Impact & Scale

Introduction to dynamic capabilities

The study of dynamic capabilities, the organization’s capacity to change its operations and adapt them to the environmental requirements, has taken centre stage in the debate on strategic management as well as organization theory (Teece, Pisano and Shuen 1997, Eisenhardt and Martin 2000, Zollo and Winter 2002, Winter 2003) in recent times.  The notion, which has received several, and only partially aligned, definitions, lies at the heart of of the organization’s ability to enact change in a systematic and fruitful way.

Winter (2003) clarifies that organizational change happens in one of two ways: the first with ad-hoc problem driven search, and the second through the action of “stable patterns of activity aimed at creating or changing operating routines in pursuit of enhanced organizational effectiveness”, the definition of dynamic capabilities in Zollo and Winter (2002).

What is Dynamic Capabilities?