Knowledge‐based dynamic capability: Concept mapping, usage, and taxonomy

Abstract Knowledge‐based dynamic capability (KBDC) is a firm's ability to acquire, create, and combine knowledge to identify and exploit opportunities while addressing the dynamics of environmental changes. Based on a systematic review and analysis of the extant literature related to KBDC from 1959–2020, we aim to trace significant theories, contexts, characteristics, and methodologies (TCCM) and their inter‐relationships to present a holistic view of the KBDCs research. In particular, the study attempts to address the issues inherent in organizing, designing, and executing KBDCs towards the attainment of the firm's strategic and organizational objectives. The study uses a structured methodological approach for conducting a systematic literature review to determine the existing contributions and by proposing the frameworks for future research. By conducting TCCM and bibliometric analysis of the existing KBDCs literature, the study provides comprehensive networks, significant countries, eminent authors, prominent theories, context, characteristics, and methodologies in this field. The analysis, therefore, addresses the managerial concerns over the entire spectrum of knowledge‐based entities and bridges the gaps, such as application bias in large organizations, developed nations, and single‐level analysis by exploring potential relationships regarding KBDC. Overall, the study provides the logical concept mapping, usage, and taxonomy contributing towards the strengthening of KBDC. In addition, the study also presents areas in which research has made the most progress as well as those in which gaps and unsolved tensions persist. The epistemological exploration traces the significant contributions for determining the future research scope.