Dynamic capabilities configurations: the firm lifecycle and the interplay of DC dimensions

Abstract

Purpose

Dynamic capabilities (DCs) upgrade operational capabilities. However, DC dimensions of sensing, seizing and reconfiguring may combine in different configurations that result in alternative outcomes, depending on the firm's lifecycle stage. The purpose of this research is to explore configurations of DC dimensions during different stages of firms' lifecycles that result in operational marketing and technological capabilities.

Design/methodology/approach

Given the limited understanding of how DC dimensions and operational capabilities interact across a firm's lifecycle, the authors employed a multi-method approach to understand whether different configurations of DC dimensions may lead to operational marketing and technological capabilities and how the firm's lifecycle may condition these configurations. The authors first apply PLS path modelling to assess the validity and reliability of the measures. Then, the authors use fuzzy-set qualitative comparative analysis (fsQCA) to analyse micro, small and medium-sized enterprises (SMEs) in different growth stages operating in the creative industry within highly competitive and fast-changing environments.

Findings

Results show that several configurations of DC dimensions and competitive intensity influence marketing and technological capabilities. Although several configurations include sensing, seizing and reconfiguring, the findings also point to configurations where not all DC dimensions are present.

Practical implications

Improving operational capabilities does not necessarily imply a simultaneous presence of all three DC dimensions. Especially in the growth stage, managers that face resources shortage may only focus on sensing and seizing dimensions when developing marketing capabilities.

Originality/value

This research focuses on configurations of DC dimensions (instead of configurations of different types of DCs) that generate diverse marketing and technological capabilities development paths. The authors provide several equifinal configurations of DC dimensions that lead to operational marketing and technological capabilities. This study contributes to disentangling DCs and their dimensions across different lifecycle stages.

Citation

Cordero Páez, L.C., Pinho, J.C. and Prange, C. (2022), "Dynamic capabilities configurations: the firm lifecycle and the interplay of DC dimensions", International Journal of Entrepreneurial Behavior & Research, Vol. 28 No. 4, pp. 910-934. https://doi.org/10.1108/IJEBR-05-2021-0322