Multi-dimensional Influence of Dynamic Capabilities on Innovation Performance in Knowledge-intensive Service Enterprises

Abstract

How to enhance enterprise's innovation performance is an important problem which is well worth thinking when the knowledge-based economy is opening up increasingly today. Taking the knowledge-intensive service enterprises as the example, we have made empirical study on how the different dimensions of dynamic capabilities, namely, sensing capability, learning capability and reconfiguring capability, affect the innovation performance of both exploration and exploitation. This study constructs and verifies a model of multi-dimensional dynamic capabilities to innovation performance using exploratory factor analysis and regression analysis. Result shows that enhancing any of sensing capability and learning capability in dynamic capabilities helps improve enterprises' exploratory and exploitative innovation performance. Sensing capability and learning capability affect exploratory innovation performance more than exploitative innovation performance. Reconfiguring capability plays a positively significant regulating role in the relationship between sensing capability and exploratory innovation performance. Therefore, when enhancing the innovation performance, a knowledge-intensive service enterprise should not only make efforts to cultivate the sensing capability for technology and market and learning capability for external knowledge, but also enhance reconfiguring capability for both of internal and external resources to form the foundation for future competiveness. This study contributes to previous research by showing how sensing capability and learning capability affect the various dimensions of innovation performance under the regulating effects of reconfiguring capability in dynamic capabilities.

Understanding dynamic capabilities in emerging technology markets: antecedents, sequential nature, and impact on innovation performance in the extended reality industry

“…This involves collecting and analysing data in various ways, in order to understand customers, market trends, and technological advancements. The acquired knowledge is brought together and synthesized in one company, offering companies opportunities to identify needs for innovation (Farzaneh et al, 2021;Ilmudeen et al, 2021;Pundziene et al, 2022;Robertson et al, 2021;Teece, 2018b;Xin, 2018).…”

“…Organizational ambidexterity is discussed in research as a combined measure of both explorative and exploitative innovation orientation (Cho et al, 2022;Gibson and Birkinshaw, 2004;He and Wong, 2004). Specifically, the relationship between ambidexterity and DCs has been a topic of interest in the literature, especially concerning its relationship to innovation performance (Peng and Lin, 2017;van Lieshout et al, 2021;Xin, 2018). Previous research suggests that ambidexterity and DCs are related but separate constructs (Wilden et al, 2016), proposing that ambidexterity plays an essential role in the development of dynamic sensing, seizing, and transforming/reconfiguring capabilities (Birkinshaw et al, 2016;Jurksiene and Pundziene, 2016;van Lieshout et al, 2021;Zimmermann and Birkinshaw, 2016).…”

“…Specifically, the relationship between ambidexterity and DCs has been a topic of interest in the literature, especially concerning its relationship to innovation performance (Peng and Lin, 2017; van Lieshout et al. , 2021; Xin, 2018). Previous research suggests that ambidexterity and DCs are related but separate constructs (Wilden et al.…”

Impact of Dynamic Strategic Capabilities on Strategic Entrepreneurship in Presence of Outsourcing of Five Stars Hotels in Jordan

“…Indeed, dynamic strategic capabilities measured by four dimensions which are sensing capability, seizing capability, learning capability, and reconfiguration capability according to several authors (Chukwuemeka & Onuoha, 2018;Maja et al, 2018;Xin et al, 2018;Zhou et al, 2017). Sensing capabilityis defined as "activities directed towards scanning the environment and identifying relevant changes and opportunities" (Wilhelm et al, 2015, p. 329), seizing capability defined as "organization's ability to capitalize on the opportunities sensed in the market through the development of new products, processes and services" (Cao, 2011, p. 457), learning capability which is defined as "the ability to create, acquire and share knowledge to respond to opportunities and threats from the operating environment" (Chukwuemeka & Onuoha, 2018;Eisenhardt & Martin, 2000;Verona & Ravasi, 2003), and Reconfiguration capability refers to "the organization's ability to enhance, combine, protect and restructure its resources and competencies in order to retain evolutionary fitness" (Xin et al, 2018, p. 82).…”

Impact of AMO enhancing human resource management practices on sustainable competitive advantage in insurance companies in Qatar

“…Therefore, the management sought to enhance their competitive performance in order to achieve a sustainable competitive through focusing on the internal environment and the external environment (Al-Abdallah et al, 2014). The internal environment focus is represented by emphasizing on the importance of production factors that the organization acquired (Xin et al, 2018). Human resource considered the most critical factor among production factors through associating with the innovating process that contributing to building a competitive advantage (Wang, 2019).…”