www.elsevier.es/jik
Journal
of
Innovation
&
Knowledge
Conceptual
paper
Organizational
capabilities
in
the
digital
era:
Reframing
strategic
orientation
Ludovico
Bullini
Orlandi
DepartmentofBusinessAdministration,UniversityofVerona,viaCantarane,24,37129Verona,Italy
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Articlehistory:
Received28December2015 Accepted20January2016 Availableonline11March2016
JELclassification: M1 M3 Keywords: Digitalera Organizationalcapabilities Marketingdynamiccapabilities Knowledgeprocess
Responsiveness
Organizationalperformance
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Thedigitaleraischangingconsistentlythepreviousmarketingscenariosandactualissues havetobeaddressedinordertoclosethecapabilitiesgapcreatedbydigitalinnovations. Differentauthorscallfortheoreticalandempiricalcontributionsthatcopewiththeissues broughtoutbythedigitalizationofmarketingchannelsandtheconsequentever increas-ingvolumeofdigitaldata.Thisstudydevelopsatheoreticalframeworkandpropositions throughareframingandreconceptualizationofprevioustheoreticalconstructsfrom man-agerialandmarketingliterature.Theresultingmodeloffersinsightsaboutorganizational processesandcapabilitiesneededtocopewiththeactualfastchanging,butatthesame time,data-richenvironment.
©2016JournalofInnovation&Knowledge.PublishedbyElsevierEspa ˜na,S.L.U.Thisisan openaccessarticleundertheCCBY-NC-NDlicense(http://creativecommons.org/licenses/
by-nc-nd/4.0/).
Capacidades
de
organización
en
la
era
digital:
reformulación
de
la
orientación
estratégica
CódigosJEL: M1 M3 Palabrasclave: Eradigital Capacidadesorganizativasr
e
s
u
m
e
n
Laeradigitalcambiaconstantementelosescenariosdemarketingysedebenabordar pro-blemasrealesparapodercubrirelvacíoencuantoahabilidadescreadoporlainnovación tecnológica.Variosautores ponende relievelademandadecontribucionesempíricas y teóricasquelidien con losproblemascausados por ladigitalización delos canalesde marketingyelconsecuenteconstanteaumentodeinformacióndigital.Estetrabajo desa-rrollaunmarcoyproposicionesteóricosatravésdelaredefiniciónyreconceptualización
E-mailaddress:ludovico.bulliniorlandi@univr.it http://dx.doi.org/10.1016/j.jik.2016.01.002
2444-569X/©2016JournalofInnovation&Knowledge.PublishedbyElsevierEspa ˜na,S.L.U.ThisisanopenaccessarticleundertheCC BY-NC-NDlicense(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Marketingcapacidades dinámicas
Procesodeconocimiento Sensibilidadorganizativas Performancedelaorganización
deideaspreviasdelaliteraturademarketingydegestión.Elmodeloresultanteidentifica losprocesosorganizativosyhabilidadesnecesariasparaenfrentarseaestecontextotan cambianteyenriquecedorencuantoadatosserefiere.
©2016JournalofInnovation&Knowledge.PublicadoporElsevierEspa ˜na,S.L.U.Estees unart´ıculoOpenAccessbajolalicenciaCCBY-NC-ND(http://creativecommons.org/
licenses/by-nc-nd/4.0/).
Introduction
Therecentmarketingandmanagerialliteraturewidely recog-nizethatradicaltechnologicalandenvironmentalchangesare transformingmarketingscenarios(Day,2011;Yadav&Pavlou, 2014).Themaincontemporaryissuesderivedfromthat liter-atureare:(1)theexplodingvolumeofdata(e.g.Kumaretal.,
2013;Leeflang,Verhoef,Dahlström,&Freundt,2014),(2)the
newnetworkedandpervasiveinformationtechnology(IT)or computer-mediatedenvironment(Leeflangetal.,2014;Yadav
&Pavlou,2014)and(3)theconsequentfragmentationof
mar-ketchannelsandcustomertouch-points(Day,2011;Leeflang et al., 2014). All the previous arguments have in common thequestionabouthowtomanagetheinformationoverload derivingfromfragmentedmarketingchannelsand environ-mentsinordertomakesenseofitand tounderstandand respondtoenvironmentalchanges(Day,2011).
Marketingliteratureincreasinglyemphasizesthepresence ofgaps inorganizational capabilitiesand skills due tothe above-mentionedtechnologicalandenvironmentalchanges
(seei.e.Day,2011;Leeflang etal.,2014)andit doescallfor
copingwiththeseissuesespeciallyindigitalmarketcontext
(Yadav&Pavlou,2014).
Thisstudyfocusesspecificallyonthefirm–customerand firm–firm interactions (Yadav & Pavlou, 2014) in order to developatheoreticalframeworkthatbothtakesinto consid-erationthemostinterestinginsightsfrompreviousliterature andatthesametimetries tocope withthesemorerecent issuescausedbytheswitchtowardanincreasinglydigitalized marketplace.
Infirm-customerinteractions,oneofthemainissuesdeals withtheenhancedcustomervisibility,whichpermitstofirms tocollectand manage,detailedcustomerinformation.This issuecanbeaddressedmakingthe“roleofinformationmore explicit inthis framework” and extendingthe Day’s(1994)
strategiccapabilitiesframeworktodigitalcontexts(Yadav&
Pavlou,2014,p.31).
Theincreasingspeed ofenvironmentalchanges is driv-ing managerial and marketingliteraturetoward rethinking thetheoreticalrootsofmarketingcapabilitieswhichare tra-ditionallyrootedinresource-basedview(seei.e.Day,1994). Butwhenfirmsoperateinhigh-velocitymarket(Eisenhardt&
Martin,2000)theyhavetodevelopdynamiccapabilities(DC)
inordertoobtainatleastaseriesofshort-livedcompetitive advantages(D’Aveni,1994)orevenasustainablecompetitive advantage(Teece,Pisano,&Shuen,1997).
For theabove-mentioned reasons thereisan increasing attention in theoretically framing and studying marketing capabilities as part of DC perspective, say in the studies
ondynamicmarketingcapabilitiesframework(e.g.
Barrales-Molina, Martínez-López, & Gázquez-Abad, 2013; Bruni &
Verona,2009).
Theaimofdynamicmarketingcapabilities(DMC) frame-work isto deepenthe understanding of relationsbetween marketingandDCandtherole ofmarketingresourcesand capabilitiesindevelopingasustainablecompetitiveadvantage
(Barrales-Molinaetal.,2013).
What boththe traditionalDC perspective and themore recentDMCframeworkhaveincommonisaconcerntoward theimportanceofdevelopingmarketknowledgetosenseand seize,orrespondto,newopportunities.
AsBruni and Verona(2009) stated:“Dynamicmarketing
capabilities are specifically aimed at developing, releasing andintegratingmarketknowledge”(p.102).Firmsneedboth sensingcapabilitiesinordertodiscovernewopportunitiesand seizing capabilitiestoexploit them(Teece, 2007). Organiza-tionscansensenewopportunitytowarda“scanning,creation, learning,andinterpretiveactivity”andtheyneed “differen-tialaccesstoexistinginformation”because“newinformation and newknowledge(exogenousorendogenous) cancreate opportunities”(Teece,2007,p.1322).
The development of market knowledge “involves inter-preting availableinformationin whateverformit appears”
(Teece, 2007, p. 1323) and managers need real-time
infor-mation,especiallyinhigh-velocitymarket,to“adjust[more quickly] theiractionssinceproblemsand opportunitiesare spotted”(Eisenhardt&Martin,2000,p.1112).
Inthe actualmarketingscenariosthe information com-ingfromdigitaldataarebecomingcentralindecision-making process (see i.e.Du, Hu, &Damangir, 2015),the volumeof business-relateddigitaldataisever-increasing,itcomesfrom dispersedsources,withhigh-levelofgranularityanditis dif-ficulttoanalyze(George,Haas,&Pentland,2014).
Butgiventhatattentionofmanagersislimitedandthey cannotfocusonallthepossibleissuesandproblems(Ocasio, 1997),researchhastodeepenthequestionaboutwhichtypes ofinformationandknowledgehavetobetakeninto consider-ationtoachievecompetitiveadvantage.
Bothdynamiccapabilitiesliteratureandmarketand strate-gicorientationliteratureagreeonatleastthreemainissues thatorganizationshavetotakeintoconsideration:customers, competitorsandtechnologicaldevelopments.Firmshaveto accumulateandfilterinformation“scanningandmonitoring internal and externaltechnological developments[...] cus-tomer needsandcompetitoractivity”(Teece,2007,p.1323). Asimilartheoreticalstandingistakeninstrategicorientation literaturewhereGatignonandXuereb(1997)empiricallytest therelationshipbetweencustomer,competitorand techno-logicalorientationandproductinnovationperformance.
In the literature reviewed for this study emerges that bothstrategic/marketorientationliterature(seeGatignon&
Xuereb,1997;Kohli&Jaworski,1990;Narver&Slater,1990)and
marketingcapabilitiesliterature(seeDay,1994;Jayachandran,
Hewett,&Kaufman,2004;Morgan,Vorhies,&Mason,2009)
already contemplate different theoretical constructs that explain the relations among high information-processing, marketknowledge,marketresponsivenessandorganizational performance.
Whatismissingisaframeworkthatreorganizesandkeeps up-to-datethesetheoreticalconstructstorespondtothecall foradjourning the“strategiccapabilitiesframeworkto digi-talcontexts”(Yadav&Pavlou,2014,p.31)andalsotakeinto considerationtheinitiallymentionedissuesoftheso-called “digitalrevolution”(Leeflangetal.,2014).
Thestudy’saimsare:(1)developatheoreticalframework thatcouldexplainhowthedigitalizationofmarketing chan-nels and the consequent massive expansion of real-time datacanimpactonorganizationalperformance,(2)identify thespecificDCsinvolvedandalsotheprocessesthatactas micro-foundationsofDCand(3)developasetoftheoretical propositionsthatcanbetestedinfutureempiricalresearch.
Increasing
volume
of
digital
data
and
organizational
knowledge
processes
ThegreatexpansionofInternet,mobileandsocialmedia tech-nologies,saythe“digitalera”(Leeflangetal.,2014),hascreated amassivevolumeofdigitaldataavailabletofirms,butthis “delugeofdata”ischallengingthetraditionalmarketing capa-bilities(Day,2011,p.183).
Thefirststeptotheoreticallyreframethestrategic capabili-tiesframeworkistodefinethecharacteristicsthatdistinguish the data coming from the marketing “digital revolution”
(Leeflangetal.,2014)fromtheprevioustraditionalsourceof
information.
Thedatacharacteristicsoverwhichbothmanagerialand marketingliteratureagreeare:(1)theever-increasingvolume
(Day,2011;Georgeetal.,2014),(2)thefine-grainednatureofthe
data(Georgeetal.,2014;Yadav&Pavlou,2014),(3)thedifferent
digitalsourcestheycomefrom,suchasweb,socialmediaand mobileapplications(Chen,Chiang,&Storey,2012;Day,2011) andfinally(4)theyarereal-timeproducedandpotentially ana-lyzablereal-time(Georgeetal.,2014;Trainor,Andzulis,Rapp,
&Agnihotri,2014).
Thesedataaremakingtangibleandempiricallyverifiable the theoretical statement of Eisenhardt and Martin (2000)
aboutmanagers’useofreal-timeinformationinhigh-velocity market.Real-timedigitaldatapermittodeployreal-timedata analyticsandasaconsequenceareal-timedecisionmaking
(Georgeetal.,2014).
On the other hand, in presence of a massive amount ofdata, organizationsrisk the so-called“paralysisthrough analysis”(Peters&Waterman,1982)duetotheoverloadof dataandanalysisthatslowdowndecision-makingprocesses. Butiforganizationsdeployproperanalyticstheycanmake sense of dataand use them strategically (e.g. Chen et al.,
2012; Davenport, 2006; Kiron & Ferguson, 2012) moreover
recent studies have empirically tested the positive impact
of analytics over firm performance (Germann, Lilien, &
Rangaswamy,2013;Germann,Lilien,Fiedler,&Kraus,2014).
Whatemergesfromorganizationallearningtheory(Huber,
1991;Sinkula,1994)isthattheavailabilityofinformationdoes
notnecessarilyincreaseorganizationalperformanceandin ordertodosothereistheneedofstructuredorganizational knowledgeprocesses(seei.e.Jayachandranetal.,2004;Li&
Calantone,1998).
Information processing abilities are critical due to the increasingvolumeofavailablemarket dataandthese abili-tiesarevaluableinordertoobtainacompetitiveadvantage becausetheyaredifficulttoachieveandtoimitate(Day,1994;
Hult,Ketchen,&Slater,2007).
Forthisreason,theconceptoforganizationalknowledge processes isintroduced inthe theoreticalframework. From the seminalstudies on this concept emerges its linkwith market orientation literature since the authors (see Li &
Calantone, 1998)defineit asthe setofbehavioralactivities
thatcharacterizedthemarketorientationconstruct. Follow-ingorganizationallearningtheory(Huber,1991;Sinkula,1994) theydefinecustomerandcompetitorknowledgeprocessas theprocessconsistentinthethreestepsofacquisition, inter-pretationandintegrationofcustomerorcompetitor-related information(Jayachandranetal.,2004;Li&Calantone,1998).
Inthesameperiodalsotheissueoftechnological develop-mentsandchangesisanalyzedinmarketingliterature.The technological opportunism conceptisdevelopedinsuchas waythatitisdefinedasthe“sense-and-respondcapabilityof firmswithrespecttonewtechnologies”(Srinivasan,Lilien,&
Rangaswamy,2002,p.48).Technologicalopportunismconcept
isconceived,from its origin,asconstitutedbytwo distinct capabilities:technology-sensingcapability,orthe “organiza-tion’sabilitytoacquireknowledgeaboutandunderstandnew technologydevelopment”,andthetechnology-response capa-bility,whichisthe“organization’swillingnessandabilityto respondtothenewtechnologiesitsensesinitsenvironment”
(Srinivasanetal.,2002,pp.48–49).
Analyzingboththeauthors’statementsabout technology-sensing capability (see i.e. “organization that has strong technology-sensingcapabilitywillregularlyscanfor informa-tion aboutnewtechnological opportunitiesand threats”,p. 48) andthe measurementitems thisstudy arguesthat the mostimportantprocess that actsasmicro-foundation and undergirdsthiscapabilityisaknowledgeprocessrelatedto technologicalchanges.
Organizational
knowledge
processes
and
market
performance:
the
mediating
role
of
responsiveness
Theideathatmarket-relatedinformationprocessing,say mar-ket intelligence(Kohli,Jaworski,&Kumar,1993),isstrongly connectedwiththefirms’marketresponsivenessdatesback toseminalstudiesonmarketorientation(Jaworski&Kohli,
1990; Kohli & Jaworski, 1990; Narver & Slater, 1990) which
includetheconceptofresponsivenessinsidethemarket ori-entationconstructitself.
Even if different studies have shown a direct positive effect ofcustomer and competitorknowledgeprocess over
product innovation(e.g. Li & Calantone, 1998) and even a slightlysignificantdirecteffectofknowledgeprocessesover firmperformance(Ozkayaetal.,2015),mostofthemarketing and managerial literature agreeson the mediating role of organizationalresponsiveness(seei.e.Bhatt,Emdad,Roberts,
& Grover, 2010;Homburg, Grozdanovic, & Klarmann, 2007;
Wei&Wang,2011).
Oneofthe firstdefinitionsoforganizational responsive-nessisprovidedbyKohliandJaworski(1990):“Responsiveness istheactiontakeninresponsetointelligencethatis gener-atedanddisseminated.”(p.6),butsimilarconceptualization is also in more recent literature where customer-related (competitor-related)responsivenessisdefined“astheextent to which an organization responds quickly to customer-related[competitor-related]changes”(Homburgetal.,2007,p. 19)andalso“organizationalresponsiveness[canbedefined] asthe extenttowhichafirmrespondstomarketchanges” andit“resultsfromfirms’gathering,sharing,and interpre-tation of environmental information” (Wei & Wang, 2011, p.270).
Also in the framing of organizational responsiveness, in order to consider the third dimension of the strategic orientation framework (Gatignon & Xuereb, 1997), say the technological changes,the study referstotheliteratureon technologicalopportunism(TO).Bothintheseminalstudyon thetechnologicalopportunism(Srinivasanetal.,2002)andin themorerecentempiricalverificationofTOimpactover orga-nizational performance(Chen & Lien, 2013; Lucia-Palacios,
Bordonaba-Juste,Polo-Redondo,&Grünhagen,2014),theTO
constructisbasedontwodimensions:sensingandresponding capabilities.Thus,technological-respondingcapabilitycanbe definedas“organization’swillingnessandabilitytorespond to the new technologies it senses in its environment that mayaffecttheorganization”(Srinivasanetal.,2002,p.49)or likewiseas“relatedtotheextenttowhichanorganization iswillingand abletorespondtonewtechnologies”(
Lucia-Palaciosetal.,2014,p.1179).
Given the above-mentioned theoretical statements and empirical verifications the first three propositions can be stated:
Proposition1. Theuseofcustomer-relateddigitalreal-timedata hasapositive impactovercustomerresponsivenessmediated by customerknowledgeprocess.
Proposition2. Theuseofcompetitor-relateddigitalreal-timedata hasapositiveimpactovercompetitorresponsivenessmediatedby competitorknowledgeprocess.
Proposition3. Theuseoftechnology-relateddigitalreal-timedata hasapositiveimpactovertechnologyresponsivenessmediatedby technologyknowledgeprocess.
Thelaststepfordevelopingacomprehensivetheoretical frameworkistoadvancepropositionsthatclarifytheimpactof thepreviouslymentionedconstructoverorganizational per-formance.
As Dickson (1992) suggests the “variance in
respon-siveness” and the exploit of “knowledge and response imperfection”(pp.75–76)canbesourcesofcompetitive advan-tage.AlsotheDCliteraturehasemphasizedtheimportanceof beingresponsivetonewopportunitiesandchangesinorderto gaincompetitiveadvantage(Eisenhardt&Martin,2000;Teece
etal.,1997;Teece,2007).
Thenthepositiveeffectoforganizationalresponsiveness overperformanceistestedinbothstrategicmanagement(see i.e.Hultetal.,2007)andmarketing(seei.e.Homburgetal.,
2007;Jayachandranetal.,2004)literature.
Differentempiricalstudieshaveshownthatcustomer(and competitor) responsiveness has apositive impact on mar-ketperformance(seei.e.Homburgetal.,2007;Jayachandran etal.,2004).Recentlyotherstudieshaveempiricallyverifiedin moregeneraltermstherelationamongorganizational respon-siveness and competitive advantagefinding a positive and consistentrelationship(e.g. Bhattetal., 2010;Wei&Wang,
2011).
AlsointhecaseofresponsivenesstheliteratureonTOcan be, in away, adapted evenif the construct itself analyzes simultaneously the technological sensing and responding capability.
Somerecentstudieshaveempiricallytestedandconfirmed thepositive,directandmediated,effectofTOoverfirm per-formance(Chen&Lien,2013;Lucia-Palaciosetal.,2014).
Given the intent to follow the approach of Homburg
etal.(2007),whichanalyzethemarketorientationconstruct
(Narver&Slater,1990)followingtheNoble,Sinha,andKumar
(2002,p.28)suggestiontostudyit“inadisaggregatedmanner”,
thisstudytriesmaintainthesameprincipleandcoherencein
Customer Information-processing Customer-related digital real-time data use Customer knowledge process Customer responsiveness Competitor responsiveness Technological responsiveness Organizational performance Competitor knowledge process Technology knowledge process Competitor-related digital real-time data use Technology-related digital real-time data use Sensing capabilities Responding capabilities Competitor Technological change
thefollowingpropositionsabouttherelationshipof organiza-tionalresponsivenessandperformance.
Proposition4. Customerresponsivenessispositivelyrelatedwith organizationalperformance.
Proposition5. Competitorresponsivenessispositivelyrelatedwith organizationalperformance.
Proposition6. Technologicalchangesresponsivenessispositively relatedwithorganizationalperformance.
All the developedtheoretical proposition can be visual-ized inthefollowingFig. 1thatrepresentsahypothesis of themodelwhichcanbetestedinfutureresearch.Themodel showsinthehorizontalaxisthedifferentorganizational fea-tures considered and the vertical axis displays the three strategicorientationdimensionsconsidered.
Conclusions
After approximately thirty years from the seminal papers aboutmarketorientation,strategicorientationand organiza-tionallearningtheory,someoftheconceptsdevelopedinthat historicalperiodcouldbevalidyardsticksstillintheactual context andthey canbe reframedtoanswer to therecent calltowardclosingthecapabilitiesgapinthedigitalera.Of course,thecontextandtherulesofthegamearechanged,but thisstudyshowsthatreframingandredefiningsomeofthose conceptsleadtotheoreticallysupportedpropositionsthatcan answeralsototheinitiallymentionedissuesofthedigitalera. Future research can enhance the proposed model and investigates,moredeeply,insidetheorganizationalprocesses. Particularlyinterestingistodeepentheknowledgeabouthow this“delugeof[digital]data”isprocessedinsidethe organiza-tionstogainusefulinsightsabouttheexternalenvironment, especiallyhoworganizationsfilterandselectthemost consis-tentdataandhowhighlyautomatedandalgorithmicanalytics influencetheseprocesses.
Fromanempiricalpointofview,futureresearchshould empiricallytestthepropositionsinordertoverifyifthemodel canconsistentlyexplainthe impactofthe recentdata-rich environmentandtheuseofreal-timedigitaldataover orga-nizationalcapabilitiesandperformance.
Thisstudyreframessomeusefulandpowerfulconceptsof thepreviousmarketingandstrategicorientationliteraturein thedynamiccapabilitiesframeworkinordertomovefromthe resource-basedviewtoanothertheoreticalframework,which isabletofitbetterwiththe actualextremelydynamicand changingenvironment,providingacontributionalsotothe actualdebateaboutdynamicmarketingcapabilities.Finally, it brings out some specific processes and capabilitiesthat undergirdsenseandseizingdynamiccapabilitiesgivingthe chancetoempiricallytestwithfutureresearchtheimpactof thesespecificmicro-foundationsoverorganizational perfor-manceandcompetitiveadvantagepotentiallycontributingto thedebateonmicro-foundationsofdynamiccapabilities.
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