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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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t

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Articlehistory:

Received28December2015 Accepted20January2016 Availableonline11March2016

JELclassification: M1 M3 Keywords: Digitalera Organizationalcapabilities Marketingdynamiccapabilities Knowledgeprocess

Responsiveness

Organizationalperformance

a

b

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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 Capacidadesorganizativas

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e

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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/).

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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.

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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

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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

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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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