Research Article Open Access

Dynamic Capability and Its Effects on Firm Performance

Kuo-Wei Lin1 and Kai-Ping Huang2
  • 1 Department of International Business, College of Management, Hsuan Chuang University, R.O.C., Taiwan
  • 2 School of Management, Faculty of Business, University of Technology, Sydney, Australia

Abstract

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.

American Journal of Applied Sciences
Volume 9 No. 1, 2012, 107-110

DOI: https://doi.org/10.3844/ajassp.2012.107.110

Submitted On: 11 October 2011 Published On: 23 November 2011

How to Cite: Lin, K. & Huang, K. (2012). Dynamic Capability and Its Effects on Firm Performance. American Journal of Applied Sciences, 9(1), 107-110. https://doi.org/10.3844/ajassp.2012.107.110

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Keywords

  • Dynamic capabilities
  • product innovation
  • firm performance
  • environmental dynamism
  • external surroundings
  • organizational performance
  • dynamic capability strategies
  • gaining competitive advantage
  • alternative systems