IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i11p8467-d1153657.html
   My bibliography  Save this article

The Role of Dynamic Cloud Capability in Improving SME’s Strategic Agility and Resource Flexibility: An Empirical Study

Author

Listed:
  • Aleem Uddin

    (Australian Research Data Commons, Melbourne, VIC 3145, Australia)

  • Dilek Cetindamar

    (The School of Computer Science, FEIT, University of Technology Sydney, Ultimo, NSW 2007, Australia)

  • Igor Hawryszkiewycz

    (The School of Computer Science, FEIT, University of Technology Sydney, Ultimo, NSW 2007, Australia)

  • Osama Sohaib

    (The School of Business, American University of Ras Al Khaimah, Ras Al Khaimah 72603, United Arab Emirates)

Abstract

This research explores how the cloud’s technological capability helps small and medium enterprises (SMEs) adapt to challenging business environments, providing long-term sustainability and strategic agility. The article uses a theoretical and quantitative empirical approach, known as the positivist research paradigm, in offering a unique capability called dynamic cloud capability that leverages the cloud’s technological capabilities. Based on the quantitative analysis of 222 Australian Information and Communication Technology (ICT) SMEs, dynamic cloud capability favourably improves the flexible allocation of resources (resource fluidity) and the ability to adapt business models (strategic agility). Additionally, because of the successful mediating effect of resource fluidity, it is inferred that dynamic cloud capability allows for the flexible allocation of resources leading to improved strategic agility. Hence, adopting dynamic cloud capability in an organisation’s strategy would be particularly appealing to ICT SMEs as it has been verified to enhance adaptability to a challenging business environment and flexible allocation of resources.

Suggested Citation

  • Aleem Uddin & Dilek Cetindamar & Igor Hawryszkiewycz & Osama Sohaib, 2023. "The Role of Dynamic Cloud Capability in Improving SME’s Strategic Agility and Resource Flexibility: An Empirical Study," Sustainability, MDPI, vol. 15(11), pages 1-16, May.
  • Handle: RePEc:gam:jsusta:v:15:y:2023:i:11:p:8467-:d:1153657
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/11/8467/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/15/11/8467/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Philippe Rauffet & Catherine Da Cunha & Alain Bernard, 2016. "Managing resource learning in distributed organisations with the organisational capability approach," Post-Print hal-01354301, HAL.
    3. Battistella, Cinzia & De Toni, Alberto F. & De Zan, Giovanni & Pessot, Elena, 2017. "Cultivating business model agility through focused capabilities: A multiple case study," Journal of Business Research, Elsevier, vol. 73(C), pages 65-82.
    4. Nirmal Pal & Daniel C. Pantaleo, 2005. "The Agile Enterprise," Springer Books, Springer, number 978-0-387-25078-6, July.
    5. Dilek Cetindamar & Mile Katic & Steve Burdon & Ayse Gunsel, 2021. "The Interplay among Organisational Learning Culture, Agility, Growth, and Big Data Capabilities," Sustainability, MDPI, vol. 13(23), pages 1-20, November.
    6. 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.
    7. David J Teece, 2008. "Capturing Value from Technological Innovation: Integration, Strategic Partnering, and Licensing Decisions," World Scientific Book Chapters, in: Technological Know-How, Organizational Capabilities, And Strategic Management Business Strategy and Enterprise Development in Competitive Environments, chapter 12, pages 237-252, World Scientific Publishing Co. Pte. Ltd..
    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. Anna Kwiotkowska, 2024. "Creating Organizational Resilience through Digital Transformation and Dynamic Capabilities: Findings from fs/QCA Analysis on the Example of Polish CHP Plants," Sustainability, MDPI, vol. 16(14), pages 1-18, July.

    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. David J. Teece & Greg Linden, 2017. "Business models, value capture, and the digital enterprise," Journal of Organization Design, Springer;Organizational Design Community, vol. 6(1), pages 1-14, December.
    2. Khan, Huda, 2020. "Is marketing agility important for emerging market firms in advanced markets?," International Business Review, Elsevier, vol. 29(5).
    3. Christos N. Pitelis & David J. Teece, 2010. "Cross-border market co-creation, dynamic capabilities and the entrepreneurial theory of the multinational enterprise," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(4), pages 1247-1270, August.
    4. Jeehan Awad & Rodrigo Martín‐Rojas, 2024. "Enhancing social responsibility and resilience through entrepreneurship and digital environment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1688-1704, May.
    5. Aboobucker Ilmudeen, 2022. "Leveraging IT-enabled dynamic capabilities to shape business process agility and firm innovative capability: moderating role of turbulent environment," Review of Managerial Science, Springer, vol. 16(8), pages 2341-2379, November.
    6. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    7. Jiatong Yu & Jiajue Wang & Taesoo Moon, 2022. "Influence of Digital Transformation Capability on Operational Performance," Sustainability, MDPI, vol. 14(13), pages 1-20, June.
    8. Christiana Müller & Stefan Vorbach, 2015. "Enabling Business Model Change: Evidence from High-Technology Firms," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 11(1), pages 53-75.
    9. Muhammad Farooq Islam & Ozge Can, 2024. "Integrating digital and sustainable entrepreneurship through business models: a bibliometric analysis," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 14(1), pages 1-18, December.
    10. Luis Araya-Castillo & Felipe Hernández-Perlines & Hugo Moraga & Antonio Ariza-Montes, 2021. "Scientometric Analysis of Research on Socioemotional Wealth," Sustainability, MDPI, vol. 13(7), pages 1-26, March.
    11. FeCheng Ma & Farhan Khan & Kashif Ullah Khan & Si XiangYun, 2021. "Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study," SAGE Open, , vol. 11(4), pages 21582440211, November.
    12. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    13. André de Abreu Saraiva Monteiro Alves & Fernando Manuel Pereira de Oliveira Carvalho, 2022. "How Dynamic Managerial Capabilities, Entrepreneurial Orientation, and Operational Capabilities Impact Microenterprises’ Global Performance," Sustainability, MDPI, vol. 15(1), pages 1-23, December.
    14. Zhonghua Zhao & Fanchen Meng & Yin He & Zhouyang Gu, 2019. "The Influence of Corporate Social Responsibility on Competitive Advantage with Multiple Mediations from Social Capital and Dynamic Capabilities," Sustainability, MDPI, vol. 11(1), pages 1-16, January.
    15. A. E. Rodríguez Salazar & M. A. Domínguez-Crespo & A. M. Torres-Huerta & A. I. Licona-Aguilar & A. Nivón-Pellón & V. N. Orta-Guzmán, 2021. "Analysis of the Dynamical Capabilities into the Public Research Institutes to Their Strategic Decision-Making," Sustainability, MDPI, vol. 13(12), pages 1-22, June.
    16. Hélène Laurell & Leona Achtenhagen & Svante Andersson, 2017. "The changing role of network ties and critical capabilities in an international new venture’s early development," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 113-140, March.
    17. van Uden, Annelies & Knoben, Joris & Vermeulen, P.A.M., 2015. "Making Sense of Industry Characteristics as Drivers of Dynamic Capabilites," Other publications TiSEM fbb2a35d-c957-489b-b170-d, Tilburg University, School of Economics and Management.
    18. Jim Andersén, 2023. "Green resource orchestration: A critical appraisal of the use of resource orchestration in environmental management research, and a research agenda for future study," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5506-5520, December.
    19. Sjödin, David & Liljeborg, Alexander & Mutter, Sermed, 2024. "Conceptualizing ecosystem management capabilities: Managing the ecosystem-organization interface," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    20. Jantunen, Ari & Tarkiainen, Anssi & Chari, Simos & Oghazi, Pejvak, 2018. "Dynamic capabilities, operational changes, and performance outcomes in the media industry," Journal of Business Research, Elsevier, vol. 89(C), pages 251-257.

    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:gam:jsusta:v:15:y:2023:i:11:p:8467-:d:1153657. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.