ARTICLE LINK – Modelling of Dynamic Capabilities: A System Dynamics Approach

Journal: Business Ethics

Author: Leonardus Ricky Rengkung, Sam Ratulangi University

Publication Date/Info: Volume 17, Issue 5


Increasing attention to dynamic capabilities perspective has resulted in many researches
with a number of methods, analyzes and approaches, but not followed by increase in simulations
and models, like system dynamics model. Dynamic capabilities exhibit in the process of several
elements as leverage elements for enabling process such as sensing, learning, integrating,
coordinating and sub-elements as underlying elements for basic routines, whereas system
dynamics is a systemic modelling that can be applied to exploit, explore and reconfigure
organizational resources and capabilities in a system for analyzing and understanding how
complex the environment changes over time. By considering that dynamic capabilities approach
and system dynamics are closely intertwined in term of system, the purpose of this paper is to
develop dynamic capabilities model based on system dynamics approach along with associated
to business environment.The model shows that the reinforcing loop of leverage elements affected
by underlying elements plays an important role in balancing to a changing business
environment. The more increase in exploiting and exploring all leverage elements and
underlying elements of dynamic capabilities, the more increase in organizational dynamic
capabilities capabilities and it leads to the more organizational ability to maintain the existence
of organizations in highly dynamic business environment


What do you think?

Written by Carlos Baquerizo


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