The PhD program I am enrolled in is called ‘Dynamic Capabilities and Relationships’. One question I hear frequently from both colleagues and friends is: What are these dynamic capabilities? This post aims at providing a definition, a graph, and some references that I can refer people to when I hear this question again in the future.
Dynamic capabilities have emerged as a major stream in the field of strategy research over the past 15 years (Eisenhardt and Martin, 2000; Hodgkinson and Healey, 2011; Teece, Pisano, and Shuen, 1997). They are defined as “the firm’s processes that use resources – specifically the processes to integrate, reconfigure, gain and release resources – to match and even create market change. Dynamic capabilities thus are the organizational and strategic routines by which firms achieve new resource configurations as markets emerge, collide, split, evolve, and die” (Eisenhardt and Martin, 2000, p. 1107). At their core, the development of dynamic capabilities is the response of strategy researchers to an ever-changing world. Continue reading Dynamic Capabilities: A Definition, Visualization, and some References