Collaborative Dynamic Capabilities (CDCs) represent a developing niche within the literature on higher order capabilities HOC in strategic management. As firms seek to sustain performance in dynamic environments, Dynamic Capabilities (DCs) have been advanced as internal renewal processes that enable sensing, seizing, and reconfiguring. Existing examination of Dynamic Capabilities and their development is mostly internally focused, which can be limiting for firms, especially small and medium-sized enterprises (SMEs), where resource constraints and reliance on external partners heighten the need for cross-boundary collaboration and renewal. Collaborative Dynamic Capabilities address this challenge by facilitating access to external competencies through strategic collaboration that is focused on the mutually beneficial utilisation of essential resources. Although prior research highlights the potential benefits of Collaborative Dynamic Capabilities, definitional and framing ambiguities have limited cumulative theorising, particularly regarding locus (intra-firm versus inter-firm) and the mechanisms through which collaborative renewal operates. This thesis addresses these ambiguities in UK SMEs by clarifying Collaborative Dynamic Capabilities locus and cross-boundary mechanisms, developing and validating a context-specific Collaborative Dynamic Capabilities measurement scale, and testing a streamlined structural model linking Dynamic Capabilities, Collaborative Dynamic Capabilities, Process Innovation, and Firm Performance. Dynamic Capabilities denote a company's internal processes that allow it to identify, capture, and reconfigure resources to sustain competitive relevance. Conversely, collaborative Dynamic Capabilities are higher order cross-boundary renewal capabilities entailed in routines based on inter-firm cooperation and boundary-spanning processes. They enable a company to strategically alter its resource base by coordinating collaborations across legally separate entities. This study employs a quantitative research design based on a survey of 320 SMEs in the UK. Measurement items for Collaborative Dynamic Capabilities were developed based on existing research and aligned with the realities of SME collaboration. Items were subsequently refined through expert review, pilot testing, and validated through confirmatory factor analysis within a structural equation modelling framework. The validated Collaborative Dynamic Capabilities instrument encompasses six interrelated subsets: Collaborative Sensing & Seizing, Collaborative Knowledge Creation, Collaborative Integration, Collaborative Reconfiguration, Collaborative Learning, and Collaborative Leveraging, and is defined in close relation to conceptually similar Dynamic Capabilities dimensions to establish a rigorous baseline for discriminant validity. The research indicates a clear and positive correlation between Dynamic Capabilities and Collaborative Dynamic Capabilities, as well as a direct and positive association between Dynamic Capabilities and Process Innovation. It further substantiates the direct beneficial correlation between Process Innovation and Firm Performance. The hypothesis suggesting a direct positive correlation between Collaborative Dynamic Capabilities and Process Innovation lacked statistical support; conversely, Collaborative Dynamic Capabilities demonstrated a statistically significant negative direct relationship with Process Innovation in this sample. This suggests that cross-boundary renewal routines may, under certain conditions in SMEs, be accompanied by coordination frictions or governance demands that can impede immediate process change or performance improvement. The thesis presents a validated measurement strategy for Collaborative Dynamic Capabilities, facilitating rigorous quantitative testing and cumulative research designs, while providing a capability framework that suggests guidance for SMEs in the governance and routine-building efforts essential for establishing adaptive collaboration instead of ad hoc collaboration.
| Date of Award | 7 May 2026 |
|---|
| Original language | English |
|---|
| Supervisor | Shelley Harrington (Main Supervisor) & Dinuka Herath (Co-Supervisor) |
|---|