Dynamic Dominant Logic: Its Stimuli and Firm Performance

Author: Dwipayana, Chandra; Prijadi, Ruslan; Hamsal, Mohammad
Informations
JournalInternational Journal of Business
PublisherPremier Publishing, Inc.
Volume & IssueVol. 27,Issue 4
Pages -
Publication Year2022
ISSN10834346
Source TypeScopus
Citations
Scopus: 1
Google Scholar: 1
PubMed: 1
Abstract
The tension between regulatory and technical contexts contributes to the complexity of today’s banking competitive landscape and triggers many firms to question their prevailing dominant logic. During this tension, dynamic dominant logic is proposed as a cohering competing logics that enable firms to scan a broader environmental sign to seize the opportunities while anticipating the risks. However, it is not clear how a dominant logic could retain harmony with the paradox that makes it dynamic. Thus, this study conceptualizes organizational rejuvenation as enhancing strategy execution and competitive position through internal process changes. Moreover, in the context of Indonesian commercial banks, this study elucidates the stimuli that generate dynamic dominant logic and its relationship to firm performance. Using covariance-based structural equation modeling through parceling, the results revealed the beneficial inertia of the technical pattern of action when spurred by senior management’s complex problem-solving and the organization’s adaptive capacity in the face of VUCA. © 2022, International Journal of Business. All Rights Reserved.
Documents & Links

© 2025 Universitas Indonesia. All rights reserved.