Dynamic Capabilities, Government Policies, and Performance in Firms from Emerging Economies: Evidence from India and Pakistan

30 Pages Posted: 27 Apr 2009

See all articles by Masaaki Kotabe

Masaaki Kotabe

Temple University - Department of Strategic Management; Temple University; Temple University

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Abstract

In this study we developed a model of the dynamic capability development mechanisms in Emerging Market manufacturing Firms (EMF). We identified three dynamic capability development mechanisms: organizational learning, reverse engineering, and manufacturing flexibility. We generated hypotheses based on this framework, linking these mechanisms with firm performance. We also modelled the roles played by managerial use of two types of government policies: input supporting policies and marketing supporting policies. We tested our hypotheses on a sample of Indian and Pakistani manufacturing firms. Results showed that organizational learning, reverse engineering and manufacturing flexibility had significant impacts on EMF performance. Additionally, organizational learning combined with input supporting government policies enhanced performance, and the combination of manufacturing flexibility and marketing supporting government policies had an insignificant influence on performance.

Suggested Citation

Kotabe, Masaaki, Dynamic Capabilities, Government Policies, and Performance in Firms from Emerging Economies: Evidence from India and Pakistan. Journal of Management Studies, Vol. 46, Issue 3, pp. 421-450, May 2009. Available at SSRN: https://ssrn.com/abstract=1378333 or http://dx.doi.org/10.1111/j.1467-6486.2008.00817.x

Masaaki Kotabe

Temple University - Department of Strategic Management ( email )

Fox School of Business and Management
349G Speakman Hall
Philadelphia, PA 19122
(215) 204-7740 (Phone)

HOME PAGE: http://www.sbm.temple.edu/~mkotabe/

Temple University ( email )

The Fox School of Business
559 Alter Hall (006-14)
Philadelphia, PA PA 19122
United States
215-204-7704 (Phone)

HOME PAGE: http://astro.temple.edu/~mkotabe/

Temple University ( email )

The Fox School of Business
559 Alter Hall (006-14)
Philadelphia, PA PA 19122
United States
215-204-7704 (Phone)

HOME PAGE: http://astro.temple.edu/~mkotabe/

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