IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v169y2015icp179-189.html
   My bibliography  Save this article

Timing cooperative relationships with sequential capability development process to reduce capability development trade-offs

Author

Listed:
  • Dangol, Ramesh
  • Bahl, Mona
  • Karpak, Birsen

Abstract

A key challenge for a firm is to continuously develop new capabilities in order to address changes in the external environment. Prior research on firm capabilities posits that knowledge sharing within supply chains can contribute to the firm׳s new capability development efforts. Although existing research on capabilities clearly links firm capabilities to firm advantage, it does not prescribe a process by which a firm should develop the capabilities required to compete successfully in the marketplace. Such prescription is necessary because (1) a firm faces trade-offs when developing capabilities in the short-run and (2) interdependencies among capabilities require a firm to prioritize and develop capabilities in a sequential manner. The sequence in which a firm develops new capabilities matters when the development of one capability can influence the development of a different capability and the effect is unidirectional and asymmetrical. Prior research primarily relies on Ordinary Least Squares (OLS) and Structural Equation Model (SEM) to determine whether differences in a firm׳s capabilities explain differences in performances. However, these statistical tools have limitations when determining the sequence in which a firm should develop various interdependent capabilities. Therefore, the purpose of this study is to delineate and prescribe a capability development process using Analytic Network Process (ANP) to reduce capability development trade-offs. ANP can be used to determine which capabilities are more important to achieving a desirable firm performance and to prescribe the sequence by which a firm can develop capabilities. We show that a firm can avoid capability development trade-offs and develop interdependent capabilities by efficiently using knowledge acquired from suppliers and customers when it develops a quality capability followed by low cost, delivery, and flexibility capabilities.

Suggested Citation

  • Dangol, Ramesh & Bahl, Mona & Karpak, Birsen, 2015. "Timing cooperative relationships with sequential capability development process to reduce capability development trade-offs," International Journal of Production Economics, Elsevier, vol. 169(C), pages 179-189.
    • Handle: RePEc:eee:proeco:v:169:y:2015:i:c:p:179-189
    DOI: 10.1016/j.ijpe.2015.07.014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527315002625
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2015.07.014?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Eric von Hippel, 1986. "Lead Users: A Source of Novel Product Concepts," Management Science, INFORMS, vol. 32(7), pages 791-805, July.
    2. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    3. Fynes, Brian & Voss, Chris & de Burca, Sean, 2005. "The impact of supply chain relationship quality on quality performance," International Journal of Production Economics, Elsevier, vol. 96(3), pages 339-354, June.
    4. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    5. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    6. Ayd{i}n Alptekinou{g}lu & Charles J. Corbett, 2010. "Leadtime-Variety Tradeoff in Product Differentiation," Manufacturing & Service Operations Management, INFORMS, vol. 12(4), pages 569-582, January.
    7. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, vol. 35(12), pages 1514-1514, December.
    8. Thomas H. Brush & Ramesh Dangol & Jonathan P. O'Brien, 2012. "Customer capabilities, switching costs, and bank performance," Strategic Management Journal, Wiley Blackwell, vol. 33(13), pages 1499-1515, December.
    9. Thomas L. Saaty & Luis G. Vargas, 2012. "How to Make a Decision," International Series in Operations Research & Management Science, in: Models, Methods, Concepts & Applications of the Analytic Hierarchy Process, edition 2, chapter 0, pages 1-21, Springer.
    10. 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.
    11. G. Tomas M. Hult & David J. Ketchen & Mathias Arrfelt, 2007. "Strategic supply chain management: Improving performance through a culture of competitiveness and knowledge development," Strategic Management Journal, Wiley Blackwell, vol. 28(10), pages 1035-1052, October.
    12. Evan L. Porteus, 1986. "Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction," Operations Research, INFORMS, vol. 34(1), pages 137-144, February.
    13. Thomas L. Saaty & Luis G. Vargas, 2012. "Models, Methods, Concepts & Applications of the Analytic Hierarchy Process," International Series in Operations Research and Management Science, Springer, edition 2, number 978-1-4614-3597-6, July-Dece.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Erik Schulze-González & Juan-Pascual Pastor-Ferrando & Pablo Aragonés-Beltrán, 2021. "Testing a Recent DEMATEL-Based Proposal to Simplify the Use of ANP," Mathematics, MDPI, vol. 9(14), pages 1-23, July.
    2. Kheybari, Siamak & Rezaie, Fariba Mahdi & Farazmand, Hadis, 2020. "Analytic network process: An overview of applications," Applied Mathematics and Computation, Elsevier, vol. 367(C).
    3. Prim, Alexandre Luis & Freitas, Kenyth Alves de & Paiva, Ely Laureano & Kumar, Maneesh, 2023. "The development of quality capabilities in Brazilian breweries: A Co-evolutionary approach," International Journal of Production Economics, Elsevier, vol. 256(C).

    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. Joerg Freiling, 2004. "A Competence-based Theory of the Firm," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 15(1), pages 27-52.
    2. Nickerson, Jack A. & Yen, C. James & Mahoney, Joseph T., 2011. "Exploring the Problem-Finding and Problem-Solving Approach for Designing Organizations," Working Papers 11-0107, University of Illinois at Urbana-Champaign, College of Business.
    3. Montserrat Boronat-Navarro & Alexandra García-Joerger, 2019. "Ambidexterity, Alliances and Environmental Management System Adoption in Spanish Hotels," Sustainability, MDPI, vol. 11(20), pages 1-16, October.
    4. Laurence Capron & Will Mitchell, 2009. "Selection Capability: How Capability Gaps and Internal Social Frictions Affect Internal and External Strategic Renewal," Organization Science, INFORMS, vol. 20(2), pages 294-312, April.
    5. Nicolai J. Foss & Keld Laursen & Torben Pedersen, 2011. "Linking Customer Interaction and Innovation: The Mediating Role of New Organizational Practices," Organization Science, INFORMS, vol. 22(4), pages 980-999, August.
    6. Lin, Yini & Wu, Lei-Yu, 2014. "Exploring the role of dynamic capabilities in firm performance under the resource-based view framework," Journal of Business Research, Elsevier, vol. 67(3), pages 407-413.
    7. Giovanni. Gavetti & Daniel A. Levinthal, 2004. "50th Anniversay Article: The Strategy Field from the Perspective of Management Science: Divergent Strands and Possible Integration," Management Science, INFORMS, vol. 50(10), pages 1309-1318, October.
    8. Adomako, Samuel & Amankwah-Amoah, Joseph & Frimpong, Kwabena, 2022. "Human capital, reverse engineering and new venture growth: The moderating role of competitive strategy," Technovation, Elsevier, vol. 114(C).
    9. Lee, Po-Yen & Lin, Hui-Tzu & Chen, Hung-Hsin & Shyr, Yi-Hwan, 2011. "Dynamic capabilities exploitation of market and hierarchy governance structures: An empirical comparison of Taiwan and South Korea," Journal of World Business, Elsevier, vol. 46(3), pages 359-370, July.
    10. Wang, Chun-Ju & Wu, Lei-Yu, 2012. "Team member commitments and start-up competitiveness," Journal of Business Research, Elsevier, vol. 65(5), pages 708-715.
    11. Schriber, Svante & Löwstedt, Jan, 2015. "Tangible resources and the development of organizational capabilities," Scandinavian Journal of Management, Elsevier, vol. 31(1), pages 54-68.
    12. Zhai, Endong & Shi, Yongjiang & Gregory, Mike, 2007. "The growth and capability development of electronics manufacturing service (EMS) companies," International Journal of Production Economics, Elsevier, vol. 107(1), pages 1-19, May.
    13. Jan-Erik Vahlne & Jan Johanson, 2017. "From internationalization to evolution: The Uppsala model at 40 years," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1087-1102, December.
    14. Baraldi, Enrico & Gressetvold, Espen & Harrison, Debbie, 2012. "Resource interaction in inter-organizational networks: Foundations, comparison, and a research agenda," Journal of Business Research, Elsevier, vol. 65(2), pages 266-276.
    15. Alp Eren Yurtseven & Mehmet Teoman Pamukçu, 2022. "Innovation patterns in firms and intra-industry heterogeneity empirical evidence from Turkey," Evolutionary and Institutional Economics Review, Springer, vol. 19(2), pages 645-679, September.
    16. Johannessen, Jon-Arild & Olsen, Bjørn, 2010. "The future of value creation and innovations: Aspects of a theory of value creation and innovation in a global knowledge economy," International Journal of Information Management, Elsevier, vol. 30(6), pages 502-511.
    17. Cristiano Antonelli & Gianluca Orsatti & Guido Pialli, 2023. "The knowledge-intensive direction of technological change," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(1), pages 1-27, March.
    18. César Camisón-Zornoza & Beatriz Forés-Julián & Alba Puig-Denia & Sergio Camisón-Haba, 0. "Effects of ownership structure and corporate and family governance on dynamic capabilities in family firms," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-34.
    19. Wu, Jianfeng & Shanley, Mark T., 2009. "Knowledge stock, exploration, and innovation: Research on the United States electromedical device industry," Journal of Business Research, Elsevier, vol. 62(4), pages 474-483, April.
    20. Frank T. Rothaermel & Andrew M. Hess, 2007. "Building Dynamic Capabilities: Innovation Driven by Individual-, Firm-, and Network-Level Effects," Organization Science, INFORMS, vol. 18(6), pages 898-921, December.

    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:eee:proeco:v:169:y:2015:i:c:p:179-189. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    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.