Unbundling dynamic capabilities for inter-organizational collaboration

Abstract

Purpose The purpose of this paper is to explore two distinct subsets of dynamic capabilities that need to be deployed when pursuing innovation through inter-organizational activities, respectively, in the contexts of broad networks and specific alliances. The authors draw distinctions and explore potential interdependencies between these two dynamic capability reservoirs, by integrating concepts from the theoretical perspectives they are derived from, but which have until now largely ignored each other – the social network perspective and the dynamic capabilities view. Design/methodology/approach The authors investigate nanotechnology-driven R&D activities in the 1995–2005 period for 76 publicly traded firms in the electronics and electrical equipment industry and in the chemicals and pharmaceuticals industry, that applied for 580 nanotechnology-related patents and engaged in 2,459 alliances during the observation period. The authors used zero-truncated Poisson regression as the estimation method. Findings The findings support conceptualizing dynamic capabilities as four distinct subsets, deployed for sensing or seizing purposes, and across the two different inter-organizational contexts. The findings also suggest potential synergies between these subsets of dynamic capabilities, with two subsets being more macro-oriented (i.e. sensing and seizing opportunities within networks) and the two other ones more micro-oriented (i.e. sensing and seizing opportunities within specific alliances). Practical implications The authors show that firms differ in their subsets of dynamic capabilities for pursuing different types of inter-organizational, boundary-spanning relationships (such as alliances vs broader network relationships), which ultimately affects their innovation performance. Originality/value The authors contribute to the growing body of work on dynamic capabilities and firm-specific advantages by unbundling the dynamic capability subsets, and investigating their complex interdependencies for managing different types of inter-organizational linkages. The main new insight is that the “linear model” of generating more innovations through higher inter-firm collaboration in an emerging field paints an erroneous picture of how high innovation performance is actually achieved.

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

“…MNEs need to protect their IP in broader ecosystems with multiple linkages and boundary-spanning activities. This will require specialized collaborative capabilities for managing complex constellations of boundaryspanning, inter-firm relationships (Petricevic & Verbeke, 2019). The DCs required for designing and shaping networks of multiple stakeholder relationships (Rowley, 1997) and across multiple embeddedness dimensions (Ferraris, 2014) thus become especially hard to achieve with amplified VUCA (Helfat et al, 2007: 7), as suggested by the third-order cascading effects in Figure 1.…”

Firm-Level Analysis of Global Supply Chain Network: Role of Centrality on Firm’s Performance

“…This result is in line with our hypothesis and the previous literature discussing that network connections create a network community that results in higher synergy among firms and achievement of more second-order capabilities (c.f. McCormack et al, 2002 ; Petricevic & Verbeke, 2019 ).…”

“…A combination of economic forces and social exchange opportunities in the business ecosystem promotes value co-creation (Kohtamäki & Rajala, 2016 ). The literature provides supportive evidence that the dynamic capabilities create synergies for inter-connected firms at the network level and the firm level (Petricevic & Verbeke, 2019 ).…”

“…The inter-organizational business processes are the “glue” that creates such a “networked community” (McCormack et al, 2002 ). Petricevic and Verbeke ( 2019 ), based on the study of inter-organizational collaborations, argue that such network connections create synergies that enhanced firms’ competitive advantage through elevating the firms’ dynamic capabilities. Therefore, our first hypothesis in the study is that firms that are more strategically integrated into the industry supply chain will have a higher financial performance level due to transaction cost advantages.…”

The Role of Collaboration in Innovation and Value Creation in the Aviation Industry

“…Collaboration in organizations is crucial in creating and capturing value (Petricevic & Verbeke, 2019). However, collaborative innovations fail for numerous reasons, for example, lack of funding, clarity over each stakeholder’s responsibility or the absence of commitment (Martynov, 2019; Porter & Birdi, 2018).…”