What is the theory of dynamic capability?5 answersDynamic capability theory focuses on a company's ability to adapt, change, and innovate in response to a dynamic environment to achieve and maintain a competitive advantage. It involves integrating, building, and reconfiguring competences to effectively respond to changes and challenges. The theory emphasizes the interaction between a company's resource base and its capabilities to extend and modify resources for competitive advantage. Additionally, dynamic capabilities are seen as instrumental in solving organizational problems and enhancing evolutionary fitness, intertwining organizational agents' intentions with environmental influences. Furthermore, the theory extends to various fields such as marketing, production, resources, accounting, supply chain management, business models, and sustainable supply chain management.
What are dynamic capability?4 answersDynamic capabilities refer to a company's capacity to adapt, change, and innovate in response to a dynamic environment. These capabilities encompass the ability to sense opportunities and threats, seize those opportunities, and maintain competitiveness through the reconfiguration of both internal and external competencies. They are rooted in the resource-based view of the firm and emphasize the orchestration of assets to drive innovation and address rapid environmental changes. Dynamic capabilities are crucial for firms to extend and modify existing resources or create new ones to sustain or achieve a competitive advantage. They are interdisciplinary, involving knowledge diversity, cognitive distance, and the governance of collaborative relations for innovation. Overall, dynamic capabilities play a vital role in shaping a firm's ability to thrive in a constantly evolving business landscape.
Domains of dynamic capabilities5 answersDynamic capabilities theory applies to various domains, including supply chain management, accounting, Information Technology (IT) governance, interdisciplinary subjects related to knowledge and innovation, and the junction of knowledge management and dynamic capabilities. In supply chain management, dynamic capabilities are employed in the domains of supply chain resilience, business models, and sustainable supply chain management. From an accounting perspective, dynamic capability theory is related to sharia accounting, government accounting, accounting information systems, financial accounting, and corporate governance. In the context of IT governance, various IT governance mechanisms function as dynamic capabilities and are associated with firm performance. Dynamic capabilities are also discussed in the context of collaborative relations for innovation and the governance of knowledge diversity. Lastly, the junction of knowledge management and dynamic capabilities is an emerging field of research that aims to clarify and systematize the understanding of knowledge-based dynamic capabilities.
What is dynamic capability?5 answersDynamic capability refers to an organization's ability to adapt, change, and create new capabilities in response to a dynamic and changing environment. It is the capacity of a firm to integrate, build, and reconfigure its competences to stay competitive and succeed in the market. Dynamic capabilities encompass a range of activities and processes that help firms address and co-create rapidly changing environments, including technological, organizational, business model, and open innovation capabilities. These capabilities are crucial for organizations to implement digital transformation and stay competitive in the market. Dynamic capabilities can be applied in various aspects of a company, including marketing, production, resources, accounting, sharia accounting, government accounting, accounting information systems, financial accounting, and corporate governance. The concept of dynamic capabilities is rooted in the resource-based view of the firm and emphasizes the ability of firms to orchestrate assets and create new capabilities to shape their innovativeness.
Dynamic capability theory?5 answersDynamic capability theory is a management theory that focuses on a company's ability to adapt and change in order to maintain or achieve a competitive advantage in a dynamic environment. It involves the interaction between a company's resource base and its capabilities to extend and modify existing resources or create new ones. The theory has been applied in various contexts, including supply chain management, accounting, and strategic management. It complements other theories of competitive advantage, such as market positions, firm resources, and creative destruction. The theory has greater explanatory power when there is a partially-foreseeable technological change that is about to transform market competition. However, its explanatory power is limited in situations where change is unforeseeable, capabilities are not undervalued or scarce, or industries are subject to repeated technological shifts.
What are the different definitions of dynamic capabilities?3 answersDynamic capabilities have been defined in various ways in the literature. Nooteboom describes dynamic capabilities as an interdisciplinary subject that is centered around knowledge, particularly diversity of knowledge and its management within organizations. Yudistira et al. define dynamic capabilities as an organization's ability to integrate, build, and rearrange its internal and external competencies to adapt to a rapidly changing environment. Evayani et al. explain dynamic capabilities as a company's ability to change and adapt to the changing environment, with applications in various aspects such as marketing, production, resources, and accounting. Another definition provided by Cristofaro and Lovallo conceptualizes dynamic capabilities as organizations' ability to integrate, build, and reconfigure competences to adapt to changes and solve problems of evolutionary fitness. Overall, dynamic capabilities encompass the ability to sense and form opportunities, seize existing opportunities, maintain competitiveness, and orchestrate assets to create new capabilities.