COVID‐19 firms’ fast innovation reaction analyzed through dynamic capabilities

During the COVID‐19 emergency, several companies have been able to rapidly reconfigure their innovation and production processes to help support health and other services to cope with the shortage of needed supplies. Using the dynamic capability perspective, this work aims to understand which capabilities enable companies to have fast innovation reactions when they are not pursuing a competitive advantage but they are responding to a societal requirement. A multiple case study approach was used and results reveal that the use of internal and external sources is fundamental. In particular, the Italian companies with a fast innovation reaction to COVID‐19 are not the ones that possess all the competencies internally but are rather those able to orchestrate internal and external resources by means of ‘fast’ and flat management. Internal commitment and a culture of continual renewal are essential to rapidly reach a performing product.