Restructuring in dynamic environments: a dynamic capabilities perspective

Barbero, José Luís; Ramos, Alicia; Chiang, Catherine

doi:10.1093/icc/dtw042

Cited by 14 publications

(16 citation statements)

References 137 publications

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“…There is abundant literature that has supported that the turbulence and uncertainty environment affects firm performance (Barbero, Ramos, & Chiang, 2017;Chaudhary & Batra, 2018;Schilke, 2014;Wang & Li, 2008;Wilden & Gudergan, 2015). In line with previous studies that have demonstrated that environmental factors influence the relationship between innovation and operational capabilities on corporate performance (Aslam et al, 2018;Lu & Ramamurthy, 2011;Mikalef & Pateli, 2017).…”

Section: The Moderation Effects Of Environmental Dynamismsupporting

confidence: 72%

IT Governance as Drivers of Dynamic Capabilities to Gain Corporate Performance Under the Effects of Environmental Dynamism

Yoshikuni

2021

International Journal of Business, Economics and Management

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For researchers and practitioners, there is an important central question to answer, how information technology (IT) governance can help organizations survive and thrive in constantly changing business environments. To address this issue, this study examines the influence of IT governance on dynamic capabilities to sustain corporate performance under environmental dynamism. Tests of the proposed model were performed using survey data from 147 Brazilian firms to support the hypotheses. The results demonstrated that IT governance is a core enabler of dynamic capabilities innovation and operational capabilities for corporate performance gains. The heterogeneity tests also showed that the firm's orientation strategy of prospector and analyzer, under conditions of high dynamism environmental, increased the value of IT governance to enable innovation capability, while the impact of IT governance-enabled operational capabilities under low dynamism, amplified the firm's orientation strategy of defender and reactor. For practical application, this study indicated that managers should be knowledgeable about how IT governance capability plays a fundamental role to enable dynamic capabilities and generate economic payoffs. Contribution/Originality: The original contribution of the work is illustrated of the relationship between IT governance practices, an approach that combined five IT capabilities, and dynamic capabilities (innovation and operational) to gain corporate performance under an uncertainty environment of dynamism, which has not been previously subject to large scale empirical testing.

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Section: The Moderation Effects Of Environmental Dynamismsupporting

confidence: 72%

IT Governance as Drivers of Dynamic Capabilities to Gain Corporate Performance Under the Effects of Environmental Dynamism

Yoshikuni

2021

International Journal of Business, Economics and Management

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“…Specifically, our results were more significant and showed a stronger effect for asset retrenchment (volume, β = −1.12, p < .00; timing, β = −1.00, p < .00; speed, β = −1.00, p < .00; interaction by timing, β = −0.89, p < .00; interaction by speed, β = −1.03, p < .00) than for cost retrenchment (volume, β = −1.00, p < .00; timing, β = −0.87, p < .01; speed, β = −0.57, p < .05; interaction by timing, β = −0.56, p < .05; interaction by speed, β = −0.25, p > .05). Asset retrenchment has been argued to be more strategic than cost retrenchment (Barbero, Ramos, et al, 2017; Morrow, Sirmon, Hitt, & Holcomb, 2007); thus the lever on profitability should be greater than cost retrenchment. Third, the early literature often included a third dimension of aggressiveness: aggressiveness complexity (Ferrier, 2001).…”

Section: Resultsmentioning

confidence: 99%

“…Under an asset retrenchment strategy, firms deliberately eliminate assets by divesting equity, closing plants, and reducing the stock of property, equipment, and inventory (Lim et al, 2013; Morrow et al, 2004; Robbins & Pearce, 1992). The execution of asset retrenchment requires the transfer of the assets retrenched: Having a transactional bilateral nature, the declining firm needs to find an acquirer and is hence involved in a time- and resource-consuming process (Barbero, Ramos, & Chiang, 2017; Brauer, 2006; D. Lee & Madhavan, 2010).…”

Section: Hypothesesmentioning

confidence: 99%

Should Declining Firms Be Aggressive During the Retrenchment Process?

Barbero¹,

Martínez

Moreno

2018

Journal of Management

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In this study, we test the effects of retrenchment aggressiveness on turnaround performance. Using the downward-spiral, threat–rigidity, and survivor syndrome perspectives, we hypothesize the direct effects of the two dimensions of aggressiveness—time aggressiveness and volume aggressiveness—on turnaround performance. We also examine the moderation effect of time aggressiveness on the relationship between volume aggressiveness and turnaround performance. We use data on a sample of declining firms collected from the Compustat North America database and use a matched-pair sample of 494 surviving and nonsurviving firms between the years 1990 and 2010. Our results show that time aggressiveness has a positive effect on turnaround performance, whereas volume aggressiveness has a negative effect. We also find that time aggressiveness positively moderates the negative relationship between volume aggressiveness and turnaround performance. We contribute to the scant but critical literature indicating the importance of time in a turnaround setting and to the long-held discussion of retrenchment as a cause of turnaround or a consequence of decline.

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“…According to Schilke (2014), dynamic resources may be able to generate a competitive advantage for the organization, according to the current level of environmental dynamism. Thus, environmental dynamism can increase the development, the importance, and use of dynamic capabilities, encouraging the use of dynamic resources in these contexts (Barbero & Ramos;Chiang, 2017;Frank, Güttel & Kessler, 2017).…”

Section: Relationship Between Hypotheses and Constructsmentioning

confidence: 99%

“…According to Wang (2016), when family businesses are inserted in turbulent environments, there will be a need for them to develop the capability to interpret the environment to follow the changes. Dynamic environments increase the need to change the companies, mobilizing them to use their dynamic resources and to affect the need for change (Barbero et al, 2017).…”

Section: Analysis Of Hypothesis Testingmentioning

confidence: 99%

Productive dynamic capability, environmental uncertainty, and organizational performance: an analysis of micro and small-sized agroindustries in Southern Brazil

et al. 2020

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Purpose: The purpose of this research was to correlate the constructs of productive dynamic capability and organizational performance mediated by environmental uncertainty in micro and small agroindustries of Brazilian states such as the Rio Grande do Sul, Santa Catarina, and Paraná.Methodology: In order to reach the expected aim, quantitative research using the survey technique was developed. The sample that was used consisting of 138 small and micro-sized of southern Brazilian agroindustries. It was performed confirmatory factor analysis and structural equation modeling for the data analysis. In order to analyze the mediation, the two dimensions of environmental uncertainty, complexity, and dynamism were analyzed each one isolated.Findings: The outcomes show a positive correlation between productive dynamic capability and performance in rural agroindustries. The mediation of both complexity and dynamism presented a positive statistical significance, that is the environmental uncertainty mediated the relationship. This study suggests that the agroindustries productive dynamic capability contributes to its performance, and the perception of environmental uncertainty influences this relation.Originality/Value: The study contributes to the dynamic capabilities’ theory, advancing and providing new empirical evidence to the investigations on dynamic capabilities, specifically on productive dynamic capability, when relating the performance construct in micro and small agroindustries. It also contributes to the environmental uncertainty field through its mediating effect on the relation between productive dynamic capability and organizational performance.

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Restructuring in dynamic environments: a dynamic capabilities perspective

Cited by 14 publications

References 137 publications

IT Governance as Drivers of Dynamic Capabilities to Gain Corporate Performance Under the Effects of Environmental Dynamism

IT Governance as Drivers of Dynamic Capabilities to Gain Corporate Performance Under the Effects of Environmental Dynamism

Should Declining Firms Be Aggressive During the Retrenchment Process?

Productive dynamic capability, environmental uncertainty, and organizational performance: an analysis of micro and small-sized agroindustries in Southern Brazil

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