Strategic Renewal Capability and Firm Sustainability: An Empirical Investigation of Software Businesses in Thailand
Keywords:
Strategic Renewal Capability, Organizational Survival, Firm SustainabilityAbstract
Strategic renewal capability has been viewed as one of key components that influence organizational outcomes. The objective of the study was to investigate the effect of strategic renewal capability on organizational survival and firm sustainability. The results were derived from a survey of 156 Software Businesses in Thailand which provided the interesting points of strategic renewal capability. The hypothesized relationships among variables were examined by using ordinary least square (OLS) regression analysis. Results suggested that all dimensions of strategic renewal capability positively influence on organizational survival and firm sustainability. Furthermore, organizational survival has a positive influence on firm sustainability. Theoretical and managerial contributions, conclusion, and suggestions for future research are also discussed.
References
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Chankaew, N. & Ussahawanitchakit, P. (2011). Management control system and firm success: An empirical
investigation of electronics parts businesses in Thailand. Journal of the Academy of Business &
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Churchill, G. A. (1979). A paradigm for developing better measures of marketing constructs. Journal of
Marketing Research, 16, 64-73.
Claycomb, C., Droge C., & Germain, R. (2005). Applied customer knowledge in a manufacturing
environment: Flexibility for industrial firms, Industrial Marketing Management, 34, 629-640.
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environmental change. Journal of Engineering and Technology Management, 15, 1-24.
Eisenhardt, K. & Martin, J. (2000). Dynamic capabilities: What are they?. Strategic Management Journal,
21, 1105-1121.
Eisenhardt, K. M. (1989). Building theories from case-study research. Academy of Management Review,
14(4), 532-550.
Esteve-Pérez, S. & Mañez-Castillejo, J. ( 2008 ). The resource-based theory of the firm and firm survival.
Small Business Economics, 30(3), 231 - 249.
Garrett, T. C., Buisson D. H., & Yap, C. M. (2006). National culture and randd and marketing integration
mechanism in new product development: A cross-cultural study between Singapore and New
Zealand. Industrial Marketing Management, 35, 293-307.
Gibb, A. (2006). Making markets in business development services for SMEs: taking up the Chinese
challenge of entrepreneurial networking and stakeholder relationship management. Journal of
Small Business and Enterprise Development, 13(2), 235-41.
Ha, N. M. (2013). The effect of firm's growth on firm survival in Vietnam. International Business Research,
6(5), 142-156.
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Journal of Management Concepts and Philosophy, 1(2), 129-145.
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Competitiveness Review, 21(3), 247-268.
Khan, A. M. & Manopichetwattana, V. (1989). Innovative and non-innovative small firms: Types and
characteristics. Management Science, 5, 597-713.
Khumyat, P. & Pratoom, K. (2014). Organizational renewal capability and firm sustainability: an empirical
investigation of chemical and chemical products businesses in Thailand. Journal of International
Business and Economics, 4(4), 79-94.
Lavie, D. (2006). Capability reconfiguration: an analysis of incumbent responses to technological change.
Academy of Management Review, 31(1), 153-74.
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approach. International Journal of Innovation Management, 5(3), 377–400.
Lee, J. N. (2001). The impact of knowledge sharing, organizational capability and partnership quality on IS
outsourcing success. Information Management, 38 : 323 – 335.
Mata, J. & Portugal, P. (2002). The survival of new domestic and foreign-owned firms. Strategic
Management Journal, 23, 323-343.
Morris, M. H. & Zahra, S. (2000). Adaptation of the business concept as a factor in entrepreneurship: the
case of historically disadvantaged South African entrepreneurs. Journal of Small Business
Management, 38(1), 92-100.
Mozilo, A. R. (2001). Master today’s challenges, ensure tomorrow’s prosperity: Four components for
ongoing success. Mortgage Banking, 62 (1), 17-18.
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Nunnally, J. C. & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). New York: McGraw-Hill.
Patel, P. C., Terjesen, S., & Li, D. (2012). Enhancing effect of manufacturing flexibility through operational
absorptive capacity and operational ambidexterity. Journal of Operational Management, 30(3),
201-220.
Peng, X. Liu, Y., & Lin, Y. (2015). The impact of environment uncertainty and effectual flexibility on
entrepreneurial resource combination: the moderating effect of entrepreneurial self-efficacy.
Frontiers of Business Research in China, 9(4), 559-575.
Persson, H. (2004). The survival and growth of new establishments in Sweden, 1987-1995. Small Business
Economics, 23, 423-440.
Phokha, A. & Ussahawanitchakit, P. (2010). Marketing leadership strategy, marketing outcomes and firm
sustainability: Evidence from food product businesses in Thailand. International Journal of
Strategic Management, 11(3), 1-25.
Pongpearchan, P. & Ussahawanitchakit, P. (2011). Strategic entrepreneurship management competency
and firm success: A comparative study of SMEs in auto and electronic parts in Thailand.
International Journal of Business Strategy, 11(2), 197-227.
Pitt, L. & Kannemeyer, R. (2000). The role of adaptation in microenterprise development: A marketing
perspective. Journal of Developmental En trepreneurship, 5(2), 137-155.
Pöyhönen, A. (2004). Renewal ability of organizations: Synthesis of theoretical literature and suggestions
for measurement. Lappeenranta, Finland: Lappeenranta University of Technology.
Salvato, C. (2009). Capabilities unveiled: the role of ordinary activities in the evolution of product
development processes. Organization Science, 20(2), 384-409.
Schmitt, A. & Klarmer, P. (2015). From snapshot to continuity: A dynamic model of organizational
adaptation to environmental changes. Scandinavian Journal of Management, 31(1), 3-13.
Soltani, S., Ramazanpoor E., & Eslamian S., (2014) A structural equation model of the impact of new product
development on competitive advantage. Engineering Management Research, 3(1), 99-108.
Sørensen, H. E. (2012). Business development: A market-oriented perspective. New York: John Wiley & Sons.
Ståhle, P. (1998). Supporting a system’s capacity for self-renewal. Yliopistopaino, Helsinki
Ståhle, P. (2003). Lecture in the graduate school of intellectual capital and knowledge management. 20
September, Tampere University of Technology, Finland.
Ståhle, P. & Grönroos, M. (2000). Dynamic intellectual capital: Knowledge management in theory and
practice. Vantaa: WSOY.
Stanley, S., Hult G. T., & Olson, E. M. (2007). On the importance of matching strategic behavior and target
market selection to business strategy in high-tech markets. Journal of the Academy of
Marketing Science, 35(1), 5-17.
Stoica, M. & Schindehutte, M. (1999). Understanding adaptation in small firms: links to culture and
performance. Journal of Developmental Entrepreneurship, 4(1), 1-18.
Swanson, L. (2001). Linking maintenance strategies to performance. International Journal of Production
Economics, 70(3), 237-244.
Székely, F. & Knirsch, M. (2005). Responsible leadership and corporate social responsibility: Metrics for
sustainable performance. European Management Journal, 23(6), 628-647.
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable)
enterprise performance. Strategic Management Journal, 28(13), 1319-1350.
Teece, D. J., Pisano G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic
Management Journal, 18(7), 509-533.
Ussahawanitchakit, P. (2006). Building competitiveness of Thai sme’s: roles of innovation orientation.
International Journal of Business Research, 6(1), 184-191.
Wu, S. & Lin, C. (2011). The influence of innovation strategy and organizational innovation on innovation
quality and performance. International journal of organizational innovation, 3 (4).
Yang, J. & Sun, Y. (2012). The independent brand - building is a key to the survival and development of
corporation. Contemporary Logistics, 8, 79-82.
Zander, U. & Kogut, B. (1995). Knowledge and the speed of the transfer and imitation of organizational
capabilities: An empirical test. Organization Science, 6(1), 76-92.
Agarwal, R., & Helfat, C. E. (2009). Strategic renewal of organizations. Organization Science, 20(2), 281-93.
Albers, J. A. and Brewer, S. (2003). Knowledge management and the innovation process: The eco-
innovation model. Journal of Knowledge Management Practice , June [WWW document]
https://www.tlainc.com/articl52.hm (accessed 29 May 2016)].
Armstrong, J. C., & Overton, T. S. (1977). Estimating nonresponse bias in mail surveys. Journal Marketing
Research, 14: 396-402.
Barich, H., & Kotler, P. (1991). A framework for marketing image management. Sloan Management Review,
32(2), 94.
Burgelman, R. A., & Maidique, M. A. (1988). Strategic Management of Technology and Innovation.
Homewood, Illinois: Irwin
British Standards Institution (1993). BS 3811: Glossary of terms used in terotechnology, British Standards
Institution, London.
Capron, L. & Mitchell, W. (2009). Selection capability: how capability gaps and internal social frictions
affect internal and external strategic renewal. Organization Science, 20(2), 294-312.
Chan, K. (2008). An empirical study of maintenance costs for hotels in Hong Kong. Journal of Retail and
Leisure Property, 7, 35-52.
Chankaew, N. & Ussahawanitchakit, P. (2011). Management control system and firm success: An empirical
investigation of electronics parts businesses in Thailand. Journal of the Academy of Business &
Economics,11(4), 1.
Churchill, G. A. (1979). A paradigm for developing better measures of marketing constructs. Journal of
Marketing Research, 16, 64-73.
Claycomb, C., Droge C., & Germain, R. (2005). Applied customer knowledge in a manufacturing
environment: Flexibility for industrial firms, Industrial Marketing Management, 34, 629-640.
Damanpour, F. & Evan, W. M. (1984). Organizational innovation and performance: The role of
environmental change. Journal of Engineering and Technology Management, 15, 1-24.
Eisenhardt, K. & Martin, J. (2000). Dynamic capabilities: What are they?. Strategic Management Journal,
21, 1105-1121.
Eisenhardt, K. M. (1989). Building theories from case-study research. Academy of Management Review,
14(4), 532-550.
Esteve-Pérez, S. & Mañez-Castillejo, J. ( 2008 ). The resource-based theory of the firm and firm survival.
Small Business Economics, 30(3), 231 - 249.
Garrett, T. C., Buisson D. H., & Yap, C. M. (2006). National culture and randd and marketing integration
mechanism in new product development: A cross-cultural study between Singapore and New
Zealand. Industrial Marketing Management, 35, 293-307.
Gibb, A. (2006). Making markets in business development services for SMEs: taking up the Chinese
challenge of entrepreneurial networking and stakeholder relationship management. Journal of
Small Business and Enterprise Development, 13(2), 235-41.
Ha, N. M. (2013). The effect of firm's growth on firm survival in Vietnam. International Business Research,
6(5), 142-156.
Hamel, G. (1998). Strategy innovation and the quest for value. Sloan Management Review, 7-14.
Hamel, G. (2000). Leading the Revolution. Boston: Harvard Business School Press.
Hair, J. F., Black, W. C., Babin B. J., & Anderson R. E. (2010). Multivariate data analysis (7th ed.). New
Jersey: Pearson Education.
Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D., & Winter, S. (2007). Dynamic
capabilities: Understanding strategic change in organizations. London: Blackwell.
Henderson, R. M. & Cockburn, I. (1994). Measuring competence? Exploring firm effects in pharmaceutical
research. Strategic Management Journal, 15, 63-84.
Hong, J. & Ståhle, P. (2005). The co-evolution of knowledge and competence management. International
Journal of Management Concepts and Philosophy, 1(2), 129-145.
Junell, J. & Ståhle, P. (2011). Measuring organizational renewal capability, case training service business.
Competitiveness Review, 21(3), 247-268.
Khan, A. M. & Manopichetwattana, V. (1989). Innovative and non-innovative small firms: Types and
characteristics. Management Science, 5, 597-713.
Khumyat, P. & Pratoom, K. (2014). Organizational renewal capability and firm sustainability: an empirical
investigation of chemical and chemical products businesses in Thailand. Journal of International
Business and Economics, 4(4), 79-94.
Lavie, D. (2006). Capability reconfiguration: an analysis of incumbent responses to technological change.
Academy of Management Review, 31(1), 153-74.
Lawson, B. & Samson, D. (2001). Developing innovation capability in organisations: A dynamic capabilities
approach. International Journal of Innovation Management, 5(3), 377–400.
Lee, J. N. (2001). The impact of knowledge sharing, organizational capability and partnership quality on IS
outsourcing success. Information Management, 38 : 323 – 335.
Mata, J. & Portugal, P. (2002). The survival of new domestic and foreign-owned firms. Strategic
Management Journal, 23, 323-343.
Morris, M. H. & Zahra, S. (2000). Adaptation of the business concept as a factor in entrepreneurship: the
case of historically disadvantaged South African entrepreneurs. Journal of Small Business
Management, 38(1), 92-100.
Mozilo, A. R. (2001). Master today’s challenges, ensure tomorrow’s prosperity: Four components for
ongoing success. Mortgage Banking, 62 (1), 17-18.
Murmann, J. P. (2003), Knowledge and competitive advantage: The coevolution of firms, technology, and
national institutions, Cambridge University Press, New York, NY.
Nunnally, J. C. & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). New York: McGraw-Hill.
Patel, P. C., Terjesen, S., & Li, D. (2012). Enhancing effect of manufacturing flexibility through operational
absorptive capacity and operational ambidexterity. Journal of Operational Management, 30(3),
201-220.
Peng, X. Liu, Y., & Lin, Y. (2015). The impact of environment uncertainty and effectual flexibility on
entrepreneurial resource combination: the moderating effect of entrepreneurial self-efficacy.
Frontiers of Business Research in China, 9(4), 559-575.
Persson, H. (2004). The survival and growth of new establishments in Sweden, 1987-1995. Small Business
Economics, 23, 423-440.
Phokha, A. & Ussahawanitchakit, P. (2010). Marketing leadership strategy, marketing outcomes and firm
sustainability: Evidence from food product businesses in Thailand. International Journal of
Strategic Management, 11(3), 1-25.
Pongpearchan, P. & Ussahawanitchakit, P. (2011). Strategic entrepreneurship management competency
and firm success: A comparative study of SMEs in auto and electronic parts in Thailand.
International Journal of Business Strategy, 11(2), 197-227.
Pitt, L. & Kannemeyer, R. (2000). The role of adaptation in microenterprise development: A marketing
perspective. Journal of Developmental En trepreneurship, 5(2), 137-155.
Pöyhönen, A. (2004). Renewal ability of organizations: Synthesis of theoretical literature and suggestions
for measurement. Lappeenranta, Finland: Lappeenranta University of Technology.
Salvato, C. (2009). Capabilities unveiled: the role of ordinary activities in the evolution of product
development processes. Organization Science, 20(2), 384-409.
Schmitt, A. & Klarmer, P. (2015). From snapshot to continuity: A dynamic model of organizational
adaptation to environmental changes. Scandinavian Journal of Management, 31(1), 3-13.
Soltani, S., Ramazanpoor E., & Eslamian S., (2014) A structural equation model of the impact of new product
development on competitive advantage. Engineering Management Research, 3(1), 99-108.
Sørensen, H. E. (2012). Business development: A market-oriented perspective. New York: John Wiley & Sons.
Ståhle, P. (1998). Supporting a system’s capacity for self-renewal. Yliopistopaino, Helsinki
Ståhle, P. (2003). Lecture in the graduate school of intellectual capital and knowledge management. 20
September, Tampere University of Technology, Finland.
Ståhle, P. & Grönroos, M. (2000). Dynamic intellectual capital: Knowledge management in theory and
practice. Vantaa: WSOY.
Stanley, S., Hult G. T., & Olson, E. M. (2007). On the importance of matching strategic behavior and target
market selection to business strategy in high-tech markets. Journal of the Academy of
Marketing Science, 35(1), 5-17.
Stoica, M. & Schindehutte, M. (1999). Understanding adaptation in small firms: links to culture and
performance. Journal of Developmental Entrepreneurship, 4(1), 1-18.
Swanson, L. (2001). Linking maintenance strategies to performance. International Journal of Production
Economics, 70(3), 237-244.
Székely, F. & Knirsch, M. (2005). Responsible leadership and corporate social responsibility: Metrics for
sustainable performance. European Management Journal, 23(6), 628-647.
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable)
enterprise performance. Strategic Management Journal, 28(13), 1319-1350.
Teece, D. J., Pisano G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic
Management Journal, 18(7), 509-533.
Ussahawanitchakit, P. (2006). Building competitiveness of Thai sme’s: roles of innovation orientation.
International Journal of Business Research, 6(1), 184-191.
Wu, S. & Lin, C. (2011). The influence of innovation strategy and organizational innovation on innovation
quality and performance. International journal of organizational innovation, 3 (4).
Yang, J. & Sun, Y. (2012). The independent brand - building is a key to the survival and development of
corporation. Contemporary Logistics, 8, 79-82.
Zander, U. & Kogut, B. (1995). Knowledge and the speed of the transfer and imitation of organizational
capabilities: An empirical test. Organization Science, 6(1), 76-92.
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Published
25-10-2018
How to Cite
Phetphongphan, W., Ussahawanitchakit, P., & Pratoom, K. (2018). Strategic Renewal Capability and Firm Sustainability: An Empirical Investigation of Software Businesses in Thailand. Journal of Accountancy and Management, 10(3), 51–68. Retrieved from https://so02.tci-thaijo.org/index.php/mbs/article/view/223055
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