Exploring the Formative Path of Dynamic Capabilities: A Case Study from the Perspective of Innovative Components and Levels Shifting

Abstract

This research investigates the formative path of dynamic capabilities, focusing on how innovative components and shifts in levels contribute to the development and enhancement of organizational capabilities over time. Through a qualitative case study approach, the study examines how firms strategically manage and integrate various elements of innovation, including technology, processes, organizational structures, and human resources, to cultivate dynamic capabilities that enable them to adapt, innovate, and thrive in dynamic environments. Drawing upon theoretical frameworks from organizational theory, innovation management, and dynamic capabilities literature, the research explores the processes through which firms identify, acquire, assimilate, and exploit new knowledge and resources to continuously renew and reconfigure their capabilities in response to changing market conditions and competitive pressures. Moreover, it examines how shifts in innovative components, such as the adoption of new technologies, business models, or organizational practices, influence the evolution of dynamic capabilities across different organizational levels, from individual teams and functional units to the overall organizational system. By analyzing empirical data from multiple case studies across diverse industries, the study elucidates the mechanisms and contingencies underlying the formative path of dynamic capabilities, offering insights into the strategic management of innovation and organizational change. The findings contribute to a deeper understanding of how firms can proactively shape their dynamic capabilities through deliberate investments in innovation and adaptive processes, thereby enhancing their resilience and competitive advantage in turbulent business environments.