A dynamic capabilities perspective on managing technological change: a review, framework and research agenda

Abstract

The dynamic capabilities view has emerged as the central approach for addressing the question of how firms cope with technological change. Capturing the essence of dynamic capabilities and understanding what they are and how they actually support technological innovation and change, however, has hitherto posed an exacting challenge. This paper addresses these issues; 1) by reviewing the current state of research; 2) by investigating the role of three established theoretical lenses – ambidexterity, absorptive capacity and technology management – for dynamic capability-driven adaptation to technological change. In particular, we analyse how these three concepts unfold as dynamic capabilities and facilitate technological change through strategic managerial decision-making, resource reconfiguration and continuous learning. We subsequently propose a comprehensive framework that provides an integrative perspective on how dynamic capabilities support the management of technological change, e.g., developments toward digital transformation, new ICTs or cyber physical systems. Finally, we discuss future research directions based on the findings of our synthesis and framework.