Not all roads lead to Rome: non-equifinality in dynamic capabilities and process configuration

Abstract

Abstract Although the literature indicates the relevance of dynamic capabilities (DCs) in explaining heterogeneity in firm performance, there is a limited understanding of why some firms deploy DCs better than others do. Using a configurational approach grounded in strategic management, this article argues that the configuration of processes that build DCs matters for performance. Results based on data from 3,632 Brazilian firm-year observations support the assertion that DCs rely on single-process configuration. This finding suggests that the assumption of equifinality does not apply to this aspect of DCs, which extends the literature by offering empirical evidence to a point of division between scholars and contributes to practitioners by shedding light on one locus of competitive advantage in DCs.