Theoretical Framework

Abstract

In Chapter II, the author provides the theoretical background of this dissertation. After defining the concept and core terms of dynamic capabilities as well as the inherent capability rigidity paradox, the author reviews the discussion on dynamic capabilities regarding past and current attempts to solve this challenge. This is done via multiple steps beginning with a review of different capability hierarchies as an early attempt to circumvent the rigidity paradox. Continuing with learning mechanisms and routine concepts, the study finds that macro-level conceptualizations of dynamic capabilities still have not solved the capability rigidity paradox. The author then turns to a rigorous literature review on the current turn toward micro-foundational concepts of dynamic capabilities focusing on managers and entrepreneurs to escape the rigidity paradox, which still does not solve the problem. Finally, the author turns to the relatively new meso-level constructs of dynamic capabilities and amends them with a strategy as process and practice perspective to provide a framework for the empirical analysis.

“Any physical theory is always provisional, in the sense that it is only a hypothesis: you can never prove it. No matter how many times the results of experiments agree with some theory, you can never be sure that the next time the result will not contradict the theory.”

– Stephen Hawking in A Brief History of Time, (1988: 11).