Exploring the contribution of management innovation to the evolution of dynamic capabilities

Companies that find innovative ways to manage capabilities gain competitive advantages. The results of multiple case studies of capital goods manufacturing companies suggest that management innovation contributes to dynamic capabilities. The findings confirm the importance of sensing, seizing, and reconfiguring as dynamic capabilities. Management innovation differs in terms of whether it contributes to sensing, seizing, or reconfiguring. The findings describe issues of management innovation, such as key change agents and utilization (motivation, invention, implementation, as well as theorizing and labeling), which facilitate sensing, seizing, and reconfiguring. Maintaining capability-driven competitive advantages is not limited to the innovation of products and services, but should also address management innovation that drives dynamic capabilities. The present study relies on a novel conceptualization of dynamic capabilities through management innovation. This conceptualization advances theory-building on the issue of dynamic capabilities.     

Corporate venture capital as a strategy for external innovation: an exploratory empirical study

By creating corporate venture capital (CVC) units, large corporations predominantly pursue strategic objectives, especially the realisation of external innovations. Theoretical and preliminary empirical results on corporate venturing suggest how to manage CVC in order to achieve strategic objectives. We analyse for a sample of 21 corporate venture units in Germany, if the respective CVC programmes pursue the strategic objective to leverage external innovation and if these programmes are managed accordingly. We find that the majority of German corporate venture programmes follow mixed objectives and are not organised and managed as suggested in the literature. We come to the conclusion that a short-term focus on financial objectives of these CVC programmes prohibits the achievement of long-term strategic benefits from external innovation.     

Green innovation in technology and innovation management – an exploratory literature review

The importance of green innovation management is growing both in practice and in academia. This paper provides a current overview of the existing body of literature in the field of green innovations, identifying the most active scholars, institutions and relevant publications. It also contributes to a clarification of the concept ‘green innovation’. The review explains that three different notions of green, eco/ecological and environmental innovation are used largely synonymously, while the notion of sustainable innovation broadens the concept and includes a social dimension. According to this review, the most active scholars are situated in Europe (especially the Netherlands, Italy and Germany). A ranking is provided of innovation management journals by their total number of green innovation publications. The paper stimulates discussion about the adequacy of research in this subject area (managing green innovation) and the dearth of comprehensive literature reviews.     

A dynamic capabilities-based framework of organizational sensemaking through combinative capabilities towards exploratory and exploitative product innovation in turbulent environments

This study develops a dynamic capabilities-based framework of organizational sensemaking through combinative capabilities towards exploratory and exploitative product innovation. Organizational sensemaking helps organizations develop cognitive maps of turbulent environments through its construction of shared interpretations of environmental changes. We argue, however, that successful exploratory and exploitative product innovation are not guaranteed by organizational sensemaking alone, but instead depend on how firms' capabilities synergistically combine and transform knowledge resources. Organizational sensemaking and combinative capabilities are together positioned as important dynamic capabilities. The dynamic capabilities-based framework is applied to explain why and how organizational sensemaking determining superior exploratory and exploitative product innovation in turbulent environments is realized by combinative capabilities. Furthermore, the paper examines the differential effects of combinative capabilities on the firm's exploratory versus exploitative product innovation. Firms can better understand how to leverage different type of combinative capabilities for optimal outcomes.     

Configurations of resources and capabilities and their performance implications: an exploratory study on technology ventures

As one of the most widely accepted theoretical perspectives in strategy, the resource‐based view (RBV) suggests that a firm's resources underlie its ability to achieve competitive advantage. However, much of the extant work in this stream has examined the characteristics that resources must have in order to yield rents, while efforts to specify the crucial link between resources and value creation have been sparse. As a consequence, current theory is not sufficiently clear on how different kinds of resources and capabilities contribute to performance, nor does it clarify how firms can combine different resources and capabilities to achieve superior performance outcomes. Analyzing data obtained from 230 technology ventures with partial least squares (PLS) structural equation modeling and cluster analysis, this study seeks to improve understanding of the resource‐performance link in two main ways. Based on a careful measurement of resources and capabilities in a well‐defined functional area (sales and distribution), we first show how these resources and capabilities contribute to performance in that functional area. Second, we identify four clusters of firms that deploy different configurations of resources and capabilities. Among the four configurational solutions, two are associated with superior (equifinal) performance outcomes. Copyright © 2010 John Wiley & Sons, Ltd.     

The fit between market learning and organizational capabilities for management innovation

This paper examines how market learning (both explorative and exploitative) interacts with organizational capabilities (technological capabilities and marketing capabilities) to affect management innovation. Drawing upon data from a sample of 272 firms each of which contributed two key informants to the study (resulting in a total of 544 respondents), we find that both exploratory and exploitative market learning have a positive effect on management innovation. The effects of exploratory and exploitative market learning on management innovation are contingent on technological and marketing capabilities. Specifically, technological capabilities enhance the positive effect of exploratory market learning and weaken the positive effect of exploitative market learning on management innovation. Marketing capabilities enhance the positive effect of exploitative market learning and weaken the positive effect of exploratory market learning on management innovation. This study contributes to the literature by integrating organizational learning theory with the absorptive capacity perspective to explain management innovation.     

Building capabilities via suppliers' effective management of relationships

This paper is an empirical study identifying the role of a relationship-specific capability of building capabilities through relationships (CBC) when suppliers put efforts into increasing their perceived market effectiveness by managing the effects of relationship quality. The relationship between relationship quality and effectiveness is mediated by CBC. Suppliers in a supply chain form different levels of relationship quality with partners in response to market conditions and industry characteristics. Relationship marketing by suppliers requires a deep understanding of the role of CBC that is developed by a supplier and an effective utilization of CBC to lead an effective relationship to better outcomes. This leads to maximizing of the competitive advantages for suppliers and will help maintain effective relationships.     

Portfolio management for new product development: results of an industry practices study

Portfolio management for product innovation – picking the right set of development projects – is critical to new product success. This article reports on the new product portfolio practices and performance of a large sample of firms in North America. Reasons why portfolio management is important are identified, followed by the relative popularity of the different portfolio techniques: financial methods are first, followed by business strategy methods, bubble diagrams and scoring models. Next, how the various portfolio methods fare in terms of six performance metrics is probed. Financial methods, although the most popular and rigorous, yield the worst results overall, while top performing firms rely more on non‐financial approaches – strategic and scoring methods. The details of how some of these more popular methods are employed by firms to rate and rank development projects are also provided. Finally, managerial implications, including suggestions for making portfolio management more effective in industry, are outlined.     

Building competences for new customer value creation: An exploratory study

Recent marketing literature suggests companies to become market driving (proactive business logic, changing the rules of the market) instead of market driven (reactive business logic, customer-led). This transformation implies that companies are able to boost their capacity to create new customer value. Based on survey data of business-to-business markets, we advance a tentative model that links competence development to new customer value creation. Although exploratory in its nature, our study exhibits that companies should build three types of competences: marketing practices for external knowledge absorption, general organizational competences and supply chain/network competences. Using cluster analysis, we are able to further link these competences to the capacity of new value creation. Four clusters are detected with different degrees of expertise in new value creation and each displaying their own profile of competences. Becoming market driving requires an integrated and balanced view on marketing practices.     

Implementing key account management: Intraorganizational practices and associated dilemmas

Over the last few decades, key account management (KAM) has become a widespread approach to creating value in strategic customer relationships. Research in KAM has often focused on the role of the key account manager, taking a customer interface perspective and adopting cross sectional methods. We contribute to the KAM body of knowledge by presenting a novel longitudinal study of the intraorganizational decisions and dilemmas faced by leaders when implementing KAM programs. Our findings demonstrate that deploying KAM involves the continual balancing and harmonization of strategic and operational practices. In particular, we show that KAM programs become embedded when firms create structural as well as individual support systems and when long-term aims can be reconciled with the need for short term deliverables.     

Dynamic capabilities for service innovation: conceptualization and measurement

Although the development of new services is becoming a major concern for firms throughout the entire economy, there is only little insight in the organizational antecedents of service innovation. It is widely acknowledged that engaging in R&D is relatively uncommon for service providers, but there are also indications that the R&D concept is poorly applicable to service innovation in the first place. Therefore, attention is shifting toward the actual capabilities that allow a firm to source ideas and convert them into marketable service propositions. This paper provides the operationalization of a set of dynamic service innovation capabilities (DSICs) that is general enough to be relevant across different sectoral contexts. While the selected framework is found to consolidate earlier works on the specificities of service innovation, it also captures broad insights on the evolutionary properties of the creation of novel solutions. Thereby, it exemplifies how DSICs can be conceptualized according to the so‐called synthesis approach to service innovation. We operationalize a refined version of such DSICs and develop a measurement scale, using two multi‐industry subsamples from a dataset of 391 Dutch firms. The measured capabilities are found to correlate to different extents with performance measures. Our main contribution, a validated scale for five complementary DSICs, opens the way to comparative analyses regarding firm abilities for creating innovative services.     

The role of digital technologies in open innovation processes: an exploratory multiple case study analysis

Digital transformation has undoubtedly become a key enabler of innovation as evidenced by the numerous firms that use digital technologies to manage their innovation processes. This issue is even more relevant today when innovation processes have become more open and require greater resources in the different implementation phases to capture and transfer knowledge within and outside the firm's boundaries. This implies additional challenges in managing the increasing amount of knowledge and information flows. Accordingly, digital technologies can be used and implemented to manage open innovation processes through easier access and sharing the knowledge created and transferred. Nevertheless, literature in these fields does not provide a structured view of how and why digital technologies are used to manage innovation processes in an open perspective. This paper aims to bridge this gap by adopting the theoretical lenses of change management to identify the managerial actions at organizational and process level that companies perform to implement digital technologies in their open innovation processes. Accordingly, the paper investigates how and why these managerial actions required for and enabled by digital technologies help firms to develop and nurture open innovation. From an empirical point of view, the exploratory multiple case study analyzes nine firms operating in different industries and varying in size, market share, and organizational structure.     

Networking for sustainability: Alliance capabilities and sustainability-oriented innovation

Research on open innovation and sustainability suggests that alliances with external stakeholders help to improve innovation outcomes. This paper taps into the intersection of these literatures and investigates how alliance proactiveness and alliance portfolio coordination affect firms' sustainability-oriented innovation (SOI) outcomes. Data were collected from 170 firms in the Basque Country region in Spain, which has a highly collaborative regional innovation system. Partial least squares (PLS) modeling confirmed that alliance proactiveness is positively related to radical SOI, while alliance portfolio coordination is positively related to incremental SOI. In addition, these two capabilities involve a positive interaction effect in the case of radical SOI. An additional set of post hoc tests using latent class analysis (FIMIX-PLS) provided further evidence that firms with different internal features and levels of environmental turbulence benefit to varying extents from these capabilities and their interactions. Overall, the findings of this study show the benefits of the coupled mode of open innovation and alliance capabilities in reaching positive outcomes in SOI. On the one hand, companies focusing on incremental SOI can reap greater benefits from open innovation when collaborating within their existing portfolio; while for radical SOI, alliance proactiveness is beneficial for finding disruptive partners.     

Relational key account management: Building key account management effectiveness through structural reformations and relationship management skills

Literature has widely recognised the importance of key account management (KAM) in building long-term customer relationships. Although KAM grounds significantly on the relationship marketing theory, most empirical studies focus on the financial impact a KAM programme can produce. Hence, only normative work can advise practitioners on the implications from adopting a relational approach in managing their business with customers who can help the supplier realise a broader set of strategic objectives. Drawing from 304 cases of different suppliers, this article seeks to start filling this gap in the literature and offer empirical evidence regarding the structural and relational implications from a KAM programme. In summary, the findings suggest that adopting a relational perspective through the development of key account management orientation (KAMO) will result in certain, necessary, structural reformation while allowing for specific relational skills to develop. Consequently, supplier's performance also improves. Moreover, this chain of effects remains strong independently of resources available to the supplier, suggesting that KAM can be a significant basis for developing a competitive advantage irrespectively of the supplier's size.     

Linking key account management practices to performance outcomes

Many suppliers practice relational strategies that aim to achieve competitive advantage through a collaborative business relationship with their customers. Key account management (KAM) is one such relational strategy that suppliers rely upon to manage their relationships with strategically important customers. Yet suppliers still struggle to put such programs into practice effectively, most likely because academic investigation has yet to report on what actions explain the performance of KAM initiatives. Aiming to fill this gap, we first identify a set of key KAM practices at the strategic, organizational, tactical and control levels of management. Next, we examine how these practices explain the performance of KAM through the mediating effect of the supplier's relational capabilities and the relational outputs that such capabilities produce. The results provide support for most of the hypothesized relationships, showing that the identified practices positively affect performance and dyadic outcomes through the mediation coming from the variables examined. From a theoretical perspective, the study adds to our understanding of the factors underlying effective KAM practices. From a managerial perspective, the results provide insights into how suppliers can achieve KAM effectiveness through relationship-oriented activities, skills and outcomes.     

Exploring the microfoundations of dynamic capabilities for social innovation in a humanitarian aid supply network setting

This paper explores the microfoundations of the dynamics capabilities (DCs) needed for social innovation in a humanitarian aid context. We aim to reveal how humanitarian aid supply networks should develop DCs to achieve social innovation by meeting societal needs in highly volatile, uncertain, complex, and ambiguous environments. We conducted a qualitative content analysis on the activities of Logistics Cluster (LC), which is an organization that coordinates and guides local and international organizations to support worldwide humanitarian aid interventions. We primarily examined the LC's lessons-learned reports, supported by semi-structured interviews with the managers of LC and its supply network members. The findings revealed that: (i) early anticipation of needs in disaster-affected areas and lessons-learned exercises are the microfoundations of sensing capabilities; (ii) building capacity, supply network service provision, collaboration with logistics service providers, local partner engagement, building trust, and reconciliation are the microfoundations of seizing capabilities; and (iii) coordination and adaptability are the microfoundations of reconfiguring capabilities in the humanitarian aid context. Additionally, we identified relevant microprocesses for this context, which are preparing, engaging, strengthening, streamlining, and responding. Based on these findings, we propose a framework for social innovation in highly dynamic settings.     

Managerial practices driving knowledge creation,learning and transfer in translational research: an exploratory case study

Despite its growing popularity in the biomedical literature, the particular phenomenon of translational research management has not been addressed from an organizational and strategic perspective yet. Our study aims to fill this gap by identifying a set of managerial practices that could influence how knowledge is created, amplified and transferred from biomedical research both to clinical practice and the productive sector. As a result of the theoretical review, we have proposed a preliminary model to guide our empirical work. We have developed an exploratory case study to gather organisational information from an outstanding translational research center. The results obtained from the analysis have allowed us to build an induced model of managerial practices that both affect the creation, integration and transfer of knowledge in the translational research organization studied, as well as derives a set of research propositions. Finally, we present the main academic and managerial implications of the work, together with its limitations and related future research lines.     

Top management team conflict and exploratory innovation: The mediating impact of market orientation

Drawing on upper echelon theory, this study examines the linkage of top management team (TMT) conflict to exploratory innovation and the mediating impact of market orientation (MO) on the linkage. It finds that cognitive conflict in TMTs positively affects exploratory innovation, while affective conflict has a negative effect. Moreover, MO is a critical conduit through which TMT conflict plays its role in exploratory innovation. These findings advance our knowledge on the antecedents of exploratory innovation, improve our understanding about the linkage of TMT conflict to innovation, and identify additional antecedents and consequences for MO.