Analysis of internal environment: RBV, KBV and dynamic capabilities - o schilke 2014

12 important questions on Analysis of internal environment: RBV, KBV and dynamic capabilities - o schilke 2014

According to Schilke (2014), how does environmental dynamism affect the relationship between dynamic capabilities and competitive advantage?

The study finds an inverse U-shaped effect: dynamic capabilities—specifically Alliance Management Capability (AMC) and New Product Development Capability (NPDC) —contribute most to competitive advantage under moderate environmental dynamism, while their effect is weaker in stable (low dynamism) or highly turbulent (high dynamism) environments.

What are dynamic capabilities?

Organizational routines that enable firms to modify, reconfigure, or renew their resource base in response to environmental changes.

How does environmental dynamism moderate the effect of dynamic capabilities?

At intermediate dynamism, dynamic capabilities are most valuable; at low dynamism they are less needed, and at high dynamism their effectiveness is constrained by matching and inertia problems.
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How is environmental dynamism defined?

By the rate and amount of change (volatility) and the unpredictability (uncertainty) of the external environment.

Why are dynamic capabilities less valuable in low-dynamism environments?

Because firms rarely need to change resources, so the high costs of developing capabilities outweigh their benefits; exploiting existing resources is more effective.

Why are dynamic capabilities less valuable in high-dynamism environments?

Because routines may not match rapidly changing conditions (matching problem) and may lock firms into old behaviors (inertia problem).

What is alliance management capability (AMC)?

Routines that support alliance-related tasks (partner identification, interorganizational learning, alliance execution).

What is Hypothesis 1 of the study?

The relationship between AMC and competitive advantage is strongest under intermediate dynamism but weaker when dynamism is low or high.

What is new product development capability (NPDC)?

Routines that structure innovation processes and enable firms to create and launch new or improved products.

What is Hypothesis 2 of the study?

The relationship between NPDC and competitive advantage is strongest under intermediate dynamism but weaker when dynamism is low or high.

What is the main theoretical contribution of the paper?

It integrates dynamic capabilities, environmental dynamism, and competitive advantage, proposing and confirming a nonlinear, contingent relationship.

What are the managerial implications?

Managers should invest in dynamic capabilities carefully, aligning them with moderately dynamic environments to maximize returns; otherwise costs may outweigh benefits.

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