Dynamic capabilities and firm performance: the rise and fall of Charles Schwab

Mina Rohani (), Nasser Shahrasbi () and Yany Gregoire ()
Additional contact information
Mina Rohani: Saint Mary’s College of California
Nasser Shahrasbi: San Francisco State University
Yany Gregoire: HEC Montréal, 3000, Chemin de La Côte-Sainte-Catherine

Journal of Financial Services Marketing, 2021, vol. 26, issue 3, No 2, 144-159

Abstract: Abstract Drawing on the tenets of dynamic capabilities theory and the results of a longitudinal case study, this article proposes a conceptual framework to explain how firms transform key resources in a dynamic business environment, recognizing that resources are enduring, complex, and hard to change. The framework distinguishes between two types of capabilities—operational and dynamic capabilities—and identifies different pathways they take to competitive advantage and performance. The paper also conceptualizes architectural and absorptive capabilities to explain the circumstances in which dynamic capabilities may (or may not) contribute to firm performance. The empirical results provide insights for service managers and marketing professionals about how to deploy dynamic capabilities to sustain competition in a dynamic environment. Implications for research and practice are discussed.

Keywords: Service marketing; Dynamic capability; Strategic flexibility; Operational capability; Architectural capability; Firm performance; Customer value advantage (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (3)

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DOI: 10.1057/s41264-021-00087-z

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