Abstract: Our paper discusses the importance of dynamic capabilities which is a growing area of research and fits into the rapidly changing dynamic business environment. It is drawing the attention of the researchers and is an area which is being studied further to understand its implications across industries. This paper reviews the evolution of the dynamic capabilities approach from the resource based view over the years and how it is apt for the firms to survive in the dynamically ever-changing environment. It also draws attention on how resources and capabilities in the internal environment help build-up the dynamic capabilities and its component factors and help to create competitive advantage. The swiftness with which the firm successfully addresses the challenges that it faces in the external environment by adjusting its internal resources and capabilities works to its advantage and thereby leading to the attainment of organizational performance. The science and knowledge driven Indian pharmaceutical industry is an example which is experiencing this dynamic environment and some examples have been cited.
Keywords: Dynamic Capabilities, Competitive Advantage, Organizational Performance, Adaptive Capability, Absorptive Capability, Innovative Capability.
Title: The Relationship between Dynamic Capabilities, Competitive Advantage & Organizational Performance
Author: Chandra Shekhar Banerjee, Dr. Ayesha Farooq, Dr. Shivakant Upadhyaya
International Journal of Interdisciplinary Research and Innovations
ISSN 2348-1218 (print), ISSN 2348-1226 (online)
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