Table 1 Operationalisation of the... | Emerald Publishing

Table 1

Operationalisation of the dynamic capabilities

Second-order dynamic capabilities	First-order dynamic capabilities	Description	References
Sensing	Environment scanning	Environment scanning might be defined as detecting, systemically collecting, combining, analysing and sharing data from diverse sources in order to monitor firms external and internal environment	Teece (2020, p. 3), Teece et al. (2020, p. 11), Helfat and Peteraf (2015)
Sensing	Opportunity selection	Opportunity selection is the identification, development and calibration of opportunities alongside external and internal customer needs and strategic challenges. Managers at various levels must generate and test hypotheses about latent consumer demand, technological possibilities and other forces that can affect the firm's future	Teece (2020, p. 11), Helfat and Peteraf (2015)
Organising/Orchestrating	Employee engagement	The asset orchestration capability is likely to depend on managers' cognitive capabilities for language and communication, as well as their social cognitive capabilities. Top management has a critical role to play to foster commitment [of employees] and to achieve engagement to innovation. Customer care is often relegated to employees; thus employees can have a significant impact on the performance of the firm	Teece (2007), Helfat and Peteraf (2015, p. 842)
Value capture	Commercialisation of innovations	Value capture capabilities involve investing to commercialise new technologies as well as designing and implementing business model innovations for various products and services. Management must define clear priorities and objectives, along with appropriate metrics to benchmark progress	Teece (2007, 2018, p. 364, 2020), Teece et al. (2020)
Transformation/ renewal	Organisational learning	A function of management is to find new value-enhancing combinations inside the enterprise, and between and among enterprises. Organisational learning and unlearning and the integration of knowledge support transformation of the organisation	Teece (2007, p. 1341, 2020)

Second-order dynamic capabilities	First-order dynamic capabilities	Description	References
Sensing	Environment scanning	Environment scanning might be defined as detecting, systemically collecting, combining, analysing and sharing data from diverse sources in order to monitor firms external and internal environment	Teece (2020, p. 3), Teece et al. (2020, p. 11), Helfat and Peteraf (2015)
Sensing	Opportunity selection	Opportunity selection is the identification, development and calibration of opportunities alongside external and internal customer needs and strategic challenges. Managers at various levels must generate and test hypotheses about latent consumer demand, technological possibilities and other forces that can affect the firm's future	Teece (2020, p. 11), Helfat and Peteraf (2015)
Organising/Orchestrating	Employee engagement	The asset orchestration capability is likely to depend on managers' cognitive capabilities for language and communication, as well as their social cognitive capabilities. Top management has a critical role to play to foster commitment [of employees] and to achieve engagement to innovation. Customer care is often relegated to employees; thus employees can have a significant impact on the performance of the firm	Teece (2007), Helfat and Peteraf (2015, p. 842)
Value capture	Commercialisation of innovations	Value capture capabilities involve investing to commercialise new technologies as well as designing and implementing business model innovations for various products and services. Management must define clear priorities and objectives, along with appropriate metrics to benchmark progress	Teece (2007, 2018, p. 364, 2020), Teece et al. (2020)
Transformation/ renewal	Organisational learning	A function of management is to find new value-enhancing combinations inside the enterprise, and between and among enterprises. Organisational learning and unlearning and the integration of knowledge support transformation of the organisation	Teece (2007, p. 1341, 2020)