Environmental dynamism, innovation, and dynamic capabilities: the case of China
Purpose – Based on the resource-based view, creating and maintaining a long-term competitive advantage requires significant attention to developing and nurturing dynamic capabilities in emerging markets. With increasing research attention given to the dynamic capabilities view, the need to explore the building mechanism has continued to escalate. This study aims to consider environmental dynamism as a moderating variable, to build a theoretical model for innovation strategy and dynamic capabilities, and finally to summarize the building mechanism for dynamic capabilities. Design/methodology/approach – A total of 400 high-tech and knowledge intensive and other kind business firms in Yantz River Delta region in China were approached. In total, 158 responses were received, of which 110 were usable. To check for possible response bias, early and late respondents were compared and no response bias was found in the study. Findings – The empirical results find that the coefficient for innovation strategy is positive and significant for dynamic capabilities. However, it also finds that the interaction term between innovation strategy and environmental dynamism is not significant in predicting dynamic capabilities. Therefore, an innovation strategy can build and upgrade dynamic capabilities in both stable and rapidly changing environments. Originality/value – An empirical verification of the links between innovation strategy and dynamic capabilities is conducted, and the role of environmental dynamism on innovation strategy and dynamic capabilities in the context of an emerging market is also examined, which there is a lack of in the current literature. This study provides implications for both government and entrepreneurs in finding the right way to build dynamic capabilities through employing innovation strategy.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 5 (2011)
Issue (Month): 2 (April)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com |
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://www.emeraldinsight.com/jec.htm Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Luo, Yadong, 2000. "Dynamic capabilities in international expansion," Journal of World Business, Elsevier, vol. 35(4), pages 355-378, January.
- Caloghirou, Yiannis & Protogerou, Aimilia & Spanos, Yiannis & Papagiannakis, Lefteris, 2004. "Industry-Versus Firm-specific Effects on Performance:: Contrasting SMEs and Large-sized Firms," European Management Journal, Elsevier, vol. 22(2), pages 231-243, April.
- Cepeda, Gabriel & Vera, Dusya, 2007. "Dynamic capabilities and operational capabilities: A knowledge management perspective," Journal of Business Research, Elsevier, vol. 60(5), pages 426-437, May.
- David A Griffith & Michael G Harvey, 2001. "A Resource Perspective of Global Dynamic Capabilities," Journal of International Business Studies, Palgrave Macmillan, vol. 32(3), pages 597-606, September.
- Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
- Robert A. Burgelman, 1983. "Corporate Entrepreneurship and Strategic Management: Insights from a Process Study," Management Science, INFORMS, vol. 29(12), pages 1349-1364, December.
- Andrew A. King & Christopher L. Tucci, 2002. "Incumbent Entry into New Market Niches: The Role of Experience and Managerial Choice in the Creation of Dynamic Capabilities," Management Science, INFORMS, vol. 48(2), pages 171-186, February.
When requesting a correction, please mention this item's handle: RePEc:eme:jecpps:v:4:y:2010:i:2:p:131-144. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Heather Goss)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.