The relationship between dynamic capabilities and firm competitive advantage

Abstract

Purpose Dynamic capabilities and organizational ambidexterity are closely related concepts. Unfortunately, there is still a lack of understanding about the relation between the two. This paper aims to offer a theoretical explanation of the relationship between dynamic capabilities, organizational ambidexterity and firm competitive advantage. The authors find that organizational ambidexterity may be considered as a mediator in the relationship between dynamic capabilities and firm competitive advantage. Therefore, this paper contributes theoretically to the authors’ understanding of the relationship between organizational ambidexterity and dynamic capabilities with regard to firm competitive advantage. Design/methodology/approach In this conceptual paper, the review of research literature on dynamic capabilities and organizational ambidexterity is presented. Theoretical analysis is followed by theoretical prepositions that should be subsequently tested empirically. Findings By considering dynamic capabilities and organizational ambidexterity related to competitive advantage, this paper provides a new perspective on concepts’ relationship. The theoretical findings described in this paper suggest that organizational ambidexterity plays a mediating role in the relationship between dynamic capabilities and firm competitive advantage. Research limitations/implications Further research are required to develop organizational ambidexterity and dynamic capabilities theories, focusing more on the relation to competitive advantage. Additional testing is necessary to empirically validate the propositions given in this paper. Originality/value Based on theoretical findings, this paper clarifies the relationship between dynamic capabilities and organizational ambidexterity concepts. Theoretical findings described in this paper also determine the guidelines for further theoretical and empirical research within the fields.