Strategy implementation: A review and an introductory framework

Effective strategy implementation is a critical component of organizational success and a potential source of competitive advantage. However, despite many calls for increased attention, research on the subject remains a disparate constellation of recommendations, case studies, and empirical work that provides insight but lacks a cohesive framework. As a result, strategy research most often treats implementation as a black box and overlooks sources of performance heterogeneity derived from differences in strategy implementation effectiveness. To improve our understanding of the strategy implementation process, and to promote its inclusion in strategy research, the authors systematically review and synthesize findings in the extant strategy implementation literature to abductively derive an integrative framework comprised of three components: (1) actions through which managers influence the implementation process, (2) conditions necessary for strategy implementation effectiveness, and (3) the underlying dynamic managerial capabilities to create the best possible combination of conditions by enacting the most appropriate managerial actions. By explaining the relationships among these three components, we provide an introductory foundational framework on which to build future knowledge about this important field of inquiry.     

A systematic review of research into the management of manufacturing capabilities

Abstract

Our study aims to explore the past and present knowledge related to the management of manufacturing capabilities and to assess the extent to which our knowledge of this field has developed. It places specific emphasis on the philosophical foundations of the field, while also providing a set of directions for future research. A systematic review is applied, covering 104 articles. The authors unfold a strong dominance of the positivist paradigm and call for a more balanced and informed approach in philosophical and, more specifically, methodological selection by scholars. In terms of the research content, a strong bias exists towards measuring the impact that certain manufacturing capabilities and various configurations of these may have on key performance indicators, such as cost. Our review warns on the dangers of following a dominant paradigmatic stance and on the limitations of researching a limited area of the complex and dynamic manufacturing capabilities arena.     

The relationship between supply chain manager capabilities and performance: empirical evidence

This study seeks to answer the question how supply chain managers’ capabilities impact individual and firm performance. Organisations have begun to recognise the importance of their supply chain and the necessity for qualified supply chain managers. Therefore, there is a need for further research on the impact of these capabilities on individual and firm performance. Sustained performance of a firm depends on dynamic capabilities and it allows firms to align and adapt strategies according to the volatile external environment. Using dynamic capabilities theory, the supply chain manager capabilities model was developed as a way for supply chain managers to effectively use their skills and past experiences to improve their own and firm’s performance. Primary data was collected through a survey distributed to supply chain management professionals. The results strongly support the relationship between technology and soft skills with supply chain manager capabilities. Interestingly, our study identifies sequential relationship amongst the three constructs such as capabilities, individual and firm performance. Capabilities are related with individual performance whereas individual performance is related with the firm performance. However, our findings revealed that there is no direct relationship between supply chain manager capabilities and firm performance.     

Understanding the Elusive Black Box of Dynamic Capabilities

A major challenge for managers in turbulent environments is to make sound decisions quickly. Dynamic capabilities have been proposed as a means for addressing turbulent environments by helping managers extend, modify, and reconfigure existing operational capabilities into new ones that better match the environment. However, because dynamic capabilities have been viewed as an elusive black box, it is difficult for managers to make sound decisions in turbulent environments if they cannot effectively measure dynamic capabilities. Therefore, we first seek to propose a measurable model of dynamic capabilities by conceptualizing, operationalizing, and measuring dynamic capabilities. Specifically, drawing upon the dynamic capabilities literature, we identify a set of capabilities—sensing the environment, learning, coordinating, and integrating—that help reconfigure existing operational capabilities into new ones that better match the environment. Second, we propose a structural model where dynamic capabilities influence performance by reconfiguring existing operational capabilities in the context of new product development (NPD). Data from 180 NPD units support both the measurable model of dynamic capabilities and also the structural model by which dynamic capabilities influence performance in NPD by reconfiguring operational capabilities, particularly in higher levels of environmental turbulence. The study's implications for managerial decision making in turbulent environments by capturing the elusive black box of dynamic capabilities are discussed.     

International Political Risk Management: Perspectives,Approaches and Emerging Agendas

This paper reviews the extant and emerging perspectives on, and approaches to, political risk management, particularly in the context of foreign direct investment. The authors identify and classify the various theoretical lenses in the domain of political risk management, and suggest a future research agenda. The paper contributes by conceptually categorizing and mapping the extant research onto three approaches to the management of political risk. Through conducting a narrative literature review, the authors suggest three theoretical perspectives on political risk management: institutions; resources and capabilities; and resource dependence. They argue that the institutions approach to political risk management is reactive, responding to external stimuli, whereas the resources‐ and capabilities‐based approach is proactive, preparing and acting in anticipation. The resource dependence domain offers an intermediate approach – the active management of political risk. The authors also suggest that the effectiveness of the domains’ approaches may vary across different national contexts.     

Big Data Analytics Capabilities and Innovation: The Mediating Role of Dynamic Capabilities and Moderating Effect of the Environment

With big data analytics growing rapidly in popularity, academics and practitioners have been considering the means through which they can incorporate the shifts these technologies bring into their competitive strategies. Drawing on the resource‐based view, the dynamic capabilities view, and on recent literature on big data analytics, this study examines the indirect relationship between a big data analytics capability (BDAC) and two types of innovation capabilities: incremental and radical. The study extends existing research by proposing that BDACs enable firms to generate insight that can help strengthen their dynamic capabilities, which in turn positively impact incremental and radical innovation capabilities. To test their proposed research model, the authors used survey data from 175 chief information officers and IT managers working in Greek firms. By means of partial least squares structural equation modelling, the results confirm the authors’ assumptions regarding the indirect effect that BDACs have on innovation capabilities. Specifically, they find that dynamic capabilities fully mediate the effect on both incremental and radical innovation capabilities. In addition, under conditions of high environmental heterogeneity, the impact of BDACs on dynamic capabilities and, in sequence, incremental innovation capability is enhanced, while under conditions of high environmental dynamism the effect of dynamic capabilities on incremental innovation capabilities is amplified.     

Managing knowledge in supply chains: a catalyst to triple bottom line sustainability

Abstract

Sustainable supply chain management (SSCM) and knowledge management’s (KM) positive role in improving supply chain development and performance have both attracted attention in recent years, the former arguably stimulated by the triple bottom line (TBL). Despite the positive development, there is a paucity of theoretical and empirical studies identifying the broad capabilities that affect a firm’s ability to simultaneously pursue economic, environmental and social success. We use the natural-resource-based (NRBV) and knowledge-based (KBV) views to develop a series of propositions linking KM capability to strategic and operational supply chain sustainability and competiveness and test their veracity with practicing managers (n?=?275). We offer a systematic analysis of KM’s role in the development of SSCM. The findings confirm the credibility of the theoretical propositions and identify how different KM processes specifically facilitate strategic or operational development of SSCs. We provide researchers with a framework to guide future research at the KM/TBL nexus.     

Dynamic Capabilities: Current Debates and Future Directions

The field of dynamic capabilities has developed very rapidly over the last ten years. In this paper we discuss the evolution of the concept, and identify two major current debates around the nature of dynamic capabilities and their consequences. We then review recent progress as background to identifying the contributions of the seven papers in this special issue, and discuss the relative merits of qualitative and quantitative studies for investigating dynamic capabilities. We conclude with recommendations for future research arguing for more longitudinal studies which can examine the processes of dynamic abilities over time, and for studies in diverse industries and national contexts.     

Dynamic Capabilities: Current Debates and Future Directions

The field of dynamic capabilities has developed very rapidly over the last ten years. In this paper we discuss the evolution of the concept, and identify two major current debates around the nature of dynamic capabilities and their consequences. We then review recent progress as background to identifying the contributions of the seven papers in this special issue, and discuss the relative merits of qualitative and quantitative studies for investigating dynamic capabilities. We conclude with recommendations for future research arguing for more longitudinal studies which can examine the processes of dynamic abilities over time, and for studies in diverse industries and national contexts.     

Strategic human resource development: towards a conceptual framework to understand its contribution to dynamic capabilities

Dynamic capabilities have assumed major importance in the strategy and human resource management literatures. However, discussion of their contribution to strategic human resource development (SHRD) is nascent. We introduce the concept of ‘dynamic’ strategic human resource development capabilities (DSHRDCs) and propose a framework consisting of (a) enabling factors, (b) specific components, (c) underlying processes, and (d) unique SHRD dynamic capabilities. We view a dynamic capabilities approach as a useful lens to understand how SHRD contributes to organizational performance through the development of capabilities. We discuss each component of the framework and propose possible directions for future research and implications for practice.     

The Identity of Entrepreneurs: Providing Conceptual Clarity and Future Directions

The identity of entrepreneurs (IoE) has become a popular concept in entrepreneurship research, for example, to explain entrepreneurial behavior. Yet, despite growing interest in this topic, theoretical and terminological inconsistencies have hampered the development of a coherent understanding of the identity of entrepreneurs. I conduct a systematic literature review to provide an overview of different theoretical perspectives in IoE research and suggest consistent use of terminology and operationalizations. Further, I propose a framework to investigate the dynamic nature and multi‐level influences of the identity of entrepreneurs, and outline meaningful avenues for future research to unravel when, how, and with what consequences identity may become relevant in new venture creation.     

Does the Stock Market Gender Stereotype Corporate Boards? Evidence from the Market's Reaction to Directors' Trades

Attitudes towards male and female managers within organizations are well documented, but how the stock market perceives their relative capabilities is less studied. Recent evidence documents a negative short‐run market reaction to the appointment of female chief executive officers and suggests that female executives are less informed than their male counterparts about future corporate performance. These results appear to dispute the stock market value of having women on corporate boards. However, such short‐run market reactions may retain a ‘gender bias’, reflecting the prevalence of negative stereotypes, where the market reacts to ‘beliefs’ rather than ‘performance’. This study tests for such bias by examining the stock market reaction to directors' trades in their own companies' shares, by measuring both the short‐run and longer‐term returns after the directors' trades. Allowing for firm and trade effects, some evidence is found that, in the longer term, markets recognize that female executives' trades are informative about future corporate performance, although initially markets underestimate these effects. This has important implications for research that has attempted to assess the value of board diversity by examining only short‐run stock market responses.     

动态能力的测量与功效:基于中国经验的实证研究

本文通过理论分析初步界定了测量动态能力的6个维度。为了验证此评测体系的科学性和实用性,本文对国内29家企业的高层管理者进行了半结构性访谈,并在探测性检验的基础上将动态能力的测量维度调整为市场潜力、组织柔性、战略隔绝、组织学习与组织变革5个方面。最后通过大规模的问卷调查,基于363份有效样本,对我国企业动态能力的制约性因素,以及它对企业绩效的贡献进行了检验,结果表明,动态能力在一定程度上受到经济结构的影响,在动态能力对企业绩效的有限的贡献中,不同能力因子的作用存在一定的差异性。     

Dynamic Marketing Capabilities: Toward an Integrative Framework

In recent years, the dynamic capabilities view has attracted attention in the management literature, and theoretical papers note many research challenges. Currently, one of the most significant issues is the role of the marketing function in the development of dynamic capabilities, and some recent discussions have even introduced the new term ‘dynamic marketing capabilities’. The main area of interest is how to achieve a well‐integrated framework to serve as the starting point for empirical papers. Although the most recent research proposes a wide range of processes as possible dynamic marketing capabilities, it is difficult to find consensus among these proposals. To resolve this difficulty, this paper seeks to define the dynamic marketing capabilities construct based on accepted components in the generic dynamic capabilities view. More specifically, it defines the role of dynamic marketing capabilities through absorptive capacity and knowledge management. By identifying these components and relating them in an integrative model, the authors propose to explain how dynamic marketing capabilities work and precisely which marketing processes promote both components.     

The extended dynamic capabilities model: A meta-analysis

This paper investigates, from meta-analytic approach, some topics that were unexplored in others dynamic capabilities meta-analysis. Hence, our research advances to identify and test the main antecedents of dynamic capabilities, the possible moderation effects of economic and cultural contexts in the relationship between dynamic capabilities and firm performance and the mediation effects between the antecedents of dynamic capabilities and firm performance. (1) The elements that stimulate dynamic capabilities development are resources, knowledge and learning, alliances and environmental dynamism. However, entrepreneurial orientation has no direct relationship with dynamic capabilities. (2) Dynamic capabilities play a mediating role between resources, knowledge and learning, alliances and firm performance. Curiously, entrepreneurial orientation is not mediated by dynamic capabilities in relation to performance. (3) Economic and cultural moderation affect the relation between dynamic capabilities and performance. Surprisingly, we detected that an Eastern orientation, presenting a high level of power distance and a low level of individualism, promotes stronger effects in the relationship between dynamic capabilities and firm performance than a Western orientation. Thus, our main contribution is to broaden the previous research on dynamic capabilities and to propose a future research agenda. In addition, this study adds new empirical evidence to the study of dynamic capabilities, which reduces the heterogeneity of previous results.     

Janus and the Delphi Oracle: Entering the new world of international business research

Globalization and other dramatic, world-changing developments have all too frequently taken academic researchers by surprise. Within this dynamic, turbulent environment, international business (IB) researchers must comprehend increasingly complex, multicultural, cross-border activities and organizing systems while providing relevant results to the field. To build and sustain relevance, the international research paradigm must expand to incorporate not only the analysis of historical trends and events but also research frameworks and methods geared to investigation of the future. With this expanded research ‘tool kit’, we will be better able to anticipate and address the ‘Big Questions’ confronting global business operations in the twenty-first century.This paper examines the capabilities of the Delphi Method of scientific inquiry as one such tool which is responsive to the challenging demands of our discipline and describes recent innovations that enhance the Delphi's application to international management research. As this paper demonstrates, the Delphi Method is particularly well-suited to emerging research themes that call on IB researchers to interpret intricate sets of entities, activities, and relationships. Based on conclusions drawn from a summary of recent Delphi studies, recommendations are offered for maximizing the benefits of this method for international research.     

Institutions and the Diversity and Prevalence of Multinationals’ Knowledge‐Augmenting Subsidiaries

Multinational corporations (MNCs) increasingly seek to gain access to, and exploit, locationally specific sources of advanced knowledge and technological capabilities, creating a need to explain (1) the diversity among these facilities and (2) how institutions influence MNCs’ abilities to invest in different subsidiary types. Extending debates on firms’ knowledge‐augmenting activities, the authors integrate institutions into their analytical framework to a greater extent than previous work has done. Moreover, existing contributions provide typologies of R&D subsidiaries. In contrast, the authors focus on a particular subset of subsidiaries, knowledge‐augmenting ones, and put forward a theory to explain their variety and their prevalence, enabling them to identify previously neglected subsidiary types that have important managerial and policy implications. By downplaying the diversity of these subsidiaries, existing work has not been able to capture the full range of managerial challenges as well as the costs and benefits of different subsidiary types to host countries. The authors, therefore, problematize firms’ abilities to gain access to foreign knowledge‐generating assets, highlight the importance of institutional environments, provide policy recommendations and identify areas for future research.     

Interactive profit-planning systems and market turbulence: A dynamic capabilities perspective

This article describes, theorizes and empirically investigates the concept of interactive profit-planning systems (PPS) through the lens of the dynamic capabilities logic. With this conceptualization: interactive PPS capabilities comprise budgeting, forecasting and results-reporting routines, in which top and middle managers interact to create knowledge for sensing, seizing, and business model reconfiguring (to manage strategic business change). Survey data from 331 Australian firms is analyzed employing partial least squares structural equation modeling. The data provides support for two hypotheses: (1) greater market turbulence strengthens the positive effect of interactive PPS capabilities on business unit performance; and (2) greater market turbulence strengthens the positive effect of flexibility values (of organizational culture) on interactive PPS capabilities. Our findings show that interactive PPS capabilities function according to the salient tenets of the dynamic capabilities logic, and clarify the beneficial roles of formal cybernetic control systems and the intertwined involvement of top and middle managers in using dynamic capabilities.