The use of dynamic capabilities to boost innovation in a Brazilian Chemical Company

Abstract

Dynamic capabilities seek to explain how competitive advantages can be built in rapidly changing environments. This study aims to assess how the application of dynamic capabilities can contribute to the expansion of innovation capabilities. Data was collected on ten semi-structured interviews with executives from a chemical company, and analyzed using qualitative content analysis. Results indicate that the application of dynamic capabilities contributes to the development of innovation capabilities through the consolidation of the first dynamic capability (sensing), which fosters innovation. Sensing can be considered an organizational capability, resulting from the integration between organizational strategies and the innovation practices of the organization as a whole. This study brings the following contributions the need to include a new microfoundation in the sensing capability, which in this study is called ‘processes to manage innovation on a strategic level’ and the need to adapt another microfoundation related to the sensing capability, called ‘processes oriented toward collaboration with suppliers to complement and stimulate innovations within the company’. It is suggested that these processes should be reassessed in terms of their potential to generate and complement organizational innovation.