American Journal of Applied Sciences

Dynamic Capability and Its Effects on Firm Performance

Kuo-Wei Lin and Kai-Ping Huang

DOI : 10.3844/ajassp.2012.107.110

American Journal of Applied Sciences

Volume 9, Issue 1

Pages 107-110


Problem statement: The study has been mainly attempted as an extension to previous studies made on dynamic capabilities and their necessity in organizational firms for goals’ accomplishments. Approach: The literature review illustrates the effects of dynamic capabilities on product innovation, firm performance and environmental dynamism. The researches of different authors and theorists on the subject of dynamic capability have been consulted and analysed to present a research study through this study. Results: The study has provided with a detailed understanding of the dynamic capability strategies that have been found to be highly significant in successful organizational performance. The development of different propositions also reflect the increasing importance of dynamic capabilities in organizations that managers are integrating in their strategic management practices all the more from before. Conclusion: This study reveals that the availability of dynamic capabilities imply that a firm may be protected from the negative impacts through planned strategic measures intended to encounter challenges and uncertainties and yet perform to the utmost level and succeed in achieving organizational goals and objectives.


© 2012 Kuo-Wei Lin and Kai-Ping Huang. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.