Organizational capability for change and performance in artisanal businesses in Mexico

Abstract

PurposeBusinesses in Mexico, particularly small and mid-sized companies, are faced with numerous challenges: a lack of competition, difficulty in positioning and maintaining oneself in the market, irrational use of natural resources, and poverty in the environment in which they develop. In spite of these problems, many are able to succeed; however, there is limited knowledge about how these businesses could implement organizational changes that would positively impact their results.Design/methodology/approachUsing dynamic capabilities theory and survey data obtained from pottery businesses in several artisan communities in Mexico through the application of face-to-face interviews, this paper analyzes the relationship between organizational capability for change (OCC) and economic and environmental performance.FindingsThis research proves that OCC positively and significantly impacts economic and environmental performance. Results contribute to the existing literature on OCC in the context of poverty.Originality/valueThis study offers empirical research that illustrates the relationship between OCC and the environmental and economic performance of pottery businesses. Additionally it contributes to a field of knowledge in progress; that is, OCC in contexts of subsistence where poverty is a constant issue. Artisans living in this context can also develop business capabilities that contribute to the permanence of their business in the market.

Organisational change capacity and performance: the moderating effect of coercive pressure

“…There are two perspectives on OCC: First, the ability is a combination of managerial and organisational capabilities that enables the organisation to adapt its competencies more quickly and effectively to survive and prosper (Judge and Douglas, 2009). Developed based on resource-based theory (Barney, 1991), the perspective has attracted many scholars to empirically test it, such as Judge et al (2009), Heckmann et al (2016) and Sánchez-Medina (2020) among others. The second perspective based on dynamic capability perspective (Teece et al , 1997) describes not only the organisational ability to learn and adapt its competencies on the changing environment but also the ability to implement those changes (Soparnot, 2011).…”

Organizational change capability: a systematic review and future research directions

“…In total, 18 studies have analysed the consequences of OCC grouped in terms of the effect on performance and non-performance, respectively, 13 articles and 6 articles. One article examined the effect of OCC on performance and non-performance, which is often used in strategy research, such as organizational performance (Adna and Sukoco, 2020), corporate performance Judge and Elenkov, 2005, financial or economic performance (Sánchez-Medina, 2020), with most research finding positive effects. Additional support for this claim has come from other studies that refer to the idea of expanding empirical firm performance measures to include indicators such as project performance (Heckmann et al , 2016) and environmental performance (Judge and Elenkov, 2005).…”

“…The most frequently used control variables are demographic variables, such as organizational size and organizational profitability (Judge and Elenkov, 2005), firm activity (Liozu et al , 2014) and the industrial sector (Judge et al , 2009). Meanwhile, on an individual level, these variables include gender, educational position and experience (Sánchez-Medina, 2020). Future research needs to adjust certain control variables to the research domain, as suggested by Bernerth and Aguinis (2016), such as organizational age in the context of OCC.…”

“…Judge and Douglas (2009) state that future research should attempt to link OCC to specific environmental conditions to more accurately understand how to change more effectively. On the other hand, Sánchez-Medina (2020) suggests further research that examines the effect of performance on OCC.…”

Development of Dynamic Capabilities Framework in Strategic Management: A Systematic Literature Review

“…Çalışmaların büyük bir kısmı firmaların ekonomik/finansal performansına odaklanırken (Dangelico vd., 2017;Flatten vd., 2011;Fosso Wamba & Akter, 2019;G. Song & Song, 2021;Ilmudeen vd., 2020;Jiang vd., 2015;Lee & Rha, 2016;Malik & Kotabe, 2009;Mitrega vd., 2017;Sánchez-Medina, 2020;Sousa-Zomer vd., 2020;Wong, 2013;Zhou vd., 2019) bazı çalışmalar yenilikçi performans ve yeni ürün performansına (Bouncken vd., 2016;Gumusluoglu & Acur, 2016;J. Zhang & Wu, 2017;Li-Ying vd., 2016;Liao vd., 2009;Y.…”