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date: 07 December 2019

Abstract and Keywords

This article calls attention to three dimensions of within-type heterogeneity of dynamic organizational capabilities: their nature, their development paths, and their performance outcomes. It provides a theoretical analysis of each of these dimensions, including with respect to sources of the heterogeneity. The analysis incorporates feedback from within-type heterogeneity among firms in their capability development paths to heterogeneity in the nature of capabilities and the resulting performance outcomes. The article also demonstrates that a number of empirical studies provide evidence regarding each of the dimensions. A substantial portion of this discussion deals with evidence of heterogeneity in the “build” aspect of dynamic capabilities (i.e., their development paths, which rest on learning and experience).

Keywords: capabilities, dynamic capabilities, heterogeneity, performance, evolutionary fitness

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