Building dynamic capability through sequential ambidexterity: a case study of the transformation of a latecomer firm in China

Abstract

Sequential ambidexterity is a specific dynamic capability which can play an important role in the technological catch-up of latecomer firms with limited knowledge and resources. Through a longitudinal case study, the trajectory of a latecomer firm's transformation from a generic technology manufacturer to a world-class innovator is analysed. This paper finds that sequential ambidexterity can be the basis of building dynamic capability, which enabled a latecomer to become a market leader through three major transitions. It shows how the building of dynamic capability through sequential ambidexterity is dependent on four mechanisms: senior manager cognition of the environment; organization learning orientation; organization structure design; and process reconfiguration. Building dynamic capability is also dependent on alignment between these mechanisms within the firm. Theoretically, the paper enhances understanding of the micro-foundations of developing dynamic capability through sequential ambidexterity. It also suggests that three contingent dimensions in determining the optimal approach to ambidexterity are: (i) industry leading versus catch-up firms, (ii) the scale of the firm, and (iii) the diversity of the downstream market. Furthermore, the paper provides practical insights for latecomer firms seeking to catch-up with industry leaders.

Dynamic capabilities: New ideas, microfoundations, and criticism

“…The paper by Peng, Lockett, Liu, and Qi (2022) gain insights through a unique case study how DC in the form of sequential ambidexterity transform a company from an innovation laggard to a world-class innovator. This paper offers a deep understanding on how industry positioning and internal factors co-evolve to leverage DC for sequential improvements within a firm toward the innovation frontier.…”

Tailoring competitive information sources to the sequence of dynamic capabilities

“…Linking the use of information sources to dynamic capabilities Competitive intelligence concerns the systematic collection of information about the external business ecosystem that could affect the firm's decisions, including information about customers, suppliers, competitors, products, and regulations (Kars-Unluoglu & Kevill, 2021). There are two main types of information resources: (a) traditional competitive intelligence is information derived from human sources (Oakley, 2019), primarily employees, especially salespeople (Wright & Calof, 2006) but also managers (Peng, Lockett, Liu, & Qi, 2022;Vézina, Selma, & Malo, 2019). Until the digital revolution of the mid-to-late 20th century, human information sources were the primary source of intelligence (Oakley, 2019); (b) publicly available information which nowadays comes mainly from the web (Naghshineh, 2008;Tropotei, 2019).…”

Microfoundations of dynamic capabilities: a systematic review and a multilevel framework

“…, 2022). Many studies focus on the synergistic development of micro-components rather than acting alone (Peng et al. , 2022).…”

“…Microfoundations of capability has been developed in different research fields (Faroque et al, 2021;Nguyen et al, 2022;Ryan et al, 2018;Wojcik et al, 2022). Many studies focus on the synergistic development of micro-components rather than acting alone (Peng et al, 2022). The research methods were enriched and developed, such as questionnaires (e.g.…”