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Journal cover: International Journal of Organizational Analysis

International Journal of Organizational Analysis

ISSN: 1934-8835

Online from: 1993

Subject Area: Organization Studies

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The managing director and the development of dynamic capabilities: An application of enactment theory


Document Information:
Title:The managing director and the development of dynamic capabilities: An application of enactment theory
Author(s):Frank Schlemmer, (School of Management and Economics, Queen's University of Belfast, Belfast, UK), Brian Webb, (School of Management and Economics, Queen's University of Belfast, Belfast, UK)
Citation:Frank Schlemmer, Brian Webb, (2008) "The managing director and the development of dynamic capabilities: An application of enactment theory", International Journal of Organizational Analysis, Vol. 16 Iss: 1/2, pp.109 - 137
Keywords:Competitive advantage, Directors, Small to medium-sized enterprises
Article type:Research paper
DOI:10.1108/19348830810915523 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Abstract:

Purpose – This research aims at examining the role of the managing director in the development of dynamic capabilities at SMEs.

Design/methodology/approach – The paper used a mixed-methods approach and conducted case studies at 13 SMEs. The primary sources of data were semi-structured interviews, which were supplemented by quantitative data from a postal survey and content analysis of the companies' websites.

Findings – The paper suggests that managing directors “enact” in the development of dynamic capabilities, if they believe that dynamic capabilities are a source of competitive advantage. If they do not appreciate the importance of dynamic capabilities they can get trapped in a vicious circle.

Research limitations/implications – This research focuses especially on small firms, and it is unlikely that the findings can be applied to large firms.

Practical implications – The key managerial implication is the threat of a vicious circle if the development of dynamic capabilities is neglected.

Originality/value – This paper draws the dynamic capabilities framework and the enactment concept together, suggesting that managerial decisions and behavior affect dynamic capabilities at an organizational level, which then drives firm performance.



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