Dynamic capabilities

Abstract

Purpose The growth, diversity and applications of research into dynamic capabilities (DCs) have resulted in the whole literature on DCs becoming a complex and disconnected body of knowledge. This has led to criticisms of the subject of DCs as being vague, tautological and without practical value. Hence, the purpose of this paper is to synthesize the diverse scholarly literature about DCs and develop a more integrated understanding to minimize the reported apparent vagueness. Design/methodology/approach In this paper, the authors review various relevant themes on DCs using a selection of 133 articles published in 22 recognized, top-tier management journals during the period between 1990 and 2016, with an aim to build a structured and integrated theory. For this, morphological analysis (MA), a systems-thinking technique, is applied. Findings MA is applied to develop a multi-dimensional conceptual framework comprising five dimensions and 26 variants that enable a structured representation of the conceptual foundations of DCs. Further, the authors identify 81 individual DCs noted by various scholars; elucidate assumptions and antecedents relevant to the DCs approach; structure the key characteristics; and expound the input factors, impacting factors, desired outcomes and assessment yardsticks. Research limitations/implications This would be a useful resource for researchers working in the area of DCs to explore opportunities for future research. Practical implications The MA framework helps managers to look at DCs more holistically, and hence would help them in developing, managing and retaining DCs in organizations. Originality/value This study is the original work contributed by the authors and has no specific organizational reference. This research implies new directions to look beyond individual DCs in firms toward a more integrated theory building.

The effect of green HRM practices on green competitive advantage of manufacturing firms

“…The results suggest that GIC proxies such as product and process innovation have significant effects on manufacturing firms' GCA in China. The results support Eisenhardt and Martin (2000) findings which revealed that innovation culture is fundamental to enhancing the firm's ability to maintain competitive advantage. It further asserts the findings of (Chen, 2008) who revealed that Green product and process innovations are related to the innovation of products involving environmentally friendly material, packaging, recovery of products and recycling, eco-labeling and innovation in a firm's ability to improve existing processes, develop new processes that create savings and prevent pollution, enhance energy savings, prevent pollution, increase waste recycling.…”

“…It involves adopting processes that save energy, reduce pollution and allow for waste recycling (Chen, 2008). The concept of innovation has been critical in creating a corporate competitive advantage (Eisenhardt and Martin, 2000).…”

Dealing with surprise attacks: decomposing ERM as a dynamic capability to handle crises

“…Dynamic refers to the capacity of a firm to renew its existing competencies to handle a changing environment. Capabilities refer to strategic management's vital role in integrating, adapting or reconfiguring the firm's internal and external competencies and resources to match the changing environment (Sunder et al, 2019). Teece's (2007) approach elaborated on Teece et al's (1997) typology, which is seminal to the study of DCs (Schilke et al, 2018).…”

“…Seizing is evaluating existing capabilities and resources and making investments for procuring assets (Fainshmidt et al, 2019). Reconfiguring is altering the firm's existing operational capabilities to handle a rapidly changing environment (Sunder et al, 2019). A firm achieves a sustainable competitive advantage when it becomes an expert in these three capabilities (Teece, 2007;Kay et al, 2018).…”

Does economy wide knowledge spillover determine firm level process innovation

“…The resource-based view emphasizes that resources and capabilities are important factors for firms to develop competitive advantages that eventually drive innovation (Barney, 1991; Kristandl and Bontis, 2007; Sunder et al , 2019). Then, what factors drive firms to innovate processes?…”