Purpose
The purpose of this research is to explicate the role of dynamic capabilities in the ability of small- and medium-sized enterprises (SMEs) to create value and also investigate the relationship among different dynamic capabilities, competitive strategy and SMEs’ value sources.
Design/methodology/approach
Empirical evidence based on a survey conducted on a sample of 441 UK-based SMEs was used to test the research hypotheses.
Findings
The findings illustrate that sensing, learning, integrating and coordinating capabilities play a significant role in SMEs’ value creation, and competitive strategy mediates the impact of dynamic capabilities on value creation.
Research limitations/implications
This study demonstrates the benefits of understanding the relationship among the four types of dynamic capabilities, competitive strategy and value creation. Moreover, this study contributes to the notion of the contingency nature of dynamic capabilities.
Practical implications
It offers managers insight into the aspects on which to focus their efforts to enhance their firm’s capacity of value creation.
Originality/value
While much of the prior studies have conceptually/qualitatively investigated the financial return of uni-dimensional dynamic capabilities of large firms in the manufacturing sector, this study made a significant effort to quantitatively examine the non-financial value potential of SMEs in service sector through four processes of dynamic capabilities.
This study extends contingency theory's account of organisational size and culture by exploring the relationship between supplier development and internal quality performance. Drawing on supplier development research, the study aims to examine the moderating impact of organisational size and culture on the relationship between supplier development and design and conformance quality dimensions. Using survey data of 518 UK manufacturing organisations, we found that larger organisations with greater access to resources and a strong SCO culture tend to place the most weight on supplier development programmes which in turn yield higher internal quality performance. These findings contribute to 'Operations Management Practice Contingency Research (OM PCR)' and will raise awareness among operations managers of their future sourcing decisions.
Technological, organizational, and environmental contextual factors alter the ability of e‐businesses to derive value from competitive strategies–dynamic capabilities alignment.
Yingying (2015) The applicability of Grant's framework in the dynamic digital age: a review and agenda for future research. European Business Review, 27 (6). pp. 656-678.
The overall interplay between competitive strategies and dynamic capabilities is an integral part of value creation in terms of novelty, lock‐in, complementarities, and efficiency. In response to insufficient systematic research on the impact of competitive strategies and dynamic capabilities on value creation, this study expands prior studies (Rashidirad et al., 2013) by proposing carefully testable research hypotheses and empirically explores the research phenomenon. This study analyzes the complex interrelationships between competitive strategies and dynamic capabilities and the resulting impact on value creation through adopting a multidimensional approach in which each construct is decomposed to its dimensions. This study prompts rethinking of the impact of dynamic capability and competitive strategy on value creation in firms by using a multidimensional perspective.
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