From framework to theory: an evolutionary view of dynamic capabilities and their microfoundations

Abstract

AbstractDynamic capabilities (DCs) are organizations' ability to integrate, build, and reconfigure competences, on which they draw to adapt to changes. Despite a significant stream of literature exploring DCs, the following question remains: how do dynamic capabilities allow organizations to adapt to changes and succeed? To fill this gap, this paper outlines a theory of DCs, based on an analysis of strategic behavior (micro)formation at the individual and collective levels. This theory conceptualizes an evolutionary paradigm in which the intentions of organizational agents are intertwined with environmental influences. It defines DCs as ‘instruments able to entrepreneurially solve problems of evolutionary fitness of organizations.’ In doing so, it advances theoretical conceptualization of DCs and their microfoundations to provide insights into how an entrepreneurially led organization may confront and solve problems and ultimately prosper.