Are dynamic capabilities the only defense against disruption? A case for adaptive capacity
Recently a paper I wrote with Vikas A. Aggarwal (INSEAD) and Hart Posen (University of Wisconsin) on adaptive capacity to technological change has been published at Strategic Management Journal (SMJ). In that paper we claim that dynamic capabilities may not be the only rescue for incumbent organizations when technological change renders their products and services obsolete. The very processes of learning and experimentation that give raise to firm's routines and processes determine how easy it is for the organization to adapt to change, i.e., the degree of firm's adaptive capacity. The SMJ article was subsequently "translated" to a more practitioner-friendly version here and here. It is always interesting to see how some basic insights from a stylized and formal modeling exercise can shed light on some essential managerial problems.