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How dynamic can organizational capabilities be? Towards a dual‐process model of capability dynamization

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  • Georg Schreyögg
  • Martina Kliesch‐Eberl

Abstract

The recent discussion in the field of strategic management broadly favors the idea of dynamic capabilities in order to overcome potential rigidities of organizational capability building. The major question addressed in this paper is whether capabilities can actually be conceived as being in flux—and if so, to what extent and in which way? After briefly recapitulating the distinguishing features of organizational capabilities, path dependency, structural inertia, and commitment are identified as the main capability‐rigidity drivers causing a managerial dilemma. In the search for a resolution of this dilemma different approaches of dynamic capabilities are identified and discussed. The analysis shows that the approaches suffer from inherent conceptual contradictions: the dynamization runs the risk of dissolving the original idea and strength of organizational capability building. Ultimately, capabilities would lose the strategic power attributed to them in the resource‐based view. The last section of this paper therefore aims to develop an alternative approach, which aims at preserving the original merits of organizational capability and solving the rigidity issue not by integrating a dynamic dimension into the capability construct but rather by establishing a separate function (‘capability monitoring’). The suggestions mount up to a tier solution. Its logic builds on the dynamics of countervailing processes and second‐level observation. Copyright © 2007 John Wiley & Sons, Ltd.

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  • Georg Schreyögg & Martina Kliesch‐Eberl, 2007. "How dynamic can organizational capabilities be? Towards a dual‐process model of capability dynamization," Strategic Management Journal, Wiley Blackwell, vol. 28(9), pages 913-933, September.
    • Handle: RePEc:bla:stratm:v:28:y:2007:i:9:p:913-933
    DOI: 10.1002/smj.613
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    Cited by:

    1. Koushik Dutta, 2021. "Exploring dynamic capabilities: A systems thinking approach," Systems Research and Behavioral Science, Wiley Blackwell, vol. 38(1), pages 125-136, January.
    2. Mileidy Alvarez-Melgarejo & Martha Torres-Barreto, 2018. "Resources And Capabilties, The Investigation Of Their Relations: A Bibliometric Analysis [Recursos Y Capacidades, La Investigación De Sus Relaciones: Un Análisis Bibliométrico]," Working Papers hal-01744010, HAL.
    3. Alar Kolk & Kristi P¸¸mann, 2008. "Co-Development of Open Innovation Strategy and Dynamic Capabilities as a Source of Corporate Growth," Working Papers 173, Tallinn School of Economics and Business Administration, Tallinn University of Technology.
    4. Michael Yao-Ping Peng & Ku-Ho Lin & Dennis Liute Peng & Peihua Chen, 2019. "Linking Organizational Ambidexterity and Performance: The Drivers of Sustainability in High-Tech Firms," Sustainability, MDPI, vol. 11(14), pages 1-17, July.
    5. Martha Torres-Barreto & Carlos Vecino Arenas & Carlos Alfonso Mantilla, 2018. "Resources, Capabilities And Their Interrelations In The Colombian Industrial Fabric [Los Recursos, Las Capacidades Y Sus Interrelaciones En El Tejido Industrial Colombiano]," Working Papers hal-01865796, HAL.
    6. Yao, Yuan & Meurier, Beatrice, 2012. "Understanding the supply chain resilience: a Dynamic Capabilities approach," MPRA Paper 58124, University Library of Munich, Germany.
    7. Stefano Denicolai & Antonella Zucchella & Federico Moretti, 2018. "Not So Similar After All: Exploring The Diversity Of Strategic Orientations For Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-33, May.

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