NEBIC: A Dynamic Capabilities Theory for Assessing Net-Enablement

Wheeler, Bradley C.

doi:10.1287/isre.13.2.125.89

Cited by 299 publications

(248 citation statements)

References 59 publications

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“…Other researchers define dynamic capabilities as the organizational and strategic routines by which firms achieve new resource configurations as markets emerge, collide, split, evolve, and die [2: p. 1107]. Therefore, dynamic capabilities enable organizations to achieve competitive advantage through a mechanism that continuously implements a strategy based on environmental changes [22].…”

Section: Dynamic Capabilities Theorymentioning

confidence: 99%

Causal Relationship between Supply Chain Dynamic Capabilities, Technological Innovation, and Operational Performance

Ju¹,

Park²,

Kim³

2016

Management and Production Engineering Review

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Accepted: 28 July 2016The aim of this study is to empirically examine the impact of supply chain dynamic capabilities on operational performance, and the mediating effect of technological innovation between dynamic capabilities and operational performance. This study is based on empirical data collected from a survey of 206 small-and medium-size firms in Korea. Structural equation modeling is used to test the research questions. The results show that supply chain dynamic capabilities positively influence technological innovation and operational performance of an enterprise. Additionally, structural equation analyses reveal that technological innovation plays a role as a partial mediator of the relationship between supply chain dynamic capabilities and operational performance. In a dynamic and ever-changing environment, the enforcement of dynamic capabilities in a sustainable supply chain is important for the innovation of technology and the improvement of operational performance. Further investigation is required to understand the differences by industries, characteristics of enterprises, and positions in a supply chain.Keywords supply chain management, dynamic capabilities, supply chain dynamic capabilities, technological innovation, operational performance. IntroductionDue to the acceleration of the global economy, the rapid progress of information technology, and the various expectations of customers, today's business environment is rapidly changing and competition among enterprises has intensified. In the past the technology transfer from one industry to another did not occur or was a slow process. Due to the rapid growth of technological innovation and globalization, a technology developed for one industry is quickly transferred to another. This creates a great ripple effect throughout the industry. This ever-changing business environment prevents enterprises from sustaining their competitive positions as well as from allowing for the time necessary to diagnose changes in the business environment, discover opportunities and risks, and to deal with them in a timely manner.Therefore, the dynamic capabilities theory has been implemented in business environments where dynamic capability is required in order for an organization to remain sustainable. Dynamic capability refers to the capability of an organization to integrate and reorganize its internal and external resources [1][2][3][4]. By implementing the dynamic capabilities theory, an organization is given the opportunity to create enterprise values such as management innovation, sus- Management and Production Engineering Reviewtainable competitive advantage, and operational performance through dynamic capability. The dynamic capabilities theory is based on the resource-based view [5, 6] and the core competency theory [7,8]. According to the resource-based view, organizational performance is created from the capability and differences in resources an organization holds, which are valuable, rare, imperfectly imitable, and nonsubstitutable [6]. The...

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Section: Dynamic Capabilities Theorymentioning

confidence: 99%

Causal Relationship between Supply Chain Dynamic Capabilities, Technological Innovation, and Operational Performance

Ju¹,

Park²,

Kim³

2016

Management and Production Engineering Review

View full text Add to dashboard Cite

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“…Applying the dynamic capabilities theory for understanding a firm's ability to create value through the business use of digital networks, Wheeler (2002) proposes the Net-enabled Business Innovation Cycle (NeBIC), which identifies that Net-enabled business innovations require timely and ongoing reconfiguration of firm resources. Zahra and George's 2002 article reinforces its appropriateness in the IS context.…”

Section: Resource-based Theory For Net-enhancedmentioning

confidence: 99%

e-Commerce Metrics for Net-Enhanced Organizations: Assessing the Value of e-Commerce to Firm Performance in the Manufacturing Sector

Zhu

Kraemer

2002

Information Systems Research

597

428

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I n this study, we developed a set of constructs to measure e-commerce capability in Internetenhanced organizations. The e-commerce capability metrics consist of four dimensions: information, transaction, customization, and supplier connection. These measures were empirically validated for reliability, content, and construct validity. Then we examined the nomological validity of these e-commerce metrics in terms of their relationships to firm performance, with data from 260 manufacturing companies divided into high IT-intensity and low IT-intensity sectors. Grounded in the dynamic capabilities perspective and the resource-based theory of the firm, a series of hypotheses were developed. After controlling for variations of industry effects and firm size, our empirical analysis found a significant relationship between e-commerce capability and some measures of firm performance (e.g., inventory turnover), indicating that the proposed metrics have demonstrated value for capturing e-commerce effects. However, our analysis showed that e-commerce tends to be associated with the increased cost of goods sold for traditional manufacturing companies, but there is an opposite relationship for technology companies. This result seems to highlight the role of resource complementarity for the business value of e-commerce-traditional companies need enhanced alignment between e-commerce capability and their existing IT infrastructure to reap the benefits of e-commerce.

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“…We also take into account Wheeler's (2002) justification in a study on net enablement that DCP captures the essence of the "dynamic process of recreating and executing innovative options to gain and sustain competitive advantage" within organizations competing in digitally networked environments (p. 127). In short, DCP presumes a continuum of business competencies renewal to achieve congruence to ever-changing competitive circumstances, thus making it palatable to our proposed research objective.…”

Section: Theoretical Foundationmentioning

confidence: 99%

Enterprise System as an Orchestrator of Dynamic Capability Development: A Case Study of the IRAS and TechCo

Tan

Lim

Pan

et al. 2004

Information Systems Research

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Corporations are perpetually hunting for ways to develop exclusive, sustainable, and competitive advantages that will enable them to leapfrog ahead of their industrial adversaries. Notably, the debut of enterprise systems (ES) during the recent decade has given rise to frequent talk of the utilization of integrative, IT-inspired business mechanisms to achieve the much sought-after but elusive competitive edge. Others, however, have argued that the search for sustainable competitiveness should instead be anchored in organizational efforts to cultivate and build up firm-specific dynamic capabilities. Cognizant of the various perspectives, this paper takes a holistic approach in proposing the achievement of sustainable competitive advantages by examining the manner in which ES adoption can contribute to the forging of dynamic capabilities. In particular, Montealegre's (2002) process model of capability development is adopted as the analytical framework to explore the strategization of ES development in two different organizations, with the main distinction being that one of them subscribes to commercially available SAP 516Part 6: Systems Development: Methods, Politics, and Users applications while the other chooses to develop its ES in-house. Through comparing and contrasting evidence from both cases, this study attempts to decipher how ES adoption can be strategized to develop strategic capabilities and understand the implications between off-the-shelf and bespoke ES in affecting the process of dynamic capability development.Management information systems, enterprise systems, dynamic capability development, dynamic capabilities perspective

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NEBIC: A Dynamic Capabilities Theory for Assessing Net-Enablement

Cited by 299 publications

References 59 publications

Causal Relationship between Supply Chain Dynamic Capabilities, Technological Innovation, and Operational Performance

Causal Relationship between Supply Chain Dynamic Capabilities, Technological Innovation, and Operational Performance

e-Commerce Metrics for Net-Enhanced Organizations: Assessing the Value of e-Commerce to Firm Performance in the Manufacturing Sector

Enterprise System as an Orchestrator of Dynamic Capability Development: A Case Study of the IRAS and TechCo

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