Dynamic capabilities, strategic planning and performance: a virtuous and mutually reinforcing cycle

Abstract Recently, researchers have argued that strategic planning (SP) can be considered a dynamic capability (DC) in organizations – known as dynamic SP. However, the literature that discusses both SP and DCs supports different comprehensions of how both interact, resulting in different sets of research with contradictory findings. This theoretical effort presents a brief review and argues that SP is one of the microfoundations of DCs because it supports the seizing and continuous alignment of assets and resources. Under this perspective, SP has a role in the development and implementation of all organizational DCs and is not restricted to a DC specifically. It is argued that the interactions between DCs, SP and performance over time can lead to the learning needed for better DCs, SP and performance in a virtuous and mutually reinforcing cycle.