Dynamic capabilities (DC) theory emerged as both an extension to and a reaction against the inability of the resource-based view (RBV) to interpret the development and redevelopment of resources and capabilities to address rapidly changing environments. DC considered as a source of competitive advantage while resource based view also emerged as a source of competitive advantage so how these two theory different ?
DC is more robust while dealing with the present VUCA world while resource based theory is static in nature focusing only on VRIN resources. DC theory incorporates all those resources as lower order capabilities which are required to be acted upon according to the prevailing conditions in order to create dynamic capabilities to achieve sustainable competitive advantage while Resource based theory didn’t put much emphasis on sustainable competitiveness.
Badar Latif You are welcome Sir! For further insights you may refer to this paper which contains the comparative explanations also:
Tracing the economics behind dynamic capabilities theory; https://www.emerald.com/insight/content/doi/10.1108/IJIS-05-2019-0050/full/html?casa_token=CbJS6CTo46sAAAAA:_cD64JwlL4Daifm17UvCPDsHIm1X7BT23coKzvnHjm0C9lmS1d5N_k_4m2P0kj-omEvNp8gJ0asu_cJc1zSUNif25HmIEQ8ogilkCEwIPN48KzXdfVu4
Sure I'll read, thank you very much once again. I really appreciated you.
In addition to the previous comments ,we need to differentiate between capabilities and resources.
according to ITIL foundation:
A resource as a generic term that includes IT infrastructure, people, money or anything else, while Strategic capabilities are the intangible assets of an organization.
Therefore , for example we can say that BI&A is considered strategic resources, but to go beyond and benefit from it we need capabilities.
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