Dynamic Capabilities: A Measurement Proposal and its Relationship with Performance

Abstract

Despite the relevance and growth of research into Dynamic Capabilities, certain gaps and criticisms remain. These issues are primarily related to the measurements of Dynanic Capabilities and its impacts on performance. There is a lack of empirical research that is attempting to investigate the existence, development, and orchestration of Dynamic Capabilities to support superior performance. This paper proposes and validates a scale for the measurement of Dynamic Capabilities based on Teece's conceptual dimensions (sense, seizing and reconfiguring) through a survey presented in a highly dynamic industry and market, and by investigating the impact on performance. The results, besides validating the scale, showed Teece´s three conceptual dimensions exhibited different behavior in relation to each dimension of performance. Sense and Reconfiguration demonstrated a negative relationship with organizational performance while Seize is positively associated with performance. This may help explain some of the fuzzy results of previous studies that used proxies to measure Dynamic Capabilities.

Demystifying the role of internal dynamics in the path of innovative competitiveness: a serial mediation model of international joint ventures

“…Broadly, these capabilities are classified into three heads: adaptive, absorptive and innovative (Wang and Ahmed, 2007). Numerous researchers across the globe have endeavored to develop and test research frameworks on the DCT (Aggarwal and Kapoor, 2018;Eisenhardt and Martin, 2000;Garrido et al, 2020;Schilke et al, 2018;Teece, 2007Teece, , 2017Teece et al, 1997;Wilden et al, 2013). Even after two decades of the inception of this theory, DCT is still struggling with under-developed constructs and a lack of empirical evidence (Bitencourt et al, 2020;Burisch and Wohlgemuth, 2016).…”

Absorptive Capacity (AC), Dynamic Capabilities (DC), and Innovative Performance (IP) of Industry Locators in Laguna

“…This was accomplished by virtually distributing questionnaires to the study's 267 respondents, who are either the head or team leaders of industrial locators in Laguna working in any of the following departments: research and development, planning, manufacturing, on-site assembling, engineering, maintenance, and service. Furthermore, the study utilized structured questionnaires based on [10], [4], [7], and [3,2] to assess innovative performance, dynamic capabilities, and absorptive capacity.…”

The Decision-Making Process for Developing Sustainable Innovation via Dynamic Capabilities in Cleantechs

“…These logics can be more spontaneous, a plan, or predefined model (effectuation), assuming a set of means as given and focusing on the selection of possible effects that the entrepreneur can create with that set of means to determine what they can control (Sarasvathy, 2001). That process contrasts with the methodical and ordered logic (causation), in which a particular objective is given and the entrepreneur focuses on selecting the most appropriate means for creating and achieving that predefined goal, focusing on prediction instead of control (Garrido et al, 2020;Sarasvathy, 2001). Both decision-making logics can relate to a particular decision or a series of decisions, or even to a tendency to emphasize causation and/or effectuation within the organization (Harms, Alfert, Cheng, & Kraus, 2021).…”

“…With the intention of implementing better practices in relation to the competition, Teece et al (1997) and Teece (2017) divided dynamic capabilities into three dimensions, namely sensing, seizing, and reconfiguring. Teece's (2017) dimensions are consolidated and adapted in Table 1 from the perspective of the research of Garrido, Kretschmer, Vasconcellos, and Gonçalo (2020). Brink, 2019;Garrido et al, 2020;Inigo et al, 2017;Teece, 2017Teece, , 2018Teece et al, 1997.…”

“…When resorting to the logic of effectuation, decision making tends to be spontaneous, so that the entrepreneur seeks mechanisms they can control. On the other hand, with the causation logic, the entrepreneur starts with an objective, they chose the best way of achieving their goals, and they maintain a focus on what was already forecasted (Garrido et al, 2020;Sarasvathy, 2001). Created through the entrepreneurial motivation, different clean technology companies, known in the market as cleantechs, seek to combine their capabilities and resources in the technological and digital context to achieve sustainable business innovation (Aagaard, Saari, & Mäkinen, 2021;Bergman, Hajikhani, & Blomqvist, 2019;Gobble, 2012;Inigo, Albareda, & Ritala, 2017).…”