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The purpose of this paper is to identify and empirically examine the dynamic capabilities (DC) that drive the development of digital manufacturing capabilities (DMC) and the role of DMC in mediating their influence on firm performance.

Based on the dynamic capabilities view (DCV) of the firm, the authors develop a set of hypotheses that are tested through a survey of 110 managers in the manufacturing sector. The hypothesized model is tested through structural equation modeling.

The results indicate that although higher-order DC (HODC) have a strong influence on firm performance, their effects are partially mediated by the DMC that they generate, by positively affecting the extended production process.

The analysis contributes to a better understanding of the interplay between levels of the DC hierarchy by finding that DMC play an important role in translating HODC into enhanced firm performance.

By complementing the DCV with the disruptive innovation theory in a specific fast changing context, this study introduces a new construct (DMC) providing an original and considerable contribution to the literature. To the best of the authors’ knowledge, it is the first empirical study that includes and assesses all these elements together in the context of the manufacturing industry.

Despite the statistical successes of the Japanese banking industry in the United States, Japanese bankers have failed to take advantage of the market's full potential. All global companies can learn from their success and mistakes.

Venture capital’s role in clean energy (CE) technologies can be transformative in creating a sustainable society. Yet there are limitations on how far venture capitalists (VCs) can go in supporting these technologies. These limits exist because of the performance expectations of the main stakeholder group who hold VCs accountable. The financial backers of VCs expect an exceptional return on their investment, given the high level of risk they take on when they invest in unproven startups. This chapter explores the constraints that the financial obligations VCs have to their main backers put on their role in bringing about a more sustainable global society. It investigates VC firms’ responses to CE exits (initial public offerings (IPOs) and acquisitions) and shows how prior CE exits affect CE investment growth when we compare VCs exit records to that of their peers. This chapter demonstrates that VCs only increase CE investments when the cumulative number of exits substantially exceed that of their peers, while they decrease these investments when the cumulative number of their exits only moderately outpace that of their peers. The chapter suggests that the reason VCs respond in this way is the financial pressure VCs experience because of their dependence on their financial backers.

Prior research underscores the critical role of prestigious underwriters in shaping the success of the initial public offering (IPO) process, particularly for young firms that do not have much of a track record. Recent scholarly work has shown that the likelihood of a start-up securing a lead prestigious underwriter is influenced by its ability to provide important signals of organizational legitimacy, as conveyed in the employment experiences of the firm's top management team. Building further on theories of organizational attention and decision making, this chapter seeks to examine whether lead prestigious underwriters also consider different types of signals of organizational legitimacy that might be suggested by the existence of ties between young firms and corporate venture capital (CVC) investors.Analysis of 1830 IPOs during 1990–1999 indicates that having a tie to CVC investor provides added legitimacy value over that provided by independent venture capital investors alone. Further analysis of 315 IPOs affiliated with CVC investors suggests that prestigious underwriters pay attention primarily to endorsement-rather than resource-related signals of legitimacy when it comes to CVC ties, and that they pay more attention to investment screening prominence than to business management prominence when it comes to endorsement legitimacy. We also found that prestigious underwriters pay more attention to signals of IPO legitimacy provided by CVC investment in IPO markets that are hot than those that are cold. Our findings provide important theoretical extensions to the study of the certification value of interorganizational affiliations and its impact on IPO success.