Purpose
– This paper aims to show how researchers can overcome problems of fragmentation and eclecticism in an important strategy paradigm, namely, the Dynamic Capabilities (DC) perspective.
Design/methodology/approach
– First, the explanandum of the theory of DC, conceptualized as a theory of strategic change, is generates. Second, four main constituent theoretical perspectives of DC were selected and their explanans on the explanandum of a theory of strategic change was mapped. Third, the explanans of a theory of strategic change was parsed out to derive the critical fragmentation sources as illustrated by the classical papers in DC.
Findings
– First, consistent explanans of a theory of strategic change are integrated to build a meta-theory of strategic change. Second, testable propositions based on the meta-theory, in the context of industry convergence, a context which requires the development of dynamic capabilities in an uncertain and changing environmental context are developed.
Originality/value
– By developing a meta-theory of strategic change, researchers are provided with the tools to overcome the confusion of fragmentation and eclecticism, specifically in the field of strategy research.
This study extends dynamic capabilities research by examining the underlying and fundamental concepts of capabilities, resource allocation, fungibility, and environmental change with respect to value creation and appropriation (VCA). Scholars generally assume that VCA depends on the amount of resources allocated to generate future capabilities. We diverge from this ability-performance tautology and instead ground dynamic capabilities in a resource allocation framework. By introducing two boundary conditions, we suggest that environmental change and fungibility between current and dynamic capabilities determine whether resource allocation leads to VCA. We believe that our findings not only represent a fruitful path for future research by strategy and organization scholars, but also provide an important contribution to our knowledge of managing resources in dynamic environments to create future capabilities.
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