Hostname: page-component-78c5997874-lj6df Total loading time: 0 Render date: 2024-11-18T07:30:44.125Z Has data issue: false hasContentIssue false
  • English
  • Français

Dynamic capabilities, strategic planning and performance: a virtuous and mutually reinforcing cycle

Published online by Cambridge University Press:  24 May 2022

Gleycianne Rodrigues Araújo Open the ORCID record for Gleycianne Rodrigues Araújo [Opens in a new window] ,
Heitor Takashi Kato Open the ORCID record for Heitor Takashi Kato [Opens in a new window]  and
Jansen Maia Del Corso Open the ORCID record for Jansen Maia Del Corso [Opens in a new window]
Gleycianne Rodrigues Araújo*
Affiliation:
Pontifícia Universidade Católica do Paraná, 1155, Imaculada Conceição Street, Prado Velho, Curitiba, Paraná, Brazil
Heitor Takashi Kato
Affiliation:
Pontifícia Universidade Católica do Paraná, 1155, Imaculada Conceição Street, Prado Velho, Curitiba, Paraná, Brazil
Jansen Maia Del Corso
Affiliation:
Pontifícia Universidade Católica do Paraná, 1155, Imaculada Conceição Street, Prado Velho, Curitiba, Paraná, Brazil
*
*Corresponding author. E-mail: gleycianne.araujo@hotmail.com
Get access Rights & Permissions [Opens in a new window]

Abstract

Recently, researchers have argued that strategic planning (SP) can be considered a dynamic capability (DC) in organizations – known as dynamic SP. However, the literature that discusses both SP and DCs supports different comprehensions of how both interact, resulting in different sets of research with contradictory findings. This theoretical effort presents a brief review and argues that SP is one of the microfoundations of DCs because it supports the seizing and continuous alignment of assets and resources. Under this perspective, SP has a role in the development and implementation of all organizational DCs and is not restricted to a DC specifically. It is argued that the interactions between DCs, SP and performance over time can lead to the learning needed for better DCs, SP and performance in a virtuous and mutually reinforcing cycle.

Keywords

Dynamic capability developmentdynamic capabilityflexibilityperformancestrategic planning
Type
Research Article
Information
Journal of Management & Organization , Volume 28 , Issue 5 , September 2022 , pp. 1116 - 1132
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2022

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Andersen, T. J., & Nielsen, B. B. (2009). Adaptive strategy making: The effects of emergent and intended strategy modes. European Management Review, 6(2), 94–106. https://doi.org/10.1057/emr.2009.7.CrossRefGoogle Scholar
Arend, R. J., Zhao, Y. L., Song, M., & Im, S. (2017). Strategic planning as a complex and enabling managerial tool. Strategic Management Journal, 38(8), 1741–1752. https://doi.org/10.1002/smj.2420.CrossRefGoogle Scholar
Arndt, F., & Bach, N. (2015). Evolutionary and ecological conceptualization of dynamic capabilities: Identifying elements of the Teece and Eisenhardt schools. Journal of Management & Organization, 21(5), 701–704. https://doi.org/10.1017/jmo.2015.22.CrossRefGoogle Scholar
Arndt, F., & Pierce, L. (2018). The behavioral and evolutionary roots of dynamic capabilities. Industrial and Corporate Change, 27(2), 413–424. https://doi.org/10.1093/icc/dtx042.CrossRefGoogle Scholar
Batra, S., Sharma, S., Dixit, M. R., & Vohra, N. (2018). Does strategic planning determine innovation in organizations? A study of Indian SME sector. Australian Journal of Management, 43(3), 493–513. https://doi.org/10.1177/0312896217734893.CrossRefGoogle Scholar
Biesenthal, C., Gudergan, S., & Ambrosini, V. (2019). The role of ostensive and performative routine aspects in dynamic capability deployment at different organizational levels. Long Range Planning, 52(3), 350–365. https://doi.org/10.1016/j.lrp.2018.03.006.CrossRefGoogle Scholar
Bitencourt, C. C., de Oliveira Santini, F., Ladeira, W. J., Santos, A. C., & Teixeira, E. K. (2020). The extended dynamic capabilities model: A meta-analysis. European Management Journal, 38(1), 108–120. https://doi.org/10.1016/j.emj.2019.04.007.CrossRefGoogle Scholar
Brews, P., & Purohit, D. (2007). Strategic planning in unstable environments. Long Range Planning, 40(1), 64–83. https://doi.org/10.1016/j.lrp.2006.12.001.CrossRefGoogle Scholar
D'Annunzio, C., Carattoli, M., & Dupleix, D. (2015). Dynamic capabilities associated with a firm's growth in developing countries. A comparative study of Argentinean SMEs in the software and tourism industries. Journal of Entrepreneurship, Management and Innovation, 11(4), 25–62. https://doi.org/10.7341/20151142.CrossRefGoogle Scholar
De Guimarães, T. A., Odelius, C. C., Medeiros, J. J., & Vargas Santana, J. A. (2011). Management innovation at the Brazilian superior tribunal of justice. The American Review of Public Administration, 41(3), 297–312. https://doi.org/10.1177/0275074010380449.CrossRefGoogle Scholar
Dibrell, C., Craig, J. B., & Neubaum, D. O. (2014). Linking the formal strategic planning process, planning flexibility, and innovativeness to firm performance. Journal of Business Research, 67(9), 2000–2007. https://doi.org/10.1016/j.jbusres.2013.10.011.CrossRefGoogle Scholar
Di Stefano, G., Peteraf, M., & Verona, G. (2014). The organizational drivetrain: A road to integration of dynamic capabilities research. Academy of Management Perspectives, 28(4), 307–327. https://doi.org/10.5465/amp.2013.0100.CrossRefGoogle Scholar
Dixon, S., Meyer, K., & Day, M. (2014). Building dynamic capabilities of adaptation and innovation: A study of micro-foundations in a transition economy. Long Range Planning, 47(4), 186–205. https://doi.org/10.1016/j.lrp.2013.08.011.CrossRefGoogle Scholar
Donnellan, J., & Rutledge, W. L. (2019). A case for resource-based view and competitive advantage in banking. Managerial and Decision Economics, 40(6), 728–737. https://doi.org/10.1002/mde.3041.CrossRefGoogle Scholar
Dosi, G., Nelson, R. R., & Winter, S. G. (Eds.). (2000). The nature and dynamics of organizational capabilities. New York, NY: Oxford University Press.Google Scholar
Dutton, J. E., & Duncan, R. B. (1987). The influence of the strategic planning process on strategic change. Strategic Management Journal, 8(2), 103–116.CrossRefGoogle Scholar
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10–11), 1105–1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3..CO;2-E.3.0.CO;2-E>CrossRefGoogle Scholar
Enkel, E., & Sagmeister, V. (2020). External corporate venturing modes as new way to develop dynamic capabilities. Technovation, 96–97, 1–14. https://doi.org/10.1016/j.technovation.2020.102128.Google Scholar
Ferreira, J., Coelho, A., & Moutinho, L. (2020). Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation. Technovation, 92–93, 1–18. https://doi.org/10.1016/j.technovation.2018.11.004.Google Scholar
Froehlich, C., Bitencourt, C. C., & Bossle, M. B. (2017). The use of dynamic capabilities to boost innovation in a Brazilian chemical company. Revista de Administração, 52(4), 479–491. https://doi.org/10.1016/j.rausp.2017.08.007.CrossRefGoogle Scholar
Gagné, M. (2018). From strategy to action: Transforming organizational goals into organizational behavior. International Journal of Management Reviews, 20, S83–S104. https://doi.org/10.1111/ijmr.12159.CrossRefGoogle Scholar
George, B., Walker, R. M., & Monster, J. (2019). Does strategic planning improve organizational performance? A meta-analysis. Public Administration Review, 79(6), 810–819. https://doi.org/10.1111/puar.13104.CrossRefGoogle Scholar
Girod, S. J. G., & Whittington, R. (2017). Reconfiguration, restructuring and firm performance: Dynamic capabilities and environmental dynamism. Strategic Management Journal, 38(5), 1121–1133. https://doi.org/10.1002/smj.2543.CrossRefGoogle Scholar
Globocnik, D., Faullant, R., & Parastuty, Z. (2020). Bridging strategic planning and business model management – A formal control framework to manage business model portfolios and dynamics. European Management Journal, 38(2), 231–243. https://doi.org/10.1016/j.emj.2019.08.005.CrossRefGoogle Scholar
Grant, R. M. (2003). Strategic planning in a turbulent environment: Evidence from the oil majors. Strategic Management Journal, 24(6), 491–517. https://doi.org/10.1002/smj.314.CrossRefGoogle Scholar
Haarhaus, T., & Liening, A. (2020). Building dynamic capabilities to cope with environmental uncertainty: The role of strategic foresight. Technological Forecasting and Social Change, 155, 1–15. https://doi.org/10.1016/j.techfore.2020.120033.CrossRefGoogle Scholar
Haim Faridian, P., & Neubaum, D. O. (2020). Ambidexterity in the age of asset sharing: Development of dynamic capabilities in open source ecosystems. Technovation, 99, 1–10. https://doi.org/10.1016/j.technovation.2020.102125.Google Scholar
Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D., & Winter, S. (2010). Dynamic capabilities: Understanding strategic change in organizations. New York, NY: Blackwell Publishing.Google Scholar
Helfat, C. E., & Peteraf, M. A. (2003). The dynamic resource-based view: Capability lifecycles. Strategic Management Journal, 24(10), 997–1010. https://doi.org/10.1002/smj.332.CrossRefGoogle Scholar
Hughes, P., & Hodgkinson, I. (2020). Knowledge management activities and strategic planning capability development. European Business Review, 33(2), 238–254. https://doi.org/10.1108/EBR-03-2019-0034.CrossRefGoogle Scholar
Jantunen, A., Tarkiainen, A., Chari, S., & Oghazi, P. (2018). Dynamic capabilities, operational changes, and performance outcomes in the media industry. Journal of Business Research, 89, 251–257. https://doi.org/10.1016/j.jbusres.2018.01.037.CrossRefGoogle Scholar
Jarzabkowski, P., & Balogun, J. (2009). The practice and process of delivering integration through strategic planning. Journal of Management Studies, 46(8), 1255–1288. https://doi.org/10.1111/j.1467-6486.2009.00853.x.CrossRefGoogle Scholar
Li, S., Easterby-Smith, M., & Hong, J. F. L. (2019). Towards an understanding of the nature of dynamic capabilities in high-velocity markets of China. Journal of Business Research, 97, 212–226. https://doi.org/10.1016/j.jbusres.2018.08.007.CrossRefGoogle Scholar
Li, D., & Liu, J. (2014). Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China. Journal of Business Research, 67(1), 2793–2799. https://doi.org/10.1016/j.jbusres.2012.08.007.CrossRefGoogle Scholar
Milian, E. Z., de Spinola, M. M., & de Carvalho, M. M. (2019). Fintechs: A literature review and research agenda. Electronic Commerce Research and Applications, 34(100833), 1–21. https://doi.org/10.1016/j.elerap.2019.100833.CrossRefGoogle Scholar
Mintzberg, H. (1994). The fall and rise of strategic planning. Harvard Business Review, 72(1), 107–114.Google Scholar
Mousavi, S., Bossink, B., & van Vliet, M. (2018). Dynamic capabilities and organizational routines for managing innovation towards sustainability. Journal of Cleaner Production, 203, 224–239. https://doi.org/10.1016/j.jclepro.2018.08.215.CrossRefGoogle Scholar
Nieves, J., & Haller, S. (2014). Building dynamic capabilities through knowledge resources. Tourism Management, 40, 224–232. https://doi.org/10.1016/j.tourman.2013.06.010.CrossRefGoogle Scholar
Ojha, D., Patel, P. C., & Sridharan, S. V. (2020). Dynamic strategic planning and firm competitive performance: A conceptualization and an empirical test. International Journal of Production Economics, 222, 1–16. https://doi.org/10.1016/j.ijpe.2019.09.030.CrossRefGoogle Scholar
Ouakouak, M. L. (2018). Does a strategic planning process that combines rational and adaptive characteristics pay off? Evidence from European firms. Australian Journal of Management, 43(2), 328–349. https://doi.org/10.1177/0312896217721589.CrossRefGoogle Scholar
Pasha, O., & Poister, T. H. (2017). Exploring the change in strategy formulation and performance measurement practices under turbulence. Public Performance & Management Review, 40(3), 504–528. https://doi.org/10.1080/15309576.2016.1276843.CrossRefGoogle Scholar
Pezeshkan, A., Fainshmidt, S., Nair, A., Lance Frazier, M., & Markowski, E. (2016). An empirical assessment of the dynamic capabilities-performance relationship. Journal of Business Research, 69(8), 2950–2956. https://doi.org/10.1016/j.jbusres.2015.10.152.CrossRefGoogle Scholar
Posch, A., & Garaus, C. (2020). Boon or curse? A contingent view on the relationship between strategic planning and organizational ambidexterity. Long Range Planning, 53(6), 1–19. https://doi.org/10.1016/j.lrp.2019.03.004.CrossRefGoogle Scholar
Posen, H. E., Keil, T., Kim, S., & Meissner, F. D. (2018). Renewing research on problemistic search – A review and research agenda. Academy of Management Annals, 12(1), 208–251. https://doi.org/10.5465/annals.2016.0018.CrossRefGoogle Scholar
Pulsiri, N., & Vatananan-Thesenvitz, R. (2018). A systematic literature review of dynamic capabilities, strategic foresight and organizational learning. In Kocaoglu, D. F., Anderson, T. R., Kozanoglu, D. C., Niwa, K., Steenhuis, H.-J., & Perman, G. (Eds.), 2018 Portland international conference on management of engineering and technology (PICMET) (pp. 1–9). Honolulu: IEEE. https://doi.org/10.23919/PICMET.2018.8481885.Google Scholar
Qaiyum, S., & Wang, C. L. (2018). Understanding internal conditions driving ordinary and dynamic capabilities in Indian high-tech firms. Journal of Business Research, 90, 206–214. https://doi.org/10.1016/j.jbusres.2018.05.014.CrossRefGoogle Scholar
Rau, D., Flores, L., & Simha, A. (2021). A moderated-mediated examination of the relations among strategic planning, organizational learning, slack and firm performance. Management Decision, 59(9), 2200–2216. https://doi.org/10.1108/MD-02-2020-0171.CrossRefGoogle Scholar
Ringov, D. (2017). Dynamic capabilities and firm performance. Long Range Planning, 50(5), 653–664. https://doi.org/10.1016/j.lrp.2017.02.005.CrossRefGoogle Scholar
Rudd, J. M., Greenley, G. E., Beatson, A. T., & Lings, I. N. (2008). Strategic planning and performance: Extending the debate. Journal of Business Research, 61(2), 99–108. https://doi.org/10.1016/j.jbusres.2007.06.014.CrossRefGoogle Scholar
Sassetti, S., Marzi, G., Cavaliere, V., & Ciappei, C. (2018). Entrepreneurial cognition and socially situated approach: A systematic and bibliometric analysis. Scientometrics, 116(3), 1675–1718. https://doi.org/10.1007/s11192-018-2809-4.CrossRefGoogle Scholar
Schreyögg, G., & Kliesch-Eberl, M. (2007). How dynamic can organizational capabilities be? Towards a dual-process model of capability dynamization. Strategic Management Journal, 28(9), 913–933. https://doi.org/10.1002/smj.613.CrossRefGoogle Scholar
Schriber, S., & Löwstedt, J. (2020). Reconsidering ordinary and dynamic capabilities in strategic change. European Management Journal, 38(3), 377–387. https://doi.org/10.1016/j.emj.2019.12.006.CrossRefGoogle Scholar
Sirén, C., & Kohtamäki, M. (2016). Stretching strategic learning to the limit: The interaction between strategic planning and learning. Journal of Business Research, 69(2), 653–663. https://doi.org/10.1016/j.jbusres.2015.08.035.CrossRefGoogle Scholar
Suddaby, R., Coraiola, D., Harvey, C., & Foster, W. (2020). History and the micro-foundations of dynamic capabilities. Strategic Management Journal, 41(3), 530–556. https://doi.org/10.1002/smj.3058.CrossRefGoogle Scholar
Sunder, M. V., Ganesh, L. S., & Marathe, R. (2019). Dynamic capabilities: A morphological analysis framework and agenda for future research. European Business Review, 31(1), 25–63. https://doi.org/10.1108/EBR-03-2018-0060.CrossRefGoogle Scholar
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640.CrossRefGoogle Scholar
Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. https://doi.org/10.1016/j.lrp.2017.06.007.CrossRefGoogle Scholar
Teece, D. J., Peteraf, M., & Leih, S. (2016). Dynamic capabilities and organizational agility: Risk, uncertainty, and strategy in the innovation economy. California Management Review, 58(4), 13–35. https://doi.org/10.1525/cmr.2016.58.4.13.CrossRefGoogle Scholar
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3..CO;2-Z.3.0.CO;2-Z>CrossRefGoogle Scholar
Tometich, P., Fracasso, E., Zen, A., & Engelman, R. (2019). The decision to innovate and the movement of dynamic capabilities. Gestão and Produção, 26(2), 1–13. https://doi.org/10.1590/0104-530x-3627-19.Google Scholar
Tran, Y., Zahra, S., & Hughes, M. (2019). A process model of the maturation of a new dynamic capability. Industrial Marketing Management, 83, 115–127. https://doi.org/10.1016/j.indmarman.2018.11.009.CrossRefGoogle Scholar
Treinta, F. T., Farias Filho, J. R., Sant'Anna, A. P., & Rabelo, L. M. (2013). Methodology of bibliographical research using a multi-criteria method to support decision-making. Production, 24(3), 508–520. https://doi.org/10.1590/S0103-65132013005000078.CrossRefGoogle Scholar
Vecchiato, R. (2015). Creating value through foresight: First mover advantages and strategic agility. Technological Forecasting and Social Change, 101(6), 25–36. https://doi.org/10.1016/j.techfore.2014.08.016.CrossRefGoogle Scholar
Webster, J., & Watson, R. T. (2002). Analyzing the past to prepare for the future: Writing a literature review. MIS Quarterly, 26(2), xiii–xxiii.Google Scholar
Wibbens, P. D. (2019). Performance persistence in the presence of higher-order resources. Strategic Management Journal, 40(2), 181–202. https://doi.org/10.1002/smj.2979.CrossRefGoogle Scholar
Wilden, R., Gudergan, S., & Lings, I. (2019). The interplay and growth implications of dynamic capabilities and market orientation. Industrial Marketing Management, 83, 21–30. https://doi.org/10.1016/j.indmarman.2018.11.001.CrossRefGoogle Scholar
Wolf, C., & Floyd, S. W. (2017). Strategic planning research: Toward a theory-driven agenda. Journal of Management, 43(6), 1754–1788. https://doi.org/10.1177/0149206313478185.CrossRefGoogle Scholar
Zahra, S. A., Sapienza, H. J., & Davidsson, P. (2006). Entrepreneurship and dynamic capabilities: A review, model and research agenda. Journal of Management Studies, 43(4), 917–955. https://doi.org/10.1111/j.1467-6486.2006.00616.x.CrossRefGoogle Scholar
Zollo, M., & Winter, S. G. (2002). Deliberate learning and the evolution of dynamic capabilities. Organization Science, 13(3), 339–351. https://doi.org/10.1287/orsc.13.3.339.2780.CrossRefGoogle Scholar