Complementarity versus substitutability of dynamic and operational capabilities in B2B firms: A configurational approach

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Abstract

Despite extensive research into dynamic and operational capabilities, understanding of their interplay is still scant. Both complementary and substitutive roles have been proposed in prior conceptual studies, but only limited systematic empirical investigations into the mutual interdependence of these capabilities have been conducted. Drawing on a sample of 219 Hungarian B2B firms, this study incorporates prior literature on dynamic and operational capabilities and employs a set-theoretical approach to examine whether the capabilities complement or substitute each other in producing high levels of business performance. While evidence for both types of interdependency is provided, the findings generally support the view that dynamic and operational capabilities are complementary rather than substitutive. The two types of capabilities also explain business performance better jointly than in isolation. Several effective capability configurations, associated with high business performance, are identified. The findings paint a detailed picture of the complex interplay between dynamic and operational capabilities, thereby contributing to
academic and managerial audiences alike.

Bibliographical metadata

Original languageEnglish
Pages (from-to)42-58
JournalIndustrial Marketing Management
Volume83
Early online date28 Nov 2018
DOIs
Publication statusPublished - Nov 2019

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