Exploring Configurations for Change: A Multi-Method Study on Dynamic Capabilities Types

Strategy research provides ample evidence that dynamic capabilities benefit company performance by adjusting and refining companies’ operating routines. Our knowledge on the nature of companies’ dynamic capabilities, however, remains scarce. Using fuzzy-set Qualitative Comparative Analysis (fsQCA) and in-depth case analyses in a sample of German SMEs, we explore dynamic capabilities types and the contingencies that affect the emergence of each type. Our study reveals four different dynamic capabilities types: Experiential, Reactive, Programmed, and Analytic. Each dynamic capabilities type emerges under specific contingencies, characterized by the level of environmental dynamism faced by the company, the company’s orientation towards opportunities, and the company’s resource endowment. A major contribution of this paper is to uncover the contingent nature and evolution of different dynamic capabilities types.