Measuring Dynamic Capabilities of IT Resources

Abstract

The concept of Dynamic Capabilities (DC) has been popular for almost two decades. Dynamic capabilities were the ability of an organization to adapt to a changing environment. Dynamic capabilities are organizations that managed resources and competencies, both internally and externally, would survive with environmental changes. Many studies have reviewed the concept of dynamic capabilities. Some studies attempted to investigate how dynamic capabilities impact business, dynamic capabilities, and dynamic capabilities. However, limited research suggests how to measure an organization's dynamic capabilities, especially the capabilities of resources that drive an organization to have dynamic capabilities. Therefore, this study tries to provide a proposed method for measuring organizational resources' dynamic capabilities, especially IT. Information technology was chosen because there was a general belief that IT could strengthen the organization's position in business competition. The model was developed with a conceptual research and case study approach. Conceptual research was carried out to develop a theoretical framework through the study of literature. At the same time, the case study was carried out for model validation. The proposed method was adopted from the IT portfolio management and portfolio mapping. Based on the validation processes, the model proposed was suitable for measuring IT resources' capabilities and describing how IT resources could support dynamic capabilities. The result shows that more dynamic IT resources could improve the dynamic capabilities of an organization.