Dynamic Capabilities

Prof.Dr. Csaba Deák | expert, professional mentor of innovation division

Prof.Dr. Csaba Deák | expert, professional mentor of innovation division

Dynamic capabilities are the capabilities of a company to integrate, build and transform competencies to adapt to change. At a higher level, Dynamic Capabilities include capabilities for development and innovation. Dynamic capabilities focus on modifying operational capabilities and changing a firm’s products or production processes. The internal factors that influence dynamic capability are illustrated in the figure below.

Dynamic capabilities are unique to each company, reflect the specificities of the company and express the capabilities of a company to respond to market challenges. A company’s innovation behaviour depends to a large extent on the competencies of its management, the characteristics of the organisation and the values of its leadership.

There is no general ability to adapt to a changing market environment. Companies with specific, dynamic capabilities move more quickly in times of rapid change and have a better chance of surviving it successfully.

Source:

Csaba Deák: Innovation: The way of creation. Adapted from: https://www.innovaciokonyv.hu/