The Relevance of Management 3.0 in the Development of Dynamic Capabilities in SMEs

The Relevance of Management 3.0 in the Development of Dynamic Capabilities in SMEs

Fernando Almeida, Domingos Oliveira, Joana Neves
Copyright: © 2022 |Pages: 13
DOI: 10.4018/JBE.309125
OnDemand:
(Individual Articles)
Available
$37.50
No Current Special Offers
TOTAL SAVINGS: $37.50

Abstract

This study aims to explore how Management 3.0 can assist and support the development of dynamic capabilities in SMEs. To this end, several dimensions of dynamic capabilities are considered, such as the process of identifying new market opportunities, idea generation, emergence of organizational changes, and support for innovation processes and the development of new markets. This research employs a qualitative methodology by conducting four case studies with software companies located in Portugal and Brazil. It identifies a set of key elements offered by Management 3.0 for the development of dynamic capabilities. Collaborative participation, teamwork, creativity, empowerment, agility, and entrepreneurial attitude stand out as fundamental and supported elements in the Management 3.0 paradigm for SMEs to develop their dynamic capabilities.
Article Preview
Top

1. Introduction

As organizations evolved, management had to keep up with this organizational growth. In the first management models, called Management 1.0, the focus was only on productivity, with a top-down design where responsibility was concentrated at the top of the hierarchy, undervaluing employees by treating them as resources (e.g., they had no responsibilities, were poorly paid, and were not motivated). Over the years, Management 1.0 underwent adaptations, thus giving rise to Management 2.0 complemented through various management support systems to solve problems of the old system (LaBarre, 2011). In a more recent perspective, Management 3.0 was established, a more evolved version in which management, responsibility, and decisions come from leaders and employees. The Management 3.0 model was introduced by Jurgen Appelo in 2010 and aims to be a collaborative and humanized management model in which the employee plays a central role in the organization (Appelo, 2010). This view is complementary to the concept of humane entrepreneurship, in which the role of the organization in developing genuine connections with people is advocated (Dębicka et al., 2022). This new strand, which focuses on people, privileges relationships, bringing a human touch to communication. Also, according to Appelo (2010), a key goal of Management 3.0 is to make an organization have self-managed and self-organized teams. Therefore, in this management model, organizational hierarchy is flexible, and employee participation and autonomy in organizational management are promoted.

Management 3.0 is a management model that seeks to be aligned with digital transformations and collaborative processes. Traditional companies are constantly threatened by disruptive innovations (Christensen et al., 2018) and by accelerated digitalization processes, especially in the context of COVID-19. In the face of a constant demand for innovation, several challenges are posed in business growth, team motivation, and timely decision-making. Companies are rethinking their management models and abandoning classical management practices to face such complex challenges. Agile methodologies initially designed in software engineering are now also being adopted in the context of organizational management (Niederman et al., 2018; Tripp & Armstrong, 2018).

An important aspect is to understand how the implementation of Management 3.0 can influence the capabilities that an organization has to adapt to changes in its environment, considering the decentralization of responsibility that speeds up decision making, and responsiveness in adapting and changing new processes. These capabilities are called dynamic capabilities (Mohamud & Sarpong, 2016). In the conceptual dimension, this topic gains importance in exploring how it becomes possible to maintain a competitive advantage in complex and dynamic environments. In practical terms, dynamic capabilities gain visibility, especially in globalized and dynamic markets where technological change is rapid and systemic (Wenzel et al., 2021).

Complete Article List

Search this Journal:
Reset
Volume 5: 1 Issue (2024)
Volume 4: 1 Issue (2023)
Volume 3: 2 Issues (2022): 1 Released, 1 Forthcoming
Volume 2: 2 Issues (2021)
Volume 1: 2 Issues (2020)
View Complete Journal Contents Listing