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A study on resource stretch and leverage from the perspective of dynamic capabilities

Author

Listed:
  • Thuy Dung Pham Thi
  • Chi Minh Nguyen
  • Nam Tien Duong
  • Van Kien Pham

Abstract

The dynamic capabilities view, documented in many strategic management studies, addresses how firms integrate, build, and configure the resource-bases to respond to the market dynamism. This study aims to present an overview of these previous studies and to explore the relationship between internal and external dynamics of a firm, which has received little attention in the literature body. Drawing on a case-centred narrative approach, we analysed the cases of five companies in various industries. Our findings show remarkable similarities among the interviewed companies' narratives, which reveal five basic themes: top managers' awareness leverage, industrial relationship leverage, strategic leverage, corporate knowledge leverage and corporate asset leverage. These themes reflect how dynamic capabilities are utilised to adapt, manipulate, and expand the resource-base within an organisation to either explore or exploit new opportunities. Accordingly, firms can understand the role of the dynamic capabilities in resource management and properly direct future managerial activities.

Suggested Citation

  • Thuy Dung Pham Thi & Chi Minh Nguyen & Nam Tien Duong & Van Kien Pham, 2023. "A study on resource stretch and leverage from the perspective of dynamic capabilities," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 32(3), pages 410-428.
    • Handle: RePEc:ids:ijbire:v:32:y:2023:i:3:p:410-428
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