Dynamic capability approach increasingly gains its popularity in the strategic management field: Please select all that apply.
A) Organizations have to constantly develop new capabilities as old ones become less effective.
B) Dynamic capabilities allow an organization to sustain competitive advantage based on market barriers.
C) Dynamics of organizational capabilities are determined by the change in organizational strategy.
D) Organizational capabilities co-evolve with the market.

Question

Quizplus · Accepted Answer

The dynamic capability approach proposes that organizations must constantly develop new capabilities as old ones become less effective and that organizational capabilities co-evolve with the market. Choice B is incorrect because dynamic capabilities do not solely rely on market barriers, and choice C is incorrect because organizational capabilities are not solely determined by changes in organizational strategy but also by changes in the environment and other factors.

Dynamic Capability Approach Increasingly Gains Its Popularity in the Strategic