The main objective of this dissertation is to study the role of continuous improvement as a mechanism to build dynamic capabilities. Through three related essays we address how continuous improvement projects are related to performance. The first essay illustrates a configuration research method, qualitative comparative analysis (QCA). Based on its descriptions in the literature, QCA appears to be an appropriate method for examining multiple paths to performance using set theory. The main benefit of QCA in contrast to traditional statistical methods is the assumption of complex causality and nonlinear relationships.
In the second essay we employ the lens of the problem solving to derive a list of learning activities related to continuous improvement. Further, we analyze how organizations that have deployed continuous improvement conduct projects leading to success. We use content analysis to code 111 projects from five organizations that have deployed continuous improvement programs. We investigate universal causes and complementary causes that lead to project success to examine the equifinality. The QCA analysis identified multiple configurations that achieved project success inferring that multiple paths lead to project success. The commonality of dynamic capability functionsin the configurations establishes that continuous improvement is a mechanism for building dynamic capabilities.
The third essay empirically addresses the question of how continuous improvement contributes to growth performance. Adapting existing scales for growth performance constructs, data on 78 improvement projects is collected and analyzed using qualitative comparative analysis. Dynamic capability functions and project success enables growth performance. These causes are always present when growth performance occurs but does not guarantee growth performance. In addition, we examine how improvement projects combine implementation and identification or formulation to achieve growth performance. Thus, the three essays provide insights of how continuous improvement builds dynamic capabilities and how improvement projects contribute to project success and growth performance.