Catherine L. Wang

Dynamic Capabilities: A Review and Research Agenda

The notion of dynamic capabilities complements the premise of the resource-based view of the firm, and has injected new vigour into empirical research in the last decade. Nonetheless, several issues surrounding its conceptualization remain ambivalent. In light of empirical advancement, this paper aims to clarify the concept of dynamic capabilities, and then identify three component factors which reflect the common features of dynamic capabilities across firms and which may be adopted and further developed into a measurement construct in future research. Further, a research model is developed encompassing antecedents and consequences of dynamic capabilities in an integrated framework. Suggestions for future research and managerial implications are also discussed.

The development and validation of the organisational innovativeness construct using confirmatory factor analysis

The role of organisational innovativeness, or innovative capability, in attaining competitive advantage has been widely discussed. Most research examines innovation activities and their associations with organisational characteristics, or investigates certain perspectives of innovative capability, such as product innovation. Much less attention, however, has been paid to develop and validate measurement constructs of organisational innovativeness. Through an extensive literature review, five dimensions of an organisations overall innovativeness are identified. These five dimensions form the component factors of the organisational innovativeness construct. Following a three‐step approach, a final 20‐item measurement construct is validated. Theoretical and methodological issues in relation to application of the organisational innovativeness construct are discussed in light of these findings.

Entrepreneurial Orientation, Learning Orientation, and Firm Performance

Entrepreneurial orientation (EO) is a key ingredient for firm success. Nonetheless, an important message from past findings is that simply examining the direct effect of EO on firm performance provides an incomplete picture. Prior studies examined various internal and external factors that influence the EO–performance relationship. However, learning orientation (LO) has been a missing link in the examination of the relationship. Using data from 213 medium–to–large UK firms, this study finds that LO mediates the EO–performance relationship, and the EO–LO–performance link is stronger for prospectors than analyzers. The findings indicate that LO must be in place to maximize the effect of EO on performance, and that LO is an important dimension, along with EO, to distinguish prospectors from analyzers.

Organisational learning: a critical review

This paper reviews the conceptual framework of organisational learning, and identifies five focuses of the concept and practices within the existing literature, namely, focus on collectivity of individual learning; process or system; culture or metaphor; knowledge management; and continuous improvement. In line with current industrial contexts, this paper tentatively redefines the concept of organisational learning, incorporating the aspect of radical innovation and creativity. The aim of this paper is to provide a clarified and updated understanding of organisational learning.

Ambidextrous Organizational Culture, Contextual Ambidexterity and New Product Innovation: A Comparative Study of UK and Chinese High‐Tech Firms

Contextual ambidexterity is of paramount importance for new product innovation and organizational success, particularly in high‐tech firms operating in a dynamic environment. Whilst it is recognized that contextual ambidexterity is grounded in organizational culture, existing research has not crystallized what kind of organizational culture enables contextual ambidexterity and consequently new product innovation. In this paper, drawing on data from 150 UK and 242 Chinese high‐tech firms, we conceptualize ambidextrous organizational culture as a higher‐order construct consisting of organizational diversity and shared vision, and examine its impacts on contextual ambidexterity and consequently on new product innovation outcomes. Using structural equation modelling, we find significant relationships between ambidextrous organizational culture, contextual ambidexterity and new product innovation outcomes; contextual ambidexterity mediates the relationship between ambidextrous organizational culture and new product innovation outcomes. Our findings also suggest that the above relationships are robust in the UK–China comparative research context, and that contextual ambidexterity and new product innovation outcomes are dependent on business unit level heterogeneity (i.e. ambidextrous organizational culture and research and development strength) rather than industry or cross‐cultural differences.

Structure and structural dimensions for knowledge‐based organizations

Organizational forms have evolved over the decades. Organizational design reflects the systems view, which considers that structure consists of both hard and soft components, and is the superior composition of relationship between organizational elements. Structural dimensions are traditionally examined along three dimensions of formal relationship: hierarchical, functional, and the dimension of inclusion and centrality, underlining two prime types of structure: mechanistic and organic organizations. However, the knowledge economy makes new demands on organizational structuring based on processes. Informal structure better depicts actual organizational activities and reflects dynamic interaction that is critical to knowledge creation. This conceptual paper incorporates informal structure as an important dimension and further elaborates organizational structuring at a higher level: trust‐based relationship, externally‐oriented interactive relationship, and emotionally‐inclusive relationship; and their importance in the attainment of organizational success in the knowledge economy.

Social embeddedness, entrepreneurial orientation and firm growth in ethnic minority small businesses in the UK

Entrepreneurial orientation (EO) of ethnic minority small businesses (EMSBs) and its antecedents and consequences are under-researched. Grounded in ethnic entrepreneurship theory and the social embeddedness approach, this article examines the relationships of EMSBs’ access to various networks, their EO and firm growth. Drawing on quantitative data collected through 258 face-to-face structured interviews with Chinese- and Turkish-owned EMSBs in London, UK our findings reveal that family and co-ethnic advice and labour do not have a significant impact on firms’ EO. Instead, both access to co-ethnic products and access to co-ethnic suppliers of utilities and facilities have a significant impact on firms’ EO, which in turn has a significant positive effect on employment growth. Moreover, Chinese-owned EMSBs demonstrate a higher level of EO and pursue different paths to growth (that is, they are more likely to grow through acquiring more business premises) compared with Turkish-owned EMSBs. The findings have important implications for the understanding of growth patterns of EMSBs, particularly the role of EO in the EMSBs’ break-out strategies and growth.

Knowledge management orientation, market orientation, and firm performance: an integration and empirical examination

A growing belief has emerged that effectively managing knowledge can enhance performance. To date, however, there is limited empirical evidence. We draw on the resource-based and knowledge-based views of the firm as well as research on strategic sensemaking in order to introduce the concept of ‘knowledge management orientation’, and to examine the relationships among knowledge management orientation, market orientation, and firm performance. Using data from 213 United Kingdom firms, we found that organizational memory, knowledge sharing, knowledge absorption, and knowledge receptivity serve as first-order indicators of the higher-order construct we label knowledge management orientation, which, in turn, has a positive link with market orientation. Importantly, we found that market orientation mediates the relationship between knowledge management orientation on one hand and subjective and objective firm performance on the other. Our results suggest that knowledge management orientation can enhance performance, but a market orientation is needed in order to realize such benefits.

Organizational diversity and shared vision

Purpose – The aims of this paper are: to address the tensions pertinent to exploration and exploitation from the organizational learning perspective; to conceptualize how organizational diversity and shared vision, as two core components of organizational culture, help resolve these tensions; and to discuss the organizational configurations necessary for instilling organizational diversity and shared vision.Design/methodology/approach – This is a conceptual paper that focuses on the role of organizational culture in promoting corporate entrepreneurship from the organizational learning perspective.Findings – Organizational diversity and shared vision are important for a balanced approach to exploratory and exploitative learning. Organizational parameters must be aligned to instil the two types of organizational culture to achieve either simultaneous or sequential ambidexterity.Research limitations/implications – The key theoretical arguments regarding the role of organizational diversity and shared vision ...

Success Traps, Dynamic Capabilities and Firm Performance

Dynamic capabilities (DCs) are fundamental to the understanding of differential firm performance. However, the question remains why some firms are better at developing and applying DCs than others. In particular, successful firms have been warned against the tendency to fall into a success or competence trap, where success reinforces exploitation of existing competences and crowds out exploration of new competences, hindering the development of DCs. Therefore, this study examines the effects of success traps on DCs and consequently firm performance, taking into account firm strategy and market dynamism. To facilitate this, our study also identifies the commonalities of DCs across firms. Drawing on survey data from 113 UK high-tech small and medium-sized firms, we find that success traps have a significant, strong negative effect on DCs, which in turn have a weak positive effect on firm performance; DCs are manifested through absorptive and transformative capabilities as two common features across firms. We also find that the development and application of DCs is related to internal factors (such as success traps) rather than external factors (such as market dynamism).