A theory of change in turbulent environments: the sequencing of dynamic capabilities following industry deregulation. (8th April 2009)

• Record Type: Journal Article
• Authors: Pettus, Michael L.; Kor, Yasemin Y.; Mahoney, Joseph T.
• Is Part Of: International journal of strategic change management. Volume 1:Number 3(2009)
• Page Start: 186
• Page End: 211
• Publication Date: 2009-04-08
• Subjects: dynamic capabilities -- industry deregulation -- turbulent environments -- change management -- strategic management -- resource-based view -- RBV; Organizational change -- Periodicals; Strategic planning -- Periodicals; 658.4012
• Languages: English
• ISSNs: 1740-2859

Abstract

The dynamics of change and the path-dependent evolution of resources and capabilities are central concerns of contemporary strategic management. This paper integrates the resource-based and dynamic capabilities literatures to explain why development of dynamic capabilities is especially important for firms that transition from regulated to deregulated environments. We develop a theoretical model and specific propositions concerning the pattern and sequencing of dynamic capability development within environments experiencing substantial change, specifically in newly deregulated industries. We discuss implications of the proposed theoretical model for both research and managerial practice.