IDEAS home Printed from https://ideas.repec.org/a/spr/elcore/v23y2023i4d10.1007_s10660-022-09579-z.html
   My bibliography  Save this article

Building dynamic capabilities of small and medium-sized enterprises through relational embeddedness: evidence from China

Author

Listed:
  • Yina Zhang

    (Xidian University)

  • Jiancheng Long

    (Xidian University)

  • Wu Zhao

    (Xidian University)

Abstract

In a highly volatile environment, i.e., the bottom of the pyramid (BOP) context, small and medium-sized enterprises (SMEs) can develop and adapt their resource bases through partner relations, extending the emerging theorization of dynamic capabilities. We explore the detailed nature and antecedents of these dynamic capabilities based on a multicase study by tracing the development of 6 BOP-oriented SMEs in the pharmaceuticals, animal husbandry, agricultural product processing, and distribution fields. The research was conducted between June 2019 and November 2020. First, our rich qualitative data indicate two distinct types of dynamic capabilities that are pivotal for short-term performance advantage and sustainable competitive advantage. Adaptation dynamic capability relates to activities of resource deployment and renewed operational capability, which is supported by local legitimacy and trust mechanisms, constructed by strong ties with noncommercial partners. Shaping dynamic capability relates to activities of path-creation and innovation capability, which is supported by the heterogeneous information and cost advantages, generated by weak ties with commercial partners. Second, SMEs give priority to the development of adaptation dynamic capability as the basis of shaping dynamic capability, while their sequencing explains how SMEs create, leverage, and enhance them over time.

Suggested Citation

  • Yina Zhang & Jiancheng Long & Wu Zhao, 2023. "Building dynamic capabilities of small and medium-sized enterprises through relational embeddedness: evidence from China," Electronic Commerce Research, Springer, vol. 23(4), pages 2859-2906, December.
    • Handle: RePEc:spr:elcore:v:23:y:2023:i:4:d:10.1007_s10660-022-09579-z
    DOI: 10.1007/s10660-022-09579-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10660-022-09579-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10660-022-09579-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:spr:elcore:v:23:y:2023:i:4:d:10.1007_s10660-022-09579-z. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.