Dynamic capabilities as patterns of organizational change: an empirical study on transforming a firm's resource base (original) (raw)
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Chapter 3 DYNAMIC CAPABILITIES AND ORGANIZATIONAL PROCESSES
Dynamic capabilities provide an organization with the capacity to purposefully create, extend, or modify its resource base. Dynamic capabilities are about change. To identify the need or opportunity for change and to accomplish this change, the organization uses processes -search processes, decision-making processes, change management processes, and others. There is an inextricable link between dynamic capabilities and the organizational and managerial processes that underpin them. However, the relationship between process and dynamic capabilities is often left unstated or implied. In this chapter we explore the relationship between dynamic capabilities and organizational process. Further, we suggest that because process is an integral part of dynamic capabilities, research on dynamic capabilities will benefit from combining approaches from both the content and process sides of the strategy field to develop a more complete understanding.
Dynamic capabilities as patterns of organizational change
Journal of Organizational Change Management
Purpose – In this paper the authors explore the managerial processes involved in deep, purposeful organizational change. The authors investigate change towards a goal-directed end state and the managerial actions involved in reaching it. The purpose of this paper is to identify patterns of organizational change by analysing how variations occurred in a firm’s resources and capabilities at a time of high internal and external uncertainty. Design/methodology/approach – The authors use a longitudinal in-depth case study on the airline Spanair. The authors analyse the change process this airline engaged in between 2007 and 2012, which was considered the most turbulent period in aviation history. The authors followed the grounded theory approach to induce a strategic capability pattern model from secondary data. Findings – The authors identify a capability pattern with four dynamic capabilities: adding, transferring, integrating and shedding; and two higher-order capabilities: goal devel...
Reconsidering ordinary and dynamic capabilities in strategic change
European Management Journal, 2019
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Journal of Management & Organization
Prior research has emphasized the importance of dynamic capabilities to organizational transformation. In this paper, we explore how dynamic capabilities can have varying roles in change, and only potentially create transformational outcomes. By conducting ethnographic phenomenon driven research and observing the interactions of specific customer data related capabilities over a long period of time, we relate the potential for change to the way in which capabilities' interact, and identify three different mechanisms for change. Transformation requires a disruption of existing operational capabilities, which may result from one of the three identified mechanisms. Introducing a more theoretically consistent and practical taxonomy for (dynamic) capabilities may help in resolving some of the criticisms for their unclear practical implications. Further, our findings underline the importance of studying capabilities in their networks within organizations and over time.
The dynamic capabilities view posits that a firm’s success is largely driven by its ability to adapt to a changing environment to secure value creating potential and, thus achieve a competitive advantage. The dynamic capabilities perspective has attracted much scholarly attention in the last two decades, as reflected in the proliferation of conceptual and research articles in the strategic management literature. Knowledge about the relationship between dynamic capabilities and other theoretical concepts within the strategic management field remains limited. This paper therefore synthesizes the literature and uses it to develop a more clear relationship between notions of dynamic capabilities, resources, assets, competencies and static capabilities. Potential areas of future research are also outlined.
Understanding Dynamic Capabilities from Its Antecedents, Processes and Outcomes
Brazilian Business Review, 2014
The theory of Dynamic Capabilities has been one of the references in the search for understanding of the competitive advantage of organizations. However, even with the development of studies on this topic, it is not clear how the Dynamic Capabilities develop and operate within organizations. Thus, this study aims to understand the dynamics capabilities from its antecedents, processes and outcomes. Through a literature review, it was possible to identify external and internal antecedents that make Dynamics Capabilities emerge in organizations, such as environmental dynamism and corporate entrepreneurship. In when it comes to process, it was identified that the Dynamic Capabilities are formed by a set of processes that have effect on resources and organizational capabilities. Thus, the development of resources and capabilities is the outcome of Dynamic Capabilities. Finally, unlike other studies, this work considers the DCs not as a specific capacity, but as a set of processes that enable the organization to deal with changes in the competitive environment.
Dynamic Capabilities and Strategic Management, "Strategic
1997
The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difficult-to-trade knowledge assets and complementary assets), and the evolution path(s) it has adopted or inherited. The importance of path dependencies is amplified where conditions of increasing returns exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding internally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing internal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants.
The Development of New Organizational Capabilities
2005
c h o o l o f B u s i n e s s U n i v e r s i t y o f S o u t h e r n C a l i f o r n i a -L o s A n g e l e s, C A 9 0 0 8 9 -0 8 0 6 (2 1 3) 7 4 0 -9 8 1 4 FAX (213) 740-4354 ABSTRACT Developing new capabilities is a strategic necessity for many organizations. It entails extensive learning dispersed across complex activity fields that extend beyond the firm. We generate a model and present propositions about new capability development that integrate perspectives from the strategy, learning, and social capital and network literatures. The model includes learning processes, contextual mediators, and learning mechanisms that can be intentionally designed to foster requisite learning and the institutionalization of new capabilities.