The Evolution of the Dynamic Capabilities Framework

Abstract The chapter sketches the past, present, and potential future of the dynamic capabilities framework. This essay is more by way of a personal reflection on the progress that has been made to date and the work remaining to be done. The dynamic capabilities framework has proved fertile ground for research and there is no evidence its momentum is slowing. In addition, I see the framework having numerous potential applications, several of which I have addressed in my own writing: (1) dynamic capabilities can serve as an overarching paradigm for teaching in business schools; (2) dynamic capabilities can potentially be built into a theory of the firm; and (3) dynamic capabilities is a policy tool for industrializing economies to help them understand the difference between accumulation and assimilation. Finally, innovation, including digital transformation, corporate entrepreneurship, and organizational behavior also contribute to the theoretical soundness of the dynamic capabilities framework.