IDEAS home Printed from https://ideas.repec.org/a/sae/padigm/v21y2017i1p31-51.html
   My bibliography  Save this article

Dynamic Capabilities for Competitive Advantage

Author

Listed:
  • Vaneet Kaur
  • Versha Mehta

Abstract

Though the dynamic capability framework has emerged as the new touchstone in the domain of strategic management, the focal point of most of the studies has predominantly been the multinational firms belonging to developed countries. The present study aims to bridge this gap not only by empirically analysing the dynamic capabilities of Indian multinationals but also by comparing the level of deployment of dynamic capabilities in Indian-origin multinational corporations (MNCs) vis-à -vis the foreign-origin MNCs operating in India. Moreover, as there is no consensus among researchers on the relationship between dynamic capabilities and competitive advantage, this relationship is put to test in the present study, and its wider applicability is checked in Indian and foreign-based MNCs. The study also analyses the effect of company’s country-of-origin on its competitiveness. Furthermore, individual capabilities of the organizations under study are analysed and strategies to enhance the competitiveness of each organization are thereby suggested.

Suggested Citation

  • Vaneet Kaur & Versha Mehta, 2017. "Dynamic Capabilities for Competitive Advantage," Paradigm, , vol. 21(1), pages 31-51, June.
    • Handle: RePEc:sae:padigm:v:21:y:2017:i:1:p:31-51
    DOI: 10.1177/0971890717701781
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0971890717701781
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0971890717701781?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. Wu Zhan & Roger (Rongxin) Chen, 2013. "Dynamic capability and IJV performance: The effect of exploitation and exploration capabilities," Asia Pacific Journal of Management, Springer, vol. 30(2), pages 601-632, June.
    2. Omar R. Malik & Masaaki Kotabe, 2009. "Dynamic Capabilities, Government Policies, and Performance in Firms from Emerging Economies: Evidence from India and Pakistan," Journal of Management Studies, Wiley Blackwell, vol. 46(3), pages 421-450, May.
    3. Peters, Matt D. & Wieder, Bernhard & Sutton, Steve G. & Wakefield, James, 2016. "Business intelligence systems use in performance measurement capabilities: Implications for enhanced competitive advantage," International Journal of Accounting Information Systems, Elsevier, vol. 21(C), pages 1-17.
    4. David J Teece, 2014. "A dynamic capabilities-based entrepreneurial theory of the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(1), pages 8-37, January.
    5. 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.
    6. Christoph Zott, 2003. "Dynamic capabilities and the emergence of intraindustry differential firm performance: insights from a simulation study," Strategic Management Journal, Wiley Blackwell, vol. 24(2), pages 97-125, February.
    7. Lanlan Cao, 2011. "Dynamic capabilities in a turbulent market environment: empirical evidence from international retailers in China," Post-Print hal-00753739, HAL.
    8. Majid Aramand & Dave Valliere, 2012. "Dynamic capabilities in entrepreneurial firms: A case study approach," Journal of International Entrepreneurship, Springer, vol. 10(2), pages 142-157, June.
    9. 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.
    10. 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.
    11. Anoop Madhok & Thomas Osegowitsch, 2000. "The International Biotechnology Industry: A Dynamic Capabilities Perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(2), pages 325-335, June.
    12. 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.
    13. Madan Annavarjula & Ramesh Mohan, 2009. "Impact of Technological Innovation Capabilities on the Market Value of Firms," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 8(03), pages 241-250.
    14. Anil Nair & Elzotbek Rustambekov & Michael McShane & Stav Fainshmidt, 2014. "Enterprise Risk Management as a Dynamic Capability: A test of its effectiveness during a crisis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 35(8), pages 555-566, December.
    15. 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.
    16. Zhou, Kevin Zheng & Li, Caroline Bingxin, 2010. "How strategic orientations influence the building of dynamic capability in emerging economies," Journal of Business Research, Elsevier, vol. 63(3), pages 224-231, March.
    17. 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.
    18. Nieves, Julia & Haller, Sabine, 2014. "Building dynamic capabilities through knowledge resources," Tourism Management, Elsevier, vol. 40(C), pages 224-232.
    19. Ogunkoya Olufemi A & Hassan Banjo. A & Shobayo Peter B., 2014. "Dynamic Capabilities And Competitive Advantage: An Analysis Of The Nigerian Banking Sector," The Journal of Accounting and Management, Danubius University of Galati, issue 2, pages 29-36, August.
    20. 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.
    21. Sidney G. Winter, 2003. "Understanding dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 991-995, October.
    22. Shaker A. Zahra & Harry J. Sapienza & Per Davidsson, 2006. "Entrepreneurship and Dynamic Capabilities: A Review, Model and Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 917-955, June.
    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. 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.

    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. Claudia D’Annunzio & Mariela Carattoli & Dolores Dupleix, 2015. "Dynamic Capabilities Associated with a Firm’s Growth in Developing Countries. A Comparative Study of Argentinean SMEs in the Software and Tourism Industries," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 11(4), pages 25-62.
    2. Stav Fainshmidt & Amir Pezeshkan & M. Lance Frazier & Anil Nair & Edward Markowski, 2016. "Dynamic Capabilities and Organizational Performance: A Meta-Analytic Evaluation and Extension," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1348-1380, December.
    3. 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.
    4. 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.
    5. 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.
    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. 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.
    8. 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.
    9. 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.
    10. Eriksson, Taina, 2014. "Processes, antecedents and outcomes of dynamic capabilities," Scandinavian Journal of Management, Elsevier, vol. 30(1), pages 65-82.
    11. 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.
    12. 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.
    13. Ilgaz Arikan & Ipek Koparan & Asli M Arikan & Oded Shenkar, 2022. "Dynamic capabilities and internationalization of authentic firms: Role of heritage assets, administrative heritage, and signature processes," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 601-635, June.
    14. Maja Pervan & Marijana Curak & Tomislava Pavic Kramaric, 2017. "The Influence of Industry Characteristics and Dynamic Capabilities on Firms’ Profitability," IJFS, MDPI, vol. 6(1), pages 1-19, December.
    15. Maren Schlömer & Hendrik Wilhelm & Indre Maurer & Frank Wallau, 2013. "Die Wirkung dynamischer Fähigkeiten auf die Effektivität und Effizienz operativer Prozesse," Schmalenbach Journal of Business Research, Springer, vol. 65(3), pages 214-243, May.
    16. 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.
    17. Hafeez, Salima & Rana, Asif Mehmood & Chaudhry, Rashid Mehmood & Khan, Muhammad Aslam & Ahmad, H.Mushtaq & Rehman, Kashif Ur, 2011. "Perspectives of entrepreneurial orientation with the quality of life," MPRA Paper 53860, University Library of Munich, Germany.
    18. 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).
    19. Cleverton Rodrigues Fernandes & André Gustavo Carvalho Machado, 2019. "Technology Transfer Capability: development dynamics in higher education institutions," Brazilian Business Review, Fucape Business School, vol. 16(1), pages 1-15, January.
    20. 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.

    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:sae:padigm:v:21:y:2017:i:1:p:31-51. 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: SAGE Publications (email available below). General contact details of provider: .

    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.