Bringing brain into the game: introducing the brain-based view of dynamic capabilities

Abstract

Purpose Change lies at the heart of the dynamic capability theory; however, the essence of concept of change is antithetical to the brain's predominant mode of operation i.e. maintenance of internal homeostasis. Since very little is known about the connection between neurology and dynamic capabilities, the present study aims to open this black box and propose a novel brain-based view of developing dynamic capabilities. Design/methodology/approach This study draws on the insights from neuroscience to offer propositions that not only provide realistic approaches for building dynamic capabilities, but also explain what would cause the brain to enter a state of plasticity to facilitate the development of managerial dynamic capabilities. Findings This study explains that dynamic capabilities are shaped by both lower-level neural processes and higher-level organizational processes, and that both these levels must be brought together to provide a holistic explanation about the complex phenomena of dynamic capabilities. Originality/value This study proposes a novel brain-based view of dynamic capabilities that provides neuroscientific explanations regarding how managerial capabilities can be leveraged to form organization-level capabilities without holding a priori assumptions about the application of the aggregation principle.