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Redefining capabilities as drivers of adaptation, incremental change, and transformation: recognizing the importance of strategic and operational intent on performance

Published online by Cambridge University Press:  06 June 2022

Lauri Paavola Open the ORCID record for Lauri Paavola [Opens in a new window]  and
Richard Cuthbertson
Lauri Paavola*
Affiliation:
Department of Marketing, Aalto University, Aalto-yliopiston kauppakorkeakoulu, Markkinoinnin laitos, 00076 Aalto, Finland
Richard Cuthbertson
Affiliation:
Saïd Business School University of Oxford Park End Street, Oxford, OX1 1HP, UK
*
*Corresponding author. E-mail: lauri.paavola@aalto.fi
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Abstract

Prior research has emphasized the importance of dynamic capabilities to organizational transformation. In this paper, we explore how dynamic capabilities can have varying roles in change, and only potentially create transformational outcomes. By conducting ethnographic phenomenon driven research and observing the interactions of specific customer data related capabilities over a long period of time, we relate the potential for change to the way in which capabilities' interact, and identify three different mechanisms for change. Transformation requires a disruption of existing operational capabilities, which may result from one of the three identified mechanisms. Introducing a more theoretically consistent and practical taxonomy for (dynamic) capabilities may help in resolving some of the criticisms for their unclear practical implications. Further, our findings underline the importance of studying capabilities in their networks within organizations and over time.

Keywords

Big datadynamic capabilitiesorganizational changeretailingroutinesTescotransformation
Type
Research Article
Information
Journal of Management & Organization , Volume 28 , Special Issue 3: Dynamic Capabilities: New Ideas , May 2022 , pp. 522 - 539
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2022

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