Realizing dynamic capabilities and organizational knowledge in effective innovations: the capabilities typological map

Abstract

Purpose – This paper aims to shed light on the mechanisms that connect dynamic capabilities and organizational knowledge in the innovative process to offer a new theoretical and practical solution considering the microfoundations of knowledge management strategies. Design/methodology/approach – This research has emerged from an in-depth case study of an effective innovation (from just ethanol and sugar-production to an effective biomass plant). The study represents an “inductive inquiry,” useful to understand specific “organizational mechanisms” of innovation, where the main data came from in-depth interviews with 18 key actors. It proved to help search the development of a specific biomass plant, designed and implemented between 2000 and 2007 in a Brazilian ethanol and sugar-production large company, referred to here as “Energyplant.” Findings – This solution provides a new perspective based on the idea that dynamic capabilities are context-dependent and presents an original typological map that shows and materializes dynamic capabilities as teams of human-based resources. Managerial implications can be drawn from the capabilities typological map highlighting that, although identical dynamic capabilities are not required to change different firms, idiosyncratic dynamic capabilities perform universal knowledge functions that can be mapped, contributing to the planning of a specific innovation. Originality/value – While the dynamic capabilities research has been seen as one of the most vibrant topics in strategic management, scholars have recently stressed that dynamic capabilities continue to be underrated because the knowledge mechanisms that lead to effective innovations have not been adequately explored. The visual mapping is then applied to solve the reviewed theoretical problems, being also suggested to firms interested in change and adapting their capabilities to the requirements of the business environment.