Dynamic capabilities as a strategic flexibility enabler: organizational responsiveness to COVID-19

Abstract

Purpose To cope with the existing pandemic situation and to be organizationally responsive, firms need to be strategically flexible, where they need to develop dynamic capabilities (DCs) by continuously reconfiguring their resource base. To address such challenges, firms heavily rely on information and communication technologies (ICT) because of advancement in disruptive technologies. This study aims to explore techniques used by higher education institutional (HEI) leaders to successfully address challenges posed by global disruption, i.e. COVID-19 with the help of advanced ICT software such as Zoom, Google Meet and Microsoft Teams. Design/methodology/approach A qualitative approach was adopted to explore strategic factors such as strategic flexibility (SF) and DC that disclose shortcomings in the current extant literature. A total of 15 interviews were conducted with heads of departments of HEIs in the United Arab Emirates. Data were analyzed using NVivo software. Findings The findings suggested three dimensions of SF (resources, operational and collaborative) and four dimensions of DC (strategic planning, innovative, adaptability and technological) for firms to adopt to be strategically flexible, where DC serves as building blocks of SF. Originality/value This research provides a framework as an avenue for future researchers and practitioners on how to strategically manage their resources and be strategically flexible in turbulent environment such as pandemics. Theory-based investigations on strategic capabilities and DC from resource-based perspective are still under-researched, emphasizing the need for theoretically based research on strategic responsiveness, especially during the times of environmental complexities such as COVID-19 pandemics. This research enriches strategic management research by exploring the important antecedents of organizational responsiveness, including SF and DC together with the support of human factor, i.e. leadership qualities of HEIs managers. This study, to the best of the authors’ knowledge, is among the first to systematically explore main dimensions of DC and SF based on the resource-based theory of strategic management in the Middle Eastern context.

Dynamic capabilities and SMEs competitiveness: the moderating effect of market turbulence

“…Strong LC is especially valuable for SMEs to maximize limited resources. Muneeb et al (2022) suggested that knowledge begets creativity, stimulating firms to become more proactive, while Ali et al (2021) proved that learning skills enabled employees to use existing capabilities for innovation. This hypothesis is formally stated as:…”

“…Research suggests that the relative smallness of SMEs allows them to leverage their "shorter distances" between individuals to improve communication, collaboration and coordination during turbulent times (Bodlaj and Cater, 2019). Evidence from many research studies supports the importance of CCs in FC (Nieves et al, 2016), but others have argued that these findings are incomplete because they were conducted during non-turbulent markets (Muneeb et al, 2022). During a crisis such as the recent pandemic, effective coordination of resources and activities is crucial as the market becomes more erratic and unpredictable.…”

“…A firm achieves superiority over its competitors through VRIN resources, creative problem-solving and entrepreneurial rents (Pattanasing et al , 2019). The evolutionary perspective of DCs showed that resource superiority was insufficient for competitive superiority (Muneeb et al , 2022). Companies must use DCs with care and efficiency to enhance competitiveness (Cataltepe et al , 2022).…”

“…However, in unstable, volatile environments, existing modes of operating become inadequate, and DC application is necessary to outfox competitors. Matching internal procedures with external events help TSMEs achieve competitive edge (Muneeb et al , 2022). Research proves that specific external factors are key variables determining competitiveness (Hassani and Mosconi, 2022).…”

“…This may be because DCs are treated as second-order constructs, ignoring the influence of individual dimensions (Warner and Wa ¨ger, 2019). These varied outcomes suggested that the link between DCs and competitiveness could be moderated by variables, such as environmental turbulence, MT, firm size or years in business (Muneeb et al, 2022). Although environment has been assumed to play a moderating role in DC research, "substantial variability in terms of moderators remains to be explained" (Fainshmidt et al, 2016(Fainshmidt et al, , p. 1371, which means that other factors influence competitiveness in a crisis.…”