"Which Dynamic Capability is Crucial in Dynamic Settings? Analyzing Marketing, R&D and Manufacturing"

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.

Dynamic information technology capability: Concept definition and framework development

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.

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.

Although previous studies have explored the formation and effects of dynamic capabilities, much remains to be learned on this topic. There has been little research on the formation and effects of exploitative dynamic capabilities and explorative dynamic capabilities. This paper provides an explanation of how entrepreneurial leadership style and slack resources affect the formation of exploitive dynamic capabilities and explorative dynamic capabilities and evaluates the effects of exploitive dynamic capabilities and explorative dynamic capabilities on competitive advantage. Based on a sample of 382 Chinese firms, the empirical results show that a transactional leadership style and absorbed slack resources can encourage the formation of exploitative dynamic capabilities, and that a transformational leadership style and unabsorbed slack resources are conducive to the development of explorative dynamic capabilities. Furthermore, exploitative dynamic capabilities and explorative dynamic capabilities can reinforce and complement each other. Exploitative dynamic capabilities positively impact explorative dynamic capabilities, and explorative dynamic capabilities enhance exploitative dynamic capabilities. In particular, exploitative dynamic capabilities have an important effect on short-term financial performance, and explorative dynamic capabilities lead to a significant long-term competitive advantage. The results show that explorative dynamic capabilities surpass exploitative dynamic capabilities in terms of competitive advantage, even if both have a positive influence on competitive advantage. This study validates and develops the theory of dynamic capabilities.

The Covid-19 epidemic has resulted in a dramatic decline in hotel public consumption. Hotel performance must be enhanced through the use of a hotel marketing strategy to compete with others. The aim of this paper is to examine the relationship between the innovation of the brand, dynamic capability of marketing, brand communication, brand experience, and brand performance in Indonesian 3-5 star international hotels. The data for this study were acquired using an electronic questionnaire on Google Forms from 530 customers who stayed in hotels throughout Indonesia prior to and during the Covid-19 pandemic. Smart-PLS 3.2.9 was used to analyze the data using the outer model and the inner model. The findings indicated as follows: brand innovation has a positive effect on brand communication; dynamic marketing capability has a positive influence on brand communication; brand communication directly has a positive effect on brand experience; brand experience significantly has a positive effect on brand performance; brand communication directly has a positive effect on brand performance; brand innovation has a positive influence on brand performance, and dynamic marketing capability has a positive effect on brand performance. This study contributes to the worldwide hotel strategy’s global marketing efforts in order to compete and improve performance in an increasingly competitive hotel business.

According to the resource-based view of the firm and its extensions, a firm’s capabilities are important drivers of its performance. The work by Teece, Pisano and Shuen (1997) has emphasized the importance of dynamic (as compared to ordinary) capabilities for achieving and maintaining competitive advantage in rapidly changing environments. However, empirical research on the performance effects of different types of capabilities has left open the question under which environmental conditions investments in ordinary versus dynamic capabilities benefit firm performance. In our paper, we undertake a comprehensive meta-analysis of empirical research in order to investigate the relationships between different types of capabilities and firm performance under different environmental conditions. Our findings are based on a sample of 52 studies comprising 54 independent samples investigated over the last two decades. Our results suggest that environmental dynamism moderates the effects of both ordinary and dynamic capabilities on firm performance. Further, ordinary capabilities in both stable and rapidly changing industry environments tend to have a higher influence on firm performance than dynamic capabilities. However, rapid changes in the environment of the country in which a firm is operating enhance the effects of dynamic capabilities on performance even more strongly than those of ordinary capabilities. Our findings advance the resource-based view of the firm by highlighting the role of environment as an important boundary condition in a theory of capabilities as drivers of firm performance.

Open innovation and digital servitization have been hot topics in existing research. Moreover, the latest research in entrepreneurship and general management justifies that the performance results of specific innovation strategies are usually influenced by dynamic capabilities. However, there is little empirical research on the linkage of open innovation, digital servitization, and micro-foundations of digital dynamic capabilities that affect alliance performance. The emerging literature on open innovation provides partial insight into the micro-foundations of digital dynamic capabilities. Based on it, from a dynamic capability perspective, this paper constructs a conceptual model of research including coupled open innovation of collaborative partners, alliance’s formation phases, and dynamic digital capabilities and their micro-foundations which impact alliance performance in grocery retail. The paper aims to provide an overarching view of the digital servitization process of grocery retailers and unpack the micro-foundations of the digital transformation of their business models to sustain advantages. Thus, the paper contributes to the research on open innovation, blockchain technology, artificial intelligence, and dynamic capabilities and provides two theoretical propositions. Then, having employed two illustrative case studies, this paper empirically tests theoretical propositions and justifies the role of coupled open innovation strategies for digital servitization and its micro-foundations.

The aim of this paper is to determine the degree of influence and mediation of dynamic marketing, innovation and learning capabilities on the international performance of companies during economic crises. The analysis is developed through structured surveys of a multisectoral sample of 145 Spanish companies, using a consistent PLS approach (PLSc) for its development. The dynamic approach is developed through a methodology based on a dual time perspective in the firms' response, capturing the variation produced in the data. Dynamic marketing capabilities emerge as the most important variable, both for its direct influence on firm performance, as well as for its mediating power concerning the rest of the dynamic capabilities, which are not directly significant regarding performance. Therefore, we observe a joint effect, both direct and indirect, on dynamic marketing capabilities. The research contributes to the research field by introducing the management of dynamic capabilities and their relationships in an environment scarcely analyzed in this sense, such as that of a deep economic recession, thus helping the development of future theoretical frameworks within the Theory of Dynamic Capabilities and improving business decision-making regarding the reorganization of factors, raising awareness of the need to be oriented toward a culture of dynamic capabilities, as well as toward a correct balance in the management of resources determined by the model's capabilities.

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.

PurposeSo 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/approachThe 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.FindingsWith 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 implicationsDue 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/valueAlthough 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.

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). …

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.

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

In a dynamic and competitive business environment, innovation strategy and dynamic capabilities are key to achieving competitive advantage. This study proposes a conceptual framework to explore the interaction between innovation strategy and dynamic capabilities, with environmental dynamism as a moderating variable. Innovation strategy enables firms to introduce new products and services that meet evolving market demands, while dynamic capabilities enable firms to adapt to environmental changes. Although the relationship between innovation strategy and competitive advantage has been recognized, there is still a gap in understanding how environmental dynamism moderates this relationship. This study aims to answer the research questions on the effect of innovation strategy on competitive advantage and dynamic capabilities, as well as the mediating role of dynamic capabilities and the moderating role of environmental dynamism. By developing and testing this conceptual framework, this study contributes to the strategic management literature by providing a deeper understanding of the conditions under which innovation strategy effectively achieves competitive advantage. In addition, this study offers practical insights for managers on aligning innovation strategy with dynamic capabilities to navigate complex business environments. The findings are relevant to firms operating in increasingly complex and dynamic business environments and provide directions for future research exploring the interaction between internal and external factors in determining the success of innovation strategies.