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PurposeThe purpose of this research is to explicate the role of dynamic capabilities in the ability of small- and medium-sized enterprises (SMEs) to create value and also investigate the relationship among different dynamic capabilities, competitive strategy and SMEs’ value sources.Design/methodology/approachEmpirical evidence based on a survey conducted on a sample of 441 UK-based SMEs was used to test the research hypotheses.FindingsThe findings illustrate that sensing, learning, integrating and coordinating capabilities play a significant role in SMEs’ value creation, and competitive strategy mediates the impact of dynamic capabilities on value creation.Research limitations/implicationsThis study demonstrates the benefits of understanding the relationship among the four types of dynamic capabilities, competitive strategy and value creation. Moreover, this study contributes to the notion of the contingency nature of dynamic capabilities.Practical implicationsIt offers managers insight into the aspects on which to focus their efforts to enhance their firm’s capacity of value creation.Originality/valueWhile much of the prior studies have conceptually/qualitatively investigated the financial return of uni-dimensional dynamic capabilities of large firms in the manufacturing sector, this study made a significant effort to quantitatively examine the non-financial value potential of SMEs in service sector through four processes of dynamic capabilities.

The overall interplay between competitive strategies and dynamic capabilities is an integral part of value creation in terms of novelty, lock-in, complementarities and efficiency. Short title: Competitive strategy, dynamic capability and value creation Key points: -In response to insufficient systematic research on the impact of competitive strategies and dynamic capabilities on value creation, this study expands prior studies (e.g., Rashidirad et al., 2013) by proposing carefully testable research hypotheses and empirically explore the research phenomenon. -This study analyses the complex interrelationships between competitive strategies and dynamic capabilities and the resulting impact on value creation through adopting a multidimensional approach in which each construct is decomposited to its dimensions, so the relationships between each dimension of the research constructs are investigated. -This study prompts rethinking of the impact of dynamic capability and competitive strategy on value creation in firms by using a multidimensional perspective.

Resource-Based Theory (RBT) has become an acceptable theory to describe the importance of resources and capabilities in generating high performance. Our literature review shows that there are two approaches to RBT: reductionistic and holistic. Adopting a reductionistic approach has led to an inconsistency in the findings about the relationship between RBT constructs (i.e. resources and capabilities), and their impact on performance. This paper proposes that a holistic approach to RBT has a greater power to explain the complex interrelationships between dynamic capabilities, firm’s resources and competitive strategies. Through a critical review on both views, this study highlights areas in which future research is needed for greater understanding of the co-impact of a firm’s internal factors and competitive strategies on performance.

Purpose – This paper aims to investigate the applicability of Grant’s framework in the current changing and dynamic environment. Design/methodology/approach – In this paper, a critical review of Grant’s paper was conducted to identify the limitations and weaknesses of the framework, which prevent its effective application in the current digital age. Findings – As a result, this paper presented a modified framework and four propositions to consider dynamic capabilities in the new turbulent environment and extend the relationships between a firm’s resources, capabilities, dynamic capabilities, competitive advantage and competitive strategy. Findings tied to this initiative will provide important contributions to research. Originality/value – Rooted in resource-based view (RBV), the proposed framework puts forward a valid theoretical foundation on how to create a competitive advantage from a firm’s internal factors, including strategic resources, capabilities and dynamic capabilities. Furthermore, it contributes to RBV literature by considering dynamic capabilities, as the firms’ most crucial factors in the current dynamic digital market.

The holistic approach of the technological, organizational, and environmental (TOE) framework, which is based on resource-based theory (RBT), puts forward a valid theoretical background on how different contextual factors contribute to improve e-business value. TOE factors, except firm size, positively affect the ability of e-businesses to generate high value with regard to the strategic alignment between their competitive strategies and dynamic capabilities.

Strategic alignment of competitive strategies and dynamic capabilities may enable e-businesses to create superior value for their stakeholders.

Drawing on Configuration theory and Resource Based Theory (RBT), we examine the value creation of the alignment among three constructs of strategic resources, dynamic capabilities and competitive s...