In organizational theory , dynamic capability is the capability of an organization to purposefully adapt an organization's resource base. The term is often used in the plural form, dynamic capabilities , emphasizing that the ability to react adequately and timely to external changes requires a combination of multiple capabilities. The idea of dynamic capabilities is similar in some ways to the previously existing concept of operational capabilities; the latter pertains to the current operations of an organization, whereas the former, by contrast, refers to an organization's capacity to efficiently and responsively change these operations and develop its resources. The main assumption of this framework is that an organization's basic competencies should be used to create short-term competitive positions that can be developed into longer-term competitive advantage. Nelson and Winter, in their book An Evolutionary Theory of Economic Change , link the growth of the concept of dynamic capabilities to the resource-based view of the firm and the concept of "routines" in evolutionary theories of organization.
Dynamic capabilities at IBM: Driving strategy into action
Abstract: As an increasing number of companies operates in international markets characterized by global competition, many traditional manufacturers augment their product offerings with services to gain competitive advantage. As servitization needs change throughout the company, many companies struggle on the transition from a product — to a service centric business model. The dynamic capabilities view analyses capabilities in changing environments and could therefore be an interesting theoretical lens for servitization research.
students brainstorm and expanded their lists with unique entries, including welcoming an adoptive sister into the family and shadowing/interviewing/interning in legal and medical fields to explore career interests.