Identify a true statement about dynamic capabilities.
A)They depict a firm's strength relative to its competitors.
B)Companies that have developed strong coordination processes are likely to lose their competitive advantage.
C)They can help firms modify and evolve processes to keep pace with environmental changes.
D)Companies with strong dynamic capabilities have a less secure foundation for competitive advantage than those without them.

Question

Quizplus · Accepted Answer

Dynamic capabilities refer to a firm's ability to modify and evolve processes to keep pace with environmental changes. Therefore, option C is the correct statement. Option A is incorrect as dynamic capabilities don't depict a firm's strength relative to its competitors but rather their ability to adapt to changes in the environment. Option B is incorrect as strong coordination processes could actually enhance a firm's competitive advantage. Option D is incorrect as having strong dynamic capabilities is often considered an important foundation for competitive advantage.

Identify a True Statement About Dynamic Capabilities