Capacity for Change: Dynamic Capabilities in Public Organizations

Abstract

This paper seeks to understand the underlying processes that support change implementation in public and nonprofit organizations. It examines the role of dynamic capabilities in public organizations undergoing planned transformative service changes. We extend existing research on dynamic capabilities in public and nonprofit organizations by suggesting four capabilities important for social service delivery organizations undergoing change. Based on two waves of data collection that included 56 interviews in four states, we found the capability to integrate new organizational practices, the capability to analyze and use data to inform decision-making, the capability to generate stakeholder commitment, and the capability to collaborate with other organizations to be critical to an organization’s perceived ability to carry out its mission and its change agenda. Analysis of findings indicates the importance of both development and deployment of dynamic capabilities. Future research areas are suggested as a way to further develop the concept of dynamic capabilities and its application to public and nonprofit contexts.