Generating new Dynamic Managerial Capabilities Theories

Introduction/ preamble to the theoretical frameworks

The dynamic capability theory must take into consideration the ability of the organization to respond to the rapid changes in the business environments by integrating, developing as well as reconfiguring its competencies. There are the two main important points in the three theories proposed. (1). recognition of the rapid changes in the organizations environment, and (2). Use of organization’s competencies to address the changes.

Theories

  1. Management buy-in for organization’s success

Whenever an organization is planning to commit its resources, the top level management must support the idea, and react faster by providing the necessary resources for the idea implementation. This theoretical underpinning is founded on the argument that management cognition, as well as the managerial social capital is important when new ideas are introduced. The management has to understand the importance of their support as well as the rapid changes in the business environment.  Additionally, managerial human capital is also important in this stance as it determines how much effort the management will give to the new ideas to entire that the organization capabilities are used to create and modify the company’s operations.,

  1. Optimal Resource capability mix

Every organization has more than one resource including manpower, financial resources, physical resources or assets, relationships that must be leveraged for successful project execution. Optimal resources capability is therefore an important theory because each organization must provide different resources capabilities in the right proportion for the organization to realize maximum benefits in from its dynamic capabilities in a rapidly, and volatile environment.

  1. Factor endowment theory

Each organization can only react to the rapid, volatile and discontinuous changes in the business environment depending on their proportion of resources endowments.  Each organization can only maximize their results based on the amount of each resource factors they have.

 

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