Journal articles on the topic 'Firm dynamic'
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Manral, Lalit. "An evolutionary theory of demand-side determinants of strategy dynamics." Management Research Review 41, no. 3 (March 19, 2018): 314–44. http://dx.doi.org/10.1108/mrr-08-2017-0249.
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Purpose This paper aims to explain how the dynamic demand environment influences strategic firm behavior along an industry’s evolutionary path. A conceptual gap concerning the influence of demand-side environmental factors (vis-à-vis changes in technology and policy) on firms’ strategic choices motivates the theory developed herein. The paper’s contribution to the literature on “evolutionary perspective in strategy” also addresses an important gap in the emerging literature on “strategy dynamics”. Design/methodology/approach The conceptual framework in this paper features a dynamic demand environment that provides the structural context for firms’ strategic choices. It conceptualizes demand-side competence as a mediating firm-specific construct to explain the endogenous relationship between the characteristics of the demand environment and firms’ path dependent demand-side investments. Findings A review of the literature on evolutionary perspective in strategy reveals an important conceptual gap concerning the structural determinants of dynamic firm behavior. There is no explanation of the endogenous relationship between dynamic demand structure, firms’ dynamic demand-side competence, and temporally heterogeneous strategic choices. Originality/value The demand-side explanation of how idiosyncratic firm behavior is endogenously determined, with both structural characteristics (demand structure) and firm competences (demand-side competence), addresses an important conceptual gap. The novelty of the theory developed herein lies in its explication of the effect of dynamic demand environment on the evolution of idiosyncratic strategic firm behavior – entry, investment and exit – along the evolutionary path of an industry. The theory developed herein not only explains the effect of both determinants of idiosyncratic strategic firm behavior – the external industry environment (dynamic market structure) and internal firm environment (dynamic firm competences) – but also explains how the determinants evolve along the industry’s lifecycle.
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A. DeFusco, Richard, Lee M. Dunham, and John Geppert. "An empirical analysis of the dynamic relation among investment, earnings and dividends." Managerial Finance 40, no. 2 (January 7, 2014): 118–36. http://dx.doi.org/10.1108/mf-04-2013-0090.
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Purpose – The purpose of this paper is to examine the dynamic relationships among investment, earnings and dividends for US firms. The sample period is 1950-2006. Design/methodology/approach – The authors use a firm-level vector auto-regression (VAR) framework to examine the firm-level dynamics among investment, earnings and dividends. The firm-level VAR yields Granger causality results, impulse response functions, and variance decompositions characterizing the dynamics of these three variables at the firm level. Findings – For the average firm in the sample, Miller and Modigliani dividend policy irrelevance is not supported, even in the long run; the shocks to dividends do have long-run consequences for investment and vice versa. Dividend changes are an ineffective signal of future earnings in both the short and long-term. The cost of an increased dividend is on average an immediate decrease of $3 in investment for every dollar increase in dividends and the effect is persistent up to six years after the increase in dividends. Research limitations/implications – The firm-level VAR used in the study requires that sample firms have long histories of investment, earnings and dividend data. The study addresses the interaction between dividends and investment and therefore necessitates examining dividend-paying firms. By the nature of the research question, the sample firms will not be representative in all respects to the universe of firms. The most striking difference between the sample and the universe of firms is firm size. As such, the study's conclusions are most applicable to larger, stable, dividend-paying firms. The study is also limited to dividend payout. Alternative payout policies, such as share repurchases, are not considered in this work. Practical implications – In theory, increases in dividends can signal higher future earnings; however, the evidence does not support this hypothesis. When capital markets are constrained or incomplete, increases in dividends come at a cost to investment. Firms should consider alternative methods of signaling future earnings that have less of an impact on investment. Investors should carefully evaluate the possible impact of an increase in dividends on investment and future earnings growth. Originality/value – This study is the first to examine the dynamics of earnings, dividends and investment at a firm level and over such a long sample period. By including the dynamics of earnings, the authors emphasize the potential opportunity costs that increasing dividends has on investment when capital markets are imperfect. The dynamic system also allows the authors to consider long-run effects as well as immediate responses to system shocks.
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van de Wetering, Rogier, Tom Hendrickx, Sjaak Brinkkemper, and Sherah Kurnia. "The Impact of EA-Driven Dynamic Capabilities, Innovativeness, and Structure on Organizational Benefits: A Variance and fsQCA Perspective." Sustainability 13, no. 10 (May 12, 2021): 5414. http://dx.doi.org/10.3390/su13105414.
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Enterprise Architecture (EA) allows firms to create value on the firm and operational levels. This paper argues that firms’ EA-driven dynamic capabilities lead to innovative value-creating actions and, ultimately, improve organizational benefits. Hence, we propose a theoretical model that explains how these dynamic capabilities enable the innovativeness of firms. Moreover, we explain the contingent role of an organic firm structure and its relation to firm innovativeness. Data within this study is collected from 299 CIOs and IT managers. This study uses a variance-based approach and a complementary fuzzy-set qualitative comparative analysis (fsQCA) to analyze the model’s hypothesized relationships. Our study outcomes demonstrate a positive relationship between EA-driven dynamic capabilities and firms’ innovativeness as well as between innovation and organizational benefits. Our post-hoc analyses using fsQCA reveal various circumstances in which organic firm structure and valuable, rare, inimitable, and non-substitutional (VRIN) firm resources are particularly relevant for firms to obtain high levels of firm innovativeness.
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Choi, Suk Bong, Wang Ro Lee, and Seung-Wan Kang. "Entrepreneurial Orientation, Resource Orchestration Capability, Environmental Dynamics and Firm Performance: A Test of Three-Way Interaction." Sustainability 12, no. 13 (July 4, 2020): 5415. http://dx.doi.org/10.3390/su12135415.
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This study investigated the effect of entrepreneurial orientation on firm performance with the firm resource orchestration capability and environmental dynamics in moderating roles. Using survey data collected from 301 Korean manufacturing and service firms, we devised a three-way interaction model to uncover the complex and dynamic conditions that maximize the effect of entrepreneurial orientation on firm performance. We found a positive association between entrepreneurial orientation and firm performance. Moreover, our findings indicated that both the firm resource orchestration capability and environmental dynamics played positive moderating roles in the above relationship. The results also showed that, in the case of a high level of environmental dynamics, entrepreneurial orientation was more positively related to firm performance for firms with a high resource orchestration capability. In addition, in the case of low resource orchestration capability, entrepreneurial orientation was associated more positively with firm performance for firms with high environmental dynamics. Thus, this study confirmed the importance of interaction between the three factors for enhancing firm performance. Furthermore, our investigation of substantial moderators provided key insights regarding the conditions that better explain how entrepreneurial orientation promotes firm performance. In addition to two-way interaction, the support for a three-way interaction suggests that moderators of the relationship interact to further explain the relationship. The theoretical and practical implications are discussed.
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Li, Hao, Xi Yang, Yu Tu, and Ting Peng. "Two-Period Dynamic versus Fixed-Ratio Pricing Policies under Duopoly Competition." Mathematical Problems in Engineering 2019 (March 28, 2019): 1–11. http://dx.doi.org/10.1155/2019/6567952.
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This paper introduces a two-period, pricing policy under duopoly competition between two firms offering an identical product to consumers who are intertemporal utility maximization. Firms have equal inventories of faultlessly replaceable and perishable products. The firms adjust prices to maximize profits and determine optimal pricing policies, choosing from dynamic pricing, fixed-ratio pricing, and elastic pricing policies. According to a duopoly competition model, the consumer is limited to a single firm visit per period. The consumer decides to purchase the product at current price from a firm and remain in the market to purchase product from the other firm in the next period or exit the market. The results offer three main conclusions. First, elastic pricing is consistent with dynamic pricing. Second, the more consumers visit the firm in the first period, the more profits the firm will make. Third, we explore the effectiveness of different pricing policies. The results show that although dynamic pricing is a more complex policy than fixed-ratio pricing, it may lead to decreased equilibrium profits when the firms sharply discounts prices and consumer rationality is unlimited.
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Zhou, Steven S., Abby J. Zhou, Junzheng Feng, and Shisong Jiang. "Dynamic capabilities and organizational performance: The mediating role of innovation." Journal of Management & Organization 25, no. 5 (April 17, 2017): 731–47. http://dx.doi.org/10.1017/jmo.2017.20.
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AbstractHow firms’ dynamic capabilities lead to their competitive advantage and improved firm performance has been a core issue and full of debates. In this research, we theorize that dynamic capabilities, which could be defined by three distinct dimensions (sensing capability, integration capability, and reconfiguration capability), facilitate different types of innovation that in turn improve firm performance. Based on a sample of 204 Chinese firms, results from partial least squares structural equation modeling analyses generally support our arguments despite some nuanced differences existing among different dimensions of dynamic capabilities. This study contributes to dynamic capabilities literature by reducing the scarcity of empirical research and by uncovering the mechanisms through which dynamic capabilities influence firm performance.
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Chen, Kun, Xin Li, Peng Luo, and J. Leon Zhao. "News-Induced Dynamic Networks for Market Signaling: Understanding the Impact of News on Firm Equity Value." Information Systems Research 32, no. 2 (June 2021): 356–77. http://dx.doi.org/10.1287/isre.2020.0969.
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Public news provides rich information about firm operations and market dynamics. Learning about firm interactions from news is commonly done by human investors but has not been realized by automatic methods, leading to a research opportunity in market signaling via dynamic firm relations. This study proposes a new text-mining approach to extract cobenefit/counter-benefit networks based on firms’ mutual or conflicting interests in business events. It reveals that the extracted dynamic networks provide additional value in predicting firm equity value over current adopted supply chain and coindustry networks, after controlling for market activities and other traditional indicators from news, such as volume, sentiment, and comentions. In practice, such cobenefit/counter-benefit networks provide good buy and sell signals, which enrich known indicators and support more complex trading strategies in investment and portfolio management. The analysis and visualization of the extracted cobenefit/counter-benefit networks are also useful in understanding the structure of the economy and assessing firm/industry changes in a timelier fashion.
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COLEMAN, SUSAN, and DAFNA KARIV. "GENDER, PERFORMANCE AND FINANCIAL STRATEGY: A DYNAMIC CAPABILITIES PERSPECTIVE." Journal of Developmental Entrepreneurship 18, no. 03 (September 2013): 1350020. http://dx.doi.org/10.1142/s1084946713500209.
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This article explores the impact of financial strategy, by gender, on firm performance using data from the Panel Study of Entrepreneurial Dynamics (PSED). Our findings reveal that financial strategies do have an impact on performance and that female and male entrepreneurs use different financial strategies. Our findings also show no significant performance differences in female- versus male-owned firms in the earliest years of the firm, although significant differences did emerge in the later years. Finally, our findings attest to the dynamic and "cumulative" effect of financial strategy.
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Hermano, Víctor, Natalia Martin-Cruz, and Javier Pajares. "The effect of project management dynamic capabilities on firm performance." Baltic Journal of Management 17, no. 2 (January 14, 2022): 266–84. http://dx.doi.org/10.1108/bjm-06-2021-0218.
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PurposeThe purpose of the paper is to shed light on the output of project management (PM) dynamic capabilities Specifically, the study investigates what effect PM dynamic capabilities have on company performance, both directly and indirectly, through the mediation effect of project and portfolio performance. Additionally, it tests whether program performance might also mediate the relationship.Design/methodology/approachThe hypotheses were tested using partial least squares with a sample of 63 international firms that engage in projects globally.FindingsThe main finding of this research is that PM dynamic capabilities do not influence firm performance directly but do so indirectly by increasing firms' performance in projects, programs and portfolios. Both project and portfolio performance have a mediation effect on the relationship between dynamic capabilities and firm performance, but portfolio performance absorbs all this effect when the two performances are in the model.Originality/valueThis paper sheds light on the link between dynamic capabilities and firm performance. It tests the real outcome of dynamic capabilities by making an explicit distinction between firm performance at three intermediate levels (project, program and portfolio) and overall firm performance. Moreover, it opens the black box of dynamic capabilities and empirically operationalizes the theoretical model of sensing-seizing-transforming as the three constituting routines of dynamic capabilities.
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Shao, Lin. "Dynamic study of corporate governance structure and firm performance in China." Chinese Management Studies 13, no. 2 (June 3, 2019): 299–317. http://dx.doi.org/10.1108/cms-08-2017-0217.
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Purpose The paper aims to provide a comprehensive investigation of the relationship between corporate governance (CG) structure and firm performance in Chinese listed firms from 2001 to 2015. The authors’ motivation derives from the fact that the CG system in China is different from those in the US, the UK, Germany, Japan and other countries. Design/methodology/approach A large unbalanced sample, covering more than 22,700 observations in Chinese listed firms, was used to explore, by means of a system-generalized method-of-moments (GMM) estimator, the relationship between CG structure and firm performance to remove potential sources of endogeneity. Findings Results show that Chinese CG structure is endogenously determined by the CG mechanisms investigated: there is no relationship between board size (including independent directors) and firm performance; CEO duality has a significantly negative effect on firm performance; concentration of ownership has a significantly positive influence on firm performance; managerial ownership is negatively correlated with firm performance; state ownership has a significantly positive effect on firm performance; and a supervisory board is positively correlated with firm performance. Practical implications The findings provide policymakers and firm managers with useful empirical guidance concerning CG in China. Originality/value Few integrative studies have examined the impact of CG structure on firm performance in China. This study adds new empirical evidence that the relation between CG structure and performance in China is endogenous and dynamic when controlling for unobserved heterogeneity, simultaneity, and dynamic endogeneity.
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Zaman, Shehla, Aneel Salman, and Omer Farooq Malik. "Linking Strategic Orientations, Dynamic Capabilities, and Firm Performance: Evidence from the Pakistani Pharmaceutical Industry." Global Social Sciences Review IV, no. III (September 30, 2019): 155–62. http://dx.doi.org/10.31703/gssr.2019(iv-iii).20.
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The paper aims to extend the resource-based view to dynamic capability view under dynamic environment, by investigating the effects of three strategic orientations (i.e., customer, competitor, and technology) on firm performance mediated through dynamic capabilities. A sample of 180 pharmaceutical firms of Pakistan was drawn using simple random sampling. Data was collected through a self-administrated questionnaire and analyzed using the variance-based structural equation modeling. The findings demonstrated that customer, competitor, and technology orientations have both a direct and indirect relationship with firm performance. The study offers Pakistani pharmaceutical firms a better comprehension of their strategic orientations and demonstrates how the alignment of strategic orientations with dynamic capabilities may result in better firm performance.
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Stonham, Paul. "The dynamic American firm." European Management Journal 14, no. 5 (October 1996): 527–28. http://dx.doi.org/10.1016/0263-2373(96)88201-6.
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Reddy, Sabine, Devanathan Sudharshan, and Thomas Roehl. "Japanese Firm Response to Changing Regulations: A Dynamic Strategic Group Analysis." Journal of International Business and Economy 2, no. 1 (December 1, 2001): 15–38. http://dx.doi.org/10.51240/jibe.2001.1.2.
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Firms must repeatedly respond to changes in the regulatory environment. Rather than focusing only on the response of the industry as a whole, we investigate the variation in response at the firm level. We postulate and find that the firm level response will be contingent on the resource base of the firm and the firm’s degree of isomorphism to past regulatory and competitive conditions. Firms that are most isomorphic appear less able to adjust strategically to drastic environmental shifts. Using dynamic strategic group methodology, we demonstrate this response variation in a sample of Japanese pharmaceutical firms.
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Kitenga, Gabriel, J. M. Kilika, and A. W. Muchemi. "The Moderating effect of Firm Size on the impact of Dynamic Capabilities on sustainable Performance of food manufacturing firms Kenya." Technium Social Sciences Journal 7 (May 1, 2020): 149–82. http://dx.doi.org/10.47577/tssj.v7i1.462.
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This study sought to investigate the effect of dynamic capabilities on the performance of selected manufacturing firms in Kenya. It also aimed at examining the moderating effect of firm size on the effect of dynamic capabilities on the performance of manufacturing firms. The study utilized both the descriptive and explanatory research design which was cross-sectional survey in nature. The study population comprised of all the 70 food manufacturing listed in the Kenya Association of Manufacturer’s directory. Self-administered questionnaires were used to collect primary data from 190 respondents. Multiple regression analysis was used to establish the nature and magnitude of the relationships between the independent and dependent variables. The findings indicate that there is a significant positive relationship between dynamic capabilities and performance of food manufacturing firms in Kenya. Firm size was found not to have significant relationship with firm and does not moderate the relationship between dynamic capabilities and performance. The findings supported the theoretical foundation of the dynamic capabilities theory that a firm performance and sustainable competitive advantage depends on its ability to reacting rapidly and flexibly to changing market environments. The study recommends that policy makers should link performance of food manufacturing firms with national goals and in this regard, include acquisition of dynamic capabilities by food manufacturing firms in their policy interventions aimed at increasing food security.
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Gerulaitiene, Neringa, Asta Pundziene, and Egle Vaiciukynaite. "The hidden role of owners' spouses in family firm innovativeness: a dynamic managerial capabilities perspective." Baltic Journal of Management 15, no. 5 (July 22, 2020): 707–26. http://dx.doi.org/10.1108/bjm-01-2020-0021.
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PurposeThe purpose of this paper is to investigate the effect of the dynamic managerial capabilities (DMC) of the spouse (either working or non-working) of a family firm owner on firm innovativeness. This paper assesses the role of three elements of the DMC of owners' spouses (emotion regulation, conflict resolution and networking capabilities) that are bridged by familiness on family firm innovativeness.Design/methodology/approachThis paper presents the results of a multiple case study. Twelve cases were selected: six innovative and six non-innovative family firms in Lithuania. The study design enabled a comparison not only of innovative and non-innovative family firms but also of non-working and working spouses of family firm owners.FindingsThe findings show that family firm owners' spouses contribute to firm innovativeness through their DMC in terms of emotion regulation, conflict resolution and networking capabilities.Research limitations/implicationsThis research focused on a sample of firms in Lithuania. Future studies should broaden the research to other countries.Originality/valueThis research provides empirical evidence of the hidden role of the DMC of family firm owners' spouses and their contribution to firm innovativeness. This paper extends the application of DMC to family business research.
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Marichova, A. "BUILDING DYNAMIC CAPABILITIES – A FACTOR FOR SUSTAINABLE DEVELOPMENT OF THE FIRM." Trakia Journal of Sciences 19, no. 4 (2021): 336–44. http://dx.doi.org/10.15547/tjs.2021.04.007.
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Purpose: In recent years, every firm is facing serious challenges related to the implementation of the principles of sustainable development, which requires a significant change in strategic behavior, strategic decisions and company actions.The aim of the study is to develop a practicable model of dynamic capabilities supporting the sustainable development of the firm, which includes recognizable, understandable and measurable components for managers, and ensures the realization of competitive advantages in the three dimensions (economic, environmental and social) and performance, taking into account the dynamics of the environment. Method: The study uses a method based on data collection through an online survey and statistical analysis of dependencies in the model, using a correlation coefficient. Results: The results of an empirical study conducted in 123 firms operating in different markets will prove the interrelationships and dependencies in the developed model of dynamic capabilities, supporting sustainability and their impact on the process of building competitive advantages. Conclusions: The research and the conclusions made prove the necessity from building dynamic capabilities, supporting the sustainable development of the firm, as a factor that ensures the realization of competitive advantages in the three dimensions (economic, environmental and social) and performance, taking into account the dynamics of the environment.
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Soetanto, Tessa, and Pei Fun Liem. "Intellectual capital in Indonesia: dynamic panel approach." Journal of Asia Business Studies 13, no. 2 (March 21, 2019): 240–62. http://dx.doi.org/10.1108/jabs-02-2018-0059.
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Purpose Intellectual capital (IC) has been considered as a valuable asset in the wealth creation and sustainability of the company; however, limited and mixed results are found on its impact on firm financial performance and market value (MV). This paper aims to investigate the influence of IC toward MV and financial performance of publicly listed firms in Indonesia. In addition, this research also presents the comparison of the high and low level of knowledge industries regarding IC performance. Design/methodology/approach A balanced panel data of 127 firms from 12 industries in Indonesia during 2010 until 2017 was evaluated using dynamic panel regression and administering a well-developed Blundell–Bond instrument (dynamic panel data estimator) to account for endogeneity problem. Findings The results of this study showed that IC had a significant and positive impact on firm performance. Specifically, structural capital efficiency and capital employed (CE) efficiency have been contributed to the value creation of the company, after controlling for firm size and type of industry. Different to the theoretical expectation, this research found no significant relationship between IC and MV of the firm. However, when the sample was clustered into high-level and low-level knowledge industry, CE displayed positive and significant relationship in high-level industry. Originality/value This research contributes to IC research by having a larger sample of Indonesian firms from all industries except banks and financial institutions and using Modified Value Added Intellectual Capital measurement model. To address the endogeneity problem, dynamic panel regression using system generalized method of moment was applied.
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van de Wetering, Rogier, Patrick Mikalef, and Adamantia Pateli. "Strategic Alignment Between IT Flexibility and Dynamic Capabilities." International Journal of IT/Business Alignment and Governance 9, no. 1 (January 2018): 1–20. http://dx.doi.org/10.4018/ijitbag.2018010101.
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Dynamic capabilities theory (DCT) emerged as a leading framework in the process of value creation for firms. Its core notion complements the premise of the resource-based view of the firm and is considered an important theoretical and management framework in modern information systems research. However, despite DCT's significant contributions, its strength and core focus are essentially in its use for historical firm performance explanation. Furthermore, valuable contributions have been made by several researchers to extend the DCT to fit the constantly changing IT environments and other imperative drivers for competitive performance. However, no DCT extension has been developed which allows firms to integrally assess their current state of maturity to derive imperative steps for further performance enhancements. In light of empirical advancement, this article aims to develop a strategic alignment model for IT flexibility and dynamic capabilities and empirically validates proposed hypotheses using correlation and regression analyses on a large data sample of 322 international firms. The authors conjecture that the combined synergetic effect of the underlying dimensions of a firm's IT flexibility architecture and dynamic capabilities enables organizations to cope with changing environmental conditions and drive competitive firm performance. Findings of this study suggest that there is a significant positive relationship between firms' degree of strategic alignment—defined as the degree of balance between all dimensions—and competitive firm performance. Strategic alignment can, therefore, be seen as an important condition that significantly influences a firm's competitive advantage in constantly changing environments. The proposed framework helps firms assess and improve their maturity and alignment of IT flexibility and dynamic capabilities. This article concludes with a discussion, suggestions for future research and managerial implications are also discussed.
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Park, Hong Y., Kaustav Misra, Surender Reddy, and Kylie Jaber. "Family firms’ innovation drivers and performance: a dynamic capabilities approach." Journal of Family Business Management 9, no. 1 (March 14, 2019): 4–23. http://dx.doi.org/10.1108/jfbm-11-2017-0039.
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PurposeEntrepreneurial innovation has been the most important source for improvement in firm performance. Innovation in family firms has become the focal issue in firm strategy. In today’s high-velocity environment, the dynamic organizational adaptation is essential for sustainable competitive advantage. The purpose of this paper is to investigate the nature of changes in external environment and the relationship between changes in the economic environment and family firms’ innovation in response to the environmental shift.Design/methodology/approachThe authors designed a survey questionnaire to obtain primary data for the study. The survey consists of family firm structure, innovation drivers, governance, core competence and performance. Authors applied a random stratified sample method in selecting samples to reflect the population in family firms.FindingsThe study identified market conditions, technology and regulation as innovation drivers. The authors found that these innovation drivers have positive effects on family firm performance, although the technology variable is the only statistically significant variable at the conventional statistical significance level.Research limitations/implicationsThe authors expected to have better response rate, and wish to have more observations. The authors would have stronger results if you could get more data.Practical implicationsFamily firms need to respond to the high velocity of environment and to develop capabilities that understand the nature of changes in economic environment and take effective steps. The study findings offer guidelines for the managers of how to manage the firms in the dynamic environment.Social implicationsFamily firms should use this results to develop strategies to deal with various economics situations.Originality/valueThe study identifies innovation drivers in family firms. The study contributes to finding and empirical testing of family firm innovation drivers. Findings of the study are valuable for managing the high velocity of today’s economic environment: changes in markets, technologies and regulations.
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CULDA, LOREDANA CAMELIA, EVA KASLIK, and MIHAELA NEAMŢU. ""A dynamic Cournot mixed oligopoly model with time delay for competitors"." Carpathian Journal of Mathematics 38, no. 3 (July 26, 2022): 681–90. http://dx.doi.org/10.37193/cjm.2022.03.13.
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"This paper deals with the analysis of a discrete-time Cournot game with time delay, where the interactions of one public firm and n private firms on the market are considered. The production of the public firm is adjusted based on the past production levels of the private firms. At the same time, the productions of the private firms are updated with respect to the past production of the public firm. Two equilibrium points are determined for the discrete-time nonlinear mathematical model. The analysis of the stability reveals that the boundary equilibrium point is a saddle point, while the positive one, under some conditions, is asymptotically stable for any time delays. Numerical simulations illustrate the complex dynamic behaviour of the system."
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Stam, Erik, and Frank Verbeeten. "Tax compliance over the firm life course." International Small Business Journal: Researching Entrepreneurship 35, no. 1 (July 28, 2016): 99–115. http://dx.doi.org/10.1177/0266242615615185.
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This article provides a new model of tax compliance over the firm life course, focusing on the dynamics in the underlying motivations and capacities for tax compliance. We review and structure the relevant literature on the early life course of firms: the traditional stages of growth models and a less deterministic dynamic state model of developmental phases. Building on these insights on the changing nature of the firm and the role of the founder-entrepreneur, we construct a new model of tax compliance over the firm life course. We provide several potential avenues for future research as well as practical implications of our model.
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Kim, Hwan Jin. "Reconciling Entrepreneurial Orientation and Dynamic Capabilities: A Strategic Entrepreneurship Perspective." Journal of Entrepreneurship 27, no. 2 (July 19, 2018): 180–208. http://dx.doi.org/10.1177/0971355718781252.
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Strategic entrepreneurship (SE) emphasises the complementary roles played by entrepreneurship and strategic management in promoting firm growth. This article adopts two dominant concepts from each field—entrepreneurial orientation (EO) and dynamic capabilities (DCs)—to investigate their interaction effects on firm performance (FP). It further examines three contingencies—firm, market and product innovation—that significantly affect the levels of EO and DCs that firms pursue. This study analyses the influence of EO and DCs on performance using hierarchical regression models. Interaction effects of EO and DCs on FP demonstrate a positive relationship. This study found that DCs are more critical for incumbent firms than for small firms. Both EO and DCs enhance performance in dynamic markets. The EO increases performance under radical product innovation, while DCs show no effects. This study provides important and unique implications for the complementary roles of entrepreneurship and strategic management.
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Rotjanakorn, Atichat, Pornrat Sadangharn, and Khahan Na-Nan. "Development of Dynamic Capabilities for Automotive Industry Performance under Disruptive Innovation." Journal of Open Innovation: Technology, Market, and Complexity 6, no. 4 (September 27, 2020): 97. http://dx.doi.org/10.3390/joitmc6040097.
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Dynamic capabilities are creating dramatic change for the industry around the world. Resource-Based View (RBV) theory and Operational capability theory are the basic capabilities of an organization under a normal changing environment. This creates a competitive advantage and organizational success in a relatively short period of time, in which the dynamic environment is not sufficient to cope with this change. Dynamic capability is a concept for managing change under this dynamic environment. Past research supports a direct positive relationship between dynamic capability and firm performance but it did not focus on the mediator variables. This research emphasizes the influences of competitive advantages and innovation capabilities as mediators of dynamic capabilities and firm performance were investigated. A cross-sectional design study was utilised and questionnaires were submitted to 326 firms to test the proposed relationships. IBM SPSS Statistics Base 26, IBM SPSS AMOS 21, and PROCESS macro 3.6 were used for statistical analysis. Results revealed that competitive advantages and innovation capabilities were partially mediated by dynamic capabilities and firm performance. Findings contribute to the literature on empowering leadership and innovative firm performance by highlighting that competitive advantages and innovation capabilities act as mediators to improve dynamic capabilities and enhance innovative firm performance.
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Thamrin, Kemas Muhammad Husni, Syamsurijal Syamsurijal, Sulastri Sulastri, and Isnurhadi Isnurhadi. "Dynamic Model of Firm Value: Evidence from Indonesian Manufacturing Companies." SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS 2, no. 2 (July 7, 2018): 151. http://dx.doi.org/10.29259/sijdeb.v2i2.151-164.
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This study aims to determine the factors that affect to firm value. The data used in this study is secondary data obtained from the Indonesia Stock Exchange which includes financial statements. This research sample uses 45 manufacturing companies, the period 2012-2016. The analysis used is a quantitative approach with panel data regression model, with estimation of fixed effect model. The findings of this study indicate that simultaneously the value of firms is influenced by investment decisions, financial decisions, and financial performance. While partially, financing decision has dominant influence from other variables, namely investment decision dan corporate performance. The conclusions of this study indicate that investment decisions and firm performance have a positive relationship to firm value, while financing decisions have a negative effect on firm value. In addition, the lag of firm value shows the long-term impact on the firm's value model.
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Zeng, Zheng. "CREDIT FRICTIONS AND FIRM DYNAMICS." Macroeconomic Dynamics 17, no. 7 (September 28, 2012): 1467–95. http://dx.doi.org/10.1017/s1365100512000193.
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In this paper I develop a dynamic stochastic general equilibrium model of credit frictions in which the production technology provides a U-shaped average cost curve, enabling endogenous solutions for firm size and quantity. Firms weigh the present value of future net revenues against the opportunity cost of staying in business in their entry or exit decisions. I find that credit frictions increase variable investment costs and result in a larger firm size and a smaller number of firms in the steady state. As the economy deviates from the steady state, however, the presence of credit frictions increases fluctuation in the number of firms, raising market entry during an economic upturn and market exit during a downturn. Also, I find that allowing free entry mitigates some of the effects of credit frictions due to macroeconomic fluctuations. In addition to the homogeneous-firm model, I examine the model when firms have heterogeneous access to credit and find that different credit access gives rise to different firm sizes in the steady state. Firms with easier access to credit become larger than those with less access to credit. Heterogeneous credit access also means that these two types of firms will respond differently to a common technology shock.
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LAMBERTINI, LUCA. "EXPLORATION FOR NONRENEWABLE RESOURCES IN A DYNAMIC OLIGOPOLY: AN ARROVIAN RESULT." International Game Theory Review 16, no. 02 (April 3, 2014): 1440011. http://dx.doi.org/10.1142/s0219198914400118.
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The model proposed in this paper investigates a differential Cournot oligopoly game with nonrenewable resource exploitation, in which each firm may exploit either its own private pool or a common pool jointly with the rivals. Firms use a deterministic technology to invest in exploration activities. There emerges that (i) the individual exploration effort is higher when each firms has exclusive rights on a pool of its own, and (ii) depending on whether each firm has access to its own pool or all firms exploit a common one, the aggregate exploration effort is either increasing or constant in the number of firms.
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Mindila, Agnes, Anthony Rodrigues, Dorothy McCormick, and Ronald Mwangi. "ICT Powered Strategic Flexibility System Dynamic Model." International Journal of System Dynamics Applications 3, no. 1 (January 2014): 90–110. http://dx.doi.org/10.4018/ijsda.2014010105.
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Resource-Based View (RBV) of the firm in strategic management literature focuses on firm internal endowments in terms of resources, capabilities and dynamic capabilities for their development. By establishing a learning mechanism, where they are able to adapt and influence the environment, enterprises build a dynamic competence and sustainable competitive advantage. This paper posits that this dynamic competence or strategic flexibility as referred to by strategic management scholars is a phenomenon that needs to be understood by scholars and practitioners in MSEs so that effective intervention programs can be designed. The paper argues that by treating strategic flexibility as a CAS provides a methodology within which models based on known theories in strategic management are employed and tested using system dynamics. The paper also posits that System Dynamics (SD) modeling is a good modeling methodology that captures the dynamism in a CAS. The paper therefore presents a conceptual model for strategic flexibility and a system dynamic model that reveals the variables in play and their relationships. In so doing the paper exposes influence points in the CAS that act as intervention points by practitioners in strategic flexibility of firms. The paper presents ICTs as interventions at the influence points and presents a generic strategic flexibility system dynamic model that brings to play the impact of ICT.
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Hall, Joshua D., and Christopher A. Laincz. "OPTIMAL R&D SUBSIDIES WITH HETEROGENEOUS FIRMS IN A DYNAMIC SETTING." Macroeconomic Dynamics 24, no. 7 (July 16, 2019): 1815–49. http://dx.doi.org/10.1017/s1365100519000026.
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When observably heterogeneous firms engage in R&D and policy can be conditioned on the heterogeneity, what is the optimal policy? This paper starts with a static duopoly model of R&D competition with uncertainty and finds it welfare enhancing to subsidize the larger firms with no subsidies for the smaller firm, extending existing results. This result follows because the policymaker’s goal is to minimize the average cost of production. Our paper demonstrates that these results are not robust to a dynamic setting. The optimal policy depends on the equilibrium type of competition that emerges without intervention—an insight that cannot be found in a static setting. In a dynamic setting, the degree of competition becomes an endogenous variable. Interestingly, although the optimal policy in some cases provides a slightly larger subsidy for the larger firm, it is the smaller firm that benefits most in terms of firm value.
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Wilden, Ralf, and Siegfried Gudergan. "Service-dominant orientation, dynamic capabilities and firm performance." Journal of Service Theory and Practice 27, no. 4 (July 10, 2017): 808–32. http://dx.doi.org/10.1108/jstp-04-2016-0077.
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Purpose The purpose of this paper is to investigate the effects of a firm’s service-dominant orientation on marketing and technological capabilities, and its performance. It outlines how a service-dominant orientation offers guidance for the development and deployment of ordinary capabilities, and indirectly affects performance. Additionally, it delineates how dynamic capabilities affect the impact of a service-dominant orientation on ordinary capabilities. Design/methodology/approach Partial least squares structural equation modeling drawing on data from 228 firms serves to assess hypotheses relating service-dominant orientation and dynamic capabilities with firm performance. Findings The results indicate that marketing and technological capabilities fully mediate the relationship between a firm’s service-dominant orientation and firm performance. Furthermore, the positive marginal effect of a firm’s service-dominant orientation on its marketing capabilities increases with the firm displaying a stronger service-dominant orientation. In addition, the positive effect of service-dominant orientation on marketing capabilities reduces the more the firm deploys dynamic capabilities. Research limitations/implications Because of the cross-sectional sample, future studies could adopt longitudinal research designs to explore the impact of a service-dominant orientation on ordinary capabilities and performance, or investigate the applicability of the findings in other contexts. Practical implications The findings imply that implementing a service-dominant orientation can be beneficial for firms. However, because the impact of such an orientation weakens the greater a firm’s dynamic capabilities, managers need to be mindful of this trade-off. Originality/value The study is the first to establish a link between the dynamic capability view, originating from strategy research, and service-dominant logic, stemming from marketing thinking.
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Lazzati, Natalia, and Amilcar A. Menichini. "A Dynamic Model of Firm Valuation." Financial Review 53, no. 3 (July 15, 2018): 499–531. http://dx.doi.org/10.1111/fire.12164.
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Raza, Saqlain, Mohd Sobri Minai, and Noor Azmi Hashim. "The Conceptual Framework in Examining the Influence of Relationship Competency on Small Firm Performance with the Mediating Role of Dynamic Capabilities." Journal of Business Management and Accounting 7, no. 2 (July 31, 2017): 85–92. http://dx.doi.org/10.32890/jbma2017.7.2.8821.
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This conceptual paper explains the link between relationship competency of entrepreneurs and small firm performance and the mediating effect of dynamic capabilities on the link. Existing research work have revealed the importance of relationship competency of the entrepreneurs and dynamic capabilities for small firm performance. To advance and elaborate the effect of relationship competency on small firm performance through the linking of dynamic capabilities is being suggested as a latest conceptual model from the perspective of theory. Therefore, this conceptual model supported by two theories namely, the resource based view (RBV) and dynamic capabilities view (DCV). An essential perspective is being presented by this latest conceptual model taking into consideration the background of entrepreneurial relationship competency, dynamic capabilities and small firm performance. Accordingly, for business accomplishments and advancement in managerial wisdom an essential factor for the progress and stability of small business enterprise is dependent on entrepreneurs who equip themselves with vital relationship competency and firm’s dynamic capabilities. Thus, the authors strongly recommend empirically testing of this conceptual model across various industries.
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Kurshev, Alexander, and Ilya A. Strebulaev. "Firm Size and Capital Structure." Quarterly Journal of Finance 05, no. 03 (September 2015): 1550008. http://dx.doi.org/10.1142/s2010139215500081.
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Firm size has been empirically found to be strongly positively related to capital structure. This paper investigates whether a dynamic capital structure model can explain the cross-sectional size–leverage relationship. The driving force that we consider is the presence of fixed costs of external financing that lead to infrequent restructuring and create a wedge between small and large firms. We find four firm-size effects on leverage. Small firms choose higher leverage at the moment of refinancing to compensate for less frequent rebalancings. Their longer waiting times between refinancings lead to lower levels of leverage at the end of restructuring periods. Within one refinancing cycle, the intertemporal relationship between leverage and firm size is negative. Finally, there is a mass of firms opting for no leverage. The analysis of dynamic economy demonstrates that in cross-section, the relationship between leverage and size is positive and thus fixed costs of financing contribute to the explanation of the stylized size–leverage relationship. However, the relationship changes sign when we control for the presence of unlevered firms.
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Fajgelbaum, Pablo D. "Labour Market Frictions, Firm Growth, and International Trade." Review of Economic Studies 87, no. 3 (December 24, 2019): 1213–60. http://dx.doi.org/10.1093/restud/rdz063.
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Abstract I study the aggregate effects of labour market frictions in a small open economy where firms grow slowly and make fixed export investments. The model features interactions between dynamic investments in exporting and search frictions with job-to-job mobility. A calibration to Argentina’s economy matching data on firm growth, worker transitions between firms, and export dynamics suggests that the real income gains from lowering frictions in job-to-job transitions are about seven times larger than comparable reductions in frictions from unemployment. Barriers to worker mobility across firms matter for the real income gains of trade-cost reductions.
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Jiang, Wei, Felix tinoziva Mavondo, and Margaret Jekanyika Matanda. "Integrative capability for successful partnering: a critical dynamic capability." Management Decision 53, no. 6 (July 13, 2015): 1184–202. http://dx.doi.org/10.1108/md-04-2014-0178.
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Purpose – The purpose of this paper is to advance the concept of “integrative capability” as a critical dynamic capability (DC) and empirically investigate its implications for a firm’s sustainable competitive advantage in business partnerships. Design/methodology/approach – This study is based on an empirical analysis of a sample of 300 manufacturing firms in south and central China. Findings – Integrative capability is an important mediator in relationship between operational capabilities (managerial, marketing and technological capabilities) and firm performance. Integrative capability has a significant direct impact on a firm’s performance (marketing effectiveness and financial performance) and also indirect impact via the creation of new operational capabilities. Practical implications – Managers should recognise the significant payoffs of developing integrative capability. Integrative capability helps a firm transfer the benefits of operational capabilities from alliances partners to superior firm performance. Further, integrative capability also effectively updates and renews a firm’s operational capabilities that lead to an enhanced firm performance. Originality/value – Extending the DC literature, this study untangles the complex relationship among operational capabilities, DC and firm performance. Moreover, the study adds new insights into extant literature by conceptualising, operationalising and empirically testing one specific DC – integrative capability.
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Martin-Cruz, Natalia, Ismael Barros Contreras, Juan Hernangómez Barahona, and Héctor Pérez Fernández. "Parents’ Learning Mechanisms for Family Firm Succession: An Empirical Analysis in Spain through the Lens of the Dynamic Capabilities Approach." Sustainability 12, no. 19 (October 6, 2020): 8220. http://dx.doi.org/10.3390/su12198220.
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Succession is a concern for most family firms. The literature has addressed succession in family firms from different perspectives. However, there are still unaddressed questions concerning the microfoundations of succession, and there is a need to secure a better understanding of the succession process and what role parents play therein. Using the dynamic capabilities approach, we shed light on the influence of parents’ behaviors on successors’ intentions. In particular, the paper pursues a twofold aim; first, to analyze the effect of learning mechanisms that parents deliberately use with their children in the family firm on the succession dynamic capability; and second, to explore the impact of this dynamic capability of successor intention to continue in the family firm. We test the model on a sample of potential successors of family firms in Spain. Using partial least squares (PLS) for a sample of 9146 individuals, we confirm the positive impact of the use of parents’ deliberate learning mechanisms on succession dynamic capability and, in turn, the positive effect of the created succession dynamic capability on the successor’s intention to continue the family firm. Furthermore, we find that perceived self-efficacy fails to have any effect on successor intention.
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Budi Cahyono, Satriyo, and Arvinder Singh Chawla. "Dynamic capital structure in Indonesian case: do industry-specific variables affect adjustment speeds?" Investment Management and Financial Innovations 16, no. 2 (June 12, 2019): 218–35. http://dx.doi.org/10.21511/imfi.16(2).2019.19.
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The authors investigate the firm’s capital structure in the dynamic framework and adjustment speeds toward target leverage among Indonesian firms from 2005 to 2016. The sample firms are 407 non-financial listed companies and classified into 8 sectors based on Jakarta Industrial Sector Classification (JASICA).The explanatory variables consist of firm-level variables viz. size, growth opportunity, profitability, asset structure, liquidity, and firm risk; as well as industry-specific variables viz. industry concentration, munificence, and dynamism. By using dynamic adjustment model, it was found Indonesian firms have target leverages, and they tend to adjust toward their desired debt ratio. Based on country-level analysis, adjustment speeds toward target leverage are from around 30.20% to 36.97% per year. Meanwhile, on sector-level analysis, paces of adjustment indicate variety of adjustment speeds across sectors ranged from 26.00% to 48.32% per year.The authors also demonstrate that industry-specific variables have substantial influences on adjustment speeds toward target leverage. Industry concentration and industry munificence positively affect adjustment speeds, whereas however industry dynamism fails to show significant effect.
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Kočenda, Evžen, and Juraj Valachy. "Firm ownership structures: dynamic development." Prague Economic Papers 11, no. 3 (January 1, 2002): 255–68. http://dx.doi.org/10.18267/j.pep.197.
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Ringov, Dimo. "Dynamic capabilities and firm performance." Long Range Planning 50, no. 5 (October 2017): 653–64. http://dx.doi.org/10.1016/j.lrp.2017.02.005.
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Lo, William W. L., G. M. Naidu, and Richard C. M. Yam. "Dynamic and Responsive Firm Strategy." Journal of Global Marketing 14, no. 4 (May 4, 2001): 27–48. http://dx.doi.org/10.1300/j042v14n04_03.
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Nadeem, Muhammad, Christopher Gan, and Cuong Nguyen. "Does intellectual capital efficiency improve firm performance in BRICS economies? A dynamic panel estimation." Measuring Business Excellence 21, no. 1 (March 20, 2017): 65–85. http://dx.doi.org/10.1108/mbe-12-2015-0055.
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Purpose The aim of the current study is to measure the dynamic relationship between intellectual capital (IC) and firm performance in Brazil, Russia, India, China and South Africa (BRICS) economies. Design/methodology/approach The current study applies dynamic panel system generalized method of moments estimator to investigate the dynamic relationship between IC and firm performance of 6,045 publically listed firms in BRICS economies for the period of 2005-2014. Findings The results revealed that IC efficiency is significantly associated with return on assets and return on equity. Furthermore, human, structural and physical capitals have a positive and significant impact on firm performance. The results, while endorsing resource-based, resource-dependency and learning organization theories, emphasize the importance of IC for firm performance. Practical implications The current study does not only provides new direction for future research to analyze dynamic nature of IC and firm performance relationship but also emphasizes the importance of intangibles because of their contribution toward value added. The current study does provide cross-country comparison of top five emerging economies which is useful for the policy makers to evaluate investments in intangibles. Originality/value The current study is the first study to use dynamic ordinary least square (OLS) and Wooldridge strict exogeneity test to test the dynamic nature of the relationship between IC and firm performance. Moreover, unlike previous studies which ignore South Africa, this study covers all BRICS economies.
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DANES, SHARON M., JINHEE LEE, KATHRYN STAFFORD, and RAMONA KAY ZACHARY HECK. "THE EFFECTS OF ETHNICITY, FAMILIES AND CULTURE ON ENTREPRENEURIAL EXPERIENCE: AN EXTENSION OF SUSTAINABLE FAMILY BUSINESS THEORY." Journal of Developmental Entrepreneurship 13, no. 03 (September 2008): 229–68. http://dx.doi.org/10.1142/s1084946708001010.
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Entrepreneurs have been traditionally epitomized as rugged individuals garnering creative forces of innovation and technology. Applying this traditional, limited, and narrow view of entrepreneurship to ethnic firm creation and growth is to ignore or discount core cultural values of the ethnic contexts in which these firms operate. It is no longer possible to depend solely on human capital theory and household characteristic descriptions to understand the complex and interdependent relationships between the ethnic-owning family, its firm, and the community context in which the firm operates. This paper addresses the complex dynamic of ethnic firms with three purposes: (a) to provide a cultural context for the three ethnic groups composing the National Minority Business Owner Study; (b) to extend the Sustainable Family Business Theory, a dynamic, behaviorally-based, multi-dimensional family firm theory, by clarifying how it accommodates ethnic firm complexities within their cultural context, and (c) to derive implications for research, education and consulting with worldwide applications.
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Ma, FeCheng, Farhan Khan, Kashif Ullah Khan, and Si XiangYun. "Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study." SAGE Open 11, no. 4 (October 2021): 215824402110613. http://dx.doi.org/10.1177/21582440211061388.
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In today’s dynamic market environment, information technology (IT) enables firms to obtain knowledge they need to achieve superior performance. To this end, the present study explores the effects of IT, absorptive capacity (ACAP), and dynamic capabilities (DCs) on firm performance (FP) by employing empirical research design. In addition, the study focuses on the DCs perspective and ACAP as a firm knowledge-based view focusing on those firms where technology involved in either a particular unit of the firm or as a whole in operational processes. The data (total 241) was analyzed through AMOS, a mathematical analysis methodology focused on structural equation modeling (SEM). Moreover, through Sobel test we further verify the indirect impact of IT on FP.
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Chen, Ivy S. N., Patrick K. O. Fung, and Simon S. M. Yuen. "Dynamic capabilities of logistics service providers: antecedents and performance implications." Asia Pacific Journal of Marketing and Logistics 31, no. 4 (September 9, 2019): 1058–75. http://dx.doi.org/10.1108/apjml-12-2017-0308.
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Purpose Dynamic capabilities (DC) have been linked to firm competitive advantage, but the ways in which firms can create and build these DC are still not clear. The purpose of this paper is to propose a model with organizational learning (OL) and supply chain orientation (SCO) as antecedents of dynamic logistics capabilities and firm performance as the outcome. The study tests this model on a sample of logistics service firms. Design/methodology/approach Partial least squares structural equation modeling was used to analyze the data collected from 103 logistics firms drawn from the Chartered Institute of Logistics and Transportation of Hong Kong. Findings Results show that OL directly enhances DC and indirectly through SCO. The relationship between OL and SCO is stronger than the relationship between OL and DC. DC are positively related to logistics firm performance. Research limitations/implications The study relied on perceptual and self-reported data from senior management. Relationships among variables may also be inflated by common method variance but efforts were taken to reduce this threat. Practical implications Logistics firms should promote a learning culture in the organization. Organization learning enhances a firm’s willingness to change and innovate. It also helps employees to gain a better understanding of clients’ supply chains and possibilities. SCO helps the firm to direct its reconfiguration and renewal efforts where the returns are the highest. Originality/value There is scant empirical research on the antecedents of DC outside of manufacturing and knowledge-intensive services. The study focused on the logistics services industry. SCO, a necessary strategic orientation for firms in the supply chain, has not been empirically investigated in the previous research. This study addressed these gaps in the literature and contributes to the understanding of the factors giving rise to DC.
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Djaja, Irwan, and Mts Arief. "Business Model Innovation: Embracing Changes in a Dynamic Business Environment." Advanced Science Letters 21, no. 4 (April 1, 2015): 814–18. http://dx.doi.org/10.1166/asl.2015.5886.
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In today’s dynamic era, a firm must continuously innovate to adapt to the rapid changes in business environment. Information and Communication Technology firms do not always need to invest heavily in new capital expenditures to come out with new technology, products or services, but can consider adopting business model innovation, as a novel and efficient way, to gain competitive advantage. The dynamic nature of the Information and Communication Technology industry shortens the life cycles of services and products. Thus, in many cases heavy capital expenditures may not make financial return justifiable. Business model innovation, which initiates novel ways of performing activities, linking customers, suppliers and partners, and/or changing participants in the transactions, may become an alternate solution. Information and Communication Technology firms can maximize business model innovation to leapfrog ahead of competition as first mover in a of high growth opportunity zone. This study investigates the role of business model innovation in embracing changes in the dynamic business environment of the Information Communication Technology industry, leading to competitive sustainability and firm performance. Using Structural Equation Modeling, this study performs the Confirmatory Factor Analysis tests on the observed and latent variables of business model innovation and firm performance and examines the structural model defining the relationships between these two latent variables. The study concludes that business model innovation has positive and direct impact to firm performance, and attained its objectives of contributing a theory based on synthesis and empirical evidence to further understanding how business model innovation impacts firm performance.
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Wang, Wei, Fengzhang Chen, Zewei Long, Fengwen Chen, and Fu-Sheng Tsai. "A Text-Based Competition Network." Journal of Organizational and End User Computing 35, no. 1 (February 3, 2023): 1–24. http://dx.doi.org/10.4018/joeuc.317138.
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This paper utilizes nonfinancial information disclosure to develop a measure of text-based competition network. Using the data of China's listed firms, the authors adopt the textual analysis method to identify a unique group of competitors for the focal firm and construct the text-based competition network. In the whole network, leading firms receive increasing attention from competitors, and they play a vital role for the dynamic changes in the whole market. Moreover, the interactions between the focal firm and competitors in the text-based competition network are shown by some financial indicators. The characteristics of the text-based competition network have a significant impact on the future performance of the focal firm. Finally, economic links in the competition network are discussed by varying the number of competitors, which shows the impact of various competitors on economic similarities. The text-based competition network shows the relative importance of competitors for the focal firm and explains firms' decision-making from the perspective of dynamic competition.
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Giniuniene, Jurgita, and Asta Pundziene. "Dynamic Capabilities: Closing the Competence Gap in Order to Assure Exploitation of New Opportunities." Engineering Economics 31, no. 4 (October 29, 2020): 461–71. http://dx.doi.org/10.5755/j01.ee.31.4.24239.
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Current dynamics of business environment and challenges that businesses are facing force firms to reorganize resources for becoming more effective at opportunity identification and exploitation. However, exploitation of new opportunities is often challenged by competency gap at the firm level. Often current level of competence of the firm does not meet the requirements coming with the new opportunities. In the literature on management science, learning is perceived as one of the greatest contributors in smooth and directed resource reconfiguration process. The outcome of learning is often linked to new knowledge and competencies that allow successful exploitation of identified opportunities within an external and internal business environment. Therefore, this paper aims to propose hypothetical model on how the successful implementation of new business opportunities is linked to multiple-loop organizational learning and closing of the competence gap of the firm. The aim is achieved by synergizing extant literature in the fields of dynamic capabilities, entrepreneurship and organizational learning. Critical analysis of relevant research leads to the development of a conceptual model explaining the process of how the firm is able to close the competence gap and assure successful opportunity exploitation within the firm. This results in the formation of the research questions for future empirical research. The study adds value to the existing literature by identifying the learning process that stimulates successful opportunity exploitation, drawing on the multiple-loop learning perspective, and applying dynamic capabilities framework.
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El Manaa, Wiem, Wafa Khlif, Coral Ingley, and Lotfi Karoui. "Board composition in family-influenced firms: A dynamic perspective." Corporate Board role duties and composition 6, no. 3 (2010): 21–30. http://dx.doi.org/10.22495/cbv6i3art2.
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This paper uses a sample of 76 family businesses in Tunisia to investigate the impact of the family firm dynamic on the composition of their boards of directors. We argue that whether or not a transition in ownership is planned, firms have different governance needs and characteristics depending on the generational phase. The empirical results show that board composition is positively influenced by both generational evolution and succession planning. This study provides evidence of an increase in the appointment of outside directors to boards of family firms from the third generation of ownership. This result implies that it is important to consider the generational phase and succession process of the family firm in order to better understand its governance system.
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Itoh, Ryo, and Kentaro Nakajima. "Do sourcing networks make firms global? Microlevel evidence from firm-to-firm transaction networks." Japanese Economic Review 72, no. 1 (November 16, 2020): 65–96. http://dx.doi.org/10.1007/s42973-020-00061-9.
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AbstractThis study investigates how the structure of a domestic firm-to-firm transaction network influences the foreign direct investment (FDI) decisions of embedded firms in the network. We theoretically describe firms’ FDI decisions using an incomplete information game that considers the firm-to-firm transactions of intermediate inputs and in which firms have an incentive to collocate with their trading partners in foreign markets. We show that the probability of a firm engaging in FDI increases with its Katz–Bonacich centrality, which is defined as aggregated accessibility to all other firms and represents expected profit gained from colocation with its partners. We empirically show that this prediction is supported using disaggregated inter-firm transaction network data on Japanese firms. We also extended both theoretical and empirical frameworks to consider the dynamic aspect of FDI. When we consider existing foreign affiliates, accessibility to prior investors in the transaction network, named Katz–Bonacich accessibility, positively influences FDI as well as Katz–Bonacich centrality.
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Hermano, Víctor, and Natalia Martín-Cruz. "The Project-Based Firm: A Theoretical Framework for Building Dynamic Capabilities." Sustainability 12, no. 16 (August 17, 2020): 6639. http://dx.doi.org/10.3390/su12166639.
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The problem of achieving individual project performance has been replaced by the problem of achieving organizational goals through project performance. Only project-based firms able to learn and build project capabilities can successfully compete in today’s dynamic environments. The purpose of this paper is to present a dynamic capability-based framework that sheds light on how project and organizational dynamic capabilities are built and how these dynamic capabilities allow project-based firms to perform in dynamic environments. Our theoretical framework unpacks the processes of building dynamic capabilities inside a project-based firm, discussing the routines and procedures that are useful to manage projects in unstable and dynamic environments and to build and reconfigure organizational capabilities from project-led knowledge.
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Chukwuemeka, Ofoegbu Wilson, and B. C. Onuoha. "Dynamic Capabilities and Competitive Advantage of Fast Foods Restaurants." INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE AND BUSINESS ADMINISTRATION 4, no. 3 (2018): 7–14. http://dx.doi.org/10.18775/ijmsba.1849-5664-5419.2014.43.1001.
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The study focused on the relationship between dynamic capabilities and competitive advantage of fast foods restaurants in Rivers State, Nigeria. A cross-sectional survey research design was adopted, while primary data was collected via the administration of a structured questionnaire. Three hypotheses were formulated that, the dimensions of dynamic capabilities do not significantly correlate with the competitive advantage of the firms. However, the result of the analysis disproved the null hypotheses, meaning that dynamic capabilities of the firms significantly influence their levels of competitive advantage. It was recommended that managers of the firms should encourage quick response to environmental changes, by enhancing their employees’ capability to detect, monitor and respond to competition. Also, employees should be exposed to current trends, technologies and business applications in the sector to enhance their competencies which will, in turn, improve the competitive advantage of the firm.