Strategic behavior and dynamic capabilities: studies in micro and small technology-based firms

Authors

DOI:

https://doi.org/10.5585/2023.23754

Keywords:

Dynamic capabilities, organizational resources, external environment, micro and small technology-based firms

Abstract

Purpose: this work aims to contribute to the literature on strategic management in micro and small firms by identifying the main strategic behavior traits in micro and small technology-based firms.

Methodology: the research method consisted of two phases: the first phase, quantitative, involved a survey of 104 micro and small technology-based firms, whose results were analyzed using the cluster analysis technique. The second qualitative phase involved five case studies, whose information was obtained through five semi-structured interviews and analyzed using the content analysis technique.

Results: the results indicated which micro and small technology-based firms operate in sectors with high levels of dynamism and uncertainty, and their strategic behavior is based on the definition of competitive and innovation strategies, communication of strategic objectives to employees, allocation of organizational resources for innovation, market research and investments in R&D and development of dynamic capabilities for innovation, sensing changes in the external environment, seizing and reconfiguring resources, through strategic partnerships with external agents, especially customers, which can help these companies to adapt to market demands and obtain competitive advantages.

Conclusions: the strategic behavior in micro and small technology-based firms is influenced by the definition of competitive and innovation strategies, communication of strategic objectives to employees, allocation of organizational resources for innovation, market research and R&D investments, and development of dynamic capabilities for innovation.

Downloads

Download data is not yet available.

Author Biographies

Tiago Fernando Musetti, University of São Paulo, São Carlos School of Engineering / São Paulo (SP)

Graduated in Economics. MBA in Business Management. Master’s degree in Production Engineering from the University of São Paulo, USP, Brazil. PhD in Production Engineering from the Federal University of São Carlos, UFSCar, Brazil

Alceu Gomes Alves Filho, Federal University of São Carlos / São Carlos (SP)

Graduated in Production Engineering from the University of São Paulo, USP, Brazil

Specialization in Electronic Computing from the University of São Paulo, USP, Brazil

Master’s degree in Production Engineering from the University of São Paulo, USP, Brazil

PhD in Production Engineering from the University of São Paulo, USP, Brazil

Post Doctorate from Sussex University, Sussex, England

Marcelo Seido Nagano, University of São Paulo / São Paulo (SP)

Graduated in Mechanical Engineering from the University of São Paulo, USP, Brazil

Specialization in Agroindustrial Management from the Federal University of São Carlos, UFSCar, Brazil

Specialization in Quantitative Statistical Methods from the Federal University of São Carlos, UFSCar, Brazil

Master in Mechanical Engineering from the University of São Paulo, USP, Brazil

PhD in Mechanical Engineering from the University of São Paulo, USP, Brazil

References

Adam, M., Strähle, J., & Freise, M. (2018). Dynamic capabilities of early-stage firms: exploring the business of renting fashion. Journal of Small Business Strategy, 28(2), 49-67. https://libjournals.mtsu.edu/index.php/jsbs/article/view/834.

Agência Paulista de Promoção de Investimentos e Competitividade. (2019). Por que São Paulo. São Paulo: Autor. Retrieved from https://www.investe.sp.gov.br/por-que-sp.

Barney, J. B., & Hesterly, W. S. (2012). Strategic Management and

Competitive Advantage: Concepts. Utah: Pearson.

Boly, V., Morel, L., Assielou, D. G., & Camargo, M. (2014). Evaluating innovative processes in French firms: methodological proposition for innovation capacity evaluation. Research Policy, 3(3), 608–622. https://doi.org/10.1016/j.respol.2013.09.005.

Eisenhardt, K. M., & Martin, J. A. (2000). What are dynamic capabilities? Strategic Management Journal, 21(10–11), 1105–1121. Retrieved January 21, from https://www.jstor.org/stable/3094429.

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 da USP, 52(2), 479-491. https://doi.org/10.1016/j.rausp.2017.08.007.

Graneheim, U. H., & Lundman, B. (2004). Qualitative content analysis in nursing research: concepts, procedures, and measures to achieve trustworthiness. Nurse Education Today, 24(1), 105-112. https://doi.org/ 10.1016/j.nedt.2003.10.001.

Haapanen, L., Hurmelinna-Laukkanen, P., & Hermes, J. (2018). Firm functions and the nature of competitive advantage in internationalizing SMEs. International Journal of Innovation Management, 22(3), 1850022-1 – 1850022-30. https://doi.org/ 10.1142/S1363919618500226.

Herrmann, J. D., Sangalli, L. C., & Teece, D. J. (2017). Dynamic capabilities: fostering an innovation-friendly environment in Brazil. Revista de Administração de Empresas, 57(3), 283–287. https://doi.org/10.1590/S0034-759020170309.

Hsiao, Y. C., & Hsu, Z. X. (2018). Firm-specific advantages-product innovation capability complementarities and innovation success: a core competency approach. Technology in Society, 55(1), 78–84. https://doi.org/10.1016/j.techsoc.2018.06.009.

Jannssen, M., Castaldi, C., & Alexiev, A. (2016). Dynamic capabilities for service innovation: conceptualization and measurement. R&D Management, 46(4), 797–811. https://doi.org/10.1111/radm.12147.

Jeng, D. J. F., & Pak, A. (2016). The variable effects of dynamic capability by firm size: the interaction of innovation and marketing capabilities in competitive industries. International Entrepreneurship and Management Journal, 12(1), 115–130. https://doi.org/10.1007/s11365-014-0330-7.

Jensen, A., & Clausen, T. H. (2017). Origins and emergence of exploration and exploitation capabilities in new technology-based firms. Technological Forecasting and Social Change, 120(1), 163–175. https://doi.org/10.1016/j.techfore.2017.03.004.

Kallmuenzer, A., & Scholl-Grissemann, U. (2017). Disentangling antecedents and performance effects of family SME innovation: a knowledge-based perspective. International Entrepreneurship and Management Journal, 13(4), 1117–1138. https://doi.org/10.1007/s11365-017-0443-x.

Kenski, V. W., & Marcondes, R. C. (2017). FAPESP's Innovative Small Business Program (PIPE) is a development inducer of technology-based enterprises. Gestão & Produção, 24(4), 667-679. http://dx.doi.org/10.1590/0104-530X1256-16.

Ko, W. W., & Liu, G. (2017). Environmental strategy and competitive advantage: the role of dynamic capabilities of small- and medium-sized enterprises. Business Strategy and the Environment, 26(5), 584–596. https://doi.org/10.1002/bse.1938.

Meirelles, D. S., & Camargo, A. A. B. (2014). Capacidades dinâmicas: O que são e como identificá-las? Revista de Administração Contemporânea, 18(3), 41-64. http://dx.doi.org/10.1590/1982-7849rac20141289.

Mousavi, S., & Bossink, B. A. G. (2018). Firms’ capabilities for sustainable innovation: the case of biofuel for aviation. Journal of Cleaner Production, 167(20), 1263–1275. https://doi.org/10.1016/j.jclepro.2017.07.146.

Nieves, J., Quintana, A., & Osorio, J. (2016). Organizational knowledge, dynamic capabilities, and innovation in the hotel industry. Tourism and Hospitality Research, 16(2), 158–171. https://doi.org/10.1177/1467358415600208.

Pan, X.; Zhang, J.; Song, M.; Ai, B. (2018). Innovation resources integration pattern in high-tech entrepreneurial enterprises. International Entrepreneurship and Management Journal, 14(1), 51–66. https://doi.org/10.1007/s11365-017-0464-5.

Schoemaker, P. J. H., Heaton, S., & Teece, D. (2018). Innovation,

dynamic capabilities, and leadership. California Management Review, 61(1), 15–42. https://doi.org/10.1177/0008125618790246.

Brazilian Service to Support Micro and Small Businesses (SEBRAE). (2015). Anuário de trabalho na micro e pequena empresa. Brasília:Author.

Sheng, M. L. (2017). A dynamic capabilities-based framework of organizational sensemaking through combinative capabilities towards exploratory and exploitative product innovation in turbulent environments. Industrial Marketing Management, 65(2), 28–38. https://doi.org/10.1016/j.indmarman.2017.06.001.

Sok, P., O’Cass, A., & Miles, M. P. (2016). The performance advantages for SMEs of product innovation and marketing resource - capability complementarity in emerging economies. Journal of Small Business Management, 54(3), 805–826. https://doi.org/ 10.1111/jsbm.12172.

Teirlinck, P., & Spithoven, A. (2013). Proper R&D management and strategic decision-making in small firms in knowledge-intensive business services. R&D Management, 43(1), 37–51. https://doi.org/10.1111/j.1467-9310.2012.00701.x.

Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(2), 1319–1350. https://doi.org/10.1002/smj.640.

Teece, D. J. (2012). Dynamic capabilities: routines versus entrepreneurial action. Journal of Management Studies, 49(8), 1395–1401. https://doi.org/10.1111/j.1467-6486.2012.01080.x.

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.

Turulja, L., & Bajgoric, N. (2019). Innovation, firms' performance, and environmental turbulence: Is there a moderator or mediator? European Journal of Innovation Management, 22(1), 213-232. https://doi.org/10.1108/EJIM-03-2018-0064.

Zakrzewska-Bielawska, A. (2010). High technology company – concept, nature, characteristics. Wseas International Conference on Management, Marketing and Finances. Penang, Malaysia, 8

Downloads

Published

25.07.2023

How to Cite

Musetti, T. F., Alves Filho, A. G., & Nagano, M. S. (2023). Strategic behavior and dynamic capabilities: studies in micro and small technology-based firms. International Journal of Innovation, 11(2), e23754. https://doi.org/10.5585/2023.23754

Issue

Section

Articles