sustainable performance. The results of this study can also be used as a basis for empowering traditional woven craft SMEs in Indonesia.

This paper summarises the findings of a recent review of government efforts to support Small- and Medium-sized Enterprises (SMEs) in Scotland and Wales since the devolution, in 1999, of some administrative powers from the UK central government in London to new national governments in Edinburgh and Cardiff, respectively. Although governed by London for many generations, the indigenous Scots and the Welsh have both maintained strong national identities. The Scots still celebrate St. Andrew's Day, when the national dish haggis is still served with ceremony at formal Scots functions. The Welsh, equally proudly, celebrate St. David's Day on March 1.

Competitive advantage is a significant concept both in studies of strategic management and in the practice of organizations. The dynamic reality of the market and competitors' innovation capacity make it difficult for companies to achieve their goals and maintain sustainable competitive performance. In small and medium-sized enterprises (SMEs), this difficulty is often compounded by a scarcity of strategic resources, which can considerably decrease their competitive advantage sources. In the present study, we discovered, through a systematic literature review (n = 70), a conceptual typology, with identification of five classes, categorized as (i) methodological procedures, (ii) organizational environment, (iii) organizational performance, (iv) resources/profile and (v) organizational research which were used to capture notions around dynamic capabilities and competitive advantage for SMEs. Likewise, as a result, a diverse selection of three clusters was found to show the positive influence (direct and indirect) of dynamic capabilities on competitive advantage and that performance variables mediate the impact on innovation capacity. Given this, we have answered two research questions related to the (i) discovery of state of the art and (ii) future research directions on Dynamic Capabilities and Competitive Advantage for SMEs.

세계 경제통합의 배경하에 지속적인 혁신을 추진하고 있는 중국 물류기업은 비약적으로 성장하고 있다. 물류기업은 중국 경제 발전의 중요한 추진체계로 기회와 도전에 직면하고 있으며 이제는 글로벌 경쟁력 향상 및 경쟁우위를 추구하고 있다. 본 연구는 중국의 물류기업이 보유한 ICT역량이 기업의 경쟁우위에 긍정적으로 영향을 미치고, 동태능력이 ICT역량과 경쟁우위에 매개역할을 할 것으로 가설을 수립 하였다. 중국 물류기업을 대상으로 수집한 데이터를 이용하여 SPSS와 AMOS분석을 진행한 결과 첫째, 물류 기업의 ICT역량이 동태능력에 중요한 영향을 미치는 것으로 파악되었고, 둘째, 기업의 ICT역량은 경쟁우위에 직접적인 영향을 미치지 않았고, 셋째, 기업의 동태능력은 ICT역량과 경쟁우위 간 긍정적인 매개효과를 미치는 것으로 파악되었다. 본 논문은 물류기업의 ICT역량이 기업의 경쟁우위에 미치는 영향 에서 기업의 동태능력이 매우 중요하다는 이론적인 토대를 제공하였으며, 물류기업의 ICT역량이 기업의 경쟁우위에 긍정적인 영향을 미치게 하기 위해서는 기업의 동태능력을 포함한 전사적인 전략차원의 역량을 강화해야할 필요가 있음을 제시하였다.Under the strategic background of world economic integration, information and communication technologies have gained strong momentum in continuous integration and innovation, making Chinese logistics enterprises develop in leaps and bounds. Logistics enterprises, as an important driving force of China’s economic development, are facing both opportunities and challenges. Chinese logistics enterprises urgently need to heighten their international competitiveness and enhance their own competitive advantages. This paper studies the impact of ICT capability of Chinese logistics enterprises on their competitive advantages by using dynamic capability as the Mediating Effect, and puts forward the hypothesis that the ICT capability of Chinese logistics enterprises has a positive impact on the dynamic capability of enterprises, and the dynamic capability has a positive impact on their competitive advantages. By collecting data through a questionnaire survey, it analyzes the reliability and validity of ICT capability, dynamic capability and competitive advantages of Chinese logistics enterprises as well as the relationship among various dimensions, and studies the path model of ICT capability and dynamic capability affecting competitive advantages. By means of SPSS and AMOS analysis, the results turn out that ICT capability of logistics enterprises has a significant impact on dynamic capability; dynamic capability has a significant impact on competitive advantages; ICT capability has no direct impact on competitive advantages, but it has a significant impact on competitive advantages with dynamic capability as the Mediating Effect. This paper verifies the impact of ICT capability of logistics enterprises on their competitive advantages as well as the mediatioin effect of dynamic capability, which provides an important theoretical basis for sharpening the competitive advantages of logistics enterprises. Therefore, logistics enterprises should give full play to and use ICT capabilities to enhance their dynamic capabilities and then upgrade their competitive advantages.

The concept of dynamic capabilities has gained significant interest ever since its introduction to the strategic management field in the late 90’s. Nevertheless, a lack of research concerning the distinctive values of capabilities still exists. Moreover, empirical research that compares various dynamic capabilities under different levels of dynamism is equally lacking. Therefore, we have conducted a large empirical analysis of 299 randomly chosen German firms and thus contribute to remedying that lack of research. The results show that if external dynamism is considered dynamic capabilities have an ambivalent effect on firm performance depending on the studied capability. Interestingly, dynamic marketing capabilities prove to have a positive performance effect, whereas dynamic research and development capabilities hamper the firms’ competitive advantage.

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.

How do emerging market SMEs utilize resources in the face of environmental uncertainty?

The relevance of the topic is due to the pronounced weakness of the influence of small and medium-sized enterprises (SMEs) on the spatial development of the country. The purpose of the article is to advance in the systematization of the functions of SMEs in the spatial development of our country, to systematize the causes of weakness in the implementation of these functions. The most important of the reasons is due to the fact that the system of SME support created in Russia is inadequate to the needs of this sphere. This is confirmed by the fact that in a number of Russian regions, and in the country as a whole, since 2017, there has been a decrease in the number of people employed both in small (the main group of SME employment) and in medium-sized businesses. The decline is taking place against the background of a significant increase in financial volumes and an expansion of the organizational diversity of support for SMEs. The novelty of the article is the advancement in the systematization of assessments of the implementation of the potential functions of SMEs in the spatial development of Russia; assessment of the spatial dynamics of small and medium-sized businesses in recent years in terms of employment parameters from the point of view of the ability of SMEs to really influence the development of territories; assessment of the state and effectiveness of state support for SMEs at the federal and regional levels; analysis of the relationship between the real possibilities of SMEs and the structure of the Russian economy. As the reasons for the weak influence of SMEs on the development of regions, it was noted that large monopolistic enterprises do not need cooperation with SMEs. In the process of choosing measures and directions of support for SMEs, the position of officials-actors, often irrational, dominates. In the current Russian system of fiscal federalism, regional authorities have little interest in promoting the development of SMEs on their territory.

The article gives clarification of theoretical and methodological bases of infrastructure providing of the policy of small and medium-sized enterprises (SMEs) development for adequate application of essential nature of economic category of “infrastructure” in the SME support system. This will ensure its effective functioning and, accordingly, intensify development of small and medium-sized businesses in the country. The author's vision of SME support infrastructure, its characteristic and classification in context of the main criteria’s are presented in the work. The infrastructure of SME support is recommended to consider as a required component of public management of SME development. The paper emphasizes that the root cause of missing or inadequately functioning infrastructure is the lack of policy of regulating this area, as is observed in Ukrainian realities regarding SME development. The most successful in determining the term of “infrastructure of SME support” is technical-economic and institutional approaches, according to which it is a set of state and non-governmental institutions that provide services of assistance to SMEs in order to create favorable conditions for intensification of development, increasing efficiency and strengthening of SMEs sector, first of all at the local level. Scientific novelty is the interpretation of infrastructure institutions of SME support, regardless of the form of ownership and the main purpose of functioning, as business entities for provision services for SMEs. Such elements of infrastructure are and should be regarded as full-fledged market participants of services for SMEs, which will ensure the growth of product quality, increase competition and development of this market. The practical value of the work, in addition to systematization and streamlining of SME support infrastructure, are recommendations of the need to focus not only to formation of such infrastructure, but also to further financial, to organizational and methodological support of its elements activities, which can and should be taken into account and reflected in the relevant target budget programs.