Understanding the relational dynamic capability-building process

Abstract

There is a significant body of research on relational dynamic capabilities, but little is known about how a firm builds these capabilities. Using a longitudinal case study analysis of the French car manufacturer Renault, this research fills that gap. It provides a three-phase sequence model of a relational dynamic capability-building process. Each phase (identifying, building, and integrating) corresponds to a level of strategic intent (from emerging to deliberate) and a set of shaping factors that evolve with the changing environment. These factors are combinations of external triggers associated with macro-economic and industry conditions and internal enablers, including agent skills and missions, dedicated organizational structures, assets, and tools.