Dynamic Capabilities, Government Policies, and Performance in Firms from Emerging Economies: Evidence from India and Pakistan

Abstract

In this study we developed a model of the dynamic capability development mechanisms in Emerging Market manufacturing Firms (EMF). We identified three dynamic capability development mechanisms: organizational learning, reverse engineering, and manufacturing flexibility. We generated hypotheses based on this framework, linking these mechanisms with firm performance. We also modelled the roles played by managerial use of two types of government policies: input supporting policies and marketing supporting policies. We tested our hypotheses on a sample of Indian and Pakistani manufacturing firms. Results showed that organizational learning, reverse engineering and manufacturing flexibility had significant impacts on EMF performance. Additionally, organizational learning combined with input supporting government policies enhanced performance, and the combination of manufacturing flexibility and marketing supporting government policies had an insignificant influence on performance. Copyright (c) Blackwell Publishing Ltd 2009.

Antecedents of firm performance in emerging economies: Business groups, strategy, industry structure, and state support

“…The present study acknowledges the role of state support for firm performance (Boratav, 1981;Bugra 2008, Hoskisson, Wright, Filatotchev andPeng, 2012;Malik and Kotabe, 2009;Özen and Akkemik, 2012;Özen and Özen, 2009), although the indirect effects of state interventionism, for example on industry structure, cannot be measured. The study proposes the following hypothesis.…”

Organisational determinants of export performance: evidence from exporting firms in Batam, Indonesia

“…Ultimately, the field of international business is characterised by variations in local settings (Meyer et al, 2011). In this regard, Malik and Kotabe (2009) explain that governments play a particularly important contextual role due to their profound influence on firm behaviour across countries, especially in emerging economies. Although a number of scholars have conducted research on EP in developed countries (e.g., Jonker et al, 2004;Rodríguez-Pose et al, 2013), studies on EP in Indonesia have received limited attention in the mainstream literature, despite the country's increasingly prominent position in regional and global affairs.…”

The Influence of Industry Characteristics and Dynamic Capabilities on Firms’ Profitability

“…In comparing the results of this study with those that encompass the relationship between dynamic capabilities and performance of the firms operating in emerging economies, besides the above mentioned study of Nedzinskas et al (2013), it can be seen that they correspond to the results of the research of Malik and Kotabe (2009), in which organisational learning, reverse engineering and manufacturing flexibility are taken as dynamic capabilities, and Zhou et al (2017) with the difference of the inclusion of a mediating role for innovation in the relationship between dynamic capabilities (sensing and reconfiguration, but not integration capability) and the firm's financial performance.…”