Abstract:

Dynamic capabilities can be defined as the ability of an organization to purposefully create, extend or modify a resource base (Helfat, 1997).  The concept of dynamic capabilities was initially developed by Teece, Pisano and Shuen (1997) and has become a popular topic in the strategic management literature (Eisenhardt, Martin, 2000; Zollo, Winter, 2001; Di Stefano, Peteraf, Verona, 2010). Teece et al. (1997) presented the following definition of dynamic capabilities: “the firm’s ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments.” The approach of this study was to build around several crucial elements that highlight its major theoretical foundations (nature, role, context, creation and development, outcome, and heterogeneity). This approach enables the use of appearing opportunities, business, technological and market and adaptation to market changes (Teece, Pisano, Shuen, 1997; Teece, 2010). The concept of dynamic capabilities by Teece (2007) identifies components of dynamic capabilities: entrepreneurial orientation (referring to opportunity sensing), value creation (based on opportunity seizing or pursuit, effectuation, bricolage and stakeholder synergy) and resource reconfiguration as a core of dynamic capabilities. The dynamic capability is about the relation between competitive advantages and how renewed and generated are the firms’ or manager’s idiosyncratic and difficult-to-trade capabilities (Teece et.al 1997). The aim of research on dynamic abilities is to explain the sources of competitive advantage (Teece 2007; Teece, Pisano, and Shuen, 1997).  This means that company performance is a key part of the theory and is usually seen as the ultimate goal of dynamic capability.