Dynamic Capabilities Evidence from China, Lecture notes of Management Theory

Dynamic Capabilities Evidence from China

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2018/2019

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Seminar in Strategic Management
Article Analysis
Dynamic capabilities, environmental dynamism, and competitive
advantage: Evidence from China
Name: Islam Mahrous
ID: 17126058 Submission Date: October 19th 2019
1. Introduction:
Research on dynamic capabilities (DC) stands amongst the most prolic streams of research
within the eld of management for the last two decades. This might be explained by the high
importance and awareness that the strategic management literature has devoted to this topic.
Current studies focus on the
Denition
Antecedents
Nature
Processes and consequences of dynamic capabilities
2. Subject/Title:
Western developed markets and little is known about what dynamic capability is and its
relationship with performance in transition economies. Since there are many differences between
developed markets and transition economies, this narrow focus limits theoretical completeness
and is a signicant gap. Thus, the study uses China as a testing ground for the universality of the
Western-
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Seminar in Strategic Management

Article Analysis

Dynamic capabilities, environmental dynamism, and competitive

advantage: Evidence from China

Name: Islam Mahrous

ID: 17126058 Submission Date: October 19th^2019

1. Introduction:

Research on dynamic capabilities (DC) stands amongst the most prolific streams of research within the field of management for the last two decades. This might be explained by the high importance and awareness that the strategic management literature has devoted to this topic.

Current studies focus on the

  • Definition
  • Antecedents
  • Nature
  • Processes and consequences of dynamic capabilities

2. Subject/Title:

Western developed markets and little is known about what dynamic capability is and its

relationship with performance in transition economies. Since there are many differences between developed markets and transition economies, this narrow focus limits theoretical completeness and is a significant gap. Thus, the study uses China as a testing ground for the universality of the Western-

  1. Analysis :
  • The original definition of dynamic capabilities is a firm's ability to: integrate, build and reconfigure internal and external competences to address rapidly changing environments
  • Although the definition of overcomes some important limitations of current definitions

about dynamic capability such as vague, confusing, tautological, there is stillroom for improvement.

  • .Propose that the inspection of the effects of dynamic capabilities should be long-term

performance, or to say, sustainable advantage.

  • Rapid change in the emerging markets like China requires establishing Dynamic Capabilities to respond to the changes in the market
  1. Outcomes :
  • Dynamic capability is the firms' potential to systematically solve problems, formed by its propensity to sense opportunities and threats, to make timely decisions, and to implement strategic decisions and changes efficiently to ensure the right direction.
  • Dynamic capabilities have a positive impact on competitive advantage.
  • The higher the environmental dynamism, the stronger the positive relationship between dynamic capabilities and competitive advantage.
  • Environmental dynamism has a positive impact on dynamic capabilities.
  1. Recommendations
  • Applying the Dynamic Capabilities as a competitive advantage in the Textile industry in Egypt specially in the Governmental sector in Mahallah and the Textile factories owned and managed by the government/state

6- Reference

Journal of Business Research 67 (2014) 2793–