Handbook of Organizational Learning and Knowledge Management, Second Edition

A ‘Holistic’ Framework of Dynamic Capabilities

The distinction made above between the (relatively) well-known characteristics of DC connected to the adaptation of behavioral patterns, and the hitherto under-explored notion of DC connected to the adaptation of antecedents to behavioral change is at the core of our proposed contribution. We use the word ‘holistic’ to indicate that the conceptual framework developed considers both notions of DC, those focused on the adaptation of firm behavior (operating capabilities in particular) and those focused on the adaptation of behavioral antecedents, such as cognition (e.g. cognitive frames) and motivation. The framework proposed is considered ‘holistic’ (complete) also because it aims to encompass, albeit in highly abstract and general terms, all the general categories of explanations for the formation and evolution of DC. As such, it will try to move beyond the role of learning processes highlighted by prior literature (Zollo and Winter, 2002) and consider the role of both organizational as well as individual traits in shaping the development of DC. Finally, the proposed framework aims to be holistic also in terms of identifying both the evolutionary and the technical aspects of performance highlighted by Helfat et al. (2007) to include notions of appropriateness in the direction of change (evolutionary fit), as well as of economic efficiency in the change process itself (technical fit, i.e. with value produced larger than the costs necessary ...