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Advancing the dynamic capability field: Identifying and measuring dynamic capability using search routines
February 15, 2017 @ 1:00 pm - 2:00 pm
NUI Galway, H91 WN80 Ireland
Speaker(s): Dr Rachel Hilliard
Affiliation: Discipline of Management
Organised by: Whitaker Institute
The dynamic capability approach to understanding firm competitiveness is an important research area in the field of organisational adaptation to a changing environment. Definitional concerns have led to debate about the difficulty of separating hard-to-observe dynamic capability from the performance that dynamic capability is theorised to produce. This tautology problem has led some authors to dismiss dynamic capability as a useful construct for either academics or practitioners. Based on widespread agreement that dynamic capabilities are underpinned by search routines, we argue that an indicator based on observable search routines can allow researchers to avoid the tautology trap. In a study of Irish manufacturers’ adaptation to intensified environmental regulation, we find that by concentrating on search routines it is possible to measure dynamic capability in a way that is distinct from performance and elucidates the relationship between the two.