A Case Study about Contingencies Approach in Dynamic Capabilities
Abstract: In the field of strategic management, the concept of dynamic capability has become an important strategic analysis tool. However, there is little agreement regarding the definition and usage of this term. This research aims to discover the dynamic development of dynamic capabilities from contingencies theory, which assists in strengthening the dynamic capabilities viewpoint and further separates it from the resource-based view; in actual case study, providing complete developmental steps, assisting businesses in evaluating conditions with dynamic capabilities and to execute strategies accordingly to gain advantages in competitions.
Introduction: All firms consider how to achieve and sustain competitive advantage. The dynamic capabilities approach aims to assist firms understand how and why certain firms build competitive advantage in rapidly changing environments. This approach aims to identify the dimensions of firm-specific capabilities that can provide sources of advantage, and to explain how to develop, deploy and protect combinations of competences and resources in response to environmental change. The dynamic capabilities approach differs from other strategy management paradigms, such as the competitive forces approach, strategic conflict approach, and resource-based view approach. Among these approaches, the dynamic capabilities approach tends to be considered an extension of the resource-base view rather than an entirely new strategy management paradigm.
Click here to read more on Contingencies Approach in Dynamic Capabilities