BUILDING DYNAMIC CAPABILITIES – A FACTOR FOR SUSTAINABLE DEVELOPMENT OF THE FIRM

Purpose: In recent years, every firm is facing serious challenges related to the implementation of the principles of sustainable development, which requires a significant change in strategic behavior, strategic decisions and company actions.The aim of the study is to develop a practicable model of dynamic capabilities supporting the sustainable development of the firm, which includes recognizable, understandable and measurable components for managers, and ensures the realization of competitive advantages in the three dimensions (economic, environmental and social) and performance, taking into account the dynamics of the environment. Method: The study uses a method based on data collection through an online survey and statistical analysis of dependencies in the model, using a correlation coefficient. Results: The results of an empirical study conducted in 123 firms operating in different markets will prove the interrelationships and dependencies in the developed model of dynamic capabilities, supporting sustainability and their impact on the process of building competitive advantages. Conclusions: The research and the conclusions made prove the necessity from building dynamic capabilities, supporting the sustainable development of the firm, as a factor that ensures the realization of competitive advantages in the three dimensions (economic, environmental and social) and performance, taking into account the dynamics of the environment.