Review of the measurement of dynamic capacities: a proposal of indicators for the sheep industry

Abstract

The sheep industry is one of the leading sectors in the Castilla-La Mancha economy in Spain. It occupied the fourth position in the European context in 2017. The income of this sector stems mainly from the sale of milk and derived products with pdo (protected designation of origin) as the “Manchego cheese” that generated 61.21 % of the economic value of the pdo products in Spain during 2016. However, nowadays these farms need to develop management skills to improve their competitiveness as they suffer from lack of adequate managerial performance. These circumstances joined to the fall in the prices of milk used for pdo and the increase in the cost of animal feed is generating viability problems. Considering the above, the aim of this research consisted in identifying a group of indexes that allow measuring dynamic capabilities in the sheep industry. From the methodological perspective, a revision of the academic literature in dynamic capabilities was carried out, and specific potential indicators for the sheep management industry have been identified to measure these capabilities. As a result, 54 indicators have been identified and justified to measure different kinds of capabilities. To conclude, it should be noted that these indicators constitute a standard for managers to measure, diagnose and make decisions focused towards improving farm management.