IDEAS home Printed from https://ideas.repec.org/a/aaz/sbir01/sbir01v5y2021i1pe312.html
   My bibliography  Save this article

The impact of dynamic capabilities and market orientation on firm performance: a case study of higher education consulting firms

Author

Listed:
  • Chiarelli, Andrea

    (Research Consulting Limited. The Ingenuity Centre. University of Nottingham Innovation Park)

Abstract

Dynamic capabilities (DC) and market orientation (MO) have been described as affecting firm performance, particularly in the case of fast-changing markets. They have been analysed for a wide range of firm sizes, but research on DC in the context of sole traders and micro enterprises is scarce. To begin filling this gap, this research focuses on the effects of DC and MO on firm performance in the case of sole traders, micro and small enterprises (MSEs), using higher education (HE) consulting as a case study. HE consulting was chosen as it is comprised of numerous sole traders and MSEs and it is subjected to significant and continual change. Using a survey completed by 60 MSEs based in the UK, Europe and North America, this research found that the sensing capability is a significant determinant of firm performance, alongside what this study defines as operational MO. Furthermore, operational MO was found to significantly moderate the relationship between the learning capability and firm performance. This work suggests that (i) research on DC should be extended to sole traders and MSEs; and (ii) the business literature is ripe for a growing body of applied work on DC going beyond their theoretical validation and looking to develop practical recommendations for firms in different industry sectors.

Suggested Citation

  • Chiarelli, Andrea, 2021. "The impact of dynamic capabilities and market orientation on firm performance: a case study of higher education consulting firms," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 5(1), pages 312-312, January.
    • Handle: RePEc:aaz:sbir01:sbir01:v:5:y:2021:i:1:p:e312
    DOI: 10.26784/sbir.v5i1.312
    as

    Download full text from publisher

    File URL: https://doi.org/10.26784/sbir.v5i1.312
    Download Restriction: no
    File URL: https://sbir.upct.es/index.php/sbir/article/view/312/149
    Download Restriction: no
    File URL: https://libkey.io/10.26784/sbir.v5i1.312?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Cepeda, Gabriel & Vera, Dusya, 2007. "Dynamic capabilities and operational capabilities: A knowledge management perspective," Journal of Business Research, Elsevier, vol. 60(5), pages 426-437, May.
    2. David J. Teece, 2012. "Dynamic Capabilities: Routines versus Entrepreneurial Action," Journal of Management Studies, Wiley Blackwell, vol. 49(8), pages 1395-1401, December.
    3. David J. Teece, 2019. "A capability theory of the firm: an economics and (Strategic) management perspective," New Zealand Economic Papers, Taylor & Francis Journals, vol. 53(1), pages 1-43, January.
    4. Lorraine Uhlaner & André Stel & Valérie Duplat & Haibo Zhou, 2013. "Disentangling the effects of organizational capabilities, innovation and firm size on SME sales growth," Small Business Economics, Springer, vol. 41(3), pages 581-607, October.
    5. Cunningham, Wendy V & Maloney, William F, 2001. "Heterogeneity among Mexico's Microenterprises: An Application of Factor and Cluster Analysis," Economic Development and Cultural Change, University of Chicago Press, vol. 50(1), pages 131-156, October.
    6. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohamed Mansouri & Cheklekbire Malainine & Hayat Souti & Ikram Cadimi, 2022. "Dynamic capabilities, competitiveness and performance of small and medium-sized enterprises: a systematic literature review [Capacités dynamiques, compétitivité et performance des petites et moyenn," Post-Print hal-03794567, HAL.
    2. Wohlgemuth, Veit & Wenzel, Matthias & Berger, Elisabeth S.C. & Eisend, Martin, 2019. "Dynamic capabilities and employee participation: The role of trust and informal control," European Management Journal, Elsevier, vol. 37(6), pages 760-771.
    3. Quan Anh Nguyen & Gillian Sullivan Mort, 0. "Conceptualising organisational-level and microfoundational capabilities: an integrated view of born-globals’ internationalisation," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-23.
    4. Byungjoo Paek & Heesang Lee, 2018. "Strategic entrepreneurship and competitive advantage of established firms: evidence from the digital TV industry," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 883-925, December.
    5. Hirokazu Kano, 2021. "The dilemma and its solution of deep uncertainty in the dynamic capabilities framework: Insights from modern Austrian economics," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(3), pages 605-611, April.
    6. Mar’atus Sholihah & Tatsuru Maezono & Yuya Mitake & Yoshiki Shimomura, 2020. "Formulating Service-Oriented Strategies for Servitization of Manufacturing Companies," Sustainability, MDPI, vol. 12(22), pages 1-30, November.
    7. Quan Anh Nguyen & Gillian Sullivan Mort, 2021. "Conceptualising organisational-level and microfoundational capabilities: an integrated view of born-globals’ internationalisation," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1781-1803, December.
    8. Lin, Hsing-Er & Hsu, I-Chieh & Hsu, Audrey Wenhsin & Chung, Hsi-Mei, 2020. "Creating competitive advantages: Interactions between ambidextrous diversification strategy and contextual factors from a dynamic capability perspective," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    9. Natalia Martin-Cruz & Ismael Barros Contreras & Juan Hernangómez Barahona & Héctor Pérez Fernández, 2020. "Parents’ Learning Mechanisms for Family Firm Succession: An Empirical Analysis in Spain through the Lens of the Dynamic Capabilities Approach," Sustainability, MDPI, vol. 12(19), pages 1-17, October.
    10. Waleczek, Peter & von den Driesch, Till & Flatten, Tessa C. & Brettel, Malte, 2019. "On the dynamic bundles behind operations management and research and development," European Management Journal, Elsevier, vol. 37(2), pages 175-187.
    11. Khurana, Indu & Dutta, Dev K. & Singh Ghura, Amarpreet, 2022. "SMEs and digital transformation during a crisis: The emergence of resilience as a second-order dynamic capability in an entrepreneurial ecosystem," Journal of Business Research, Elsevier, vol. 150(C), pages 623-641.
    12. Mileidy Alvarez-Melgarejo & Martha Torres-Barreto, 2018. "Resources And Capabilties, The Investigation Of Their Relations: A Bibliometric Analysis [Recursos Y Capacidades, La Investigación De Sus Relaciones: Un Análisis Bibliométrico]," Working Papers hal-01744010, HAL.
    13. David Urbano & Maribel Guerrero & João J. Ferreira & Cristina I. Fernandes, 2019. "New technology entrepreneurship initiatives: Which strategic orientations and environmental conditions matter in the new socio-economic landscape?," The Journal of Technology Transfer, Springer, vol. 44(5), pages 1577-1602, October.
    14. Ruxandra BEJINARU, 2017. "Dynamic Capabilities of Universities in the Knowledge Economy," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 5(4), pages 577-595, December.
    15. Desirée Knoppen & Louise Knight, 2022. "Pursuing sustainability advantage: The dynamic capabilities of born sustainable firms," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1789-1813, May.
    16. Leo Aldianto & Grisna Anggadwita & Anggraeni Permatasari & Isti Raafaldini Mirzanti & Ian O. Williamson, 2021. "Toward a Business Resilience Framework for Startups," Sustainability, MDPI, vol. 13(6), pages 1-19, March.
    17. Damien Aimar & Jean-François Chanlat, 2018. "The environment for managing invisible handicap in France: A case study of dyslexic workers’ idiosyncratic skills," Post-Print hal-01894839, HAL.
    18. Romina Gómez-Prado & Aldo Alvarez-Risco & Berdy Briggitte Cuya-Velásquez & Marián Arias-Meza & Nilda Campos-Dávalos & Luis Juarez-Rojas & Maria de las Mercedes Anderson-Seminario & Shyla Del-Aguila-Ar, 2022. "Product Innovation, Market Intelligence and Pricing Capability as a Competitive Advantage in the International Performance of Startups: Case of Peru," Sustainability, MDPI, vol. 14(17), pages 1-21, August.
    19. Sheshadri Chatterjee & Ranjan Chaudhuri & Sachin Kamble & Shivam Gupta & Uthayasankar Sivarajah, 2023. "Adoption of Artificial Intelligence and Cutting-Edge Technologies for Production System Sustainability: A Moderator-Mediation Analysis," Information Systems Frontiers, Springer, vol. 25(5), pages 1779-1794, October.
    20. Ahmad Ibrahim Aljumah & Mohammed T. Nuseir & Md. Mahmudul Alam, 2021. "Traditional marketing analytics, big data analytics and big data system quality and the success of new product development," Post-Print hal-03538161, HAL.

    More about this item

    Keywords

    dynamic capabilities (DC); firm performance; market orientation (MO); consulting; higher education (HE);
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aaz:sbir01:sbir01:v:5:y:2021:i:1:p:e312. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Carlos Martinez (email available below). General contact details of provider: https://edirc.repec.org/data/aecaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.