dynamic capabilities

Introduction

Dynamic capabilities (DCs) are a critical concept in strategic management, focusing on how firms adapt, integrate, and reconfigure internal and external competencies to address rapidly changing environments. This synthesis aims to consolidate the diverse research on dynamic capabilities to provide a clearer understanding of their nature, processes, and implications.

Key Insights

Definition and Nature of Dynamic Capabilities:
- Dynamic capabilities are organizational and strategic routines that enable firms to achieve new resource configurations, integrating, reconfiguring, and guiding the gain and release of resources .
- They are identifiable and specific routines that vary in complexity depending on market dynamism, with more robust routines in moderately dynamic markets and simpler rules in high-velocity markets .
Processes and Mechanisms:
- Dynamic capabilities involve processes such as sensing the environment, learning, coordinating, and integrating to reconfigure existing operational capabilities .
- The evolution of dynamic capabilities is unique to each firm but is shaped by well-known learning mechanisms and the firm's path .
Antecedents and Influencing Factors:
- Antecedents of dynamic capabilities can be both internal (e.g., organizational structure, culture) and external (e.g., market conditions, technological changes) .
- Individual actions and interactions within organizations are crucial, with the intention to change and high influence being necessary conditions for dynamic capabilities.
Outcomes and Performance:
- Dynamic capabilities do not directly lead to competitive advantage; instead, they enable the creation of new resource configurations that can provide competitive advantage .
- They are essential for firms to cope with changing environments, particularly in new product development and international expansion .
Challenges and Criticisms:
- The concept of dynamic capabilities has faced criticism for being vague and tautological, with calls for more integrated and measurable models .
- There is a need for clearer definitions and frameworks to avoid circular and overlapping interpretations .

Conclusion

Dynamic capabilities are essential for firms to adapt and thrive in rapidly changing environments. They involve specific routines and processes that reconfigure resources, influenced by both internal and external factors. While they do not directly confer competitive advantage, they enable firms to create new resource configurations that can lead to such advantages. Despite criticisms of vagueness, ongoing research aims to provide clearer, more integrated frameworks to better understand and measure dynamic capabilities.

Dynamic capabilities

Summary

Introduction

Key Insights

Conclusion

Sources and full results

Dynamic capabilities

This paper synthesizes diverse scholarly literature on dynamic capabilities to develop a more integrated understanding and framework for managing and retaining them in organizations.

DYNAMIC CAPABILITIES, WHAT ARE THEY?

Dynamic capabilities are organizational and strategic routines that enable firms to achieve new resource configurations, with competitive advantage derived from the resource configurations managers build using these capabilities.

Processes, antecedents and outcomes of dynamic capabilities

Dynamic capabilities are influenced by internal or external factors, but the mechanisms by which they lead to performance outcomes remain unresolved.

Dynamic Capabilities and Where to Find Them

Dynamic capabilities are the regular actions of creating, extending, and modifying an organizational resource base, with individual intention to change the status quo and high influence as necessary and sufficient conditions.

Dynamic Capabilities

Dynamic capabilities are an interdisciplinary subject focusing on knowledge, cognitive distance, evolutionary theory, entropy, and collaborative relations for innovation.

Dynamic Capabilities: A Review of Past Research and an Agenda for the Future

Dynamic capabilities research has grown in recent years, but it faces limitations and challenges, and a new conceptualization as an aggregate multidimensional construct is needed to guide future research.

Understanding the Elusive Black Box of Dynamic Capabilities

Dynamic capabilities can improve managerial decision-making in turbulent environments by reconfiguring existing operational capabilities in new product development.

Dynamic capabilities in international expansion

Dynamic capabilities, including capability possession, deployment, and upgrading, are crucial for international expansion and global operations, ensuring sustained success in a global economy.

Dynamic Capabilities

Dynamic capabilities research explores the foundations of sustainable competitive advantage in dynamic environments, with a focus on building, integrating, and reconfiguring internal and external resources and competences.

Dynamic Capabilities in Public Organizations

Dynamic capabilities in public organizations can enhance their ability to adapt to turbulent and complex environments, but have received little attention in public management research.

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