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Dynamic Capability: A Supporting Theory for Innovation-Driven Entrepreneurship in Uncertain Environments

In: A Theoretical Foundation for Innovation-Driven Entrepreneurship

Author

Listed:
  • Hongjia Ma

    (Jilin University)

  • Bin Xiao

    (Tsinghua University)

Abstract

Emerging technological advances like the Internet and information technology have led to increasing global innovation and a proliferation of entrepreneurial ventures that have become key drivers of economic and social development (Razmdoost et al., Journal of Business Research 113:290–302, 2020). Dynamic capabilities enhance the ability of innovation-focused startups to sense and size opportunities and help them continuously reconfigure their internal and external resources to successfully launch new products (Teece, Strategic Management Journal, 28, 1319–1350.). Dynamic capabilities theory is the theory that supports analysis of innovation-driven entrepreneurship’s core elements. However, in the context of digitalization, ecologicalization, and internationalization, dynamic capability theory faces many challenges in its ability to explain the phenomenon of innovation-driven entrepreneurship. Moreover, it is a challenge to decipher the mystery of firms’ competitive advantages in a dynamic and complex environment. Therefore, reviewing the progress of dynamic capability theory, especially in the field of entrepreneurship research, further enriches the theory and promotes exploring innovation-driven entrepreneurship theory from a dynamic capability perspective.

Suggested Citation

  • Hongjia Ma & Bin Xiao, 2025. "Dynamic Capability: A Supporting Theory for Innovation-Driven Entrepreneurship in Uncertain Environments," Springer Books, in: Li Cai & Baoshan Ge & Xueling Li & Xiaoyu Yu (ed.), A Theoretical Foundation for Innovation-Driven Entrepreneurship, chapter 0, pages 179-187, Springer.
    • Handle: RePEc:spr:sprchp:978-981-96-3133-9_18
    DOI: 10.1007/978-981-96-3133-9_18
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