IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i16p6639-d400007.html
   My bibliography  Save this article

The Project-Based Firm: A Theoretical Framework for Building Dynamic Capabilities

Author

Listed:
  • Víctor Hermano

    (Department of Business Organization and Marketing and Market Research, University of Valladolid, Avda Valle Esgueva 6, 47011 Valladolid, Spain)

  • Natalia Martín-Cruz

    (Department of Business Organization and Marketing and Market Research, University of Valladolid, Avda Valle Esgueva 6, 47011 Valladolid, Spain)

Abstract

The problem of achieving individual project performance has been replaced by the problem of achieving organizational goals through project performance. Only project-based firms able to learn and build project capabilities can successfully compete in today’s dynamic environments. The purpose of this paper is to present a dynamic capability-based framework that sheds light on how project and organizational dynamic capabilities are built and how these dynamic capabilities allow project-based firms to perform in dynamic environments. Our theoretical framework unpacks the processes of building dynamic capabilities inside a project-based firm, discussing the routines and procedures that are useful to manage projects in unstable and dynamic environments and to build and reconfigure organizational capabilities from project-led knowledge.

Suggested Citation

  • Víctor Hermano & Natalia Martín-Cruz, 2020. "The Project-Based Firm: A Theoretical Framework for Building Dynamic Capabilities," Sustainability, MDPI, vol. 12(16), pages 1-14, August.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:16:p:6639-:d:400007
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/16/6639/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/16/6639/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Prencipe, Andrea & Tell, Fredrik, 2001. "Inter-project learning: processes and outcomes of knowledge codification in project-based firms," Research Policy, Elsevier, vol. 30(9), pages 1373-1394, December.
    2. Tessa Melkonian & Thierry Picq, 2011. "Building Project Capabilities in PBOs : Lessons from the French Special Forces," Post-Print hal-02312571, HAL.
    3. Hobday, Mike, 2000. "The project-based organisation: an ideal form for managing complex products and systems?," Research Policy, Elsevier, vol. 29(7-8), pages 871-893, August.
    4. Margaret Peteraf & Giada Di Stefano & Gianmario Verona, 2013. "The elephant in the room of dynamic capabilities: Bringing two diverging conversations together," Post-Print hal-00982438, HAL.
    5. Alejandro J. Gutiérrez Rodríguez & Nini Johanna Barón & José Manuel Guaita Martínez, 2020. "Validity of Dynamic Capabilities in the Operation Based on New Sustainability Narratives on Nature Tourism SMEs and Clusters," Sustainability, MDPI, vol. 12(3), pages 1-18, January.
    6. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    7. Hanisch, Bastian & Wald, Andreas, 2014. "Effects of complexity on the success of temporary organizations: Relationship quality and transparency as substitutes for formal coordination mechanisms," Scandinavian Journal of Management, Elsevier, vol. 30(2), pages 197-213.
    8. Turner, J. Rodney & Keegan, Anne, 2001. "Mechanisms of governance in the project-based organization:: Roles of the broker and steward," European Management Journal, Elsevier, vol. 19(3), pages 254-267, June.
    9. Aaltonen, Kirsi & Kujala, Jaakko, 2010. "A project lifecycle perspective on stakeholder influence strategies in global projects," Scandinavian Journal of Management, Elsevier, vol. 26(4), pages 381-397, December.
    10. Richard Whitley, 2006. "Project-based firms: new organizational form or variations on a theme?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 15(1), pages 77-99, February.
    11. Sidney G. Winter, 2003. "Understanding dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 991-995, October.
    12. Alfred D. Chandler, 1992. "Organizational Capabilities and the Economic History of the Industrial Enterprise," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 79-100, Summer.
    13. Mueller, Julia, 2014. "A specific knowledge culture: Cultural antecedents for knowledge sharing between project teams," European Management Journal, Elsevier, vol. 32(2), pages 190-202.
    14. Engwall, Mats, 2003. "No project is an island: linking projects to history and context," Research Policy, Elsevier, vol. 32(5), pages 789-808, May.
    15. Hermano, Víctor & Martín-Cruz, Natalia, 2016. "The role of top management involvement in firms performing projects: A dynamic capabilities approach," Journal of Business Research, Elsevier, vol. 69(9), pages 3447-3458.
    16. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    17. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    18. Davies, Andrew & Brady, Tim, 2000. "Organisational capabilities and learning in complex product systems: towards repeatable solutions," Research Policy, Elsevier, vol. 29(7-8), pages 931-953, August.
    19. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    20. María Teresa Bastanchury-López & Carmen De-Pablos-Heredero & Jose Luis Montes-Botella & Santiago Martín-Romo-Romero & Antón García, 2020. "Impact of Dynamic Capabilities on Performance in Dairy Sheep Farms in Spain," Sustainability, MDPI, vol. 12(8), pages 1-13, April.
    21. Lars Lindkvist, 2004. "Governing Project-based Firms: Promoting Market-like Processes within Hierarchies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 8(1), pages 3-25, March.
    22. Michael Yao-Ping Peng & Zhaohua Zhang & Hsin-Yi Yen & Shu-Mi Yang, 2019. "Dynamic Capabilities and Firm Performance in the High-Tech Industry: Quadratic and Moderating Effects under Differing Ambidexterity Levels," Sustainability, MDPI, vol. 11(18), pages 1-15, September.
    23. Shaker A. Zahra & Harry J. Sapienza & Per Davidsson, 2006. "Entrepreneurship and Dynamic Capabilities: A Review, Model and Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 917-955, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lobo, Sunila & Whyte, Jennifer, 2017. "Aligning and Reconciling: Building project capabilities for digital delivery," Research Policy, Elsevier, vol. 46(1), pages 93-107.
    2. Hermano, Víctor & Martín-Cruz, Natalia, 2016. "The role of top management involvement in firms performing projects: A dynamic capabilities approach," Journal of Business Research, Elsevier, vol. 69(9), pages 3447-3458.
    3. Ferreira, Jorge & Coelho, Arnaldo & Moutinho, Luiz, 2020. "Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation," Technovation, Elsevier, vol. 92.
    4. Anja Schulze & Stefano Brusoni, 2022. "How dynamic capabilities change ordinary capabilities: Reconnecting attention control and problem‐solving," Strategic Management Journal, Wiley Blackwell, vol. 43(12), pages 2447-2477, December.
    5. Pantic-Dragisic, Svjetlana & Söderlund, Jonas, 2020. "Swift transition and knowledge cycling: Key capabilities for successful technical and engineering consulting?," Research Policy, Elsevier, vol. 49(1).
    6. Justin J. P. Jansen & Michiel P. Tempelaar & Frans A. J. van den Bosch & Henk W. Volberda, 2009. "Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms," Organization Science, INFORMS, vol. 20(4), pages 797-811, August.
    7. Desirée Knoppen & Louise Knight, 2022. "Pursuing sustainability advantage: The dynamic capabilities of born sustainable firms," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1789-1813, May.
    8. Mait Rungi, 2012. "Influential Capabilities and Their Development in a Project Business: Results of an Estonian Survey," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 4(2).
    9. Erkko Autio & Gerard George & Oliver Alexy, 2011. "International Entrepreneurship and Capability Development—Qualitative Evidence and Future Research Directions," Entrepreneurship Theory and Practice, , vol. 35(1), pages 11-37, January.
    10. Vera Ndrecaj & Mohamed Ashmel Mohamed Hashim & Rachel Mason-Jones & Valentina Ndou & Issam Tlemsani, 2023. "Exploring Lean Six Sigma as Dynamic Capability to Enable Sustainable Performance Optimisation in Times of Uncertainty," Sustainability, MDPI, vol. 15(23), pages 1-23, December.
    11. Jorge Ferreira & Sofia Cardim & Arnaldo Coelho, 2021. "Dynamic Capabilities and Mediating Effects of Innovation on the Competitive Advantage and Firm’s Performance: the Moderating Role of Organizational Learning Capability," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 620-644, June.
    12. Hua Shang & Renfei Chen & Zhongwen Li, 2020. "Dynamic sustainability capabilities and corporate sustainability performance: The mediating effect of resource management capabilities," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 595-612, July.
    13. Yuan, Chun & Xue, Doudou & He, Xin, 2021. "A balancing strategy for ambidextrous learning, dynamic capabilities, and business model design, the opposite moderating effects of environmental dynamism," Technovation, Elsevier, vol. 103(C).
    14. Jutta Wollersheim & Koen H. Heimeriks, 2016. "Dynamic Capabilities and Their Characteristic Qualities: Insights from a Lab Experiment," Organization Science, INFORMS, vol. 27(2), pages 233-248, April.
    15. Faridah Djellal & Faïz Gallouj, 2014. "L’innovation comme valeur : quelle GRH pour développer les compétences dynamiques ?," Post-Print halshs-01672481, HAL.
    16. Jean-Philippe Vergne & Colette Depeyre, 2015. "How do firms adapt? A fuzzy-set analysis of the role of cognition and capabilities in U.S. defense firms’ responses to 9/11," Post-Print hal-01274005, HAL.
    17. Hendrik Wilhelm & Indre Maurer & Mark Ebers, 2022. "(When) Are Dynamic Capabilities Routine? A Mixed‐Methods Configurational Analysis," Journal of Management Studies, Wiley Blackwell, vol. 59(6), pages 1531-1562, September.
    18. Zhang, Yucheng & Hou, Zhongwei & Yang, Feifei & Yang, Miles M. & Wang, Zhiling, 2021. "Discovering the evolution of resource-based theory: Science mapping based on bibliometric analysis," Journal of Business Research, Elsevier, vol. 137(C), pages 500-516.
    19. FeCheng Ma & Farhan Khan & Kashif Ullah Khan & Si XiangYun, 2021. "Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study," SAGE Open, , vol. 11(4), pages 21582440211, November.
    20. Jantunen, Ari & Tarkiainen, Anssi & Chari, Simos & Oghazi, Pejvak, 2018. "Dynamic capabilities, operational changes, and performance outcomes in the media industry," Journal of Business Research, Elsevier, vol. 89(C), pages 251-257.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:16:p:6639-:d:400007. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.