Is more capability always beneficial for firm performance? Market orientation, core business process capabilities, and business environment

This study examines the role of capabilities in core marketing-related business processes–product development management (PDM), supply chain management (SCM) and customer relationship management (CRM)–in translating a firm’s market orientation (MO) into firm performance. The study is the first to examine the interplay of all three business process capabilities simultaneously, while investigating how environmental conditions moderate their performance effects. A moderated mediation analysis of 468 product-focused firms finds that PDM and CRM process capabilities play important mediating roles, whereas SCM process capability does not mediate the relationship between MO and performance. However, the relative importance of the capabilities as mediators varies along the degree of environmental turbulence, and under certain conditions, an increase in the level of business process capability may even turn detrimental.

Capabilities for advanced services:a multi-actor perspective

Servitization involves manufacturers developing service offerings to grow revenue and profit. Advanced services, in particular, can facilitate a more service-focused organization and impact customers' business processes significantly. However, approaches to servitization are often discussed solely from the manufacturer's perspective; overlooking the role of other network actors. Adopting a multi-actor perspective, this study investigates manufacturer, intermediary and customer perspectives to identify complementary and competing capabilities within a manufacturer's downstream network, required for advanced services. Interviews were conducted with 24 senior executives in 19 UK-based manufacturers, intermediaries and customers across multiple sectors. The study identified six key business activities, within which advanced services capabilities were grouped. The unique and critical capabilities for advanced services for each actor were identified as follows: manufacturers; the need to balance product and service innovation, developing customer-focused through-life service methodologies and having distinct, yet synergistic product and service cultures; intermediaries, the coordination and integration of third party products/services; customers, co-creating innovation and having processes supporting service outsourcing. The study is unique in highlighting the distinct roles of different actors in the provision of advanced services and shows that they can only be developed and delivered by the combination of complex interconnected capabilities found within a network.

The relative advantage of marketing over technological capabilities in influencing new product performance:the moderating role of country institutions

Marketing and technological capabilities are major drivers of new product performance. Prior research has suggested that marketing capabilities outperform technological capabilities. This study shows that the relative advantage of marketing over technological capabilities for new product performance depends on the institutional context in a country. Meta-analytic data of 341 effect sizes of the relationship between capabilities and new product performance taken from 50 articles with 57 independent samples and collected in 17 different countries reveal new contingencies to the capabilities framework. Although in general, marketing capabilities have a stronger influence than technological capabilities on new product performance, this effect is moderated by institutional context factors. The relative advantage decreases and even reverses with increasing growth rates; it further decreases with increasingly stronger rules of law in a country; and it increases in societies that put emphasis on self-expression values over survival values. These findings contribute to research on the utility of different capabilities, inform the institution-based view of firms in international marketing, and provide implications for international marketing managers.

Interactively developed capabilities:evidence from dyadic servitization relationships

Purpose – The paper challenges the focal firm perspective of much resource/capability research, identifying how a dyadic perspective facilitates identification of capabilities required for servitization. Design/methodology/approach – Exploratory study consisting of seven dyadic relationships in five sectors. Findings – An additional dimension of capabilities should be recognised; whether they are developed independently or interactively (with another actor). The following examples of interactively developed capabilities are identified: knowledge development, where partners interactively communicate to understand capabilities; service enablement, manufacturers work with suppliers and customers to support delivery of new services; service development, partners interact to optimise performance of existing services; risk management, customers work with manufacturers to manage risks of product acquisition/operation. Six propositions were developed to articulate these findings. Research implications/limitations – Interactively developed capabilities are created when two or more actors interact to create value. Interactively developed capabilities do not just reside within one firm and, therefore, cannot be a source of competitive advantage for one firm alone. Many of the capabilities required for servitization are interactive, yet have received little research attention. The study does not provide an exhaustive list of interactively developed capabilities, but demonstrates their existence in manufacturer/supplier and manufacturer/customer dyads. Practical implications – Manufacturers need to understand how to develop capabilities interactively to create competitive advantage and value and identify other actors with whom these capabilities can be developed. Originality/value – Previous research has focused on relational capabilities within a focal firm. This study extends existing theories to include interactively developed capabilities. The paper proposes that interactivity is a key dimension of actors’ complementary capabilities.

Capabilities and roles of enterprise wikis in organizational communication

How can technical communicators in organizations benefit from wiki technology? This article alerts technical communicators to the possibilities of wiki-based collaborative content creation. It analyzes 32 articles on the use of corporate wikis, and compares them to three media choice theories: media richness theory, theory of media synchronicity, and common ground theory.

Túl a kritikus ponton…- Logisztikai képességek Magyarországon (Beyond the critical point … – Logistics capabilities at Hungarian firms)

A szerző kutatási célja, hogy megvizsgálja, vajon a hazai vállalatok mai gyakorlatában a fejlettebb logisztikai képességek együtt járnak-e magasabb teljesítménnyel. Az elemzés a Budapesti Corvinus Egyetem Vállalat-gazdaságtan Intézete mellett működő Versenyképesség Kutató Központ vállalati versenyképességet vizsgáló kérdőíves felmérés immár 4. fordulójának adatbázisát használja, melyet 2009 folyamán összesen 300 vállalat vezetőinek megkérdezésével hoztak létre. Ennek az adatbázisnak a felhasználásával a cikk két kérdésre keresi a választ. A szerző egyrészt megvizsgálja, vajon a mintában kimutatható-e egy fejlettebb logisztikai képességekkel rendelkező vállalatcsoport. Másrészt arra is kíváncsi, vajon ezek a fejlettebb logisztikai képességek együtt járnak-e a vállalatok magasabb teljesítményével. A 2009-es adatok elemzése igazolta, hogy logisztikai képességekben két szignifikánsan eltérő fejlettségű vállalatcsoport létét. Az eredményekből az is kiolvasható, hogy a magasabb logisztikai képességek a mintában együtt jártak a magasabb működési teljesítménnyel is. _________________ The overall objective of the paper is to investigate the relationship between logistics capabilities and company’s performance. Empirical analysis is carried out based on an extensive questionnaire developed and conducted at the Competitive Research Center at the Corvinus University of Budapest in 2009. Using this database the author had two separate research questions: Can she detect companies in their sample with significantly different logistics capabilities. If yes, does more developed logistics lead to higher level performance at the company level? After carrying out their empirical analysis they could state, that they could prove the existence of two clusters, one with less and another with more developed logistics capabilities. They also were able to show that firms with more developed logistics can achieve significantly higher operational performance and can be characterized with a more developed customer orientation.

Menedzsmentképességek és döntéshozatali közelítésmódok longitudinális elemzése a versenyképesség-kutatások alapján (Longitudinal analysis of management capabilities and decision making approaches based on the competitiveness researches)

Számos korábbi kutatás – köztük a szerzők korábbi vizsgálatai is – azt mutatja, hogy a menedzsmentképességek és a vállalatok versenyképessége között pozitív kapcsolat áll fenn, a jobban teljesítő és a proaktívabb vállalatok rendre felkészültebb, jobb vezetői képességekkel bíró, kockázatvállalóbb vezetőkkel rendelkeznek. Az is megfigyelhető, hogy az ebből a nézőpontból sikeresebben működő vállalatok döntéseiben az átlagosnál is erősebben érvényesül a racionális közelítésmód, melynek alkalmazásával a menedzserek az optimális cselekvési alternatíva kiválasztására törekszenek. A cikkben a szerzők az elmúlt 15 év versenyképességi kutatásainak tapasztalatait összegzik, kiemelt hangsúlyt helyezve a legfrissebb felmérés eredményeire. ________________ The article summarizes the main findings of the Competitiveness Research Program with respect to the skills and capabilities of the Hungarian managers and the decision making approaches they use during their work. The results of the four surveys conducted in 1996, 1999, 2004 and 2009 are fairly stable over time: practice minded behavior, professional expertise, and problem solving skills are on the top of the list of the most developed skills of the Hungarian executives. The rational approach is the most popular among the most widespread decision making models in the authors’ sample which is rather alarming since the present turbulent economic environment may demand more adaptive and intuitive approaches.

Dynamic capabilities and strategic paradox: a case study

Today’s business leaders must constantly review and develop their firm’s abilities to adapt to and benefit from external changes. Dynamic capabilities are the capacity of an organization to purposefully create, extend or modify its resource base. They enable it to exploit business, technological and market opportunities and adapt to market changes, an ability more often observed in highly dynamic industries, such as consumer electronics or telecommunications. Using the case study method, this article identifies dynamic capabilities in traditional, less dynamic industries when faced with a sudden drop of revenue. Four distinct routines emerge, namely structure and practices enduring time-sensitive strategic decision-making by the tice, and a culture encouraging learning and coevolving. Seemingly strategic paradox objectives encourage the management team to question the status quo and, when managed well, transform the tensions between old and new into an ability to advance superior ideas faster.

Resource-based view and dynamic capabilities - Achieving competitive advantage through internal resources and competences

Strategy has always been important for success. Whether strategy is applied for military purposes, in large firms, or even for personal objectives, there are certain key characteristics that every successful strategy carries on: clear, objective and simple goals; deep knowledge and understanding of the competitive environment; objective understanding and exploitation of resources; and an effective plan implementation. In this paper, the author’s attention will be focused on the role of internal resources, routines and processes as the bases of sustained competitive advantage (hereafter SCA) into what is now known as the resourcebased view of the firm (RBV) and Dynamic Capabilities (DC). First, the relevance of RBV and DC approaches and the main characteristics of those are briefly mentioned. Second, RBV and DC are examined as an important piece to achieve SCA. Later on, the author deepens into some examples and the manager’s importance when using these RBV and DC approaches. Then issues related with complexity and undefined concepts in RBV and DC are briefly mentioned. Finally, conclusions and personal comments are presented.

The Role of GIS in DRR: Classifying and Improving GIS Capabilities in Small Towns and Rural Areas

Optimizing GIS capability does not always require that the municipality obtain cutting edge professionals and resources. This paper offers a disaster risk reduction (DRR) design methodology for small towns and rural areas that employs a multi-variable classification system, enabling customization for effective DRR. Determining appropriate GIS capacity requires that a community first be evaluated in order to identify its disaster risk reduction/disaster management (DRR/DM) requirements. These requirements are then considered in conjunction with the municipality's resources to establish the desired capability. Qualification levels for major aspects of GIS capability with respect to DRR/DM are provided along with descriptions of each level and suggested procedures for advancement to the next level. It should be noted that a municipality can be classified at a different level with respect to different variables. Needs vary according to the community, thus attainment of a uniform capability level may not be necessary.

Self-Identified Capabilities and Experiences with Mathematics of Adults Who Have Taken a Developmental Algebra Course

Some were born to do math, some persevered past fearful environments, while others withdrew. In this qualitative study, adults describe life with algebra and the meaning they sought. For all, pedagogy was critical, either positively or negatively; and all found salvation in intervention.

Capabilities of Police and Military Forces in Central America -- A Comparative Analysis of Guatemala, El Salvador, Honduras an d Nicaragua

A difficult transition to a new paradigm of Democratic Security and the subsequent process of military restructuring during the nineties led El Salvador, Honduras, Guatemala and Nicaragua to re-consider their old structures and functions of their armed forces and police agencies. This study compares the institutions in the four countries mentioned above to assess their current condition and response capacity in view of the contemporary security challenges in Central America. This report reveals that the original intention of limiting armies to defend and protect borders has been threatened by the increasing participation of armies in public security. While the strength of armies has been consolidated in terms of numbers, air and naval forces have failed to become strengthened or sufficiently developed to effectively combat organized crime and drug trafficking and are barely able to conduct air and sea operations. Honduras has been the only country that has maintained a proportional distribution of its armed forces. However, security has been in the hands of a Judicial Police, supervised by the Public Ministry. The Honduran Judicial Police has been limited to exercising preventive police duties, prohibited from carrying out criminal investigations. Nicaragua, meanwhile, possesses a successful police force, socially recognized for maintaining satisfactory levels of security surpassing the Guatemalan and El Salvadoran police, which have not achieved similar results despite of having set up a civilian police force separate from the military. El Salvador meanwhile, has excelled in promoting a Police Academy and career professional education, even while not having military attachés in other countries. Regarding budgetary issues, the four countries allocate almost twice the amount of funding on their security budgets in comparison to what is allocated to their defense budgets. However, spending in both areas is low when taking into account each country's GDP as well as their high crime rates. Regional security challenges must be accompanied by a professionalization of the regional armies focused on protecting and defending borders. Therefore, strong institutional frameworks to support the fight against crime and drug trafficking are required. It will require the strengthening of customs, greater control of illicit arms trafficking, investment in education initiatives, creating employment opportunities and facilitating significant improvements in the judicial system, as well as its accessibility to the average citizen.

Latin America: Nuclear Capabilities, Intentions and Threat Perceptions

Three key states are relevant in considering future nuclear proliferation in Latin America: Argentina, Brazil, and Venezuela. Argentina and Brazil are critical because of their relatively advanced nuclear capabilities. For historical and geopolitical reasons, neither Argentina nor Brazil is likely to reactive nuclear weapons programs. Venezuela’s President, Hugo Chávez, has repeatedly demonstrated interest in developing a nuclear program, yet Venezuela lacks any serious nuclear expertise. Even if it had the managerial and technological capacity, the lead-time to develop an indigenous nuclear program would be measured in decades. Acquisition of nuclear technology from international sources would be difficult because members of the Nuclear Suppliers Group would insist on safeguards, and potential non-Nuclear Suppliers Group (NSG) suppliers are highly surveilled, risking the exposure of such a program before Venezuela could put a deterrent into place. While South American states have historically opposed nuclear weapons, their acquisition by Brazil and Argentina would lead to little more than diplomatic condemnation. Brazil and Argentina are both geopolitically satisfied powers that are deeply embedded in a regional security community. On the other hand, Venezuela under President Chávez is perceived as a revisionist power seeking a transformation of the international system. Venezuelan acquisition of nuclear weapons would be met with alarm by the United States and Colombia, and it would prompt nuclear weapons development by Brazil and possibly Argentina, more for reasons of preserving regional leadership and prestige than for fear of a Venezuelan threat.

Social Learning Capabilities in Broward’s Black Male Success Task Force: Informing Collective Impact Initiatives

Broward Schools is addressing an achievement gap for Black males with a collective impact initiative. Collective impact initiatives address complex social problems. The social learning capability of the initiative can be enhanced by applying Wenger’s (2009) social learning spaces, learning as citizenship, and social artists concepts.

The Cloud-Moving Wind- Exiles, Wanderers and Ordinary Fugitives

Ana Menendez, world renowned author and FIU alum, discusses her experience exiling from Cuba. Lecture held at Graham Center, Maidique Campus, Florida International University at March 3, 2014.