IDEAS home Printed from https://ideas.repec.org/p/nip/nipewp/14-2018.html
   My bibliography  Save this paper

Towards a survival capabilities framework: Lessons from the Portuguese Textile and Clothing industry

Author

Listed:
  • Arash Rezazadeh

    (School of Economics and Management and NIPE, University of Minho)

  • Ana Carvalho

    (University of Minho: School of Economics and Management and NIPE)

Abstract

Influenced dramatically by the financial crisis and the European sovereign debt crisis, many European industries are now struggling with the new international division of labour that compels the shift of manufacturing to lower labour cost countries. These decisive global challenges underline the need to investigate why some firms can survive such crises while many others fail. Grounded in this narrative, ‘survival’ can be regarded as a period of the firm’s growth and change over time, where it faces a crisis and stiff competition. This view is different from the one that defines the concept of ‘business survival’ as the second stage of the firm’s lifespan, after birth and before success, where it has obtained certain customers having their demanded products or services delivered (Lewis & Churchill, 1983). Survival is of essential significance for the firm since a desirable performance over the surviving period enables eventual success, whilst a poor performance precipitates failure and shutdown (Bo , 2008; Korunka, Kessler, Frank, & Lueger, 2010; Naidoo, 2010). Although the literature is well developed on the structural determinants of firm survival, mostly related to firm age and size, less is known about certain internal capabilities the firm needs to develop in order to compensate for resource scarcity and financial restrictions caused by a crisis or other environmental disruptions. This reinforces the need to provide a more detailed clarification of the concept of ‘business survival’ and explore the capabilities that are vital to the survival of firms in times of struggle.

Suggested Citation

  • Arash Rezazadeh & Ana Carvalho, 2018. "Towards a survival capabilities framework: Lessons from the Portuguese Textile and Clothing industry," NIPE Working Papers 14/2018, NIPE - Universidade do Minho.
    • Handle: RePEc:nip:nipewp:14/2018
    as

    Download full text from publisher

    File URL: http://www.nipe.eeg.uminho.pt/Uploads/WP_2018/NIPE_WP_14_2018.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Watson, John, 2007. "Modeling the relationship between networking and firm performance," Journal of Business Venturing, Elsevier, vol. 22(6), pages 852-874, November.
    2. Jan De Loecker, 2011. "Product Differentiation, Multiproduct Firms, and Estimating the Impact of Trade Liberalization on Productivity," Econometrica, Econometric Society, vol. 79(5), pages 1407-1451, September.
    3. Nordås, Hildegunn Kyvik, 2004. "The global textile and clothing industry post the agreement on textiles and clothing," WTO Discussion Papers 5, World Trade Organization (WTO), Economic Research and Statistics Division.
    4. Lee, Jeongjin & Kim, Changseok & Shin, Juneseuk, 2017. "Technology opportunity discovery to R&D planning: Key technological performance analysis," Technological Forecasting and Social Change, Elsevier, vol. 119(C), pages 53-63.
    5. Serra, Francisco & Pointon, John & Abdou, Hussein, 2012. "Factors influencing the propensity to export: A study of UK and Portuguese textile firms," International Business Review, Elsevier, vol. 21(2), pages 210-224.
    6. de Vaan, Mathijs, 2014. "Interfirm networks in periods of technological turbulence and stability," Research Policy, Elsevier, vol. 43(10), pages 1666-1680.
    7. Chen, Xiaoyun & Zou, Huan & Wang, Danny T., 2009. "How do new ventures grow? Firm capabilities, growth strategies and performance," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 294-303.
    8. Wing Sun Li, 2018. "Competitor Analysis and Accounting Model: Competitor Analysis," Management for Professionals, in: Strategic Management Accounting, chapter 6, pages 99-123, Springer.
    9. Cooper, Robert G., 1990. "Stage-gate systems: A new tool for managing new products," Business Horizons, Elsevier, vol. 33(3), pages 44-54.
    10. Lee, Kyootai & Kim, Youngkyun & Joshi, Kailash, 2017. "Organizational memory and new product development performance: Investigating the role of organizational ambidexterity," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 117-129.
    11. Wing Sun Li, 2018. "Competitor Analysis and Accounting Model: Accounting Model," Management for Professionals, in: Strategic Management Accounting, chapter 7, pages 125-141, Springer.
    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. Christian Schwens & Julia Eiche & Ruediger Kabst, 2011. "The Moderating Impact of Informal Institutional Distance and Formal Institutional Risk on SME Entry Mode Choice," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 330-351, March.
    14. Goh, Swee & Richards, Gregory, 1997. "Benchmarking the learning capability of organizations," European Management Journal, Elsevier, vol. 15(5), pages 575-583, October.
    15. Shanling Li & Jennifer Shang & Sandra A. Slaughter, 2010. "Why Do Software Firms Fail? Capabilities, Competitive Actions, and Firm Survival in the Software Industry from 1995 to 2007," Information Systems Research, INFORMS, vol. 21(3), pages 631-654, September.
    16. Silviano Pérez & Amparo Llopis & Juan Llopis, 2004. "The Determinants of Survival of Spanish Manufacturing Firms," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 25(3), pages 251-273, August.
    17. Hui Feng & Neil A. Morgan & Lopo L. Rego, 2017. "Firm capabilities and growth: the moderating role of market conditions," Journal of the Academy of Marketing Science, Springer, vol. 45(1), pages 76-92, January.
    18. Wing Sun Li, 2018. "Strategic Management Accounting," Management for Professionals, Springer, number 978-981-10-5729-8, December.
    19. Peter Moran, 2005. "Structural vs. relational embeddedness: social capital and managerial performance," Strategic Management Journal, Wiley Blackwell, vol. 26(12), pages 1129-1151, December.
    20. Linda Argote & Ella Miron-Spektor, 2011. "Organizational Learning: From Experience to Knowledge," Organization Science, INFORMS, vol. 22(5), pages 1123-1137, October.
    21. Catherine M. Banbury & Will Mitchell, 1995. "The effect of introducing important incremental innovations on market share and business survival," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 161-182.
    22. Battistella, Cinzia, 2014. "The organisation of Corporate Foresight: A multiple case study in the telecommunication industry," Technological Forecasting and Social Change, Elsevier, vol. 87(C), pages 60-79.
    23. 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.
    24. Olivier Blanchard, 2007. "Adjustment within the euro. The difficult case of Portugal," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 6(1), pages 1-21, April.
    25. Evrensel, Ayse Y., 2008. "Banking crisis and financial structure: A survival-time analysis," International Review of Economics & Finance, Elsevier, vol. 17(4), pages 589-602, October.
    26. Subrata Chakrabarty & Liang Wang, 2012. "The Long-Term Sustenance of Sustainability Practices in MNCs: A Dynamic Capabilities Perspective of the Role of R&D and Internationalization," Journal of Business Ethics, Springer, vol. 110(2), pages 205-217, October.
    27. Cooper, Arnold C. & Gimeno-Gascon, F. Javier & Woo, Carolyn Y., 1994. "Initial human and financial capital as predictors of new venture performance," Journal of Business Venturing, Elsevier, vol. 9(5), pages 371-395, September.
    28. Deeds, David L. & Decarolis, DONA & Coombs, Joseph, 2000. "Dynamic capabilities and new product development in high technology ventures: An empirical analysis of new biotechnology firms," Journal of Business Venturing, Elsevier, vol. 15(3), pages 211-229, May.
    29. Marcus Box, 2008. "The death of firms: exploring the effects of environment and birth cohort on firm survival in Sweden," Small Business Economics, Springer, vol. 31(4), pages 379-393, December.
    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. Garcia Martinez, Marian & Zouaghi, Ferdaous & Garcia Marco, Teresa & Robinson, Catherine, 2019. "What drives business failure? Exploring the role of internal and external knowledge capabilities during the global financial crisis," Journal of Business Research, Elsevier, vol. 98(C), pages 441-449.
    2. Cefis, Elena & Marsili, Orietta, 2012. "Going, going, gone. Exit forms and the innovative capabilities of firms," Research Policy, Elsevier, vol. 41(5), pages 795-807.
    3. Xin Huang & Huitong Yang & Peijin Yang, 2024. "The Impact of Cross-Border Mergers and Acquisitions on Corporate Organisational Resilience: Insights from Dynamic Capability Theory," Sustainability, MDPI, vol. 16(6), pages 1-23, March.
    4. 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.
    5. von den Driesch, Till & Eva Susanne da Costa, Maika & Christina Flatten, Tessa & Brettel, Malte, 2015. "How CEO experience, personality, and network affect firms' dynamic capabilities," European Management Journal, Elsevier, vol. 33(4), pages 245-256.
    6. Ornella Wanda Maietta & Fernanda Mazzotta, 2018. "Firm Survival and Innovation: Knowledge Context Matters!," CSEF Working Papers 496, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    7. repec:ehu:cuader:33232 is not listed on IDEAS
    8. 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.
    9. Judith Cavazos-Arroyo & Rogelio Puente-Diaz, 2019. "The Influence of Marketing Capability in Mexican Social Enterprises," Sustainability, MDPI, vol. 11(17), pages 1-15, August.
    10. Rui Baptista & Murat Karaöz & João Correia Leitão, 2020. "Diversification by young, small firms: the role of pre-entry resources and entry mistakes," Small Business Economics, Springer, vol. 55(1), pages 103-122, June.
    11. Xiao Zhang & Luqun Xie & Jiatao Li & Li Cheng, 2022. "“Outside in”: Global demand heterogeneity and dynamic capabilities of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 709-722, June.
    12. Farzaneh, Mandana & Wilden, Ralf & Afshari, Leila & Mehralian, Gholamhossein, 2022. "Dynamic capabilities and innovation ambidexterity: The roles of intellectual capital and innovation orientation," Journal of Business Research, Elsevier, vol. 148(C), pages 47-59.
    13. Toft-Kehler, Rasmus & Wennberg, Karl & Kim, Phillip H., 2014. "Practice makes perfect: Entrepreneurial-experience curves and venture performance," Journal of Business Venturing, Elsevier, vol. 29(4), pages 453-470.
    14. 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.
    15. Ge, Dingkun & Mahoney, James M. & Mahoney, Joseph T., 2005. "New Venture Valuation by Venture Capitalists: An Integrative Approach," Working Papers 05-0124, University of Illinois at Urbana-Champaign, College of Business.
    16. André van Stel & Lorraine Uhlaner & Haibo Zhou & Valerie Duplat, 2012. "Disentangling the effects of organizational capabilities, innovation and firm size on SME sales growth," Scales Research Reports H201211, EIM Business and Policy Research.
    17. Liu, Yi & Liao, Yonghai & Li, Yuan, 2018. "Capability configuration, ambidexterity and performance: Evidence from service outsourcing sector," International Journal of Production Economics, Elsevier, vol. 200(C), pages 343-352.
    18. Manis, K.T. & Madhavaram, Sreedhar, 2023. "AI-Enabled marketing capabilities and the hierarchy of capabilities: Conceptualization, proposition development, and research avenues," Journal of Business Research, Elsevier, vol. 157(C).
    19. Pinho, José Carlos & Prange, Christiane, 2016. "The effect of social networks and dynamic internationalization capabilities on international performance," Journal of World Business, Elsevier, vol. 51(3), pages 391-403.
    20. Mircea Epure, 2016. "Benchmarking for routines and organizational knowledge: a managerial accounting approach with performance feedback," Journal of Productivity Analysis, Springer, vol. 46(1), pages 87-107, August.
    21. Ahsan, Mujtaba & Fernhaber, Stephanie A., 2019. "Multinational Enterprises: Leveraging a Corporate International Entrepreneurship Lens for New Insights Into Subsidiary Initiatives," Journal of International Management, Elsevier, vol. 25(1), pages 51-65.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:nip:nipewp:14/2018. 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: NIPE (email available below). General contact details of provider: https://edirc.repec.org/data/nipampt.html .

    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.