Dynamic capabilities in strategic choice processes within organisations

Abstract

SummaryDynamic capabilities are an essential theoretical construct that is useful for understanding the phenomenon of competition. Still, in spite of the apparent popularity of this subject, the existing management literature could do with more studies into processes that shape dynamic capabilities.The purpose of this article is to systematise different approaches to the dynamic capabilities concept as they are found in the existing literature, with a particular focus on its relevance to modern-day organisations as a tool to increase their competitiveness. The other goal is to discuss two issues that are critical to the dynamic capabilities concept. Firstly, what are the conditions for the predominant role of dynamic capabilities in the area of strategic management? Secondly, can the dynamic capabilities concept be treated as an underlying theoretical and methodological framework for strategic choices in modern-day organisations?

New Technologies and Innovative Solutions in the Development Strategies of Energy Enterprises

“…A high level of inertia can cause a significant lack of agreement between the organization's results and expectations related to adapting to the conditions of a changing environment. In the aspect of the change process, the strength of inertia may vary depending on the life cycle stage, its size and complexity and dynamic capacity can be a tool to increase their competitiveness [61,62]. However, inertia can also have positive features for enterprises that too willingly adapt to the constant changes arising from the turbulent, rapidly changing environment [63].…”

Reconfiguring the Firm’s Assets for Innovation

“…In the literature, the term "capability" has been used in various forms, both to refer to human abilities (Penrose, 1959;Becker, 1962;Barney, 1991;Macphersona and Herbaneb, 2015;Teece and Leih, 2016;Krzakiewicz and Cyfert, 2017;Qaiyuma and Wang, 2018) and to define sets of skills, experience and accumulated knowledge within firms (Richardson, 1972;Felin and Powell, 2016;Fallon-Byrne and Harney, 2017;Hashim;Raza and Minai, 2018). Both perspectives converge in the sense of referring to the possibility of firms conducting their operations while remaining competitive in the market, using knowledge, experience and skills to offer solutions based on opportunities identified in the market, hence creating value by satisfying consumer desires.…”

“…For these authors, considering the dynamic capabilities approach, "strategy involves choosing from among and committing to long-term paths or trajectories of competence development" (Teece, Pisano and Shuen, 1997, p. 529). This initial effort to describe the capabilities represented a way to understand the strategic changes (Helfat and Peteraf, 2009;Macphersona, Herbaneb and Jones;2015;Krzakiewicz and Cyfert;.…”

“…The indicators found in the literature to assess management were the integration between the areas of the company, the establishment and monitoring of goals and objectives, the existence of formal rules and procedures, relative autonomy in decision-making within the various hierarchical levels; human resource development and management, and investment policies (Penrose, 1952;Barnard, 1966;Mintzberg, 1973;Chandler, 1977;Felin and Powell, 2016;Krzakiewicz and Cyfert, 2017;Takahashi, Bulgacov, Bitencourt and Kaynak, 2017).…”

Dynamic Capabilities and Core Competencies in Achieving Competitive Advantage of Agroforesty-Based School

“…This is consistent with the results of research by (Teguh & Devie, 2013), suggesting that core competencies have a positive effect on competitive advantage. Dynamic capabilities enable organizations to build, integrate, and configure their core competencies (Krzakiewicz & Cyfert, 2017). Furthermore, organizations that are able to effectively identify and implement core competencies can encourage these themselves to achieve competitive advantage (Agha, Alrubaiee,& Jamhour, 2012) Madrasah Tsanawiah or MTs (Islamic Junior High School) of PAKIS is located in Gunung Lurah Village, Cilongok Subdistrict, Banyumas.…”