Dynamic capabilities are:
A) the routines of a firm that create competitive advantage
B) the processes of a firm that are able to reconfigure resources to respond to changes in the marketplace
C) the unique resources of a firm that achieve sustainable competitive advantage
D) the dynamic ways that firms use to achieve temporary advantages until competitors imitate them

Question

Quizplus · Accepted Answer

Dynamic capabilities refer to the processes and organizational systems that allow a firm to respond effectively to changes in the marketplace and to reconfigure its resources to take advantage of new opportunities or to respond to threats. It involves a firm's ability to adapt and innovate in order to sustain competitive advantage over time.

Dynamic Capabilities Are