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A Process Model of Dynamic Capability Development: Evidence from the Chinese Manufacturing Sector

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  • Zeng, Jing
  • Simpson, Colin
  • Dang, Binh-Le

Abstract

Based on longitudinal case studies of manufacturing strategy and implementation at two Chinese manufacturing firms, this paper investigates how these firms develop, manage, and deploy dynamic capabilities to renew their resource bases in order to respond to the operational challenges associated with radical technological development. Our analysis suggests that dynamic capability development is not simply about renewing one specific type of capability, but rather, it is a meta-capability to learn how to repeatedly renew the firm's overall capability set as a fully integrated package. We further highlight the importance of looking beyond the property of the firm to understand the network level of capability development, including the capabilities of the firm's partners. This is particularly salient in the context of smart manufacturing where a high level of connectivity among a broader network of partners is required to reap the benefits generated by new technological advances. Our findings provide an important contribution to our knowledge of dynamic capability development in emerging economies in the era of digitalized manufacturing.

Suggested Citation

  • Zeng, Jing & Simpson, Colin & Dang, Binh-Le, 2017. "A Process Model of Dynamic Capability Development: Evidence from the Chinese Manufacturing Sector," Management and Organization Review, Cambridge University Press, vol. 13(3), pages 643-673, September.
    • Handle: RePEc:cup:maorev:v:13:y:2017:i:03:p:643-673_00
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    Cited by:

    1. Hung Nguyen & George Onofrei & Norma Harrison & Dothang Truong, 2020. "The influence of cultural compatibility and product complexity on manufacturing flexibility and financial performance," Operations Management Research, Springer, vol. 13(3), pages 171-184, December.
    2. Steven Shijin Zhou & Peter Ping Li & Abby Jingzi Zhou & Shameen Prashantham, 2020. "The cultural roots of compositional capability in China: balanced moderation," Asia Pacific Journal of Management, Springer, vol. 37(4), pages 1217-1237, December.
    3. Yongdang Chen & Zhiyou Han & Kunyu Cao & Xianrong Zheng & Xiaobo Xu, 2020. "Manufacturing upgrading in industry 4.0 era," Systems Research and Behavioral Science, Wiley Blackwell, vol. 37(4), pages 766-771, July.
    4. Peter Ping Li & Shameen Prashantham & Abby Jingzi Zhou & Steven Shijin Zhou, 2022. "Compositional springboarding and EMNE evolution," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 754-766, June.

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