Corporate foresight as a microfoundation of dynamic capabilities

Abstract

The dynamic capabilities perspective is aimed at explaining how firms achieve and sustain competitive advantages, especially in environments that become volatile, uncertain, complex, and ambiguous (VUCA). In this paper, we combine factors that explain dynamic capabilities on the firm level with factors of dynamic managerial capabilities on the individual level. In addition to the dynamic capabilities theory, we draw on corporate foresight (CF) literature to test the impact of CF training. We find that both the organizational‐level practices and the individual‐level training of leaders are positively associated with firm‐level outcomes. We further observe that this relationship is mediated by dynamic managerial capabilities (i.e., the ability of leaders to challenge current business models, make decisions under uncertainty, and reconfigure organizational resources). Our findings emphasize the importance of training leaders and building organizational CF practices to build the dynamic capabilities needed in VUCA environments.

Scenarios in business and management: The current stock and research opportunities

“…We see a potential to address further benefits and side-effects of scenarios in future research ( Tiberius, 2019 ). Especially, scenario-based foresight seems to enhance a firm’s dynamic capabilities ( Haarhaus and Liening, 2020 , Schwarz et al, 2019 , Semke and Tiberius, 2020 ), which needs further exploration.…”

Scenario planning as strategic activity: A practice‐orientated approach

“…The streams are not competing ones; they have different levels of analysis, different foci, different theory, and methods, but they are both driven to help understand and improve the application of a strategy tool. Schwarz et al (2019) recently connected both process and practice in their study of the micro‐foundations of dynamic capabilities. The enhancement of cognition, framed as a managerial resource, can be achieved, observed, and understood through organizational level practices.…”

“…Although scenario planning is described often as a strategy tool (Bradfield, Wright, Burt, Cairns, & Van Der Heijden, 2005; Grant, 2003; Porter, 1985; Spee & Jarzabkowski, 2009), its role in strategic planning is unclear (Tapinos, 2012) and its connection to dominant theoretical perspectives in strategic management has diminished (Iden, Methlie, & Christensen, 2017). Although there is a strengthening body of work (e.g., Ramírez, Österman, & Grönquist, 2013; Schwarz, Rohrbeck, & Watch, 2019) connecting cognitive benefits of scenario planning to dynamic capabilities (see Teece, Pisano, & Shuen, 1997), Wright, Bradfield, & Cairns (2013) noted a methodological separation of the intuitive logics approach popularized by Royal Dutch Shell (Wack, 1985a, 1985b) from firm‐level strategy concepts like business models (Zott, Amit, & Massa, 2011), competitive positioning (Porter, 1985), and resource capabilities (Barney, 1991). This has accompanied the development of foresight‐orientated journals, which have expanded the field and its focus significantly.…”

“…The resultant effect on the body of knowledge was a proliferation of methods and a spattering of theory (Wright et al, 2013), and thus a broad separation from the early connections with mainstream strategy. Fortunately, the connection is far from broken; the cognitive foundations of dynamic capabilities (e.g., Schwarz et al, 2019), scenario‐informed decision support (e.g., Goodwin, 2019), and an opportunity to engage with strategy‐as‐practice (e.g., MacKay & Tambeau, 2013) all provide strong connections to strategy and the strategy literature.…”

Desenvolvimento de um Modelo Dinâmico e Adaptativo como Ferramenta para a Orientação Estratégica em Organizações do Setor Aeroespacial

“…Neste contexto, os tomadores de decisão perceberam a necessidade de combater a rigidez da estratégia organizacional para assegurarem a flexibilização estratégica e a competitividade, frente às mudanças descontínuas (Levinthal, 1992;Teece, Pisano & Shuen, 1997;Eisenhardt & Martin 2000;Helfat & Peteraf, 2003;Rohrbeck, 2010). Esta análise, que inclui a flexibilidade estratégica e a adaptação às mudanças, mostra que a mortalidade de grandes organizações pode ser explicada por sua capacidade de identificar, preparar e responder às mudanças descontínuas (Brown & Eisenhardt, 1997;Winter, 2004;Rohrbeck, 2010Rohrbeck, , 2014Drucker, 2011;Rohrbeck & Schwarz, 2013;Schwarz, Rohrbeck, & Wach, 2019). As contribuições desta pesquisa com a prática incluem (1) o desenvolvimento de um modelo, dinâmico e adaptativo, baseado nas capacidades dinâmicas e (2) a identificação das melhores práticas em relação aos elementos considerados no modelo.…”