The managing director and the development of dynamic capabilities

Abstract

Purpose -This research aims at examining the role of the managing director in the development of dynamic capabilities at SMEs. Design/methodology/approach -The paper used a mixed-methods approach and conducted case studies at 13 SMEs. The primary sources of data were semi-structured interviews, which were supplemented by quantitative data from a postal survey and content analysis of the companies' websites. Findings -The paper suggests that managing directors "enact" in the development of dynamic capabilities, if they believe that dynamic capabilities are a source of competitive advantage. If they do not appreciate the importance of dynamic capabilities they can get trapped in a vicious circle. Research limitations/implications -This research focuses especially on small firms, and it is unlikely that the findings can be applied to large firms. Practical implications -The key managerial implication is the threat of a vicious circle if the development of dynamic capabilities is neglected. Originality/value -This paper draws the dynamic capabilities framework and the enactment concept together, suggesting that managerial decisions and behavior affect dynamic capabilities at an organizational level, which then drives firm performance.

Dynamic managerial capabilities in micro-enterprises: Stability, vulnerability and the role of managerial time allocation

“…This questions whether the theorised relationships between dynamic capabilities at different analytical levels apply in the micro-enterprise context. While some studies have helpfully shown that managers can be important microfoundations of dynamic capabilities in micro-enterprises (Evers, 2011;Kelliher et al, 2018;Schlemmer and Webb, 2008), little empirical consideration has been given to the unit(s) of analysis at which the capabilities reside. To address this, research should investigate the micro-foundational role played by different parties in the enactment of organisational change initiatives in microenterprises.…”

Antecedents of women managers’ resilience: conceptual discussion and implications for HRM

“…Moreover, Couper et al, (2015 found that resilience training has a number of wider benefits that include enhanced psychosocial functioning, increases in goal attainment and productivity, and improved performance (see also Grant et al, 2009, Pipe et al, 2012, Arnetz et al, 2009. (Schlemmer and Webb, 2008).…”

Perceiving ‘capability’ within dynamic capabilities: The role of owner-manager self-efficacy

“…Within the body of micro-foundations literature to which we contribute, there are arguments that idiosyncratic individuals (Felin and Foss, 2005;Hodgson, 2012) and their cognition (Narayanan, Colwell and Douglas, 2009;Schlemmer and Webb, 2008) can be integral micro-foundations of dynamic capabilities. This infers that perceived self-efficacy, as an idiosyncratic element of cognition that can influence individual intentions and behaviours (Boyd and Vozikis, 1994;McGee et al, 2009), could potentially underpin an enterprise's dynamic capabilities to develop its resource base.…”

“…Extant literature in this area has suggested that, for example, managerial perceptions of environmental dynamism (Ambrosini, Bowman and Collier, 2009;Barrales-Molina, Benitez-Amado and Perez-Arostegui, 2010;Shang, Huang and Guo, 2010) and managerial perceptions of the value of a dynamic capability (Schlemmer and Webb, 2008), can act as important micro-foundations of dynamic capabilities. What tends to dominate in such literature is a preference towards manager perceptions of external factors.…”