Entrepreneurial initiatives as a microfoundation of dynamic capabilities

Abstract

Purpose-The purpose of this paper is to show how entrepreneurial initiatives in organizations serve as a microfoundation of dynamic capabilities and, thus, foster change in organizations. Design/methodology/approach-This paper revises and applies conceptual as well as empirical research on dynamic capabilities, their microfoundations and corporate entrepreneurship. In addition, it develops a model of how entrepreneurial initiatives, operative routines and capabilities interact. Findings-The paper develops a model of how entrepreneurial initiatives in organizations represent a microfoundation of dynamic capabilities. First, the model shows that environmental dynamism reduces fit of operative routines and capabilities. Second, the model states that entrepreneurial initiatives are triggered by operative routines and capabilities in respect of environmental dynamism. Third, the model suggests that entrepreneurial initiatives disrupt operative routines and capabilities and, thus, restore their fit in dynamic environments. The paper contributes to current research on dynamic capabilities, their microfoundations and corporate entrepreneurship. Originality/value-This paper addresses the tension between routinization and the entrepreneurial nature of dynamic capabilities. Considering entrepreneurial initiatives as a microfoundation shows that dynamic capabilities might be entrepreneurial, but still preserve their patterned nature enabling repeated execution. This approach provides a way to reconcile the two sub-streams in dynamic capability research and preserve their ontological assumptions. Moreover, this paper extends the literature on dynamic capabilities by ascertaining how individual and group level entrepreneurial initiatives operate within a broader context.

Dynamic managerial capabilities in micro-enterprises: Stability, vulnerability and the role of managerial time allocation

“…capabilities possible' (Abell et al, 2008: 492). They can include not only individual-level factors like selfefficacy (Kevill et al, 2017) and entrepreneurial initiatives (Mahringer and Renzl, 2018) but also interactional factors such as trust (Fainshmidt and Frazier, 2017), residing in processes and practices. By attempting to explicate how such factors influence the enactment of dynamic capabilities, the micro-foundational approach goes some way to bridging the micro-macro gap.…”

Information technology outsourcing and architecture dynamic capabilities as enablers of organizational agility

“…For instance, researchers have studied the role of microfoundations such as structure—for example, a central R&D department (Schneckenberg, Truong, & Mazloomi, 2015), in-house R&D (Li-Ying, Wang, & Ning, 2016), or a dedicated function (Bianchi, Chiesa, & Frattini, 2009)—and the role of skills and individuals (Felin, Foss, Heimeriks, & Madsen, 2012)—for example, cognitive abilities (Helfat & Peteraf, 2015; Hodgkinson & Healey, 2011), people’s attitudes and competencies (Bianchi et al, 2009), or perceptions and behavior (Fallon-Byrne & Harney, 2017; Strauss, Lepoutre, & Wood, 2017). The second dimension is repeatability and refers to whether “the function that a capability performs is repeatable and can be reliably executed to some extent” (p. 6); it pertains to processes, procedures, and routines (Bianchi et al, 2009; Dixon, Meyer, & Day, 2014; Kindström, Kowalkowski, & Sandberg, 2013; Mahringer & Renzl, 2018; Salvato, 2009; Schneckenberg et al, 2015). 1 As Figure 1 depicts, Teece (2007) conceptualizes microfoundations as supporting the three high-level dynamic capabilities of sensing, seizing, and reconfiguring.…”

Social Capital in Emerging Collaboration Between NPOs and Volunteers: Performance Effects and Sustainability Prospects in Disaster Relief

“…Secondly, our study also enriches strategic management research dealing with environmental dynamics and the level discussion. It shows that both the individual and the team level are sources of stability and flexibility at the same time (Majchrzak et al 2007) and thus it contributes to the debate of (microfoundations of) dynamic capabilities and ambidexterity in strategic management (Raisch and Birkinshaw 2008;Helfat and Peteraf 2015;Mahringer and Renzl 2018).…”