The relationship between dynamic capabilities, the firm’s resource base and performance in a post-disaster environment

Abstract

This article draws on quantitative survey evidence to explore the role of dynamic capabilities in a post-disaster environment, that of Christchurch in New Zealand after the 2010 and 2011 series of major earthquakes. We develop a model to examine the relationship between dynamic capabilities, disaster-related changes to the firm's resource base and its performance. The hypotheses are tested using a sample of 545 small firms that have been affected by the earthquakes. Results highlight the importance of a firm's proactive posture and capability to integrate resources in recognising new opportunities in an environment characterised by high volatility and increased uncertainty. These findings offer important theoretical and practical implications.

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

“…However, beyond the tentative suggestions by Koryak et al (2015) and Lockett et al (2013), the potential influence of self-efficacy on dynamic capabilities in the small business and entrepreneurship domain has not been considered. This is perhaps unsurprising given that dynamic capabilities research has historically focussed mainly on larger enterprises (Koryak et al, 2015;McKelvie and Davidsson, 2009) with only a small body of literature focussing on dynamic capabilities in SMEs (Battisti and Deakins, 2015;Rice, Liao, Galvin and Martin, 2015;Woldesenbet, Ram and Jones, 2011) and micro-enterprises (Arend, 2014;Kevill, 2014;Vickers and Lyon, 2014). Micro-enterprise, however, offers a unique context (Devins, Gold, Johnson and Holden, 2005;Kelliher and Reinl, 2009) deserving of more attention (Jaouen and Lasch, 2015;Kelliher and Reinl, 2009).…”

Capturing Firms’ Heterogeneity through Marketing and IT Capabilities in SMEs

“…Firms identified in this class are those that take and advantage of recessive markets, seeing in them an opportunity to improve performance by developing new concepts through R&D investment [10]. They seem to be doing well in managing their resources and capabilities and the only variable that could help them to increase their efficiency is the investment in R&D. Firms with specific capabilities for recessive markets deserve better attention in the management literature [23].…”

“…The adaptability of SMEs to changes in market conditions due to environment forces is based on flexibility and on the existence of a proactive attitude of the firm. Environmental forces can change the labour market, consumer demand, supply ability, and costs, thereby resulting in a volatile and uncertain market that requires a high level of adaptation of the firm's resources [10].…”

“…Nevertheless, most previous studies into firms' capabilities are based on cross-sectional data that cannot capture this evolution over time and, consequently, cannot capture the firms' adaptability to changes in the environment [10,36]. Repeated measures have rarely been used and only in specific contexts.…”

Building tourism organizational resilience to crises and disasters: A dynamic capabilities view

“…On one hand, DCs can enhance organizations' performance in turbulent environments through organizational changes and innovation outputs, such as resource reconfiguration and routines transformation (Ambrosini et al, ; Makkonen, Pohjola, Olkkonen, & Koponen, ; Teece, ). For small and medium tourism organizations with limited resources and knowledge, the capability to integrate resources from external sources is essential for faster recovery, such as external use of industrial networks, gaining financial support from governments, information sharing, and industry planning (Battisti & Deakins, ; Jiang & Ritchie, ; Verreynne et al, ). Strong DCs help enable an organization to profitably build and renew resources, reconfiguring them as needed to respond to changes in the business environment (Pisano & Teece, ; Teece, ).…”