This article provides a conceptual model that explains a determinant and pattern of change in the firm capabilities, and causal relation between capabilities change and outcomes according to a strategic group. The model consists of 3 stages. The 1st s...
This article provides a conceptual model that explains a determinant and pattern of change in the firm capabilities, and causal relation between capabilities change and outcomes according to a strategic group. The model consists of 3 stages. The 1st stage defines market dynamics and firm dynamics as determinants of the capabilities change. The 2nd stage establishes the capabilities change matrix by using a two dimensions such as exploitation and exploration in capabilities for strategy formulation & implementation, and defines a feedback relationship with the determinants. The 3re stage forms a proposition how the capabilities change has an influence on competitive advantage and performance. This model is supported by critical reviews on the antecedent studies, and proposes an 『change dynamics of firm capabilities』 based on contingency theory, evolutionary view, and complex adaptive system.