Abstract
In this explorative study, we investigate the relationship between dynamic capabilities and innovation capabilities. Dynamic capabilities are at the core of strategic management in terms of how firms can ensure adaptation to changing environments over time. Our paper follows two paths of argumentation. First, we review and discuss some major contributions to the theories on ordinary capabilities, dynamic capabilities, and innovation capabilities. We seek to identify different understandings of the concepts in question, in order to clarify the distinctions and relationships between dynamic capabilities and innovation capabilities. Second, we present a case study of the ’Innovation Clinic’ at a major university hospital, including four innovation projects. We use this case study to explore and discuss how dynamic capabilities can be extended, as well as to what extent innovation capabilities can be said to be dynamic. In our conclusion, we discuss the conditions for nurturing ‘dynamic innovation capabilities’ in organizations.
Highlights
In this paper, we seek to understand dynamic innovation capabilities, as compared to dynamic capabilities and innovation capabilities, respectively
We suggest that the emerging service and organizational innovation capabilities we have identified in this case study can be categorized as dynamic
We find that dynamic innovation capabilities may emerge from a combination of entrepreneurial management and organizational elements, much in line with Teece’s (2012, 2014) conceptualization of dynamic capabilities
Summary
We seek to understand dynamic innovation capabilities, as compared (and related) to dynamic capabilities and innovation capabilities, respectively. As sources and limitations of growth, competitive advantage and innovation (e.g., Penrose, 1959; Bower, 1970; Wernerfelt, 1984; Barney, 1991). Extending this tradition, capabilities, rather than resources or products, have been suggested to explain the challenge of achieving superior fit with shifting environments (Teece, Pisano & Shuen, 1997). There have been a number of theoretical studies of dynamic capabilities (e.g., Eisenhardt & Martin, 2000; Teece et al, 1997; Teece, 2007; Teece, 2014), but one of the key remaining challenges is to understand the relationship between dynamic capabilities and innovation capabilities, as pointed out by Breznik and Hisrich (2014). Our research questions are: How are capabilities related to innovation? And, relatedly, what are the premises for dynamic innovation capabilities, and how can they be developed?
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