Competitive advantage and strategy formulation: The key role of dynamic capabilities

Abstract

The aim of this paper is to promote the use of dynamic capabilities as a strategic tool of the highest order in terms of firm management. The content of the article is developed from a table that offers some insights into the relationship between the three theoretical perspectives analyzed in the paper: resource-based view, knowledge-based view and dynamic-capabilities view. The paper describes the evolution that can be discerned in the process of developing competitive advantage, from a resource-based view to a dynamic-capabilities framework. The objective of the article was not to bring to light any new revelations in this field of investigation, but is intended as a theoretical reflection on the implications of dynamic capabilities for firms and managers.