IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v34y2025i2s0969593124000039.html
   My bibliography  Save this article

Dynamic capability deployment: The roles of dominant logic and international entrepreneurial orientation

Author

Listed:
  • Gao, Yuan
  • Gudergan, Siegfried P.
  • Lin, Nidthida

Abstract

To identify factors that drive firms to deploy dynamic capabilities (DCs) more effectively and efficiently than others in changing international environments, this study explores how an explorative versus exploitative dominant logic might affect the technical fitness of firms’ DC deployment, conditional on the level of international entrepreneurial orientation (IEO). Empirical findings from Chinese firms suggest that beyond the effect of the dominant logic on the effectiveness and efficiency of their DC deployment, firms’ IEO has relevant impacts on this relationship.

Suggested Citation

  • Gao, Yuan & Gudergan, Siegfried P. & Lin, Nidthida, 2025. "Dynamic capability deployment: The roles of dominant logic and international entrepreneurial orientation," International Business Review, Elsevier, vol. 34(2).
    • Handle: RePEc:eee:iburev:v:34:y:2025:i:2:s0969593124000039
    DOI: 10.1016/j.ibusrev.2024.102256
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593124000039
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ibusrev.2024.102256?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.

    References listed on IDEAS

    as
    1. Fleisher, Belton & Li, Haizheng & Zhao, Min Qiang, 2010. "Human capital, economic growth, and regional inequality in China," Journal of Development Economics, Elsevier, vol. 92(2), pages 215-231, July.
    2. Dean A. Shepherd & Jeffery S. Mcmullen & William Ocasio, 2017. "Is that an opportunity? An attention model of top managers' opportunity beliefs for strategic action," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 626-644, March.
    3. Lu, Jiangyong & Tao, Zhigang, 2010. "Determinants of entrepreneurial activities in China," Journal of Business Venturing, Elsevier, vol. 25(3), pages 261-273, May.
    4. Ryan W. Tang & Siegfried P. Gudergan, 2018. "A Meta-analysis of the International Experience–Ownership Strategy Relationship: A Dynamic Capabilities View," Management International Review, Springer, vol. 58(4), pages 541-570, August.
    5. Hasan, Iftekhar & Wachtel, Paul & Zhou, Mingming, 2009. "Institutional development, financial deepening and economic growth: Evidence from China," Journal of Banking & Finance, Elsevier, vol. 33(1), pages 157-170, January.
    6. Viktor Fredrich & Siegfried Gudergan & Ricarda B. Bouncken, 2022. "Dynamic Capabilities, Internationalization and Growth of Small- and Medium-Sized Enterprises: The Roles of Research and Development Intensity and Collaborative Intensity," Management International Review, Springer, vol. 62(4), pages 611-642, August.
    7. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    8. Richard A. Bettis & C. K. Prahalad, 1995. "The dominant logic: Retrospective and extension," Strategic Management Journal, Wiley Blackwell, vol. 16(1), pages 5-14.
    9. Jeffrey G. Covin & William J. Wales, 2012. "The Measurement of Entrepreneurial Orientation," Entrepreneurship Theory and Practice, , vol. 36(4), pages 677-702, July.
    10. Jerker Denrell & James G. March, 2001. "Adaptation as Information Restriction: The Hot Stove Effect," Organization Science, INFORMS, vol. 12(5), pages 523-538, October.
    11. Christoph Zott, 2003. "Dynamic capabilities and the emergence of intraindustry differential firm performance: insights from a simulation study," Strategic Management Journal, Wiley Blackwell, vol. 24(2), pages 97-125, February.
    12. Wim Naudé & Stephanié Rossouw, 2010. "Early international entrepreneurship in China: Extent and determinants," Journal of International Entrepreneurship, Springer, vol. 8(1), pages 87-111, March.
    13. Yuan Li & Haowen Chen & Yi Liu & Mike Peng, 2014. "Managerial ties, organizational learning, and opportunity capture: A social capital perspective," Asia Pacific Journal of Management, Springer, vol. 31(1), pages 271-291, March.
    14. C. K. Prahalad & Richard A. Bettis, 1986. "The dominant logic: A new linkage between diversity and performance," Strategic Management Journal, Wiley Blackwell, vol. 7(6), pages 485-501, November.
    15. Hicheon Kim & Heechun Kim & Robert E Hoskisson, 2010. "Does market-oriented institutional change in an emerging economy make business-group-affiliated multinationals perform better? An institution-based view," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(7), pages 1141-1160, September.
    16. Karl E. Weick & Kathleen M. Sutcliffe, 2006. "Mindfulness and the Quality of Organizational Attention," Organization Science, INFORMS, vol. 17(4), pages 514-524, August.
    17. Chung-Ming Lau & David K Tse & Nan Zhou, 2002. "Institutional Forces and Organizational Culture in China: Effects on Change Schemas, Firm Commitment and Job Satisfaction," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 533-550, September.
    18. Luo, Yadong, 2000. "Dynamic capabilities in international expansion," Journal of World Business, Elsevier, vol. 35(4), pages 355-378, January.
    19. Jeffrey G. Covin & Danny Miller, 2014. "International Entrepreneurial Orientation: Conceptual Considerations, Research Themes, Measurement Issues, and Future Research Directions," Entrepreneurship Theory and Practice, , vol. 38(1), pages 11-44, January.
    20. Tim Rowley & Dean Behrens & David Krackhardt, 2000. "Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor industries," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 369-386, March.
    21. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    22. Daniel A. Levinthal, 1991. "Organizational Adaptation and Environmental Selection-Interrelated Processes of Change," Organization Science, INFORMS, vol. 2(1), pages 140-145, February.
    23. Keh, Hean Tat & Nguyen, Thi Tuyet Mai & Ng, Hwei Ping, 2007. "The effects of entrepreneurial orientation and marketing information on the performance of SMEs," Journal of Business Venturing, Elsevier, vol. 22(4), pages 592-611, July.
    24. Sascha Kraus & Norat Roig-Tierno & Ricarda B. Bouncken, 2019. "Digital innovation and venturing: an introduction into the digitalization of entrepreneurship," Review of Managerial Science, Springer, vol. 13(3), pages 519-528, June.
    25. David J Teece, 2014. "A dynamic capabilities-based entrepreneurial theory of the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(1), pages 8-37, January.
    26. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    27. 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.
    28. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    29. Thayaparan Gajendran & Graham Brewer & Siegfried Gudergan & Shankar Sankaran, 2014. "Deconstructing dynamic capabilities: the role of cognitive and organizational routines in the innovation process," Construction Management and Economics, Taylor & Francis Journals, vol. 32(3), pages 246-261, March.
    30. Auh, Seigyoung & Menguc, Bulent, 2005. "Balancing exploration and exploitation: The moderating role of competitive intensity," Journal of Business Research, Elsevier, vol. 58(12), pages 1652-1661, December.
    31. William Ocasio, 1997. "Towards An Attention‐Based View Of The Firm," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 187-206, July.
    32. Gelhard, Carsten & von Delft, Stephan & Gudergan, Siegfried P., 2016. "Heterogeneity in dynamic capability configurations: Equifinality and strategic performance," Journal of Business Research, Elsevier, vol. 69(11), pages 5272-5279.
    33. Nicole F. Richter & Sven Hauff & Christian M. Ringle & Siegfried P. Gudergan, 2022. "The Use of Partial Least Squares Structural Equation Modeling and Complementary Methods in International Management Research," Management International Review, Springer, vol. 62(4), pages 449-470, August.
    34. Altintas, Gulsun & Ambrosini, Véronique & Gudergan, Siegfried, 2022. "MNE dynamic capabilities in (un)related diversification," Journal of International Management, Elsevier, vol. 28(1).
    35. 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.
    36. Chenjian Zhang & Justin Tan & David Tan, 2016. "Fit by adaptation or fit by founding? A comparative study of existing and new entrepreneurial cohorts in China," Strategic Management Journal, Wiley Blackwell, vol. 37(5), pages 911-931, May.
    37. Ciaran Heavey & Zeki Simsek & Frank Roche & Aidan Kelly, 2009. "Decision Comprehensiveness and Corporate Entrepreneurship: The Moderating Role of Managerial Uncertainty Preferences and Environmental Dynamism," Journal of Management Studies, Wiley Blackwell, vol. 46(8), pages 1289-1314, December.
    38. Daniel Levinthal & Claus Rerup, 2006. "Crossing an Apparent Chasm: Bridging Mindful and Less-Mindful Perspectives on Organizational Learning," Organization Science, INFORMS, vol. 17(4), pages 502-513, August.
    39. Yiannis E. Spanos & Spyros Lioukas, 2001. "An examination into the causal logic of rent generation: contrasting Porter's competitive strategy framework and the resource‐based perspective," Strategic Management Journal, Wiley Blackwell, vol. 22(10), pages 907-934, October.
    40. Peter J. Lane & Jane E. Salk & Marjorie A. Lyles, 2001. "Absorptive capacity, learning, and performance in international joint ventures," Strategic Management Journal, Wiley Blackwell, vol. 22(12), pages 1139-1161, December.
    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. Lin Song & Li Jing, 0. "Strategic orientation and performance of new ventures: empirical studies based on entrepreneurial activities in China," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-24.
    2. Lin Song & Li Jing, 2017. "Strategic orientation and performance of new ventures: empirical studies based on entrepreneurial activities in China," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 989-1012, December.
    3. Ilgaz Arikan & Ipek Koparan & Asli M Arikan & Oded Shenkar, 2022. "Dynamic capabilities and internationalization of authentic firms: Role of heritage assets, administrative heritage, and signature processes," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 601-635, June.
    4. Mostafiz, Md Imtiaz & Ahmed, Farhad Uddin & Tardios, Janja & Hughes, Paul & Tarba, Shlomo Y., 2025. "Configuring international entrepreneurial orientation and dynamic internationalization capability to predict international performance," International Business Review, Elsevier, vol. 34(2).
    5. Randhawa, Krithika & Wilden, Ralf & Gudergan, Siegfried, 2021. "How to innovate toward an ambidextrous business model? The role of dynamic capabilities and market orientation," Journal of Business Research, Elsevier, vol. 130(C), pages 618-634.
    6. Hwan Jin Kim, 2018. "Reconciling Entrepreneurial Orientation and Dynamic Capabilities: A Strategic Entrepreneurship Perspective," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 27(2), pages 180-208, September.
    7. Pinho, José Carlos & Prange, Christiane, 2016. "The effect of social networks and dynamic internationalization capabilities on international performance," Journal of World Business, Elsevier, vol. 51(3), pages 391-403.
    8. Altintas, Gulsun & Ambrosini, Véronique & Gudergan, Siegfried, 2022. "MNE dynamic capabilities in (un)related diversification," Journal of International Management, Elsevier, vol. 28(1).
    9. Ahsan, Mujtaba & Fernhaber, Stephanie A., 2019. "Multinational Enterprises: Leveraging a Corporate International Entrepreneurship Lens for New Insights Into Subsidiary Initiatives," Journal of International Management, Elsevier, vol. 25(1), pages 51-65.
    10. Bhandari, Krishna Raj & Rana, Sudhir & Paul, Justin & Salo, Jari, 2020. "Relative exploration and firm performance: Why resource-theory alone is not sufficient?," Journal of Business Research, Elsevier, vol. 118(C), pages 363-377.
    11. Shi, Linda Hui & Smith, J. Brock & Zou, Shaoming & Han, Yuqing & Tan, Kang Frank, 2024. "The mediated and moderated effects of IEO on international performance: An investigation of emerging market SMEs," Journal of World Business, Elsevier, vol. 59(4).
    12. Roh, Taewoo & Xiao, Shufeng (Simon) & Park, Byung Il, 2024. "MNEs' capabilities and their sustainable business in emerging markets: Evidence from MNE subsidiaries in China," Journal of International Management, Elsevier, vol. 30(1).
    13. Rodrigo-Alarcón, Job & García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Parra-Requena, Gloria, 2018. "From social capital to entrepreneurial orientation: The mediating role of dynamic capabilities," European Management Journal, Elsevier, vol. 36(2), pages 195-209.
    14. Wu Zhan & Roger (Rongxin) Chen, 2013. "Dynamic capability and IJV performance: The effect of exploitation and exploration capabilities," Asia Pacific Journal of Management, Springer, vol. 30(2), pages 601-632, June.
    15. Prange, Christiane & Verdier, Sylvie, 2011. "Dynamic capabilities, internationalization processes and performance," Journal of World Business, Elsevier, vol. 46(1), pages 126-133, January.
    16. Sahi, Gurjeet Kaur & Gupta, Mahesh C. & Cheng, T.C.E., 2020. "The effects of strategic orientation on operational ambidexterity: A study of indian SMEs in the industry 4.0 era," International Journal of Production Economics, Elsevier, vol. 220(C).
    17. Björn Michaelis & Shalini Rogbeer & Lars Schweizer & Zafer Özleblebici, 2021. "Clarifying the boundary conditions of value creation within dynamic capabilities framework: a grafting approach," Review of Managerial Science, Springer, vol. 15(6), pages 1797-1820, August.
    18. 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.
    19. William E. Baker & Amir Grinstein & Marcelo G. Perin, 2020. "The Impact of Entrepreneurial Orientation on Foreign Market Entry: the Roles of Marketing Program Adaptation, Cultural Distance, and Unanticipated Events," Journal of International Entrepreneurship, Springer, vol. 18(1), pages 63-91, March.
    20. Yadong Luo, 2020. "Adaptive learning in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1547-1567, December.

    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:eee:iburev:v:34:y:2025:i:2:s0969593124000039. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    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.