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Organizational Dynamic Capability and Innovation: An Empirical Examination of Internet Firms

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  • Jianwen (jon) Liao
  • Jill R. Kickul
  • Hao Ma

Abstract

This paper extends the dynamic capability perspective into the study of innovation by entrepreneurial firms. Drawing from both the resource‐based view and the dynamic capability perspective, this paper explores theoretically and examines empirically the different roles played by a firm's resource stock (endowment of resources and capabilities) and its integrative capabilities (ability to recognize opportunities as well as to configure and deploy resources) in the process of firm innovation. Our structural equation modeling results, based on a sample of 120 Internet‐based companies, indicate that both the firm's resource stock and integrative capabilities affect its innovation. Additionally, we also found that the relationship between resource stock and innovation is mediated by integrative capabilities. That is, merely possessing well‐endowed resource stock per se is not sufficient for innovation. Thus, it is the firm's ability to mobilize its resources and capabilities and align them dynamically with the changing opportunities in the environment that is of vital importance as the firm constantly innovates to survive and create its own competitive advantage. In the hypercompetitive and fast changing Internet‐based environment, such a need for dynamic capabilities is especially accentuated. Implications and suggestions for future research are provided.

Suggested Citation

  • Jianwen (jon) Liao & Jill R. Kickul & Hao Ma, 2009. "Organizational Dynamic Capability and Innovation: An Empirical Examination of Internet Firms," Journal of Small Business Management, Taylor & Francis Journals, vol. 47(3), pages 263-286, July.
    • Handle: RePEc:taf:ujbmxx:v:47:y:2009:i:3:p:263-286
    DOI: 10.1111/j.1540-627X.2009.00271.x
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    Cited by:

    1. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Kumar, Ajay & Gupta, Shivam & Sengupta, Pooja, 2023. "Rethinking of firm innovation capability: Examining the moderating role of leadership ability on a new business model," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    2. Mahavarpour, Nasrin & Marvi, Reza & Foroudi, Pantea, 2023. "A Brief History of Service Innovation: The evolution of past, present, and future of service innovation," Journal of Business Research, Elsevier, vol. 160(C).
    3. Yan Jingwen & Azmawani Abd Rahman & Tong Tong, 2022. "Research on the Impact of BMI on Enterprise Performance Based on the Antecedence of Risk Perception," Sustainability, MDPI, vol. 14(23), pages 1-22, November.
    4. Buccieri, Dominic & Javalgi, Raj G. & Cavusgil, Erin, 2023. "Role of opportunity creation between reconfiguration and innovation: Insights from emerging market international new ventures," International Business Review, Elsevier, vol. 32(4).
    5. Maryia Akulava & Maribel Guerrero, 2023. "Entrepreneurial gendered ambidexterity in Belarusian SMEs," The Journal of Technology Transfer, Springer, vol. 48(6), pages 1919-1944, December.

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