Innovation, dynamic capabilities and family firms operating in an emerging economy

Abstract

Innovation, dynamic capabilities and family firms operating in an emerging economy http://researchonline.ljmu.ac.uk/id/eprint/9782/ Article LJMU has developed LJMU Research Online for users to access the research output of the University more effectively. Alonso, AD, O'Brien, S and Kok, SK (2018) Innovation, dynamic capabilities and family firms operating in an emerging economy. Journal for International Business and Entrepreneurship Development, 11 (3). pp. 221-242. ISSN 1549-9324 LJMU Research Online Innovation, dynamic capabilities and family firms operating in an emerging economy AbstractDrawing on the dynamic capabilities framework (DCF), this exploratory study examines family firms' involvement in innovation practices, including reasons and ways to innovate. The cases of four family firms operating in an emerging economy (Uruguay) are investigated. Semi-structured, face-to-face and telephone interviews were conducted with owners and managers, and complemented with email correspondence. Based on the imperious need to solve problems in their industry, firms' management were intensively involved in various innovative processes. These processes included quality improvements, responding to a dynamic and competitive business and consumer environment, and extending the life and survival of the family enterprise for future generations. Notably, the importance of sensing and learning in the form of identifying and assimilating key information, and seizing, applying such information to develop or adopt innovation, including new technologies, emerged strongly. The findings also highlight the usefulness of the DCF to understand firms' integration, and transformation of learning.

Exploring the common blockchain adoption enablers: the case of three Italian wineries

“…These findings, in line with DL theory, show how respondents' in-depth knowledge of the competitive environment facilitated the selection of information relevant to the company and the introduction of innovations, such as BCT, which helped to improve company performance (Alonso et al, 2018;Wong et al, 2019).…”

“…These characteristics filter out the information that is only relevant to the business and which leads the business to redefine its internal strategies (Francisco and Swanson, 2018). As Alonso et al (2018) stated, the owners' knowledge from previous generations is the basis of the selection process of market information and is related to the investments in technology and equipment. Moreover, with reference to the introduction of BCT, the DL perspective demonstrates the strategic role of winery managers to support and sustain the flexibility and distribution of their firms' internal and external knowledge (Pan et al, 2019), which the manager of Ricci Curbastro defined as "ordinary processes", and to endorse the activation of dynamic external relationships (Warner and Wäger, 2019;Morkunas et al, 2019).…”

“…Alonso et al (2019a), comparing wineries in the Northern and Southern hemispheres, found that three characteristicssensing, seizing and reconfiguringaffect wineries' ability to understand the business opportunity of innovations and to facilitate their introduction. Knowledge generated by past experience also plays an important role in this process, which can help to filter new knowledge, that together helps form new ideas and processes and new investments in wine industry innovations (Alonso et al, 2018;Dries et al, 2014). These results confirm Chirico and Nordqvist (2010) who highlighted that the creation of dynamic capabilities is affected by the wineries' organizational culture.…”

“…This is confirmed in the wine sector where, as Lorenzo et al (2018) stated, technological and managerial capabilities are two key resources that improve business performance. These dynamic capabilities are also related to a reconfiguration of collaboration processes, which in the digital era become essential both in relation to more flexible and diffused internal communication mechanisms and toward new relationships with external, digital stakeholders (Warner and Wäger, 2019;Alonso et al, 2018). Therefore, adopting and then continually maintaining BCT entails firms creating new capabilities and partnerships with technological actors (Morkunas et al, 2019).…”

Adapting to dynamic business environments: a comparative study of family and non-family firms operating in Western Australia

“…In the absence of research focusing on this study’s main areas, a recent study provides clear links between the dynamic capabilities approach and family firms’ innovating strategies. Duarte Alonso et al (2018) investigated model family firms that have existed for numerous decades. Duarte Alonso et al ’s (2018) study revealed the value of assimilating information, as well as in integrating processes and technologies (sensing), applying information, improving tasks and building alliances (seizing), as well as the significance of updating, learning, modernising and identifying new trends (transforming/reconfiguring).…”