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

Journal of Management Studies (46): 3 421-450, 2009

30 Pages Posted: 16 Sep 2013

See all articles by Omar Malik

Omar Malik

Ohio Northern University

Masaaki Kotabe

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

Multiple version iconThere are 2 versions of this paper

Date Written: January 14, 2009

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 modeled 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.

Keywords: Emerging Economies, Firm Strategies, Dynamic Capabilities, Government Policies

JEL Classification: M13

Suggested Citation

Malik, Omar and Kotabe, Masaaki, Dynamic Capabilities, Government Policies, and Performance in Firms from Emerging Economies: Evidence from India and Pakistan (January 14, 2009). Journal of Management Studies (46): 3 421-450, 2009. Available at SSRN: https://ssrn.com/abstract=2325923

Omar Malik (Contact Author)

Ohio Northern University ( email )

Ada, OH 45810
United States

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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