Handbook of Organizational Learning and Knowledge Management, Second Edition

Introduction

The objective of this chapter is to extend the literature on dynamic capabilities (henceforth DC) to incorporate a more holistic model of human behavior, which includes micro-foundational elements, such as emotion, motivation, and identity, so far kept outside the debate around the evolution and consequences of DCs. The differential ability of firms to manipulate resources and routines to adapt to market and stakeholder expectations is in fact key to our understanding of competitive advantage (Teece, Pisano, and Shuen, 1997) and of strategic initiatives and processes such as mergers and acquisitions (M&A), product development, and knowledge management (Eisenhardt and Martin, 2000; Zollo and Winter, 2002). The construct itself has been capturing a growing attention from influential scholars of different fields coming from a wide variety of backgrounds and contributing to a more fine-grained understanding of change dynamics within organizations (Di Stefano, Peteraf, and Verona, 2010; see also Teece, Chapter 23 in this volume).

In a particularly influential statement for the development of the debate, Teece (2007) calls for a better understanding of the micro-foundational aspects of DC, echoing similar invitations from both critics (Felin and Foss, 2005) and contributors (Zollo and Winter, 2002) to the DC approach. In an attempt to provide a partial response to these calls, our intention is to move beyond definitional debates in the already rich landscape of DC literature ...