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A Theory of Change in Turbulent Environments: The Sequencing of Dynamic Capabilities Following Industry Deregulation

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Author Info
Pettus, Michael L. (Millikin U)
Kor, Yasemin Y. (U of Delaware)
Mahoney, Joseph T. (U of Illinois at Urbana-Champaign)
Abstract

The dynamics of change and the path-dependent evolution of resources and capabilities are central concerns of contemporary strategic management. This paper integrates the resource-based and dynamic capabilities literatures to explain why development of dynamic capabilities is especially important for firms that transition from regulated to deregulated environments. We develop a theoretical model and specific propositions concerning the pattern and sequencing of dynamic capability development within environments experiencing substantial change, specifically in newly deregulated industries. We discuss implications of the proposed theoretical model for both research and managerial practice.

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Paper provided by University of Illinois at Urbana-Champaign, College of Business in its series Working Papers with number 07-0100.

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Date of creation: 2007
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Handle: RePEc:ecl:illbus:07-0100

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