Ways Out of the Dead-End of RBV Dynamization: Dynamic Capabilities and Beyond

Abstract

The predominant suggestion of how to overcome the static character of the resource-based-view (RBV) is the concept of dynamic capabilities, basically calling for a dynamization of organizational capabilities. Over the past two decades, the dynamic capability perspective has become one of the most influential theoretical lenses in the field of strategic management, dedicated to explain organizational adaptability and innovativeness in volatile markets. Given this broad acceptance, it is surprising enough that an analysis of the current research debate reveals that a congruent understanding of the construct is still missing and the perspective suffers from inherent conceptual contradictions. This raises the question whether we should continue to see the dynamic capability perspective as most promising template to structurally dynamize the RBV. We discuss this question along four core issues intriguing the dynamic capability debate: (1.) The role of the external environment; (2.) The role of internal agency; (3.) The underlying processes of change; and (4.) The importance of routines. Our analysis reveals a broad variety of distinct research paths and a confusing fragmentation of the research field. Furthermore, unsolved dilemmas in dynamizing organizational capabilities emerge. None of the suggested approaches designed to conceptualize dynamic capabilities seems capable of dynamizing the RBV substantially, while simultaneously preserving the original concept of an organizational capability. After all, a dynamic capability is supposed to be a capability. The last section of this paper therefore aims at reassessing the dynamic capabilities perspective and suggesting alternative approaches for dynamizing the resource-based view.