Success Traps, Dynamic Capabilities and Firm Performance. / Wang, Catherine L.; Senaratne, Chaminda; Rafiq, Mohammed .

In: British Journal of Management, Vol. 26, No. 1, 01.2015, p. 26-44.

Research output: Contribution to journalArticlepeer-review

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Success Traps, Dynamic Capabilities and Firm Performance. / Wang, Catherine L.; Senaratne, Chaminda; Rafiq, Mohammed .

In: British Journal of Management, Vol. 26, No. 1, 01.2015, p. 26-44.

Research output: Contribution to journalArticlepeer-review

Harvard

Wang, CL, Senaratne, C & Rafiq, M 2015, 'Success Traps, Dynamic Capabilities and Firm Performance', British Journal of Management, vol. 26, no. 1, pp. 26-44. https://doi.org/10.1111/1467-8551.12066

APA

Vancouver

Author

Wang, Catherine L. ; Senaratne, Chaminda ; Rafiq, Mohammed . / Success Traps, Dynamic Capabilities and Firm Performance. In: British Journal of Management. 2015 ; Vol. 26, No. 1. pp. 26-44.

BibTeX

@article{dd6588ee0e284666b06d004f4cb23b23,
title = "Success Traps, Dynamic Capabilities and Firm Performance",
abstract = "Dynamic capabilities (DCs) are fundamental to the understanding of differential firm performance. However, the question remains as to why some firms are better at developing and applying DCs than others. Especially, successful firms have been warned against the tendency to fall into a success or competence trap, where success reinforces exploitation of existing competences and crowds out exploration of new competences, hindering the development of DCs. Therefore, this study examines the effects of success traps on DCs and consequently firm performance, taking into account firm strategy and market dynamism. To facilitate this, our study also identifies the commonalities of DCs across firms. Drawing on survey data from 113 UK high-tech small and medium-sized firms, we find that success traps have a significant, strong negative effect on DCs, which in turn have a weak positive effect on firm performance; DCs are manifested through absorptive and transformative capabilities as two common features across firms. We also find that the development and application of DCs is related to internal factors (such as success traps) rather than external factors (such as market dynamism). ",
keywords = "Success Traps, Dynamic Capabilities, High-Tech SMEs, Firm Strategy, Market Dynamism, Firm Performance, Competence Traps",
author = "Wang, {Catherine L.} and Chaminda Senaratne and Mohammed Rafiq",
year = "2015",
month = jan,
doi = "10.1111/1467-8551.12066",
language = "English",
volume = "26",
pages = "26--44",
journal = "British Journal of Management",
issn = "1045-3172",
publisher = "Wiley-Blackwell",
number = "1",

}

RIS

TY - JOUR

T1 - Success Traps, Dynamic Capabilities and Firm Performance

AU - Wang, Catherine L.

AU - Senaratne, Chaminda

AU - Rafiq, Mohammed

PY - 2015/1

Y1 - 2015/1

N2 - Dynamic capabilities (DCs) are fundamental to the understanding of differential firm performance. However, the question remains as to why some firms are better at developing and applying DCs than others. Especially, successful firms have been warned against the tendency to fall into a success or competence trap, where success reinforces exploitation of existing competences and crowds out exploration of new competences, hindering the development of DCs. Therefore, this study examines the effects of success traps on DCs and consequently firm performance, taking into account firm strategy and market dynamism. To facilitate this, our study also identifies the commonalities of DCs across firms. Drawing on survey data from 113 UK high-tech small and medium-sized firms, we find that success traps have a significant, strong negative effect on DCs, which in turn have a weak positive effect on firm performance; DCs are manifested through absorptive and transformative capabilities as two common features across firms. We also find that the development and application of DCs is related to internal factors (such as success traps) rather than external factors (such as market dynamism).

AB - Dynamic capabilities (DCs) are fundamental to the understanding of differential firm performance. However, the question remains as to why some firms are better at developing and applying DCs than others. Especially, successful firms have been warned against the tendency to fall into a success or competence trap, where success reinforces exploitation of existing competences and crowds out exploration of new competences, hindering the development of DCs. Therefore, this study examines the effects of success traps on DCs and consequently firm performance, taking into account firm strategy and market dynamism. To facilitate this, our study also identifies the commonalities of DCs across firms. Drawing on survey data from 113 UK high-tech small and medium-sized firms, we find that success traps have a significant, strong negative effect on DCs, which in turn have a weak positive effect on firm performance; DCs are manifested through absorptive and transformative capabilities as two common features across firms. We also find that the development and application of DCs is related to internal factors (such as success traps) rather than external factors (such as market dynamism).

KW - Success Traps

KW - Dynamic Capabilities

KW - High-Tech SMEs

KW - Firm Strategy

KW - Market Dynamism

KW - Firm Performance

KW - Competence Traps

U2 - 10.1111/1467-8551.12066

DO - 10.1111/1467-8551.12066

M3 - Article

VL - 26

SP - 26

EP - 44

JO - British Journal of Management

JF - British Journal of Management

SN - 1045-3172

IS - 1

ER -