Old and new: a dynamic capabilities perspective of learning and unlearning

In this study, we explore innovation processes of innovation-efficient and innovation-inefficient firms. In particular, we investigate how learning and unlearning unfold from the perspective of dynamic capabilities. We employ a case study research approach to analyse learning and unlearning patterns in 24 firms, divided into innovation-efficient and innovation-inefficient firms. We find two different sets of patterns that distinguish innovation-efficient from innovation-inefficient firms. Our results reveal that innovation-efficient companies can quickly shift between learning and unlearning to dynamically orchestrate resources to deal with changes in the environment. In this sense, learning and unlearning are sources of dynamic capabilities, while their interplay is what makes capabilities actually dynamic. Furthermore, we provide implications for practitioners on how to navigate through innovation projects and design innovation management concepts more efficiently.