The antecedents and the outcomes of a firm’s dominant logic – the dynamic managerial capability perspective

Abstract

A firm’s dominant logic is one of the most critical elements of the firm to make resource allocation and deployment decision. Drawing on dominant logic theory and dynamic managerial capability, this study articulates the antecedents and the outcomes of the practice of a firm’s dominant logic. The paper proffers that entrepreneurial sensing, seizing, and transforming capabilities play very crucial role as antecedents to a firm’s dominant logic and subsequently improve organisational performance. Eight propositions have been developed to conceptualise the research model. Entrepreneurs should have higher magnitude of dynamic managerial capabilities to increase their abilities to bootstrap resources, which leads to better dominant logic in order to attain superior performance. The outcome of the research will not only benefit academicians but also inform policymakers by providing profound insights that aim at linking and integrating diverse sets of policies pertaining to the creation of entrepreneurial ventures.