THE INFLUENCE OF DYNAMIC CAPABILITIES AND VALUE CREATION TOWARDS BUSINESS MODEL INNOVATION AND ITS IMPACTS ON COMPANY PERFORMANCE
TriyonoArief Wahyudi 1) dan Donant Alananto Iskandar 2)
Institut Teknologi dan Bisnis Kalbis
Abstract
This article deals with the sources of a company-s competitive advantage that allow that company to perform better than its competitors. Different theories try to explain the sources of this competitive advantage. The most recent and promising theory attributes the source of competitive advantage to so-called dynamic capabilities, which allow a company to reconfigure its assets in order to adapt to a changing environment. Through the examination of the capability ‘innovation speed- in an in-depth case study of two companies, namely X and Y, this research not only identifies the different influence factors of dynamic capabilities, but also brings fuller clarity to the topic regarding the influence of managers on the development of dynamic capabilities and the transferability of those capabilities to other companies, and thus, the sustainability of competitive advantage. This study identifies three domains of influence factors, namely context, structure, and best practices. The findings of the case study show that influence factors of dynamic capabilities can neither be uniquely attributed to the environment of an organization, nor exclusively to the organization itself. Depending on the ‘idiosyncratic- mix of a specific capability-s influence factors, the manager-s possibilities of actively steering the development of this capability and the transferability of it to other companies are explained and finally combined with the identified origins of influence factors of those dynamic capabilities. We also highlight business model innovation as a way for general managers and entrepreneurs to create and appropriate value, especially in times of economic change. Business model innovation, which involves designing a modified or new activity system, relies on recombining the existing resources of a firm and its partners, and does not require significant investments in R&D. We offer managers and researchers a conceptual primer on business model innovation, emphasizing the importance of system-level thinking in order to improve company performance.
Keywords: Dynamic Capabilities, Business Model Innovations, Company Performance
Topic: Kewirausahaan Dan Inovasi Bisnis