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When do Dynamic Capabilities Lead to Competitive Advantage? The Importance of Strategic Fit
Author(s) -
Fainshmidt Stav,
Wenger Lucas,
Pezeshkan Amir,
Mallon Mark R.
Publication year - 2019
Publication title -
journal of management studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.398
H-Index - 184
eISSN - 1467-6486
pISSN - 0022-2380
DOI - 10.1111/joms.12415
Subject(s) - dynamism , dynamic capabilities , competitive advantage , lead (geology) , qualitative comparative analysis , industrial organization , strategic fit , set (abstract data type) , business , computer science , process management , knowledge management , marketing , geomorphology , geology , physics , quantum mechanics , machine learning , programming language
Recent studies suggest the relationship between dynamic capabilities and competitive advantage may be jointly affected by organizational and environmental factors. We enrich this nascent perspective by developing a configurational theoretical framework – underpinned by the mechanism of strategic fit – wherein dynamic capabilities lead to a competitive advantage when they support a strategic orientation appropriate for the levels of dynamism and munificence in the environment. Results of a fuzzy‐set Qualitative Comparative Analysis using primary data show that dynamic capabilities lead to a competitive advantage in dynamic, munificent environments by enabling the combination of differentiation and low‐cost orientations. In stable, non‐munificent environments, dynamic capabilities are effective in support of a low‐cost orientation. The central insight of this study is that the relationship between dynamic capabilities and competitive advantage is contingent upon the strategic fit between organizational and environmental factors, contributing to a more rigorous and configurational dynamic capabilities view.