Dynamic Capabilities and Strategic Control Systems: A Study at Itaipu Binacional

Abstract

Several studies have thus far linked diverse organizational outcomes as antecedents to dynamic capabilities, with an emphasis on entrepreneurship, environmental dynamism, resources, knowledge management, organizational learning, and strategic planning. This study aims to fully assess how the model of strategic levers of control and dynamic capabilities framework are related, considering all conceptual dimensions and the profile of ITAIPU Binacional employees. The data was collected through a survey, and the hypotheses evaluated with the assistance of structural equation modelling, using the partial least squares estimation method. The findings validated the central hypothesis, that the levers of control do positively influence the presence of the dynamic capabilities, in addition to one other complementary hypothesis— that the interactive system also positively influences the ability to sense opportunities. The strategic levers of control can now be treated by organizations as possible sources of dynamic capabilities.