Moderating Effects of Dynamic Managerial Capabilities on Heterogeneous Workplaces: A Case Study of Private Banks in Egypt

Said Sayed Shaaban Abdo, David Edgar

Research output: Contribution to journalArticle

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Abstract

Purpose - The purpose of this study is to present strategies that banking organizations might adopt to utilize the heterogeneity and generational differences for better workplaces. Workforce diversity has been identified as one of the strategic capabilities that will add value to the organizations over their competition. As one of the most globally competitive sectors, the banking industry faces the challenge of attracting highly skilled and extremely innovative employees while retaining valuable senior employees to make use of their expertise in an inclusive setting. . As such, an understanding of heterogeneity and generational differences may be used as a tool by managers to improve employee productivity, innovation and to create good corporate individuals. Data was collected from a target population from seven general managers of private banks operating in Egypt who were managing through the multigenerational phenomenon. The paper will utilize the Resource-based view (RBV) framework as a complementary theory based on the assumption that organizations differ according to the heterogeneity of their resources.

Design/methodology/approach - This study adopts a qualitative approach and presents findings based on a series of semi-structured interviews with senior managers of the Private Banks operating in Egypt.

Findings - The findings show that resource idiosyncrasy, deployment, utilizations and organizational culture accommodate dynamic managerial capabilities (DMC) to achieve sustainable competitive advantage (SCA) in the multigenerational heterogeneous workplace. By analysing the components of the VIRO model that reviews resource characteristics that could lead to sustain competitive advantage, the findings of the current research revealed DMC as an underestimated moderator for achieving the SCA.

Practical implications - The practical implication of this study is to extend generational research by investigating the effect of inclusion and the importance different generations place on the presence of various workplace characteristics. Organizations are exploring the inclusion of workforce diversity against the traditional structure. A private bank¿s workforce has employees from different countries, cultures, generations and genders. This heterogeneity has positioned private banks as a striking foreign investment destination due to their mature and experienced workforce. Managerial capabilities and skills can utilize the challenges resulting from such wider heterogeneity in a multidisciplinary approach for achieving sustained competitive advantages. Thus, workforce heterogeneity is regarded as an asset for private banks for connecting with businesses all over the world and for enabling foreign communities to conduct their business within its location.

Originality/value - The paper originated from the researchers¿ own unique investigation into the employment market from a managerial standpoint. Little qualitative research has been thus far published regarding how organizations hire highly skilled and extremely innovative people to work while maintaining old employees to make use of their expertise in an inclusion setting. Particularly, the notion of adapting a Resource -Based View to illustrate how heterogeneity and generational differences may be used as a tool by managerial capabilities to improve employee productivity, innovation and to create good corporate individuals is also a new area for academic research.
Original languageEnglish
Pages (from-to)23-38
Number of pages16
JournalInternational Journal of Business Administration
Volume10
Issue number3
Early online date3 Apr 2019
DOIs
Publication statusPublished - May 2019

Keywords

  • resource - based view
  • capabilities
  • banks
  • multigenerational
  • SCA

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