When do Dynamic Capabilities Lead to Competitive Advantage? The Importance of Strategic Fit
By Stav Fainshmidt, Lucas Wenger, A. Pezeshkan, Mark R. Mallon. Journal of Management Studies, 2018
295 citations recorded by the source corpus.
Recent studies suggest the relationship between dynamic capabilities and competitive advantage may be jointly affected by organizational and environmental factors. We enrich this nascent perspective by developing a configurational theoretical framework – underpinned by the mechanism of strategic fit – wherein dynamic capabilities lead to a competitive advantage when they support a strategic orientation appropriate for the levels of dynamism and munificence in the environment. Results of a fuzzy-set Qualitative Comparative Analysis using primary data show that dynamic capabilities lead to a competitive advantage in dynamic, munificent environments by enabling the combination of differentiation and low-cost orientations. In stable, non-munificent environments, dynamic capabilities are effective in support of a low-cost orientation. The central insight of this study is that the relationship between dynamic capabilities and competitive advantage is contingent upon the strategic fit between organizational and environmental factors, contributing to a more rigorous and configurational dynamic capabilities view.
Subfields: Sociology and Political Science, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/68d7881b7b8a35e1b77e8463cca333d03abcd526
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In Strategy and Management
Citations in the corpus
- Impact of supply chain digitalization on supply chain resilience and performance: A multi-mediation model (2023, background): “The innovation of digital technology and the spreading of the epidemic have intensified the dynamism of the environment and the level of competition in the market, and companies are relying more on dynamic capabilities to integrate and reconfigure their resources in order to gain competitive advanta”