Abstract

Companies that find innovative ways to deploy dynamic and operational capabilities gain competitive advantages and are able to respond effectively to changing business environments. By investigating the strategic moves of electricity providers downstream in the value chain, we examine the deployment of dynamic and operational capabilities. This strategic move by electricity providers is associated with a completely new capability path, which involves three different levels, namely, individual capability, the capability portfolio and the capability constellation. Our findings describe the deployment of dynamic and operational capabilities for each level of capability development. The characteristics associated with the deployment of dynamic and operational capabilities are integrated into the mechanisms for capability development (creation, evolution, substitution, and transformation). In addition, our findings highlight specific capability development issues such as co-specialization, propinquity, familia...

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