Dynamic Capabilities in Information Systems Research: A Critical Review, Synthesis of Current Knowledge, and Recommendations for Future Research

Abstract

Over the past twenty years, the dynamic capabilities view (DCV) has gained prominence in the IS field as a theoretical perspective from which to explain competitive advantage in turbulent environments. While there are quite a few review studies of dynamic capabilities (DCs) in the strategic management domain, research on DCs in the IS area has not been synthesized nor critically analyzed. The result is that the role that IT plays in the DCV remains largely ambiguous, and the way we think and conduct IS research on DCs is unquestioned. Addressing this, we conducted a critical review of DCs in IS research based on 136 papers. Our review provides a synthesis of contemporary knowledge on DCs that emphasizes the role of IT in this research, and a critical analysis of the assumptions underlying this literature. In addition, we develop a minimum DC definition for future research as a solution to the conceptual issues that we uncovered via the critical analysis. We further leverage the remaining findings of our critical review by providing a detailed research agenda for future investigations on DCs by IS scholars.