Staged Development of Dynamic Capabilities: A Study of International Joint Ventures in India

Abstract

This article investigates the microfoundations of different stages of development of dynamic capabilities ( DCs ) in international joint ventures ( IJVs ). We conducted case-based research for three heterogeneous IJVs in the Indian life insurance space. Data collection involved detailed interviews and access to other archival data. Results offer interesting insights on (1) the process of the development of dynamic capabilities and (2) the relative importance of different stages in the development of dynamic capabilities. Sensing and seizing are the two stages in which dynamic capabilities are built, and reconfi guration/transformation is inherently subsumed within the stage of seizing. We also found that broad-spectrum parental contribution across different functions impedes the development of dynamic capability.

Dynamic capabilities in the context of Brexit and international wine business: An exploratory two‐country study

“…Another study conducted among SMEs (Borch & Madsen, ) developed several categories based on the dynamic capabilities literature, and confirmed the validity of external/internal integration and reconfiguration, learning networks, and resource‐acquisition capabilities. More recently, Roy and Khokle's () case study of international joint ventures identified the stages of sensing and sizing as fundamental in allowing firms to build dynamic capabilities, while reconfiguring/transforming was incorporated within seizing. In their case of the Chinese automotive industry, Guo, Jiang, and Yang () provide a different perspective to the development of dynamic capabilities.…”

Rethinking Management Theory and Practice for the Indian Context: An International Management Perspective

“…There is sporadic research on the processes endemic in each country irrespective of the route it takes to internationalize. In one such study where the staged development of dynamic capabilities in IJVs was studied, it was found that successful IJVs in India have unique indigenous processes (Roy & Khokle, in press).…”

“…These researchers found that organizations from India that get involved in IJVs don't take proactive steps to develop dynamic capabilities (Roy & Khokle, in press), which has been conceptualized as the capability of an organization to speedily realign its capacities on realizing/perceiving a marked environmental change that has the potential to challenge the market position or existence of the organization (Barreto, ; Wang, Senaratne, & Rafiq, ; Wilhelm, Schlömer, & Maurer, ). There are two distinct stages in which the dynamic capabilities come into play; one is the sensing of the environment shift, and the other is the seizing of the market opportunity.…”

Global marketplace strategy and choice of interaction after termination of international joint venture

“…On the contrary, if the foreign partner collaborates with another domestic firm, terminated IJV partners will act as competitors. Reconfiguring a firms' external linkages as per the dynamic environment pertains to the dynamic capabilities view of strategic management (Dhir & Sushil, ; Eisenhardt & Martin, ; Helfat et al, ; Roy & Khokle, ; Teece, Pisano, & Shuen, ). In case of interaction after IJV termination, parent firms' ability to reconfigure their IJV to a supplier–buyer interaction or complementary interaction can be attributed to its dynamic capability.…”