Unbundling dynamic capabilities in successful Asian-Pacific shipping companies

Purpose This paper aims to add to the understanding of dynamic capabilities (DC) as sources of competitive advantage of successful Asian-Pacific shipping companies by demonstrating that DC development unfolds in three steps, from recognition that the environment has changed, to the decision to deplo...

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Bibliographic Details
Published in:Journal of Asia business studies 2017-05, Vol.11 (2), p.113-134
Main Author: Čirjevskis, Andrejs
Format: Article
Language:English
Subjects:
Case studies
Competition
Competitive advantage
Decision making
Horizontal integration
Product development
Strategic management
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Summary:Purpose This paper aims to add to the understanding of dynamic capabilities (DC) as sources of competitive advantage of successful Asian-Pacific shipping companies by demonstrating that DC development unfolds in three steps, from recognition that the environment has changed, to the decision to deploy DC, to assets re-orchestration. Design/methodology/approach Based on an approach involving two illustrative case studies, the author analyzed DC development of Chinese and Singaporean-based shipping groups in depth. The analysis was centered on DC by investigating how strategic decision-making on vertical integration, diversification and implementation of new technologies can be underpinned by developing DC to create sustained advantages. Findings The author found that strategic components of DC are rooted in strategic decision-making to initiate changes on the corporate and even on an operational level. Research limitations/implications While capability development is thoroughly studied, capability erosion has not been integrated into the research. The exploration of human capital as a firm’s idiosyncratic resource in assets orchestration capabilities can be future work. Practical implications The proposed research contributes to the debate on micro foundations of DC and provides insights for practitioners striving for retaining competitive advantages. Social implications Regarding implications for the society, the research shows how the DC serve to generate competitive advantages. The author has presented a logical structure of the competitive advantage paradigm as a product of DC and business models that can be useful to decision makers. Originality/value The research offers insights into the composition of micro foundations of DC and demonstrates that DC can be unbounded into well-known and concrete strategic and operational management activities.
ISSN:1558-7894
1559-2243
DOI:10.1108/JABS-11-2015-0192