Abstract
In extremely dynamic sectors, whose structure is not so evident, both the approach based on the Structure-Conduct-Performance paradigm and the approach based on firm resources are limited to explain the sources of competitive advantages and the performance achieved by firms from their strategic choices. In this context, by focusing on the firm's adjustment to changes in highly dynamic environments, as well on the firm’s facing challenges posed by volatile sectors, through integration, reconfiguration, renovation and allocation of its resources, skills and capabilities, the perspective of dynamic capabilities comes out as a promising approach to strategy studies not only to understand the sources of firm’s sustainable advantages, but also to comprehend how such advantages are developed and implemented. The article consists of a theoretical essay that analyzes the concept of dynamic capabilities from the main definitions collected in the literature, by carrying out a conclusive synthesis and arguing about consulted theoretical contributions. The authors propose a theoretical model for the relationship among dynamic capabilities dimensions in order to explain how firms achieve and sustain competitive advantage, and also present the sense-making as a fundamental capacity for improving the effectiveness of other dynamic capabilities, serving as unifying element among them and favoring the alignment of the firm’s strategic choices.
Keywords:
Strategy; Competitive advantage; Dynamic capabilities; Organizational capabilities; Resource-based strategy
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