Table 1

Measures, dynamic capabilities' microfoundations and examples of items

MeasureUnderlying microfoundationsNo. of itemsExamples of items
SensingProcesses for managing internal R&D and related technologies10Company communicates continuously with the market research institutions within the industry
Processes for managing supplier/complementor innovation and distributors19Company knows the structure of the industry value chain (from primary production to the end-user)
Processes for managing developments in exogenous science and technology13Company can influence the development of its industry with the help of its network
Processes for identifying and managing target market segments and customer needs27Company systematically follows the profitability level of selected geographic areas
SeizingProcesses for aligning the customer solution and the business model39Company can influence the price level in its target markets
Processes for managing decision-making protocols8Company has documented principles on how to replace outdated products/services with new ones
Processes for managing enterprise boundaries, controlling bottleneck assets and assessing appropriability19Company can move its production to a lower-cost country
Processes for building loyalty and commitment4Company has a consistent reward and incentive system across different countries
ReconfigurationProcesses for managing decentralization and firm structures5Company is capable of moving its operations from one country to another when needed
Processes for managing incentive alignment and minimizing agency issues21Company measures the achievement of sales targets in each channel
Processes for managing strategic fit so that asset combinations are value-enhancing8Company has documented criteria for deciding when to participate in international alliances
Processes for managing learning, knowledge transfer and intellectual property protection12Company has documented principles for deciding on IPR handover

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