Cooperative goals and dynamic capability: the mediating role of strategic flexibility and the moderating role of human resource flexibility

Abstract

Purpose The dynamic capabilities theory indicates that uncertain environments necessitate firms’ dynamic capability. This study aims to examine how dynamic capability can be shaped based on cooperative goal interdependence with supply chain partners by focusing on the mediating role of strategic flexibility and the moderating role of human resource flexibility. Design/methodology/approach Questionnaire surveys were administered to firm presidents, chief executive officers, chief human resources officers (CHOs) and other senior managers at 300 firms located in China. The data collection process was carried out in one wave with multiple sources. Of the firms contacted, the sample in this study consisted of 233 matched “CHO-other top manager” dyads. Structural equation modeling and the bias-corrected bootstrap method were used to test the proposed causal relationships, moderation model, mediation model and moderated mediation model. Findings Cooperative goal interdependence with both upstream companies and downstream companies was positively related to dynamic capability and strategic flexibility mediated these main effects. Moreover, human resource flexibility moderated the positive direct relationship between strategic flexibility and dynamic capability and the indirect relationships among cooperative goals, strategic flexibility and dynamic capability such that these relationships in companies with high human resource flexibility were stronger than these relationships in companies with low human resource flexibility. Originality/value The findings contribute to the literature on dynamic capability by providing empirical evidence regarding the relationships among cooperative goals, strategic flexibility, human resource flexibility and dynamic capability, which enriches the theory of cooperation and competition and suggests a new path to promote dynamic capability.

Does independent goal interdependence impair dynamic capability? The mediating role of supplier integration and the moderating role of internal integration

“…What is the fundamental factor that is harmful to dynamic capability? For business organizations, self-interest is regarded as the intrinsic motive that drives companies' development (Yang and Gan, 2021;Wong et al, 2005a). Goals play an important role in guiding companies to achieve such self-interest.…”

“…Additionally, different companies have different goals, thereby forming goal interdependence. Accordingly, goal interdependence is usually considered to be a fundamental factor that affects the relationship between organizations and further influences the business development of companies (Yang and Gan, 2021;Wong et al, 2005b). Thus, the theory of cooperation and competition built on goal interdependence (Deutsch, 1949;Wong et al, 2010;Wong et al, 2016) can provide unique insights into addressing such a problem.…”

“…whether there is a positive or negative relationship between their goalsdetermines how participators interact with each other, and their interaction contents, in turn, usually tend to determine the goal achievements that they pursue (Chen et al, 2020;Alper et al, 1998;Wong et al, 2017;Deutsch, 1973;Johnson and Johnson, 1989). We focus particularly on the theoretical framework of cooperation and competition, suggesting that goal interdependence determines task achievements by affecting interaction patterns (Yang and Gan, 2021;Johnson and Johnson, 1989;Deutsch, 1949;Wong et al, 2017). Specifically, the theory of cooperation and competition argues that how goals are structuredin terms of cooperative goal interdependence, competitive goal interdependence and independent goal interdependence determines whether positive interactions or negative connections occur among individuals and then result in positive or negative outcomes (Deutsch, 1949;Wong et al, 2010;Wong et al, 2017).…”

“…Indeed, many studies on organization and management have reported that cooperative goal interdependence always predicts positive behavior and outcomes, yet competitive goal interdependence consistently leads to negative interactions and outcomes (Yang and Gan, 2021;Wong et al, 2017;Wong et al, 2017Wong et al, , 2018Wong et al, 2005a;Wong et al, 2010). However, the effects of independent goal interdependence have been ignored by researchers for a long time, although the theory of cooperation and competition previously asserted that such effects result in a lack of positive interaction (Wong et al, 2018).…”

“…Using a business practice example, Huawei may have some cooperative goals with its key supplier, BOE Independent goal and dynamic capability Technology Group, since BOE supplies Huawei with screen materials, indicating that if one of the two companies succeeds, the other will fairly likely succeed as well (i.e. success of one company will promote the goal achievement of the other) (Yang and Gan, 2021). However, the two companies may have some independent goals because BOE also provides consumers with life technology products and smart healthcare services, and Huawei is not involved in these fields.…”