Dynamic capabilities and radical innovation performance in established firms: a structural model

ABSTRACT

The paper extends Teece’s model of dynamic capabilities (2007) into four types of capabilities: sensing, coordination, autonomy and reconfiguration capabilities. We further develop a structural model between four types of dynamic capabilities and radical innovation performance (RIP) in established firms. Based on a dataset of top 500 manufacturing established firms in Taiwan, the proposed hypotheses are tested using the structural equation models. The results reveal that four types of dynamic capabilities and RIP are positively correlated in a sequential and structural manner. This paper concludes the systemic development of dynamic capabilities can improve RIP in established firms. Finally, we point out some managerial implications for improving RIP in established firms.

KEYWORDS:

• Radical innovation
• dynamic capabilities
• established firms

Notes on contributors

Wen-Hong Chiu is an associate professor of the Department of Business Administration at Asia University in Taiwan. His research interests cover the areas of technology management, innovation management and service innovation. His research has been published in International Journal of Technology Management, Total Quality Management & Business Excellence, Journal of Management (in Chinese), etc.

Hui-Ru Chi is an assistant professor of the Department of International Business at Asia University in Taiwan. Her research interests cover technology management, organisational innovation management and service innovation. Her research has been published in Technovation, Journal of Management (in Chinese), Organization and Management (in Chinese ), etc.

Yuan-Chieh Chang is a professor at the Institute of Technology Management, National Tsing-Hua University, Taiwan. He completed his PhD from PREST, University of Manchester, UK. His research interests are systems of innovation studies, industry-university links, innovation management and academic entrepreneurship. He has published more than 30 journal papers such as the journals of Research Policy, Technovation, R&D Management, Technological Forecasting and Social Change, Research Technology Management, etc.

Ming-Huei Chen is a professor at the Graduate Institute of Technology Management, National Chung Hsing University, Taiwan. She completed her PhD from the Manchester Business School, University of Manchester, UK. Her works have appeared in British Journal of Management, R&D Management, Research Policy, Creativity and Innovation Management, International Journal of Organizational Analysis, International Journal of Entrepreneurial Behavior & Research, etc. Her current research focuses on creativity in teams, entrepreneurship and leadership, intellectual capital management and creative industry.