grad-strat-dynamic-cap
Dynamic Capabilities
Overview
Dynamic capabilities are the firm's capacity to purposefully create, extend, or modify its resource base (Teece et al., 1997; Helfat et al., 2007). They explain HOW firms achieve and sustain competitive advantage in environments of rapid change — where RBV's static view is insufficient.
When to Use
- Analyzing firm adaptation in fast-changing industries
- Evaluating why incumbents fail despite strong resource bases
- Designing organizational transformation or pivots
- Distinguishing routine operations from strategic renewal
Assumptions
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