Abstract

Studies of dynamic capabilities (DC) are attracting increased research attention as DC may be the main explanation for the success of the firm through change and development, and acquire a long-term competitive advantage. In the DC-literature, particular argument is made whereby those firms which are better able to integrate build/expand and combine internal and external resources, achieve better returns than their competitors. This has resulted in research beginning to identify empirical factors which can result in such changes in the firms. However, before encouraging wholesale adoption of DCs, it is a need for empirical evidence on the link between DCs and firm performance. One of the major issues in such an assessment is the sustainability of the DC - performance relationship. Currently, we do not know if DC affects performance temporarily and/or over an extended period of time. This is an important gap in the literature because DC can be suggested to be resource-consuming, requiring extensive investments by the firm. Therefore, firms will benefit from knowing whether DC leads to sustained high performance or only has a short-term effect.

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