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The behavioral and evolutionary roots of dynamic capabilities

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  • Felix Arndt
  • Lamar Pierce

Abstract

Although the dynamic capabilities framework has proved important for explaining long-term competitive advantage, some scholars have attacked it as lacking theoretical underpinnings. In this article, we clarify the lineage of the “dynamics” in the dynamic capabilities framework from the non-strategic model of Cyert and March to the dynamic evolutionary theory of the firm in Nelson and Winter that enabled the initial breakthrough of Teece, Pisano, and Shuen. We explain that the theoretical schism in dynamic capabilities between the tradition of Eisenhardt and Martin and that of Teece and colleagues can be traced to their relative emphasis on behavioral versus evolutionary theories. Finally, we provide a brief overview of implications for emergent topics and empirical research, along with ideas for future research.

Suggested Citation

  • Felix Arndt & Lamar Pierce, 2018. "The behavioral and evolutionary roots of dynamic capabilities," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(2), pages 413-424.
    • Handle: RePEc:oup:indcch:v:27:y:2018:i:2:p:413-424.
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    File URL: http://hdl.handle.net/10.1093/icc/dtx042
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    Citations

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    Cited by:

    1. Desirée Knoppen & Louise Knight, 2022. "Pursuing sustainability advantage: The dynamic capabilities of born sustainable firms," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1789-1813, May.
    2. Jochen Nürk, 2019. "Dynamic Alignment of Digital Supply Chain Business Models," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 5(1), pages 41-82.
    3. Galvin, Peter & Burton, Nicholas & Singh, Prakash J. & Sarpong, David & Bach, Norbert & Teo, Stephen, 2020. "Network rivalry, Competition and Innovation," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    4. Sidney G Winter, 2018. "Pisano on dynamic capability: why size matters," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(6), pages 1181-1186.
    5. Hameed, Kamran & Arshed, Noman & Yazdani, Naveed & Munir, Mubbasher, 2021. "Motivating business towards innovation: A panel data study using dynamic capability framework," Technology in Society, Elsevier, vol. 65(C).
    6. Kamran Hameed & Noman Arshed & Kenneth A. Grant & Mubbasher Munir & Osama Aziz, 2023. "Forces of Dynamic Capability and Incidence of Entrepreneurship: A Macroeconomic Policy Intervention Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 3573-3597, December.
    7. Florian Hofmann & Dodo zu Knyphausen‐Aufseß, 2022. "Circular business model experimentation capabilities—A case study approach," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2469-2488, July.

    More about this item

    JEL classification:

    • L - Industrial Organization
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • N - Economic History
    • O - Economic Development, Innovation, Technological Change, and Growth

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