The Effect of Market and Internal Failures on Capability Sourcing Choices and Performance
نویسنده
چکیده
This paper uses a business dynamics conceptual lens to identify institutional failures – including market and internal failures – that influence whether firms chose internal or external sources for new capabilities. It then examines whether conformity with the institutional incentives affects firms’ short and long term sourcing performance. The analysis surveys 162 telecom firms. The study shows that institutional strengths and failures act together both to constrain behaviour and to create opportunities to overcome the constraints.
منابع مشابه
The Effect of Entrepreneural orientation and Market orientation on Market performance of knowledge-based Companies with Mediating Role of Marketing Capability and Marketing Effectiveness
To achieve the desired market performance in the current competitive market and survive in this turbulent arena require appropriate orientations by companies. The use of entrepreneurial orientation and market orientation approaches in this area can be effective. Companies, especially knowledge-based companies, should obtain appropriate market share in a competitive market by applying marketing ...
متن کاملSelection Capability: How Capability Gaps and Internal Social Frictions Affect Internal and External Strategic Renewal
The dynamic capabilities literature suggests that firms need to use both internal development and external sourcing to thrive over time, but we have a limited understanding of the conditions that best suit different sourcing choices. This study examines how constraints that arise from firms’ existing stocks of capabilities and from their internal social contexts shape their choices of capabilit...
متن کاملFirm Survival and the Dynamic Capability to Balance Internal Development and External Sourcing
Recent arguments in the dynamic capabilities literature suggest that firms need to develop skills with both internal development and external sourcing to be able to thrive over time. We have a limited understanding of the conditions that best suit internal and external sourcing, however, while no largescale study has examined the extent to which firms’ ability to form coherent portfolios of int...
متن کاملThe study of the Effect of dynamic capabilities on organizational performance by mediating marketing and technical capabilities and examining the modrated role of environmental change
Capabilities are the main factor in the competitiveness of companies in today's business environment. The present study provides a framework for investigating the causal relationships between capabilities (dynamic and operational) and its functional results. The purpose of this study was to investigate the effect of dynamic capabilities on operational capabilities and performance with the role ...
متن کاملHow Capability Gap and Internal Friction Affect the Selection and Effectiveness of Modes of Acquiring New Capabilities
Recent arguments in the dynamic capabilities literature suggest that firms need to use both internal development and external sourcing in order to thrive over time. We have a limited understanding of the conditions that best suit the choice of internal versus external sourcing, however, and no large-scale study has examined the extent to which firms’ ability to select appropriate sourcing modes...
متن کامل