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How strategic orientations influence the building of dynamic capability in emerging economies

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  • Zhou, Kevin Zheng
  • Li, Caroline Bingxin

Abstract

Under the fierce pressures of the fast changing environments that characterize emerging economies, firms must develop dynamic capabilities to survive the competition. This study examines how strategic orientation helps build dynamic capability and its contingencies in China's emerging economy. A survey of 380 firms indicates strategic orientations are important drivers of adaptive capability, a key element of dynamic capabilities. The effectiveness of strategic orientations is contingent on market dynamics. In particular, when market demand becomes increasingly uncertain, customer orientation has a weaker impact, whereas technology orientation has a stronger effect on adaptive capability. As competition intensifies, both competitor and technology orientations build adaptive capability more effectively.

Suggested Citation

  • Zhou, Kevin Zheng & Li, Caroline Bingxin, 2010. "How strategic orientations influence the building of dynamic capability in emerging economies," Journal of Business Research, Elsevier, vol. 63(3), pages 224-231, March.
    • Handle: RePEc:eee:jbrese:v:63:y:2010:i:3:p:224-231
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    References listed on IDEAS

    as
    1. Kevin Zheng Zhou & James R Brown & Chekitan S Dev & Sanjeev Agarwal, 2007. "The effects of customer and competitor orientations on performance in global markets: a contingency analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(2), pages 303-319, March.
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