Exploring Organizational Ecosystems, Dynamic Capabilities, and Innovation Strategies

Question

Task: How do concepts such as industrial ecosystems, dynamic capabilities, and innovation strategies contribute to organizational success and growth? How can these concepts be effectively implemented to enhance adaptability, competitiveness, and innovation within a business framework?

Answer

Assessment 2 – Take home test

Question 1:

An industrial ecosystem is a collection of organisations, including wholesalers, suppliers, customers, competitors, regulatory authorities, and other parties involved in the provision of a certain item or service. The ecological theory postulates that every element of the environment impacts and is impacted by other elements, leading to a dynamic interaction that necessitates flexibility and adaptation for each element to exist, much like in a system of organisms (Namugenyi et al., 2019).

Being a vital part of an organization's ecosystems allows opportunities to employ technology, develop analytical and business skills, and compete successfully with other companies. Other goals for a corporate environment include:

Creating new alliances to address the growing ecological and social concerns

? Finding fresh move towards to essential human ambition and needs.

a regional economy sustained by a base for communicating groups of people and entities—the commercial world's biology. Manufacturers, main manufacturers, rivals, and additional parties are also included in the participating organizations. Organizations evolve alongside their responsibilities and capacities through time and often align themselves towards the goals established by any number of centralized corporations. Organizations in leadership positions might shift periodically, but everybody values the environment's leading role due to how it encourages the membership to work around common ideals, coordinate their financial contributions, and identify roles that may be beneficial to one another (Senyo et al., 2019).

Managerial recommendations:

1. Utilizing inventiveness and originality to reduce manufacturing costs or help members’ access new markets

2. Accelerated educational opportunities to efficiently cooperate and exchange knowledge, capabilities, and abilities.

Question 2:

Conventional or "standard" capacities, which are relevant to a company's present activities, can be separated from evolving skills. Contrarily, "the ability for an organization to deliberately establish, expand, change its wealth of assets base" is referred to by the term "dynamic possibilities." The ever-evolving capabilities platform's fundamental premise is the fact that core competencies ought to be applied to alter a short-term competitive situation that may be leveraged to create an about the future advantages over competitors (Oganda et al., 2020).

To handle new problems, three Dynamic skills are needed. Organisations and their employees need to be able to quickly pick up new skills and build essential resources. The company has to add additional essential resources including capacity, technology, and customer feedback. It is necessary to configure or alter present strategic assets.

According to Teece's definition of fluid abilities, business nimbleness—the ability to (1) logical sense as well as influence possibilities and dangers, (2) seize possibilities and (3) take care of competitiveness—is what's crucial for companies. This is accomplished by maximizing, bringing together, safeguarding, and, while needed, rearranging the business organization's immaterial and observable assets—which is what subjects company operations. Standardized communication standards and synchronized search techniques are necessary for training (Olsson et al., 2019).

Managerial recommendations:

The efficiency of a company may also be influenced by how well internal important resources are integrated or coordinated.

2. A particular organizational pattern enabling information collection and manufacturing, connecting customer interactions with technical planning decisions, and managing manufacturers and vendors of parts, among other things, is said to be what drives a high level of quality (Sparviero, 2019).

Question 3:

: The Penrosian legacy represents conventional marketing strategies that emphasize a company's basic competencies together with prospects in a foreign setting.

According to the expense-based understanding of these customs, the company needs "compensating advantages" to offset "the expense of otherworldliness." This culminated in the discovery of technology as well as marketing expertise as the essential components to achieving international penetration (Akter et al., 2019). The exchange of goods cost (TC) hypothesis and the internalization viewpoint have a tight relationship. The central question in internalization theory is whether a company should join a foreign market by externalization—creating a separate entity inside its own borders—or internalization—working with a third-party partnership. The minimizing of neither TC nor the reasons for market inefficiency are issues that those with both internalization and TC viewpoints are interested in.

The goal is to evaluate a transaction's features in order to select an especially efficient leadership mode—one that minimizes the costs associated with the transaction. The internalization theory is comparable to the transnational conglomerate's TC theory. Among of the main ideas in this dissertation is globalization. This suggests that a firm's overseas operations ought to be treated differently from its other operations. Nevertheless, the majority of the study in this area lacks a clear understanding of what internationalization and global endeavours truly imply; it appears that most academics take these ideas somewhat for assumed. Nevertheless, asserts that "there are two fundamental features of global transactions. In broad terms, it may be said that the distinction between national and global operations is that the latter involves actors who are more geographically and culturally distant from one another (Benito et al., 2019).

1 . Typically, this is said both a psychological and geographical separation.

3. They render the company reliant on many sets of environmental elements and necessitate the crossing of socioeconomic and political frontiers (McCormick & Somaya, 2020).

Question 4:

The Development Landscapes Mapping is a tool that enables you to see the potential for development from the viewpoints of two elements: the company's business paradigm and the technological capability required to develop. Routine, radical, annoying, and creative design is among its four categories of development.

The ideal way to approach this kind of creative thinking is after conducting an in-depth market assessment. The firms should recognize which measures are most suitable to take into account as a result of this study. Four sorts of creative thinking result from this:

? Routine Development - does not call for novel company models or technological advancements

? Innovative behaviour - necessitates new technology as well as an entirely novel business strategy (Conboy et al., 2020).

? A novel way of doing business is necessary for disruptive creativity, whereas new technology is not.

? Structural Innovations - necessitates both new commercial and technological models.

We shall define each form of creative thinking and provide examples in the following sections. We must first define a few phrases before that time.

Corporate strategy: In a nutshell, the company's model outlines how it creates, presents, and collects value. In this case, the value may refer to everything, from the finished product to satisfying both customer wants and emotional requirements up until you make a profit.

Technological - These encompass the knowledge and tools which the business (which continues to innovate) has available (Steininger et al., 2022).

Managerial recommendations:

1. Everyday inventiveness, which makes use of both the organization's present commercial strategy and technology capabilities, is perhaps the most radical sort of creation. The majority of the time, this kind of creative thought also protects the consumer segment through to breakthrough.

2. Routine innovation is incredibly effective even when it doesn't seem to constitute innovative. Additionally, there are many instances of effective invention; the majority of each day, these instances involve technology (and other) enterprises (Wu et al., 2022).

Question 5:

The organization Model Canvas, developed by Swiss industrialists and founding members of Strategized, is meant is an abstract representation illustrating the 9 essential construction pieces that serve as the cornerstones of any effective organization. It serves as a guide for business owners who want to create patterns with greater organization (Oganda et al., 2020).

It's ease of use. We are able to conduct an overarching study using the company's model canvases without digging too far or getting bogged down on the specifics. On an empty piece of paper, you just sketch out the nine fundamental elements, fill it with information about how each notion pertains to your company, and then put it up where everyone is able to observe it (Sparviero, 2019).

Managerial recommendations:

1. A great way to handle this is to call an early morning meeting with the heads of sales, advertising, accounts payable, accounting, procedures, and manufacturing.

2. After fabricating a false canvas on a section of the whiteboard, examine and discuss each of the nine elements of construction as they relate to your organization.

Reference list

Akter, M., Rahman, M., & Radicic, D. (2019). Women Entrepreneurship in International Trade: Bridging the Gap by Bringing Feminist Theories into Entrepreneurship and Internationalization Theories. Sustainability, 11(22), 6230. https://doi.org/10.3390/su11226230

Benito, G. R. G., Petersen, B., & Welch, L. S. (2019). The global value chain and internalization theory. Journal of International Business Studies, 50(8), 1414–1423. https://doi.org/10.1057/s41267-019-00218-8

Conboy, K., Mikalef, P., Dennehy, D., & Krogstie, J. (2020). Using business analytics to enhance dynamic capabilities in operations research: A case analysis and research agenda. European Journal of Operational Research, 281(3), 656–672. https://doi.org/10.1016/j.ejor.2019.06.051

McCormick, M., & Somaya, D. (2020). Born globals from emerging economies: Reconciling early exporting with theories of internationalization. Global Strategy Journal, 10(2). https://doi.org/10.1002/gsj.1368

Namugenyi, C., Nimmagadda, S. L., & Reiners, T. (2019). Design of a SWOT Analysis Model and Its Evaluation in Diverse Digital Business Ecosystem Contexts. Procedia Computer Science, 159(159), 1145–1154. https://doi.org/10.1016/j.procs.2019.09.283

Oganda, F. P., Lutfiani, N., Aini, Q., Rahardja, U., & Faturahman, A. (2020, October 1). Blockchain Education Smart Courses of Massive Online Open Course Using Business Model Canvas. IEEE Xplore. https://doi.org/10.1109/ICORIS50180.2020.9320789

Olsson, A., B. Paredes, K. M., Johansson, U., Olander Roese, M., & Ritzén, S. (2019). Organizational climate for innovation and creativity – a study in Swedish retail organizations. The International Review of Retail, Distribution and Consumer Research, 29(3), 243–261. https://doi.org/10.1080/09593969.2019.1598470

Senyo, P. K., Liu, K., & Effah, J. (2019). Digital business ecosystem: Literature review and a framework for future research. International Journal of Information Management, 47, 52–64. https://doi.org/10.1016/j.ijinfomgt.2019.01.002

Sparviero, S. (2019). The Case for a Socially Oriented Business Model Canvas: The Social Enterprise Model Canvas. Journal of Social Entrepreneurship, 10(2), 1–20. https://doi.org/10.1080/19420676.2018.1541011

Steininger, D. M., Mikalef, P., Adamantia Pateli, & Ortiz-de-Guinea, A. (2022). Dynamic Capabilities in Information Systems Research: A Critical Review, Synthesis of Current Knowledge, and Recommendations for Future Research. AIS Electronic Library (AISeL). https://aisel.aisnet.org/jais/vol23/iss2/6/

Wu, Q., Yan, D., & Umair, M. (2022). Assessing the role of competitive intelligence and practices of dynamic capabilities in business accommodation of SMEs. Economic Analysis and Policy. https://doi.org/10.1016/j.eap.2022.11.024

Tags:

NEXT SAMPLE