IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v155y2020ics0040162519316877.html
   My bibliography  Save this article

Building dynamic capabilities to cope with environmental uncertainty: The role of strategic foresight

Author

Listed:
  • Haarhaus, Tim
  • Liening, Andreas

Abstract

Increasing environmental uncertainty poses significant challenges for organizations. Although scholars generally agree that companies require dynamic capabilities to flexibly respond to and shape uncertain environments, only little empirical research has been conducted on the factors that facilitate the development of these capabilities. This study addresses this gap and introduces strategic foresight as an important antecedent of firms’ dynamic capabilities. The paper investigates the impact of strategic foresight on two distinct types of dynamic capabilities, namely strategic flexibility and decision rationality, and how the influence of strategic foresight is moderated by the degree of environmental uncertainty. We test our hypotheses by adopting a mixed-methods approach, using both qualitative information gathered trough five expert interviews, as well as survey data collected from 79 managers familiar with strategic foresight practices. The obtained results indicate a significant positive impact of strategic foresight on firms’ strategic flexibility and decision rationality. Furthermore, this study finds that environmental uncertainty strengthens the positive effect of strategic foresight on strategic flexibility. Contributions to strategic foresight research and managerial practice for firms trying to cope with continuously increasing levels of environmental uncertainty are discussed.

Suggested Citation

  • Haarhaus, Tim & Liening, Andreas, 2020. "Building dynamic capabilities to cope with environmental uncertainty: The role of strategic foresight," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    • Handle: RePEc:eee:tefoso:v:155:y:2020:i:c:s0040162519316877
    DOI: 10.1016/j.techfore.2020.120033
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162519316877
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2020.120033?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. Danny Miller & Peter H. Friesen, 1983. "Strategy‐making and environment: The third link," Strategic Management Journal, Wiley Blackwell, vol. 4(3), pages 221-235, July.
    2. Lucia Naldi & Patrik Wikström & M. Bjørn Von Rimscha, 2014. "Dynamic Capabilities and Performance," International Studies of Management & Organization, Taylor & Francis Journals, vol. 44(4), pages 63-82, January.
    3. Simon, Herbert A, 1978. "Rationality as Process and as Product of Thought," American Economic Review, American Economic Association, vol. 68(2), pages 1-16, May.
    4. Philip Anderson, 1999. "Perspective: Complexity Theory and Organization Science," Organization Science, INFORMS, vol. 10(3), pages 216-232, June.
    5. Homburg, Christian & Rudolph, Bettina, 2001. "Customer satisfaction in industrial markets: dimensional and multiple role issues," Journal of Business Research, Elsevier, vol. 52(1), pages 15-33, April.
    6. Margaret Peteraf & Giada Di Stefano & Gianmario Verona, 2013. "The elephant in the room of dynamic capabilities: Bringing two diverging conversations together," Post-Print hal-00982438, HAL.
    7. Linda Argote & Bill McEvily & Ray Reagans, 2003. "Managing Knowledge in Organizations: An Integrative Framework and Review of Emerging Themes," Management Science, INFORMS, vol. 49(4), pages 571-582, April.
    8. Rohrbeck, René & Schwarz, Jan Oliver, 2013. "The value contribution of strategic foresight: Insights from an empirical study of large European companies," Technological Forecasting and Social Change, Elsevier, vol. 80(8), pages 1593-1606.
    9. Li, Da-yuan & Liu, Juan, 2014. "Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China," Journal of Business Research, Elsevier, vol. 67(1), pages 2793-2799.
    10. Guenzi, Paolo & Troilo, Gabriele, 2007. "The joint contribution of marketing and sales to the creation of superior customer value," Journal of Business Research, Elsevier, vol. 60(2), pages 98-107, February.
    11. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    12. Kevin Zheng Zhou & Fang Wu, 2010. "Technological capability, strategic flexibility, and product innovation," Strategic Management Journal, Wiley Blackwell, vol. 31(5), pages 547-561, May.
    13. Rowe, Gene & Wright, George, 1999. "The Delphi technique as a forecasting tool: issues and analysis," International Journal of Forecasting, Elsevier, vol. 15(4), pages 353-375, October.
    14. Mark P. Sharfman & James W. Dean Jr, 1997. "Flexibility in Strategic Decision Making: Informational and Ideological Perspectives," Journal of Management Studies, Wiley Blackwell, vol. 34(2), pages 191-217, March.
    15. Sidney G. Winter, 2003. "Understanding dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 991-995, October.
    16. Norman Dalkey & Olaf Helmer, 1963. "An Experimental Application of the DELPHI Method to the Use of Experts," Management Science, INFORMS, vol. 9(3), pages 458-467, April.
    17. Mamouni Limnios, Elena Alexandra & Mazzarol, Tim & Ghadouani, Anas & Schilizzi, Steven G.M., 2014. "The Resilience Architecture Framework: Four organizational archetypes," European Management Journal, Elsevier, vol. 32(1), pages 104-116.
    18. Ron Sanchez, 1995. "Strategic flexibility in product competition," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 135-159.
    19. James W. Dean & Mark P. Sharfman, 1993. "Procedural Rationality In The Strategic Decision‐Making Process," Journal of Management Studies, Wiley Blackwell, vol. 30(4), pages 587-610, July.
    20. Yaqing Lin & Shuming Zhao & Na Li, 2014. "A study of network-building HR practices for TMT, strategic flexibility and firm performance," Nankai Business Review International, Emerald Group Publishing Limited, vol. 5(1), pages 95-114, February.
    21. Vecchiato, Riccardo, 2012. "Environmental uncertainty, foresight and strategic decision making: An integrated study," Technological Forecasting and Social Change, Elsevier, vol. 79(3), pages 436-447.
    22. Ramírez, Rafael & Österman, Riku & Grönquist, Daniel, 2013. "Scenarios and early warnings as dynamic capabilities to frame managerial attention," Technological Forecasting and Social Change, Elsevier, vol. 80(4), pages 825-838.
    23. Said Elbanna & John Child, 2007. "The Influence of Decision, Environmental and Firm Characteristics on the Rationality of Strategic Decision‐Making," Journal of Management Studies, Wiley Blackwell, vol. 44(4), pages 561-591, June.
    24. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    25. Shaker A. Zahra & Gerard George, 2002. "The Net-Enabled Business Innovation Cycle and the Evolution of Dynamic Capabilities," Information Systems Research, INFORMS, vol. 13(2), pages 147-150, June.
    26. 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.
    27. Rohrbeck, René & Kum, Menes Etingue, 2018. "Corporate foresight and its impact on firm performance: A longitudinal analysis," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 105-116.
    28. L. J. Bourgeois, III & Kathleen M. Eisenhardt, 1988. "Strategic Decision Processes in High Velocity Environments: Four Cases in the Microcomputer Industry," Management Science, INFORMS, vol. 34(7), pages 816-835, July.
    29. Constance E. Helfat & Margaret A. Peteraf, 2003. "The dynamic resource‐based view: capability lifecycles," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 997-1010, October.
    30. Robert M. Grant, 2003. "Strategic planning in a turbulent environment: evidence from the oil majors," Strategic Management Journal, Wiley Blackwell, vol. 24(6), pages 491-517, June.
    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. Jorge Ferreira & Sofia Cardim & Arnaldo Coelho, 2021. "Dynamic Capabilities and Mediating Effects of Innovation on the Competitive Advantage and Firm’s Performance: the Moderating Role of Organizational Learning Capability," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 620-644, June.
    2. Vaneet Kaur & Versha Mehta, 2017. "Dynamic Capabilities for Competitive Advantage," Paradigm, , vol. 21(1), pages 31-51, June.
    3. Mina Rohani & Nasser Shahrasbi & Yany Gregoire, 2021. "Dynamic capabilities and firm performance: the rise and fall of Charles Schwab," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 26(3), pages 144-159, September.
    4. Zhang, Yucheng & Hou, Zhongwei & Yang, Feifei & Yang, Miles M. & Wang, Zhiling, 2021. "Discovering the evolution of resource-based theory: Science mapping based on bibliometric analysis," Journal of Business Research, Elsevier, vol. 137(C), pages 500-516.
    5. Jin Li & Lulu Zhou & Xufan Zhang & Zhihong Chen & Feng Tian, 2018. "Technological Configuration Capability, Strategic Flexibility, and Organizational Performance in Chinese High-Tech Organizations," Sustainability, MDPI, vol. 10(5), pages 1-17, May.
    6. Insu Cho & Young Hoon Kwak & Jaehyeon Jun, 2019. "Sustainable Idea Development Mechanism in University Technology Commercialization (UTC): Perspectives from Dynamic Capabilities Framework," Sustainability, MDPI, vol. 11(21), pages 1-16, November.
    7. 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.
    8. Li, Shenxue & Easterby-Smith, Mark & Hong, Jacky F.L., 2019. "Towards an understanding of the nature of dynamic capabilities in high-velocity markets of China," Journal of Business Research, Elsevier, vol. 97(C), pages 212-226.
    9. Qaiyum, Sameer & Wang, Catherine L., 2018. "Understanding internal conditions driving ordinary and dynamic capabilities in Indian high-tech firms," Journal of Business Research, Elsevier, vol. 90(C), pages 206-214.
    10. Philipp Nitzsche & Bernd W. Wirtz & Vincent Göttel, 2016. "Innovation Success In The Context Of Inbound Open Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-38, February.
    11. Ritu Singh & Parikshit Charan & Manojit Chattopadhyay, 2019. "Dynamic capabilities and responsiveness: moderating effect of organization structures and environmental dynamism," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(4), pages 301-319, December.
    12. Alessio Cozzolino & Gianmario Verona, 2024. "Decision tree for adaptation after radical changes: linking dynamic capabilities, ambidexterity, and strategic alliances," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(3), pages 745-769, September.
    13. Forliano, Canio & Ferraris, Alberto & Bivona, Enzo & Couturier, Jerome, 2022. "Pouring new wine into old bottles: A dynamic perspective of the interplay among environmental dynamism, capabilities development, and performance," Journal of Business Research, Elsevier, vol. 142(C), pages 448-463.
    14. Carlo Salvato & Roberto Vassolo, 2018. "The sources of dynamism in dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1728-1752, June.
    15. Bitencourt, Claudia Cristina & de Oliveira Santini, Fernando & Ladeira, Wagner Junior & Santos, Ana Clarissa & Teixeira, Eduardo Kunzel, 2020. "The extended dynamic capabilities model: A meta-analysis," European Management Journal, Elsevier, vol. 38(1), pages 108-120.
    16. Rodrigo-Alarcón, Job & García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Parra-Requena, Gloria, 2018. "From social capital to entrepreneurial orientation: The mediating role of dynamic capabilities," European Management Journal, Elsevier, vol. 36(2), pages 195-209.
    17. Jan Oliver Schwarz & René Rohrbeck & Bernhard Wach, 2020. "Corporate foresight as a microfoundation of dynamic capabilities," Futures & Foresight Science, John Wiley & Sons, vol. 2(2), June.
    18. Björn Michaelis & Shalini Rogbeer & Lars Schweizer & Zafer Özleblebici, 2021. "Clarifying the boundary conditions of value creation within dynamic capabilities framework: a grafting approach," Review of Managerial Science, Springer, vol. 15(6), pages 1797-1820, August.
    19. 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.
    20. 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.

    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:tefoso:v:155:y:2020:i:c:s0040162519316877. 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.sciencedirect.com/science/journal/00401625 .

    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.