Improving dynamic capabilities in a sustainable value chain - CAPTURE
Project “CAPTURE” is implemented within the framework of the National Recovery and Resilience Plan 2021–2026 and is financed by European Union funds through the NextGenerationEU instrument.
Dynamic capabilities (DC): a comprehensive theoretical framework for sustainability in the value creation chain
The dynamic capabilities (DC) perspective, introduced by Teece, Pisano, and Shuen (1997), is defined as “the firm’s ability to integrate, build, and reconfigure internal and external competencies to address rapidly changing environments” (p. 516).
The term “dynamic” emphasizes the imperative for firms to continuously renew and adapt their capabilities in response to changes in external conditions, while “capabilities” reflect the firm’s strength to deliberately adapt, coordinate, and reconfigure its assets. This also encompasses the processes and actions underlying organizational adaptation and innovation.
Capability theory distinguishes between: operational/ordinary capabilities (which enable efficiency in ongoing operations; they relate to routine, administrative, and operational functions and demonstrate a firm’s skill in efficiently executing existing processes) and dynamic capabilities (which are oriented toward innovation, change, and the alignment of new asset configurations; they include higher-level strategic activities such as sensing emerging opportunities, investing in innovation, and undertaking organizational transformations).
Teece (2007) formalizes DCs into a three-part framework consisting of: (1) Sensing—identifying, interpreting, and anticipating market opportunities and threats; (2) Seizing—mobilizing firm resources to create value from opportunities; and (3) Transforming/Reconfiguring—continuously renewing and recombining organizational resources to adapt to market changes.
Recognizing, developing, and enhancing dynamic capabilities poses a challenge for firms. Firms that cultivate an open and innovation-oriented culture tend to navigate these challenges more smoothly. Building on this, Barreto (2010) argues that firms with strong entrepreneurial skills in their management are better able to make unconventional, innovative decisions. Conversely, one of the main obstacles to enhancing a firm’s dynamic capabilities is internal resistance to change, since identifying and implementing necessary changes is often difficult due to entrenched organizational norms (Arend and Bromiley, 2009). Consequently, firms that fail to adapt quickly enough risk losing their competitive advantage.
To strengthen a firm’s dynamic capabilities, cross-functional coordination is of utmost importance, as it enables firms to accumulate the resources required for greater sustainability, as well as to implement sustainability initiatives (Bannerjee, 2001).
Huang, Surface, and Zhang (2022) summarized more than four decades of research on sustainability in the context of B2B markets and proposed a multilevel model linking antecedents, sustainable practices, and business outcomes.
Specific theoretical perspectives will be taken into account in examining the role and collaboration of individual departments within and beyond the organization in enhancing the firm’s dynamic capabilities and its sustainable value creation chain.
Project objective: To identify key assumptions and propose policies for enhancing dynamic capabilities within a sustainable value creation chain.
Additional objectives:
Successful project management
Project visibility within the academic and professional community
Mapping dynamic capabilities for developing and nurturing supplier relationships and for developing sustainable innovations within the firm
Developing a methodology for identifying organizational buyers’ purchasing decision-making styles in the context of sustainable procurement
Conducting an integrated analysis and managing risks in sustainable value creation chains
Analyzing the challenges of measuring the effects of implementing sustainability (ESG) reporting on the organization’s dynamic capabilities
Measuring sentiment on sustainability and sustainable development, and assessing stakeholder influence on the firm’s sustainable marketing orientation