Enhancing the role of dynamic capabilities of the coal companies under the conditions of sharp price fluctuations at the international markets

In recent years, international coal markets have been facing a trend of a growing number of sharp price fluctuations during a year. This can be regarded as the evidence for the increasing intensity of market competition as well as for the growing number and significance of the external environment factors affecting the world coal market. Actually, the coal market players have to operate in the conditions of unstable prices and external limitations that in their turn require searching for new sales markets, changing logistics routes, product lines, production and technological processes, etc. It results in the increasing significance of dynamic capabilities of coal companies – organizational capabilities on changing the portfolio of resource and capabilities in response to the changing competition at the market. In the conditions of growing volatility of coal markets the adaptation capabilities of a company become a basis for its economic effectiveness and competitiveness as well as for the viability as a whole as it allows to accelerate the process of making decisions about the necessary transformations and evaluate the risks, and are crucial for the implementation of new projects. Any activities on the evaluation and development of dynamic capabilities are possible only inside a company. This task should be solved at the strategic level of decision-making alongside with identifying the company’s individual priorities for development of organizational capabilities lying in the basis of dynamic capabilities of a company.

The article deal with the author’s definition of the basic categories of dynamic capabilities implemented for the coal industry. The definition presents the priorities for operation in the current conditions and the capability to transform and accept new business-models, develop analytical capabilities and skills of acquisition and alliances with other companies.

1. Sarychev A.E. Assessing the company’s resources and capabilities in the context of the dynamism of the external environment and globalization. Rossiiskoe predprinimatel’stvo = Russian Journal of Entrepreneurship. 2008;(7(2)):44–49. (In Russ.)

2. Плакиткина Л.С., Плакиткин Ю.А. Угольная промышленность мира и России: анализ, тенденции и перспективы развития. М.: Литтерра; 2017. 374 с.

3. Краснянский Г.Л. Сарычев А.Е., Скрыль А.И. Экономические кризисы и уголь России. М.: Изд. Дом НИТУ «МИСиС»; 2017. 77 с.

4. Иванов Н.А. (ред.). Сланцевая революция и глобальный энергетический переход. Институт энергетики и финансов. М.: СПб: ООО «Нестор-История»; 2019. 540 с.

5. Krasnyansky G.L., Sarychev A.E. Impact of the COVID-19 pandemic on the global energy coal market. Ekonomika i upravlenie: problemy, resheniya = Economics and Management: Problems, Solutions. 2020;5(12(108)):147–152. (In Russ.). https://doi.org/10.36871/ek.up.p.r.2020.12.05.017

6. Maksakova M.A., Filippova A.V. External economic agenda of the Eurasian Economic Union: new opportunities and prospects. Ekonomika i upravlenie: problemy, resheniya = Economics and Management: Problems, Solutions. 2019;1(10):32–39. (In Russ.)

7. Myaskov A.V., Alekseev G.F. Strategizing of transformations in the coal mining industry of Kuzbass. Russian Journal of Industrial Economics. 2020;13(3):318–327. (In Russ.). https://doi.org/10.17073/2072-1633-2020-3-318-327

8. Квинт В.Л. (ред.). Концептуальное будущее Кузбасса: стратегические контуры приоритетов развития до 2071 г. 50-летняя перспектива. Кемерово: КемГУ; 2022. 283 с. https://doi.org/10.21603/978-5-8353-2812-3

9. Kvint V.L., Novikova I.V., Alimuradov M.K., Sasaev N.I. Strategizing the national economy during a period of burgeoning technological sovereignty. Administrative Consulting. 2022;(9):57–67. (In Russ.). https://doi.org/10.22394/1726-1139-2022-9-57-67

10. Teece D.J., Pisano G., Shuen A. Dynamic capabilities and strategic management. Strategic Management Journal. 1997;18(7):509–533.

11. Winter S.G. Understanding dynamic capabilities. Strategic Management Journal. 2003;24(10):991–995. https://doi.org/10.1002/smj.318

12. Dosi G., Nelson R.R., Winter S.G. (eds.).The nature and dynamics of organizational capabilities. UK: Oxford University Press; 2002. 389 p.

13. Zott C. Dynamic capabilities and the emergence of intra-industry differential firm performance: Insights from a simulation study. Strategic Management Journal. 2003;24(2):97–125. https://doi.org/10.1002/smj.288

14. Shuen A., Feiler P.F., Teece D. Dynamic capabilities in the upstream oil and gas sector: Managing next generation competition. Energy Strategy Reviews. 2014;3(12):5–13. https://doi.org/10.1016/j.esr.2014.05.002

15. Cardeal N., Antonio N. Valuable, rare, inimitable resources and organization (VRIO) resources or valuable, rare, inimitable (VRI) capabilities: What leads to competitive advantage? African Journal of Business Management. 2012;6(37):10159–10170. https://doi.org/10.5897/AJBM12.295

16. Eisenhardt K.M., Martin J.A. Dynamic capabilities: what are they? Strategic Management Journal. 2000;21:1105–1121.

17. Teece D.J. Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal. 2007;28(13):1319–1350. https://doi.org/10.1002/smj.640

18. Teece D.J. Business models and dynamic capabilities. Long Range Planning. 2018;51(1):40–49. https://doi.org/10.1016/j.lrp.2017.06.007

19. Feiler P., Teece D. Case study, dynamic capabilities and upstream strategy: Supermajor EXP. Energy Strategy Reviews. 2014;3:14–20. https://doi.org/10.1016/j.esr.2014.05.003