Dynamic Managerial Capabilities and Business Strategy in Iranian Firms

Document Type : Research Paper

Authors

1 Faculty of Management & Soft Technologies, Malek Ashtar University of Technology, Tehran, Iran

2 Faculty of Management, Industrial Engineering, Malek Ashtar University of Technology, Tehran, Iran

3 State Management Teaching Center (SMTC)

10.22104/jtdm.2024.6936.3327

Abstract

Dynamic Managerial Capabilities (DMCs) refer to a firm's ability to adapt and innovate in response to shifting market dynamics by its manager/s. These capabilities are believed to develop over time through accumulated knowledge and experience. The competencies of managers in these types of firms could play a crucial role in shaping decision-making and strategic choices. This study explores the influence of DMCs on the innovative performance of Iranian economic firms across four business-level strategies: defensive, analyzer, reactive, and proactive. A mixed-methods approach was employed, combining document analysis and a survey questionnaire. The survey data was processed and analyzed through statistical software packages such as SPSS and AMOS. The findings revealed that DMCs indirectly influence innovative performance, but only when coupled with proactive or reactive strategies. Interestingly, no such indirect effect was observed for defensive or analyzer strategies. The study highlights the importance of DMCs for fostering innovation in Iranian firms. This knowledge can inform both managers and policymakers. Managers should prioritize developing their own DMCs and cultivating a proactive or reactive strategic orientation. Furthermore, Iranian policymakers can create an environment that encourages businesses to invest in innovation.

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History

  • Receive Date: 10 June 2024
  • Revise Date: 23 September 2024
  • Accept Date: 28 September 2024

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