A review on dynamic capacities in strategic management

Abstract

Objective: The essence of strategic management in every enterprise is targeted at creating value and adding competitive advantage for food and beverage enterprise. In the rapidly changing and complex environment, dynamic capacities play an important role in achieving and sustaining competitive advantage. The main aim of this article is to identify the nature and components of dynamic capacities that have significant effect on strategic management. Research Design & Methods: The research method is based on both theoretical and empirical review of literature. The theoretical review of literature is focusing on dynamic capacities and strategic management. Findings: From the empirical review, it was revealed that dynamic capacities and strategic management are very associated as they are embedded in each other. Also, the organizations should take cognizance of innovation and efficient decision making which are revealed to be critical dynamic capacities that do enhance value creation and competitive advantage (strategic management). The aftermath of this is the inevitability of organizational profit. Contribution & Value Added: The organizations should focus on product innovation and efficient decision making to enhance value creation and competitive advantage over their competitors. Future studies may examine the performance of dynamic capacities on enterprise in a technology turbulent situation vis-à-vis the proposition of happenings in the Industry 5.0.