Innovation, Dynamic Capabilities, and Leadership

Abstract

The world in which today's businesses operate has become not only riskier but also more volatile, uncertain, complex, and ambiguous (VUCA). Organizations that hew too closely to traditional ways of operating will be hampered in their ability to succeed. In contrast, those that focus on new product and process developments coupled with business model innovation will leverage their dynamic capabilities. An essential overlay is entrepreneurial leadership from top management teams. Strong dynamic capabilities are impossible without it. This article examines how business model innovations, dynamic capabilities, and strategic leadership intertwine to help organizations thrive in VUCA worlds.

The structural reshaping of globalization: Implications for strategic sectors, profiting from innovation, and the multinational enterprise

“…CONDITIONS IN IB Irrespective of one's view of the role that China is playing on the global economic stage, or with regards to the nature of the structural reshaping of the global governance system, it is clear that today's IB environment is plagued with volatility, uncertainty, complexity, and ambiguity (VUCA) at an unprecedented scale (Bennett & Lemoine, 2014;Schoemaker, Heaton, & Teece, 2018;van Tulder, Verbeke & Jankowska, 2020). Volatile environments are characterized by high frequency in change and high magnitude of change in the global system.…”

“…The DC approach (Teece 2007(Teece , 2014) is a lens that provides a starting point for examining how MNEs can deal with VUCA conditions and achieve evolutionary fitness (Helfat et al, 2007;Schoemaker et al, 2018). The DC framework seeks to outline the structures, decision processes, and managerial actions that can support evolutionary fitness in a variety of contextual circumstances.…”

Operationalizing Business Model Innovation through Big Data Analytics for Sustainable Organizations

“…In this regard, there is a gap between what has been studied in academia and what can be potentially useful for managers willing to innovate their BM [8,9].Thus, BM innovation, validation, and experimentation processes need to be structured and implemented. This is relevant in several industries as the greater frequency of disruption and dislocation are shortening business model life cycles and the sustainability of any specific business model is unclear [10,11]. In a scenario of constant change and need for a better structured management process for BMI, it is important to consider alternatives for testing and experimenting with new alternatives of BM.…”

Global strategy gone astray: Maersk's big box boats and the world shipping industry

“…These issues are particularly critical when seeking global expansion. Regarding operational efficiencies and corporate capabilities (Martin, ; Schoemaker, Heaton, & Teece, ), Maersk is a successful shipping conglomerate that continues to outcompete competitors on its own terms because of its operational efficiencies and established infrastructure (Heuskel, Fechtel, & Beckmann, ). The internationalization process of Maersk remains visible in the shipping industry because of its specialized knowledge and managerial know‐how.…”