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Dynamic Capabilities Framework and Multinational Enterprises: The Case of Daikin Industries

In: Strategic Management and Innovation Strategies

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  • Hirokazu Kano

    (Kyushu University)

Abstract

The dynamic capabilities (DC) framework has garnered significant attention not only in the field of strategic management but also in international business (IB). IB scholars argue that this perspective can address shortcomings in existing IB theoretical frameworks. This chapter explores the theoretical implications of applying the DC perspective to the IB field. We propose that this framework illuminates the dynamic aspects of multinational enterprises (MNEs). In particular, by emphasizing the role of entrepreneurial managers, it provides insights into how MNEs develop and sustain competitive advantages in complex and rapidly changing global markets through cross-border orchestration and market (co-)creation in foreign markets. Additionally, we demonstrate how this perspective can explain phenomena that existing theoretical frameworks do not account for sufficiently through a case study of Daikin Industries. Daikin Industries is a leading Japanese firm in the air conditioning industry. The case highlights how Daikin Industries achieved rapid growth in global markets, particularly in China and India via cross-border orchestration and market co-creation. This chapter underscores the multidisciplinary nature of the DC framework.

Suggested Citation

  • Hirokazu Kano, 2025. "Dynamic Capabilities Framework and Multinational Enterprises: The Case of Daikin Industries," Springer Books, in: Takabumi Hayashi & Yoshikazu Sakamoto (ed.), Strategic Management and Innovation Strategies, chapter 0, pages 129-149, Springer.
    • Handle: RePEc:spr:sprchp:978-981-96-8437-3_6
    DOI: 10.1007/978-981-96-8437-3_6
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