Dynamic capabilities configurations: the firm lifecycle and the interplay of DC dimensions

Abstract

PurposeDynamic capabilities (DCs) upgrade operational capabilities. However, DC dimensions of sensing, seizing and reconfiguring may combine in different configurations that result in alternative outcomes, depending on the firm's lifecycle stage. The purpose of this research is to explore configurations of DC dimensions during different stages of firms' lifecycles that result in operational marketing and technological capabilities.Design/methodology/approachGiven the limited understanding of how DC dimensions and operational capabilities interact across a firm's lifecycle, the authors employed a multi-method approach to understand whether different configurations of DC dimensions may lead to operational marketing and technological capabilities and how the firm's lifecycle may condition these configurations. The authors first apply PLS path modelling to assess the validity and reliability of the measures. Then, the authors use fuzzy-set qualitative comparative analysis (fsQCA) to analyse micro, small and medium-sized enterprises (SMEs) in different growth stages operating in the creative industry within highly competitive and fast-changing environments.FindingsResults show that several configurations of DC dimensions and competitive intensity influence marketing and technological capabilities. Although several configurations include sensing, seizing and reconfiguring, the findings also point to configurations where not all DC dimensions are present.Practical implicationsImproving operational capabilities does not necessarily imply a simultaneous presence of all three DC dimensions. Especially in the growth stage, managers that face resources shortage may only focus on sensing and seizing dimensions when developing marketing capabilities.Originality/valueThis research focuses on configurations of DC dimensions (instead of configurations of different types of DCs) that generate diverse marketing and technological capabilities development paths. The authors provide several equifinal configurations of DC dimensions that lead to operational marketing and technological capabilities. This study contributes to disentangling DCs and their dimensions across different lifecycle stages.

Untitled

“…The authors also mention the significance of digital transforming capabilities, which involve the construction of digital ecosystems to engage with collaborative stakeholders through co-opetition and co-creation practices, facilitating business model renewal. The theoretical link between dynamic capabilities (DC) and open innovation (OI) is further explored by Páez et al (2022), who find that DC positively influences a firm's technological capabilities and marketing performance. Similarly, Teece (2020) argues that dynamic solid capabilities can enhance the success of open innovation activities, emphasizing the complementary nature of DC and OI in and improving a firm's overall innovation performance.…”

Dynamic capabilities in new product development – the role of operational capabilities

“…, 2016). DCs complement OCs in every business life cycle stage; however, the interaction does not require the simultaneous presence of all DCs elements (Páez et al. , 2022).…”

“Stay home, save SMEs”? The impact of a unique strict COVID-19 lockdown on small businesses

“…more of a strategic approach). Of those focussing on use of DCs, scholars have considered their importance for SMEs during the pandemic (in this category are : Clampit et al, 2022;Ozanne et al, 2022;P aez et al, 2022;Zahoor et al, 2022). The prior literature applying dynamic capabilities as a theoretical framework to enhance understanding of the impact of COVID-19 on SMEs (Ashiru et al, 2022;Clampit et al, 2022;Dejardin et al, 2022;Dyduch et al, 2021;Malewska et al, 2021;Marco-Lajara et al, 2022;Rashid and Ratten, 2020;Zahoor et al, 2022) has resounding complementarities with the more established pre-and post-pandemic parallel literature on entrepreneurial resilience (e.g.…”

“…(2022). More generally (Páez et al. , 2022, p. 1355), provide an analysis of different “configurations of DC dimensions”) and specifically the way in which these configurations enhance SMEs' “marketing and technological capabilities.” These are important aspects that may help to explain how SMEs become more resilient through the development of such capabilities.…”