Abstract:Taking the resource-based view-RBV-and the dynamic capability view-DCV-as an orientation, the main aim of this study is to develop the mediator role that competitive advantages play in the relations between strategic resources, dynamic capabilities and performance. The study takes place in a dynamic and changing sector: the sale of new cars in Portugal. The results show that (a) achieving competitive advantages, which are decisive for business results, depends on the available strategic resources and the gener… Show more
“…Similarly, Pisano [84] found that, under a changing environment, dynamic capabilities were required to choose the right resources to create competitive advantages leading to good organisational performance. In the same vein, Navarro-García and Moreno [50], Breznik and Lahovnik [85] determined that dynamic capabilities influenced organisational performance by passing on competitive advantages. An organisation with dynamic capabilities has the potential to maintain its competitive advantages, leading to future success.…”
Section: Discussionmentioning
confidence: 96%
“…The research found that competitive advantage has a significant influence on the organizational performance. Navarro-García and Moreno [50] studied the relationship between dynamic capacity and organizational performance with competitive advantage as a transmission factor in the car sales business. The results of the research showed that dynamic capacity influenced the organization's performance through a variable of competitive advantage.…”
Dynamic capabilities are creating dramatic change for the industry around the world. Resource-Based View (RBV) theory and Operational capability theory are the basic capabilities of an organization under a normal changing environment. This creates a competitive advantage and organizational success in a relatively short period of time, in which the dynamic environment is not sufficient to cope with this change. Dynamic capability is a concept for managing change under this dynamic environment. Past research supports a direct positive relationship between dynamic capability and firm performance but it did not focus on the mediator variables. This research emphasizes the influences of competitive advantages and innovation capabilities as mediators of dynamic capabilities and firm performance were investigated. A cross-sectional design study was utilised and questionnaires were submitted to 326 firms to test the proposed relationships. IBM SPSS Statistics Base 26, IBM SPSS AMOS 21, and PROCESS macro 3.6 were used for statistical analysis. Results revealed that competitive advantages and innovation capabilities were partially mediated by dynamic capabilities and firm performance. Findings contribute to the literature on empowering leadership and innovative firm performance by highlighting that competitive advantages and innovation capabilities act as mediators to improve dynamic capabilities and enhance innovative firm performance.
“…Similarly, Pisano [84] found that, under a changing environment, dynamic capabilities were required to choose the right resources to create competitive advantages leading to good organisational performance. In the same vein, Navarro-García and Moreno [50], Breznik and Lahovnik [85] determined that dynamic capabilities influenced organisational performance by passing on competitive advantages. An organisation with dynamic capabilities has the potential to maintain its competitive advantages, leading to future success.…”
Section: Discussionmentioning
confidence: 96%
“…The research found that competitive advantage has a significant influence on the organizational performance. Navarro-García and Moreno [50] studied the relationship between dynamic capacity and organizational performance with competitive advantage as a transmission factor in the car sales business. The results of the research showed that dynamic capacity influenced the organization's performance through a variable of competitive advantage.…”
Dynamic capabilities are creating dramatic change for the industry around the world. Resource-Based View (RBV) theory and Operational capability theory are the basic capabilities of an organization under a normal changing environment. This creates a competitive advantage and organizational success in a relatively short period of time, in which the dynamic environment is not sufficient to cope with this change. Dynamic capability is a concept for managing change under this dynamic environment. Past research supports a direct positive relationship between dynamic capability and firm performance but it did not focus on the mediator variables. This research emphasizes the influences of competitive advantages and innovation capabilities as mediators of dynamic capabilities and firm performance were investigated. A cross-sectional design study was utilised and questionnaires were submitted to 326 firms to test the proposed relationships. IBM SPSS Statistics Base 26, IBM SPSS AMOS 21, and PROCESS macro 3.6 were used for statistical analysis. Results revealed that competitive advantages and innovation capabilities were partially mediated by dynamic capabilities and firm performance. Findings contribute to the literature on empowering leadership and innovative firm performance by highlighting that competitive advantages and innovation capabilities act as mediators to improve dynamic capabilities and enhance innovative firm performance.
“…Within firm resilience literature, there is growing attention to the concept of slack resources, which are the bundle of assets a firm has more than that which is required to sustain day to day operations (Gao et al, 2017;Karacay, 2017;Kiss et al, 2018;Navarro García et al, 2018;Vanacker et al, 2017). Some scholars have given such slack resources salience as they are seen to cushion firms against environmental shocks (Karacay, 2017;Omar et al, 2020).…”
Section: Review Of Theoretical Literaturementioning
The objective of this paper was to present a dynamic resource orchestration framework as a source of organizational resilience through blended orchestration of the firm's dynamic and static resources to generate sustained value during disruptive shocks. We adopted an integrative literature review methodology and proposed a dynamic resource orchestration framework as a managerial option to create and sustain firm value. Conceptually, a dynamic resource orchestration framework was presented as the integration of firm resources and managerial capability. We proposed dynamic resource orchestration as a model input impacting organizational resilience through the combined effects of resource accumulation, resource orchestration, and managerial capabilities. Through a thorough examination of the literature production anchored on dynamic capabilities framework and organizational resilience, we advanced a perspective that the ultimate source of combined firm resilience and sustainable competitive advantage does not necessarily accrue from the resources at a firm's disposal but by how management dynamically blends and orchestrates the existing resources, thereby creating an optimal source of capability. Our proposed conceptualization was based on the assumption that dynamic capabilities are part of firm resources and, therefore, strategic orchestration of dynamic capabilities leads to superior firm resourcefulness and consequential sustained resilience. We identified gaps and proposed directions for future research.
“…Competitive advantage is utilized to describe a business's relative performance compared to competitors in a certain market environment (Navarro-García et al, 2018). This advantage originates from the absence of certain resources and characteristics by competing businesses in a similar sector that allow some of them to be more competitive than competitors.…”
Section: The Effect Of Competitive Advantage On Business Performancementioning
MSMEs have contributed to accelerating economic growth and creating jobs. However, a number of problems still hinder the growth of their business performance. The improvement of business performance requires a competitive advantage that stems from a strong entrepreneurial and market orientation as well as the high dynamic capabilities of the actors in MSMEs. Therefore, this research aims to analyze the influence of these factors on competitive advantage and their impact on improving MSME business performance. A survey of 336 samples and a quantitative approach were conducted to prove the research hypothesis through structural equation modeling. The novelty of this research is the analysis of the determinants of competitive advantage, especially entrepreneurial orientation, dynamic capabilities, and market orientation, and their impact on business performance, as well as the mediating role of competitive advantage on the influences of entrepreneurial orientation, dynamic capabilities, and market orientation, respectively, on business performance. The study concluded that improving MSME business performance can be done by creating competitive advantage and dynamic capabilities in MSME actors. The creation of competitive advantage requires a strong entrepreneurial orientation and market orientation, as well as high dynamic capabilities by MSME actors. This study presents both theoretical and practical implications and research limitations.
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