Author(s): Saurav Kumar
Today’s business world is changing from what it was just a decade ago. Dynamic capabilities have gained significant prominence in strategic management research. The growing popularity of explaining firm performance through dynamic capabilities has motivated plenty of conceptual development in the field. The word dynamic means that the organization can follow the changes; they are willing to make changes and adapt to the current or upcoming situation. An organization with dynamic capabilities surely will help prepare itself for any challenges, creating an advantage for itself. When the organization has dynamic capabilities, it can avoid any mistakes that could happen and transform them into an opportunity. The strength of a firm's dynamic capabilities help shape its proficiency at business model design. Dynamic capabilities enable business enterprises to create, deploy, and protect the intangible assets that support superior long- run business performance. Enterprises with strong dynamic capabilities are intensely entrepreneurial. They not only adapt to business ecosystems, but also shape them through innovation and through collaboration with other enterprises, entities, and institutions (Teece, David 2007). Dynamic capabilities are also believed to be the key to sustaining organizational innovation and creativity, especially in a highly dynamic and volatile environment. The research aims to deliver the significance of dynamic capabilities possessed by business firms.