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
Date Written: January 14, 2009
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
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