Moving cultures and the creation of new knowledge and dynamic capabilities in emerging markets

Abstract

Dynamic capabilities are vital as they have been considered the major source for creating new knowledge and capabilities needed in today's rapidly changing markets. The existent literature draws our attention to several more or less identifiable sources and strategy level processes for the creation of such capabilities, primarily emphasizing the role of top management. In our view, however, these often quite ad hoc explanations cry for more detailed micro foundations that really open up and reveal underlying micro structures and processes. Hence, our paper argues that moving communication across and the interaction of multi-cultures at the workplace is a major driver for the creation of new knowledge and dynamic capabilities in organizations undergoing major transformation. The paper is theoretical in nature, and practical implications for innovation and knowledge management in emerging markets like in China are suggested.

Born‐Global SMEs, Performance, and Dynamic Absorptive Capacity: Evidence from Spanish Firms

“…Likewise, we wish to go further by analyzing the aspects and the factors that drive the development of this capacity in these new firms. The organizational culture is prominent among those factors (Chirico and Nordqvist ; Hong, Kianto, and Kyläheiko ; Wu, Melnyk, and Flynn ). Shared culture and communicative interaction within an organization play a central role in its operation (Hong, Kianto, and Kyläheiko ).…”

Do Local Values Affect Performances? The Study of Tri Hita Karana Culture on Hotel Performance in Bali

“…The requirement of being sustainable especially on the dynamic capabilities of organizations is considered to be one of the solutions to remain competitive in a changing environment. In addition, a study by Hong, Kianto, and Kylaheiko [35] pointed out that culture is important in knowledge creation, because first, "a good part of our knowledge has been learned as culture from older generations"; and second, "the tacit part of knowledge mostly consists of culture". Referring to both arguments, it is clear that THK values as an organizational culture for hotels in Bali can directly affect the capabilities of hotels internally through better organizational learning, team work's coordination, and integration, as well as externally, to respond to the tourism market properly and timely.…”

“…Through the gathering of supporting evidence and analyzing relevant data, this research has highlighted the crucial role of dynamic capabilities as a mediator on the relationship between THK culture and performance. The development of dynamic capabilities, innovation activities, and efficient work performance require intensive, communicative, and multidimensional cultural interaction within the organization and between the organization and its environment [35]. Dynamic capabilities are established through cultural and communicative interactions within organizations' daily activities and routines, not solely through the macro-micro political and social interactions [40].…”

Strategies to Respond to Change: An Exploratory Study

“…Management scholars are trying to understand how companies cope with environmental changes, what do firms learn from the changing environment and how the environment affects the firms' learning processes (Hitt et al, 1998;Hong, Kianto & Kyläheiko, 2008;Minzberg, 1994;Powel, 1990;Stacy, 1991). Extant studies have shown that turbulent environments do not remain in the same state long enough for an organization to be able to find a favourable competitive position and exploit it (Eisenhardt & Brown, 1998;Fines, 1998).…”