How strategic orientations influence the building of dynamic capability in emerging economies

Kevin Zheng Zhou and Caroline Bingxin Li

Journal of Business Research, 2010, vol. 63, issue 3, 224-231

Abstract: Under the fierce pressures of the fast changing environments that characterize emerging economies, firms must develop dynamic capabilities to survive the competition. This study examines how strategic orientation helps build dynamic capability and its contingencies in China's emerging economy. A survey of 380 firms indicates strategic orientations are important drivers of adaptive capability, a key element of dynamic capabilities. The effectiveness of strategic orientations is contingent on market dynamics. In particular, when market demand becomes increasingly uncertain, customer orientation has a weaker impact, whereas technology orientation has a stronger effect on adaptive capability. As competition intensifies, both competitor and technology orientations build adaptive capability more effectively.

Keywords: Strategic; orientation; Dynamic; capability; Adaptive; capability; Emerging; economies; China (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (99)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:63:y:2010:i:3:p:224-231

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