What are dynamic abilities?
Dynamic skills are the potential of society to approach and solve often complex problems. Problems can revolve around new opportunities or threats, the ability to observe market trends and take the subsequent decisions to move the base of resources for product production. Two common aspects form dynamic abilities. First, the abilities work in tandem with shifts or changes in the environment. Second, strategic management is necessary to adapt and integrate internal or external skills by current and changing business environment.
Three individual aspects are common fibers under the theory of dynamic abilities. Learning is a process that individual workers go through to better understand internal and external problems for society. Routine work environment allows learning through repeated use of standard tasks. The company can also create partnerships or cooperate with another company to learn about the problem and develop solutions. Group behaviorBO can be an indicative source of behavior exposed to an individual.
acquiring new assets is another aspect of dynamic abilities. Since companies learn and develop new processes for their operations, new assets may be necessary to complete or continue changes. A competitive advantage is also possible in obtaining or creating new assets. Technology plays a big role in this aspect of dynamic abilities. Since companies continue to develop and implement new technology, they can create a customer base or improve operations through shortening the time spent in performing tasks or activities.
transformation of current assets can also be a possibility for dynamic abilities. The business environment often changes - sometimes quickly - in which society operates. Using currently owned assets in the same way may not always maximize ceilingof the instantaneousness. Changing the current assets or the development of new processes of these assets helps the company reduce the costs associated with acquiring new assets. The review of the current market can dictate how the company transforms assets into new opportunities to capture the market share.
dynamic abilities are usually difficult for another company in the business environment. Thanks to the specific direction and management of the company management team, the company can develop a competitive advantage that is not easily duplicated by other companies. The only opportunity of competitors must increase the market share, the creation of a substitute product. Although consumers do not find this alternative product fully capable as an original, it offers sufficient value to replace the original item if necessary. The substitute goods usually fill in a market niche left open by original companies.