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Towards an understanding of the nature of dynamic capabilities in high-velocity markets of China

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  • Li, Shenxue
  • Easterby-Smith, Mark
  • Hong, Jacky F.L.

Abstract

Dynamic capabilities are arguably of more value in the internationalization process, particularly of multinational companies (MNCs) that operate in highly dynamic international markets. Yet there is a scarcity of research on the nature of dynamic capabilities in such highly relevant contexts. This exploratory study presents observations of dynamic capabilities of MNCs operating in ten tightly-defined high-velocity industries of China that shed light on the nature of the concept. The findings suggest that (1) dynamic capabilities of MNCs in high-velocity markets are analytic, strategically planned high-frequency processes and routines, (2) they are highly complicated, and (3) they rely extensively on combined knowledge derived from global and local knowledge. They are likely influenced by diverse sources of environmental velocity and the degree of the MNC's ownership advantages. The complexity and sophistication observed have led us to propose a way to conceptualize dynamic capabilities of MNCs in high-velocity markets.

Suggested Citation

  • Li, Shenxue & Easterby-Smith, Mark & Hong, Jacky F.L., 2019. "Towards an understanding of the nature of dynamic capabilities in high-velocity markets of China," Journal of Business Research, Elsevier, vol. 97(C), pages 212-226.
    • Handle: RePEc:eee:jbrese:v:97:y:2019:i:c:p:212-226
    DOI: 10.1016/j.jbusres.2018.08.007
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