Dynamic capabilities, innovation and branding capabilities and their impact on competitive advantage and SME's performance in Portugal: the moderating effects of entrepreneurial orientation

Abstract

Purpose The purpose of this paper is to understand the impact of dynamic capabilities (DC) (in the view of exploration and exploitation) on competitiveness and performance, considering the mediating role the innovation capability (IC) and branding capabilities (BC)on competitive advantage and firm’s performance and the moderating role of entrepreneurial orientation (EO). Design/methodology/approach This investigation proposes a theoretical model tested using structural equation modelling (SEM). Multi-group analysis was performed to understand the moderating role of. A questionnaire survey was developed to explore the relations between DC and innovation variable. For this study, 387 valid questionnaires were collected from a sample of Portugal SME’ firms. A 90-item questionnaire which consists to study the relationships among all the variables. Findings The results show that exists a positive direct and indirect influence of DC on competitive advantage and performance variables and mediating impact the IC and BC. Research limitations/implications This study has some methodological limitations affecting its potential contributions. As a cross-sectional study that captures one image in time, its ability to identify strict causality between variables is limited. Furthermore, the results are based on log collected from a key respondent, rather than broader actual data. The results are restricted to one country, Portugal. Some variables, such as ICs, may play a different role in other countries. Future research should initially target different countries. Such research could then test the generalizability of the results. Practical implications This study has important implications for the managers. It highlights the necessity of firms to develop superior strategic orientation of all their members and to invest in better resources and consequently superior capabilities as a way of achieving high levels of firm performance. Another implication from the study is that the firms should develop their marketing programs by focusing on developing innovativeness. Originality/value This study contributes to the understanding of the indirect and direct impact of exploration and exploitation variables, and the mediating role of ICs and BC on the competitive advantage and performance and the moderating effect of EO.

Touristic SME’s Competitiveness in the Light of Present Challenges—A Qualitative Approach

“…Different authors consider that within the services field, the brand of the organization can be an important source of competitive advantage, presenting the possibility to different organizations of standing out individually and obtaining a strategic position in accordance with the advantages and benefits associated with the provision of services. [19][20][21][22][23] The potential of the brand as an important source of competitive advantage is presented by the fact that within the structure of a service, we can see a significant intangible component. Thus, the brand image can play a special role in reducing or even eliminating the perception of the potential risks associated with consumption [24][25][26].…”

Las ventajas competitivas en las organizaciones a través de la innovación en la investigación

“…Ayuda a configurar y administrar las múltiples capacidades de la empresa de modo que respalden las capacidades de integración y proporcionen un estímulo para la innovación exitosa (Ferreira & Coelho, 2020).Para mejorar la innovación, los ejecutivos necesitan observar el proceso de transformar las ideas en salidas comerciales como un flujo integrado -como la cadena de valor de Michael Porter para transformar las materias primas en mercancías. La primera fase de la innovación en la cadena de valor es generar ideas; esto puede suceder dentro de una unidad, a través de las unidades en una compañía, o en el exterior de la empresa.…”

Understanding the Sustainable Competitive Advantages of China’s Private Manufacturing Enterprises: An Empirical Study Based on the Dynamic Capabilities of Supply Chain

“…After combing the literature at home and abroad, found in the past the study of dynamic capability theory mainly embodied in the definition and constituent elements of dynamic capability, the forming mechanism and construction mechanism, the relationship between dynamic capability and performance, the dynamic capability theory in production operation, marketing, international business, organizational change, social responsibility and public management in the areas of application, etc. [8][9][10]. In addition, contingency theory holds that organizational behavior (market perception, resource selection behavior) can produce higher performance only when it is matched with organizational environment (environmental dynamism), but previous studies have ignored the role of environmental factors in the process of creating sustainable competitive advantage.…”