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

Published online by Cambridge University Press:  07 June 2022

Matteo Cristofaro Open the ORCID record for Matteo Cristofaro [Opens in a new window]  and
Dan Lovallo
Matteo Cristofaro*
Affiliation:
University of Rome ‘Tor Vergata’, Roma, Italy
Dan Lovallo
Affiliation:
The University of Sydney, Sydney, Australia
*
Author for correspondence: Matteo Cristofaro, E-mail: [email protected]
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Abstract

Dynamic 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.

Keywords

Co-evolutiondynamic capabilitiesevolutionmicrofoundationstheory
Type
Research Article
Information
Journal of Management & Organization , Volume 28 , Special Issue 3: Dynamic Capabilities: New Ideas , May 2022 , pp. 429 - 450
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2022

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