Narrow Results

This study examines the interplay between Dynamic Managerial Capabilities (DMCs) and innovation performance in Iran’s industrial sector. We propose a novel framework that categorises managers based on three DMC components — managerial human capital, social capital, and cognitive capabilities — and investigates their combined effects on innovation. Using a sample of 344 managers, data were analysed through Structural Equation Modeling (SEM) and Analysis of Variance (ANOVA). Findings reveal that specific DMC profiles, particularly those that align with the firm’s strategic context, significantly enhance innovation outcomes. The results underscore the importance of tailored managerial development strategies in fostering innovation within dynamic and complex environments. This study contributes to the strategic management literature by offering practical insights for optimising organisational performance through the strategic configuration of managerial capabilities.

This research investigates individual entrepreneurial orientation and its implications for business performance. Examining dynamic managerial capabilities (DMC) as a mediating factor, this study explores the relationship between CEO entrepreneurial orientation and the triple bottom line performance of businesses. It emphasizes the role of improved managerial capabilities resulting from individual entrepreneurial orientation. Emphasis is placed on the importance of entrepreneurial activities not only in affecting financial performance, but also social and environmental performance. The results reveal a strong and positive correlation between CEOs’ individual entrepreneurial orientation and triple bottom line performance, considering DMC. This confirmation is not only robust based on existing theories, but also provides novel evidence of additional effects of the relationship between CEOs’ individual entrepreneurial orientation and broader approaches to business performance. Moreover, this research contributes to current issues related to entrepreneurship, sustainability and the evolving role of individuals in shaping the future of organizations.

Within the strategic management literature, both managerial cognition and dynamic capabilities have been identified as drivers of change and transition in changing business environments. The purpose of this study is to explore the interplay of dominant logic and dynamic capabilities in the magazine publishing industry. We investigated four magazine publishing business units of a large media corporation situated in four different countries, namely Finland, the Netherlands, Hungary and Russia. A total of 40 magazine managers were interviewed. The results imply that dominant logic and dynamic capabilities coevolve in a reciprocal relationship, and the interplay of cognition and capabilities seems to be most visible in the seizing and reconfiguring capabilities. The results of the present study also illustrate that there may be several contradictory dominant logics within a single company. Dynamic capabilities useful to innovation processes are developed in the areas that are pinpointed by the managers as the locus of attention. Industry transition does not automatically change what companies think and do. That requires managerial attention and an active reconceptualization of the business and active development of not only day-to-day operations, but capabilities needed to change the way we work.

Organisational unlearning has received increased attention in management and organisation literature. In this paper, I explore the role of organisational unlearning as a facilitator of business model innovation. I argue that managers should engage in a prior step of unlearning to innovate outdated business models. In doing so, managers need to legitimise the unlearning process by scrutinising and discarding their own cognitive views about the business model. Further, managers should provide boundary conditions for other organisational actors to eliminate actions, practices, and routines associated with the outdated business models. Engaging in an additional process of organisational unlearning helps managers to identify and remove outdated business models and facilitate business model innovation.

The interpretation of managers of environmental changes helps in identifying the gaps between the environment and a firm’s capabilities. This in turn can support a firm’s ability to use dynamic capabilities in an effective way to reconfigure the firm’s resources into new operational capabilities that better match the environment and to exploit environmental opportunities. However, extant studies have ignored the moderating role of managers’ interpretation of environmental changes in the capabilities building paradigm. This study empirically examines the moderating role of environmental interpretation in the relationship between dynamic capabilities and improvement capabilities. To operationalise environmental interpretation to enable the development of a measurable model for this construct, which has yet to be developed, 209 large manufacturing firms were selected as a sample to study the relationship between environmental interpretation and firm’s capabilities. By applying the PLS-SEM technique, this study finds that environmental interpretation moderates the relationship between learning capability, integrating capability and coordinating capability and improvement capability.

Today’s hypercompetitive economy challenges chief executive officers (CEOs) to make complex yet integral investments in research and development (R&D). Although research has widely discussed R&D spending due to its implications for competitive advantage, it omits whether and how managers’ dynamic capabilities materialise in these long-term investment decisions. This study builds on dynamic managerial capability (DMC) theory to argue that strong managerial-level dynamic capabilities increase R&D spending by improving the capacities of CEOs to sense opportunities and threats, seize them, and reconfigure organisational resources. CEO founder status is additionally proposed as a moderator of this relationship, as founder CEOs differ from professional CEOs in their investment behaviour. The results reveal that DMCs only compositely contribute to R&D investments, while the DMC subcomponents–except for managerial social capital—exert no isolated effects. This study also finds that founder CEOs realise higher R&D investments through their DMCs than their professional counterparts.