From framework to theory: an evolutionary view of dynamic capabilities and their microfoundations

Abstract

Dynamic capabilities (DCs) are organizations' ability to integrate, build, and reconfigure competences, on which they draw to adapt to changes. Despite a significant stream of literature exploring DCs, the following question remains: how do dynamic capabilities allow organizations to adapt to changes and succeed? To fill this gap, this paper outlines a theory of DCs, based on an analysis of strategic behavior (micro)formation at the individual and collective levels. This theory conceptualizes an evolutionary paradigm in which the intentions of organizational agents are intertwined with environmental influences. It defines DCs as ‘instruments able to entrepreneurially solve problems of evolutionary fitness of organizations.’ In doing so, it advances theoretical conceptualization of DCs and their microfoundations to provide insights into how an entrepreneurially led organization may confront and solve problems and ultimately prosper.

The initial survival of the Unicorns: a behavioral perspective of Snapchat

“…game theory, prospect theory) with those about collective decision-making (e.g. behavioral theory of the firm, negotiation theory)which is also a recent call by the behavioral strategy scholars (Abatecola and Cristofaro, 2020;Cristofaro and Lovallo, 2022). It can be studied under which ecological rationality conditions (mainly in terms of informational environment) the sum of funders and investors' biases can lead to positive or negative results for Unicorns' liability of newness.…”

Guest editorial: Behavioral strategy: (re-) affirming foundations

“…As a newer stream of research, behavioral strategy aims at understanding: how the cognition of the individual scale up to collective behavior (Lovallo and Sibony, 2010; Gavetti, 2012; Cristofaro and Lovallo, 2022); how complex judgments in organizations are made (Garg, 2017; Augier et al , 2018); and how to design organizational environments that can reduce the occurrence of biases (Echols and Neck, 1998; Cristofaro, 2017b; Sibony et al , 2017). …”

“…how the cognition of the individual scale up to collective behavior (Lovallo and Sibony, 2010; Gavetti, 2012; Cristofaro and Lovallo, 2022);…”

Future thinking and managers’ innovative behavior: an experimental study

“…However, it is also true that fostering managers’ innovative behavior is a cooperative and collective endeavor, too, and the initial knowledge sharing among organizational members can provide the cues/knowledge chucks that can generate new/or modify mental models of members, stimulating, in turn, the creation of new knowledge (Cristofaro, 2022; Cristofaro and Lovallo, 2022). In this regard, there are already established mechanisms to foster abductive reasoning from the collective to the individual (Dunne and Dougherty, 2016), while, at the firm level, creating an innovation-oriented climate in which organizational members are free to share and make hypotheses is the most recognized important tactic to enhance managers’ innovative behavior (Tsai, 2018; Pian et al , 2019; Odugbesan et al , 2022).…”

“…While the literature identifies mental models as playing a primary role in developing innovative responses and constructing a perception of organizational climate (Cristofaro, 2022; Cristofaro and Lovallo, 2022), few studies examine the cognitive strategies that can foster managers’ innovative behavior. While Tsai et al (2004) identify that groups shifting their mental models (only interpreted as “old” and “new”) can help enhance innovative behavior in organizations, and Gomes et al (2015) report that mental imagery favors positive attitudes toward innovation, we seek to advance this work by considering the efficacy of a future thinking cognitive strategy: the ability to project events while considering current/future variables and their development (Atance and O’Neill, 2001).…”