Dynamic Capabilities for Competitive Advantage

Abstract

Though the dynamic capability framework has emerged as the new touchstone in the domain of strategic management, the focal point of most of the studies has predominantly been the multinational firms belonging to developed countries. The present study aims to bridge this gap not only by empirically analysing the dynamic capabilities of Indian multinationals but also by comparing the level of deployment of dynamic capabilities in Indian-origin multinational corporations (MNCs) vis-à-vis the foreign-origin MNCs operating in India. Moreover, as there is no consensus among researchers on the relationship between dynamic capabilities and competitive advantage, this relationship is put to test in the present study, and its wider applicability is checked in Indian and foreign-based MNCs. The study also analyses the effect of company’s country-of-origin on its competitiveness. Furthermore, individual capabilities of the organizations under study are analysed and strategies to enhance the competitiveness of each organization are thereby suggested.