Green Product Innovation in Manufacturing Firms: A Sustainability‐Oriented Dynamic Capability Perspective

Despite environmental sustainability being identified as one of the key drivers of innovation, extant literature lacks a theoretically sound and empirically testable framework that can provide specific insights into green product innovation from a capability perspective. This study develops a theoretical framework from a sustainability‐oriented dynamic capability (SODC) perspective. We conceive SODCs as consisting of three underlying processes (external resource integration, internal resource integration, and resource building and reconfiguration) that influence the change/renewal of sustainability‐oriented ordinary capabilities (SOOCs) (green innovation capability and eco‐design capability). This study answers two key questions: which SODCs are needed to develop green innovation and eco‐design capabilities? Which of these capabilities lead to better market performance of green products? We test a structural model linking SODCs to market performance in 189 Italian manufacturing firms. First, we find that the nature of the SODC–performance link (direct or indirect) depends on the SODC type. Specifically, resource building and reconfiguration is the only SODC with a direct effect on market performance. Second, all three types of SODC affect the eco‐design capability, which mediates the link between SODCs and market performance. Third, we find that external resource integration is the only SODC affecting the green innovation capability, which mediates the link between external resource integration and market performance. Resource building and reconfiguration is the SODC with the overall (direct and indirect) highest impact on market performance. This study, among the first to consider capabilities for green product innovation under a dynamic capability perspective, provides implications for scholars, managers and policy makers. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment     

Dynamic Capabilities and Organizational Performance: A Meta‐Analytic Evaluation and Extension

We move the dynamic capabilities view (DCV) forward in two important ways by meta‐analysing prior empirical studies. First, we evaluate the two core theoretical tenets of the DCV: (1) Dynamic capabilities are positively related to performance, and (2) this relationship is stronger in industries with higher levels of technological dynamism. We find support for the former (r_c = 0.296) but not for the latter, though results suggest the existence of moderators. Second, we theorize and demonstrate empirically that higher‐order dynamic capabilities are more strongly related to performance than lower‐order dynamic capabilities, lower‐order dynamic capabilities partially mediate the relationship between higher‐order dynamic capabilities and performance, and dynamic capabilities contribute more to performance in developing economies than in developed economies. These findings illustrate how the nature of the dynamic capability and the economic context in which it is utilized shape its value, thus offering a more nuanced conceptualization of the dynamic capabilities‐performance relationship.     

In the eyes of the beholder: the HRM capabilities of the HR function as perceived by managers and professionals

This study investigated factors influencing line managers' and professionals' perceptions of the HRM capabilities of the HR function. Using a sample of 913 managers and professionals in subsidiaries of 11 Nordic multinational corporations, we tested the extent to which features of the unit's HRM system, attitudes of the unit's general manager and characteristics of the HR manager helped explain the perceived HRM capabilities. The analysis revealed that perceived HRM practice visibility and HRM inducements (the link between individual performance and HRM‐related benefits) were strong predictors of individual perceptions of the HR function's HRM capabilities. The use of e‐HRM and the most senior manager's attitudes towards the unit's HRM practices were also significantly related to perceived HRM capabilities.     

When do Dynamic Capabilities Lead to Competitive Advantage? The Importance of Strategic Fit

Recent studies suggest the relationship between dynamic capabilities and competitive advantage may be jointly affected by organizational and environmental factors. We enrich this nascent perspective by developing a configurational theoretical framework – underpinned by the mechanism of strategic fit – wherein dynamic capabilities lead to a competitive advantage when they support a strategic orientation appropriate for the levels of dynamism and munificence in the environment. Results of a fuzzy‐set Qualitative Comparative Analysis using primary data show that dynamic capabilities lead to a competitive advantage in dynamic, munificent environments by enabling the combination of differentiation and low‐cost orientations. In stable, non‐munificent environments, dynamic capabilities are effective in support of a low‐cost orientation. The central insight of this study is that the relationship between dynamic capabilities and competitive advantage is contingent upon the strategic fit between organizational and environmental factors, contributing to a more rigorous and configurational dynamic capabilities view.     

HOW TO SOLVE COMMUNICATION PROBLEMS ON THE R AND D INTERFACE

It is now widely recognized that isolation of the R and D department from the rest of the company, influences the rate of innovation in a negative way. An essential condition for the innovation process to proceed smoothly, is cooperation between the various functional departments (e.g. R and D, marketing, production). In this paper some results of an empirical study among R and D managers in medium sized Dutch industrial companies will be presented. The four main hypotheses tested are as follows: (1) R and D managers disagree with actual company policy with respect to importance of short-run vs. long-run goals in setting the R and D budget. (2) The level of influence that the R and D managers allow from non- R and D managers (e.g. on the R and D budget) depends on the level of integration between R and D and the rest of the company. (3) Some identifiable organizational devices have a positive influence on the level of integration (understanding) between functional departments. (4) The level of integration has a positive influence on the performance of the R and D department. Our material can give some useful suggestions to the general manager in deciding how to improve the communication between R and D and the rest of the company.     

Ambidextrous work in smart city project alliances: unpacking the role of human resource management systems

Abstract

Organizations that are competing in dynamic global markets are increasingly adopting ambidextrous strategies where exploration and exploitation capabilities are combined simultaneously. However, ambidextrous work raises new challenges for human resource management (HRM). Based on 21 interviews with managers in seven multinational firms in Europe, we investigate how ambidextrous work in smart city work is supported through HRM systems. Our findings suggest a complex mix of three different HRM systems (one at corporate and two at project levels) designed to support ambidextrous exploratory and exploitation work. Specifically, corporate HRM systems focused on incentives and development of dual capabilities for smart city managers (SCMs). At project levels, interconnected explorative and exploitative HRM systems offered tailored managerial tools to support social integration and knowledge management between internal and external employees. Theoretical contributions, future research paths, and practical implications are addressed.     

The Relationship Between HR Capabilities and Quality of Patient Care: The Mediating Role of Proactive Work Behaviors

Based on theoretical frameworks of resource‐based theory, dynamic capabilities, and behavioral perspective on human resource management, we developed a multidimensional construct of human resource (HR) capabilities and tested its relationship with quality of patient care using a national sample of U.S. hospitals. The data on HR capabilities were collected from senior managers (421 individuals nested in 279 hospitals) representing both the administrative and clinical sides of the hospitals. The data on quality of patient care were gathered from two unique sources—patients of 207 hospitals who reported the data via the hospital Consumer Assessment of Healthcare Providers and Systems Survey, and 421 senior managers of 279 hospitals. Our analyses using structural equation modeling suggests that the positive relationship of HR capabilities with quality of patient care is mediated by proactive behaviors of health care workers. Implications of the study findings for research and practice are discussed. © 2016 Wiley Periodicals, Inc.     

The variable effects of dynamic capability by firm size: the interaction of innovation and marketing capabilities in competitive industries

Although investments in marketing and innovation capabilities theoretically help firms to compete in dynamic markets and enhance performance, company size has a strong influence on whether this is the case. In a test of a proposed conceptual model, this study of 692 small, medium, and large enterprises found that large firms prospered from building dynamic capabilities under conditions of high industry competitiveness, while investments in innovation and marketing individually diminished small firms’ performance. The effect was mixed for medium-size firms. In small enterprises, however, dynamic capability proved to be crucial in order to withstand competition. Therefore, taking into account these firms’ limited resources, managerial efforts should be focused on the integration of marketing and innovation capabilities, because each capability alone does not have a significant positive impact on performance. In medium-sized enterprises, the support of marketing capability is required to raise profitability under conditions of high industry competitiveness; otherwise, innovation would not lead to actual profits. For large enterprises, industry competitiveness was found to be a less serious threat to performance, and instead is a catalyst to the development of capabilities, suggesting that managers of such firms should focus on building long-term strategic advantages.     

What makes a good project manager?

There is a growing awareness within project‐based sectors of the relationship between performance and managers' competencies. This article reports on research that investigated the competency profile of ‘superior’ project managers working within the construction industry, one of the most complex and dynamic project‐based industrial sectors. The study combined an assessment of both their behavioural competencies and job‐task competencies. The results reveal that while their job‐task competencies are highly specific to the industry in which they work, the behavioural competencies of superior project managers are mostly generic in nature and apply to a range of other management positions. This research shows how it is practically possible to identify the competency profile of superior managers and utilise this framework for managing the performance of this key management group.     

Dynamic managerial capabilities: Scale development and validation

Studies on dynamic managerial capabilities still have a rather theoretical nature, and there is great difficulty in finding a valid, reliable instrument to measure this construct. The present study contributes to solving this problem: It aims to develop and validate a scale to measure dynamic managerial capabilities. In this investigation, we develop a scale for three factors related to dynamic managerial capabilities: human capital, managerial cognition (already described in the literature), and relationship networks. The prominent finding in this research is the factor that is referred to here as relationship networks.     

Collaborative energy partnerships in relation to development of core business focus and competence – a study of Swedish pulp and paper companies and energy service companies

Several aspects of the growing market for energy‐related collaboration between pulp and paper industries (PPIs) and energy service companies (ESCOs) in Sweden were investigated through in‐depth interviews with PPI and ESCO managers. Aspects of concern are the different forms of co‐operation established, the managers' views on the recent changes made regarding competence and business focus, the managers' views on the opportunities and risks with energy related co‐operation and the implications for sustainable industrial energy management. The study shows that there is a mutual belief among PPI and ESCO managers that co‐operation can provide opportunities for improved competitiveness through a more rational distribution of competences between companies. The main two barriers against the utilization of this potential are that ESCOs must prove that they can bring added values other than capital to pulp and paper mills, and the lack of competition between external energy service providers. Furthermore, we argue that adding aspects related to competence and inter‐firm partnering can improve the existing theory surrounding barriers and opportunities for sustainable industrial energy management in manufacturing industries. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.     

Characteristics of Portuguese public‐sector project managers: Toward closing the effectiveness gap

Using a sample of 102 Portuguese public‐sector officials with project management experience, this study examines the characteristics of effective project managers in the Portuguese public sector. Factor‐analysis procedures are used to identify the factors related to areas of knowledge relevant to effective project management. The results appear to stress the increasing importance of people, organizational, and leadership skills in the effective management of today's complex and dynamic projects.     

Contextual factors in the success of reduced‐load work arrangements among managers and professionals

The purpose of this study was to consider the role of contextual factors, particularly those related to HR policies and practices, in the success of eighty‐two professionals and managers working on a reduced‐load basis. Results revealed agreement among senior managers, coworkers, direct reports, and reduced‐load managers and professionals themselves that the alternative work arrangements were successful. The key factors seen as facilitating success included individual characteristics and behaviors as well as contextual factors related to job content, work group, organizational culture, and human‐resource policies and practices. © 2002 Wiley Periodicals, Inc.     

Environmental management capabilities for a “circular eco‐innovation”

At a micro level, eco‐innovation marks a transition towards a circular economy (CE), and standardised routines and controls are being implemented by businesses to introduce eco‐innovative processes and thus a circular business model. Eco‐innovation applied to a circular model implies changes to companies' environmental management and accounting practices used to manage natural resources. In this context, this study analyses and measures formal and informal environmental management systems, such as certification standards and other management and environmental accounting procedures used in eco‐innovation and the CE within the dynamic capabilities theoretical framework. The study also investigates the cause‐and‐effect relationship between firms' “circular eco‐innovation” and environmental capabilities using partial least squares structural equation modelling and tests it using a sample of Spanish companies. This study offers new knowledge about the interposition of business eco‐innovation and CE‐related activities introduced by firms from the dynamic capabilities perspective.     

Robust project network design

Traditional project planning tools and methodologies fail to address the dynamic uncertainties that can arise during project execution. In this article, we develop an approach to enable project managers to design project networks capable of performing predictably under uncertainty. We integrate a validated project organization design simulation tool (Virtual Design Team) with a robust design experimental method to enable robust project network design. We test the framework on a 13‐month, U.S. $11.5M public renovation project. We find that: (1) it is possible to integrate the project organization design tool with the robust design experimental method for the test case project; (2) the integrated approach enables project managers to identify and simulate the combination of interventions that will lead to the most robust project performance; and (3) the integrated approach can extend the capabilities of project managers to design project networks in dynamically uncertain project environments. The findings highlight the need to explore new ways to achieve predictable project performance in dynamically uncertain project execution environments.     

Rallying the Troops or Beating the Horses? How Project‐Related Demands Can Lead to Either High‐Performance or Abusive Supervision

In today's high‐pressure work environment, project managers are often forced to “do more with less.” We argue that this imperative can lead project managers to engage in either high‐performance or abusive supervision behaviors. To understand this process, we develop a model and associated propositions linking a project manager's cognitive appraisal of project‐related demands to high‐performance work practices versus abusive supervision behaviors—both of which impact three project outcomes: stakeholder relationships, people‐related project success factors, and employee well‐being. We propose that the choice between high‐performance work practices and abusive supervision behaviors is moderated by a project manager's personal resources (psychological capital, emotional intelligence, and dark triad personality).     

Capability reconfiguration of incumbent firms: Nintendo in the video game industry

The importance of incumbent firms' ability to transform themselves according to the changing technological environment has been underlined by several scholars and practitioners. Yet, how incumbents leverage on commercial capabilities in order to develop such technological reconfiguration abilities in the midst of fierce competition from new entrants has not gained enough attention. To address the above research issue, our study investigated the case of Nintendo, an incumbent firm in the video game industry, using the dynamic capability perspective. Our study relied on primary and secondary data collected from diverse sources such as interviews, web contents, magazines, the US Patent and Trademark Office and Wikipedia. Three component factors that reflect the common features of dynamic capabilities across past studies emerged as the basis of Nintendo's reconfiguration ability. Underlining the significance of these commercial capabilities in the technological reconfiguration of an incumbent, our paper helps to synthesize this stream of literature and extends guidelines for future empirical studies to develop the dynamic capability construct. In addition, the findings also help managers devise strategies for an adaptive organization.     

Explaining Vertical Integration Strategies: Market Power, Transactional Attributes and Capabilities

abstract    We analyse vertical boundaries of firms by identifying and comparing industrial, transactional and firm-specific factors in such a way that industrial organization, new institutional economics and the capability-based view are all taken into account. After testing the model in 155 firms in the Spanish meat industry, we observe that only factors associated with both transaction costs and capabilities have a statistical and economic relevance for explaining vertical integration. Firms vertically integrate to create specific investment between stages of the value chain, to internally exploit their pool of knowledge and capacities, and to guarantee quality of inputs and services employed. On the other hand, firms avoid high levels of vertical integration in the presence of high demand changes in order to stay flexible. Finally, providers or clients with market power do not seem to affect vertical boundaries in any consistent way.     

Dynamic capabilities for orchestrating digital innovation ecosystems: Conceptual integration and research opportunities

While most previous research on orchestration of digital innovation ecosystems has examined governance structures, our knowledge of relevant dynamic capabilities remains abstract and lacks conceptual integration. This imbalance limits current knowledge to the extent that digital innovation ecosystem orchestration is mainly considered a structural issue. Based on a synthesis of related literature, we present a novel dynamic capabilities framework that builds on sensing, seizing, and reconfiguring capabilities for digital innovation ecosystem orchestration. We differentiate two major challenges addressed in orchestrating such ecosystems: component challenges and complement challenges. We propose six concrete routines that collectively help address these challenges. These include co-creating architectural knowledge, cultivating boundary objects, renegotiating system integration, screening complementors, co-specializing interfaces, and restructuring complementarities. We illustrate each of these routines with examples from the automotive sector. In addition, we sketch trajectories for future research both at the level of the individual routines and at the level of the overall framework.