Executive capability for innovation in the Irish seaport sector: A dynamic capabilities framework

Importance and key contribution Irish seaports acting as hubs for wider economic development are at the forefront of national economic recovery (Marine Institute, 2015). In 2014, Ireland’s largest port, Dublin port, handled... [ view full abstract ]

Importance and key contribution
Irish seaports acting as hubs for wider economic development are at the forefront of national economic recovery (Marine Institute, 2015). In 2014, Ireland’s largest port, Dublin port, handled 31 million tonnes of cargo through over seven thousand ship arrivals (Dublin Port, 2014). Seaports are engines of economic activity facilitating the flow of goods which is essential to the operation of a small open economy (IMDO, 2015). Moreover, through engagement with the tourism industry seaports have developed new port facilities and organisational networks capable of transforming sectors of the tourism industry (Competition Authority, 2013). For example, 1.7 million passengers travelled through Dublin port in 2014 alongside 140,000 cruise ship visitors (Dublin Port, 2014). Critically, Robinson (2006: 40) cautions that seaports exhibit “progressive strategy decay” due to failure to redefine their competitive position. Moreover, seaports are argued to lag necessary strategic innovation relating to changes in their environment and specifically strategic innovation relating to sustainability and improved integration into intermodal supply chains (Maitra et al. 2013). In an Irish context, looking at future strategic challenges in the seaports and logistics sector, the need for enhanced executive capability specifically that necessary to cultivate innovation in the sector is highlighted (Expert Group on Future Skills, 2015).
Pallis et al. 2011argue that executive capability in the seaport industry is characterised by a number of unique aspects including: a strong public sector context; a relationship management capability in complex supply chains and increased privatisation pressures. Innovation is argued to provide seaports with a mechanism to improve existing strategic and operational capabilities leading to maintenance of competitiveness (Rodrigue and Notteboom, 2015). Deeper and wider enhancements in competitiveness are argued to be enabled through the development of executive capabilities for innovation acting as a mechanism of radical organisational transformation (Cariou et al. 2015). Premised on a review of studies of innovation in the seaport context organisational innovation in context is defined as: The opening of existing organisational structures and policies to new commercial possibilities and the engagement with the implementation of such structures and policies.
In the wider academic literature executive capability has been identified as a vital influence on innovation. Management innovation (Volberda et al. 2013) posits executives as actively reshaping organisational context through the cultivation of new management practices and, emerging from such practices, new organisational capabilities. Open innovation argues that executives fulfil the role of conduits in the transfer of external knowledge into their firms, while simultaneously facilitating the transfer of knowledge from the firm to external firms and networks (Chesbrough, 2004). Finally, and building to an extent on the open innovation perspective, Fleming and Waguespack (2007) argue that executive leadership plays a vital role in innovation through direct influence of the executive on managers but also through a wider influence of leadership within an organisational context. Within the seaport sector, the importance of innovation is highlighted as a mechanism through which executives are enabled to rethink the basis of the competitive advantage of the firm (Bird et al. 2006). Robinson (2006), taking the theoretical lens of value migration, argues that innovation emerges as seaports redefine their business models. Though the process of redefining implicitly involves executives, explicit understanding of the executive capability of management remains unexplored. Further the role of executive capability within the context of the port’s supply chain is argued to necessitate “a fundamental epistemological shift in reconceptualising the port” (Oliver and Slack, 2006 cited in Mangan et al. 2008:30).
Research question
The research question is: How is the nature of executive capability for innovation manifest in seaport organisations? The question is answered through a critical literature review of academic journals and books in the areas of maritime studies, supply chain management and transport management. There are various options in conducting a literature review. For example Whittemore and Knafl (2005) outline four options: Integrative review; systematic review; meta-analysis and qualitative review. The present paper uses a qualitative review where the researcher critically reviews previous literature within the scope of the chosen industry context and theoretical base. The paper is conceptual in nature and aims to provide the basis for future empirical research.
Theoretical base
Dynamic capabilities theory is used to develop a framework of executive capability for innovation. Rothaermel and Hess (2007) argue that dynamic capabilities theory enables the study of how executives manage innovation through helping to understand how executives develop and shape organisational level dynamic capabilities which facilitate the emergence of innovation. Helfat and Martin (2015) posit the importance of dynamic managerial capabilities which liberate innovation, as embedded sources of organisational competitive advantage. Basile and Faraci (2015) argue the pivotal importance of dynamic managerial capabilities as a mediating mechanism between managerial models of innovation and innovation as manifest in organisations. Ambrosini and Bowman (2009) posit the existence of three levels of dynamic capabilities, incremental, renewing and reconfiguring dynamic capabilities which underpin the emergence of innovation depending on environmental dynamism and the perceptions by executives of such dynamism. The framework of executive capability for innovation prepared highlights key aspects of executive capability in seaports as relationship management; leadership and strategic cognition. Leveraging of the executive capability is argued to emerge in a context shaped by and capable of shaping the seaport industry environment.
Implications
The paper contributes to academic theory in developing a framework of executive capability for innovation in the context of port organisations. While previous studies of executive capability for innovation exist, they are confined to other industries. Given the highly contextual nature of the seaport organisation, the framework developed in the present paper and qualitative approach adopted, capture the uniqueness of executive capability for innovation this industry. Specifically, the paper uses emerging theory based on dynamic managerial capabilities (Helfat and Martin, 2015) in the context of a unique industry environment.
The paper contributes to policy debates in developing a framework of executive capability for innovation in the context of an industry identified as vital to future economic development. At the level of practice, executives are offered a framework through which they can assess and develop their own capability for innovation. There are limitations to the present paper. The paper is conceptual in nature and based on a qualitative approach to the literature review. Specifically in depth interviews with seaport executives provides one method capable of surfacing greater insight into executive capability in context.
References
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executive capability, seaports, innovation [ view full abstract ]

executive capability, seaports, innovation