The use of dynamic capabilities to boost innovation in a Brazilian Chemical Company

Froehlich, Cristiane; Bitencourt, Claudia Cristina; Bossle, Marilia Bonzanini

doi:10.1016/j.rausp.2017.08.007

Acessibilidade / Reportar erro

Brasil

Revista de Administração (São Paulo)

Español English

Brasil

Español English

sumário « anterior atual seguinte »

Sumário

Technology Management • Rev. Adm. (São Paulo) 52 (4) • Oct-Dec 2017 • https://doi.org/10.1016/j.rausp.2017.08.007 copy

The use of dynamic capabilities to boost innovation in a Brazilian Chemical Company

A utilização das capacidades dinâmicas para impulsionar a inovação em uma Empresa Química Brasileira

La utilización de las capacidades dinámicas para impulsar la innovación en una empresa química brasileña

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Dynamic capabilities seek to explain how competitive advantages can be built in rapidly changing environments. This study aims to assess how the application of dynamic capabilities can contribute to the expansion of innovation capabilities. Data was collected on ten semi-structured interviews with executives from a chemical company, and analyzed using qualitative content analysis. Results indicate that the application of dynamic capabilities contributes to the development of innovation capabilities through the consolidation of the first dynamic capability (sensing), which fosters innovation. Sensing can be considered an organizational capability, resulting from the integration between organizational strategies and the innovation practices of the organization as a whole. This study brings the following contributions the need to include a new microfoundation in the sensing capability, which in this study is called ‘processes to manage innovation on a strategic level' and the need to adapt another microfoundation related to the sensing capability, called ‘processes oriented toward collaboration with suppliers to complement and stimulate innovations within the company'. It is suggested that these processes should be reassessed in terms of their potential to generate and complement organizational innovation.

Keywords:
Innovation capability; Dynamic capabilities; Microfoundations

Dynamic capabilities	Microfoundations
Capability to identify environmental contexts (sensing)	(1) processes to direct internal R&D work; (2) processes to tap supplier and complement innovations; (3) processes to tap developments in exogenous science and technology; and (4) processes to identify target market segments, changing customer needs and customer innovation.

Capability to seize/incorporate opportunities (seizing)	(1) customer solutions and business models (selection of target customers, value delivery and capture; selection of technologies, customer orientation); (2) selection of enterprise boundaries (definition of the scope of activities - definition of norms and limits that allow the advantage of first movers, even in the presence of imitators); (3) routines for the selection of decision making protocols (how to allocate resources, balance in the investment portfolio); (4) routines to build loyalty and commitment (alignment of the innovation culture to ensure the employees' loyalty and commitment).

Capability to manage threats and transformations (reconfiguring)	(1) decentralization and decomposability (the decentralization of decisions increases agility and capability to respond to customers' demands and to new technologies that may be acquired); (2) cospecialization (shared used of unique assets that are not easily identified by competitors and add value - the skill of the manager in identifying and using this combination is of particular importance); (3) governance and knowledge management (development of the processes of integration of external and internal knowledge and learning, formation of alliances and joint ventures to facilitate the governance of technology transfer and intellectual property).

Job/position	Length of service in the company	Education
Technology Manager	13 months	Chemistry technician. BSc Chemistry. MSc Organic Chemistry. PhD Materials Engineering.
Technology Projects Coordinator	7 years	Chemistry technician. BSc Chemistry. MBA Business and Project Management.
Occupational Health, Safety and Environment Coordinator	3 years	Chemistry technician. BSc Environmental Engineering. BSc OSH. International MBA Environmental Management.
Management and Innovation Analyst	5 years	Chemistry technician. BSc Production Engineering (in progress).
Planning and New Businesses Manager	17 years	BSc Commercial Engineering.
Coordinator of the Francisco Xavier Kunst Foundation	3 years	BA Social Science. Specialist, HR Planning and Management. MA Education.
Environmental Analyst	2½ years	Chemical Engineering.
Internal and Institutional Marketing Coordinator	1 year	Journalism.
Development Consultant	6 years	BA Business. MBA Strategy and Innovation.
Organizational Development Director	3 years	BSc Accounting. MBA Business Management. MBA Social Technology.

Category	Subcategory
Innovation capability	(a) Contextualization.
Innovation capability	(b) Innovation types.

Dynamic capabilities	(a) Capabilities and respective microfoundations:
	- capability to identify environmental contexts (sensing);
	- capability to seize/incorporate opportunities (seizing);
	- capability to manage threats and transformations (reconfiguring).

Microfoundations (^{Teece, 2007}Teece, 2007 Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319-1350.)	Managerial and organizational processes at Artecola
(1) Processes that direct internal R&D work	Technology group - interdisciplinary team that works to translate stakeholders' needs in quarterly meetings which analyze the technologies controlled by the company and latent market needs. Findings from this group are widely publicized in the company's R&D Intranet, a custom application developed by SAP to facilitate communication and oversight of project flow by employees - Participants 1 and 2;
	^{Clark and Wheelwright's funnel methodology (1993)}Clark and Wheelwright, 1993 Clark, K. B., & Wheelwright, S. C. (1993). Managing new product and process development: Text and cases. New York: Free Press. of innovation for the development of new products;
	Project management methodology (PMI).

(2) Processes to tap supplier and complementary innovations	Strategic guideline 'growth with alliances'. To fulfill this guideline, the company permanently looks for partnerships (with suppliers, customers and universities) to develop new products (Participants 5 and 6); The importance of international alliances to fulfill the 'result-oriented innovation guideline' was highlighted by Participant 4, while Participant 1 recalled the definition of strategies related to international alliances, which contributed to the development of technological product innovations.

(3) Processes to tap developments in exogenous science and technology	Partnerships with local and international university research centers (Participant 1); projects in progress, mainly those of basic research (Participant 2); international recognition as a result of partnerships with leading players (Participant 10);
	Participation of representatives of the technology, commercial, technical and marketing areas in local and international fairs where relevant state-of-the-art innovations and technologies are presented (Participant 2).

(4) Processes to identify target market segments, changing customer needs and customer innovation.	Market intelligence group that 'carries out studies, surveys on trend, monitors the new products of the competition, together with the technology area to identify new needs that can yield new products, services and markets (Participant 8);
	Events created by the company: (i) Consumer Office (where consumers can present their requirements and representatives of different areas in the company can discuss solutions - Participant 1), (ii) Inovarte (building proximity with consumers by means of visits and presentation of the whole range of products and services - Participant 1), (iii) Technology forum (two-day event with Brazilian and Latin American teams to foster synergies between different areas of the company, suppliers and customers, and identification of needs and opportunities - Participant 2), (iv) In3 Blog (open channel of communication with the market, under the coordination of the marketing area; (v) Local and international fairs.

^{Teece's microfoundations (2007)}Teece, 2007 Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319-1350.	Managerial and organizational processes at Artecola
(1) Customer solutions and business model	- The company's business model includes a set of interrelated activities to add value to consumers (Participant 3) which was based on the strategic guidelines of the strategic plan (Participant 10).
(2) Selection of enterprise boundaries	- Establishing alliances with consumers, suppliers, research centers and universities.
(3) Routines for the selection of decision-making protocols	- Routines are developed by means of regular meetings (Participant 1) to assess the viability of new products and services; (b) formal meetings conducted by the strategy and innovation committee; (c) meetings conducted by the technology area to assess the stages of the innovation funnel model.
(4) Routines to build loyalty and commitment	- Regular actions and activities, such as: (a) 'Welcome' event (held in January with all employees to direct and inform strategic intentions, the results of the previous year and new aims for the current year); (b) internal campaigns to reinforce DNA points (innovation, international insertion and sustainability), under the coordination of the organizational development area, which publishes newsletters, handbooks, magazines and leaflets to provide up-to-date information); (c) management and human resources training initiatives to build staff loyalty and commitment; (d) organization of teams with staff from different areas to build commitment. This is associated with fostering innovation in processes; and (e) program of ideas (since 2004, a communication channel that engages staff, stimulates creativity and participation in the business and contributes to promote a culture of innovation (Participant 5).

Microfoundations	Managerial and organizational processes
(1) Decentralization and decomposability	- Formation of strategic committees that make decisions relevant to their field of work, with a focus on the transition from a family managed to a professionally managed business. Creation of shareholders' councils and a board of directors, which led to the creation of decision-making committees.

(2) Cospecialization	- Capability to manage technological assets and alliances to mobilize resources and innovation capabilities (Participant 4).

(3) Governance and knowledge management	- Governance to contemplate the development of internal and external knowledge integration processes and learning.
	- Artecola Integrated Management System (SIGA);
	- Alliances with consumers, suppliers, multinational companies and partnerships with research centers and university to gain access to expertise and learning in order to improve and facilitate the innovation capability of the organization, as discussed above, and joint ventures.

Capability to identify environmental contexts (sensing)
(1) Processes to direct innovation on a strategic level (new);
(2) Processes to direct internal R&D tasks;
(3) Processes to tap supplier and not only complement but generate innovation (new);
(4) Processes to tap developments in exogenous science and technology;
(5) Processes to identify target market segments, changing customer needs and customer innovation.

Departamento de Administração da Faculdade de Economia, Administração e Contabilidade da Universidade de São Paulo Avenida Professor Luciano Gualberto, 908, sala F184, 05508-900 São Paulo / SP Brasil, Tel./Fax 55 11 3818-4002 - São Paulo - SP - Brazil
E-mail: rausp@usp.br

Acompanhe os números deste periódico no seu leitor de RSS

[1] * Corresponding author at: RS - 239, 2755, CEP 93352000, Novo Hamburgo, RS, Brazil. E-mail: (C. Froehlich).