Using Systems Dynamics in Modeling of Dynamic Capabilities: A Review Study

Abstract

ـــ Dynamic capabilities play a vital role in organizations' long term success because they enable top management to profitably invest the available resources in respect to the market dynamism. In addition, it has been proved that system dynamics is a useful approach for explaining the complex system and predicting the future progress. The main aim of this study is to examine and discuss the theoretical and empirical application of system dynamics that involving dynamic capabilities through a systemic analysis of the literature in order to highlight the key research themes and development trends of the key contributions to data as well as to provide an overview of system dynamics applications to dynamic capabilities literature for future research to build on. The study is also covering the surrounding knowledge and the required steps to build system dynamics model of dynamic capabilities.