Developing dynamic capability in social strategies

Pablo Leão, Marina Amado Bahia Gama and Maria Tereza Leme Fleury

RAE - Revista de Administração de Empresas, 2023, vol. 63, issue 5

Abstract: This paper aims to understand how firms develop a dynamic capability to implement social strategies and manage pressures from local and global stakeholders. A multiple case study was conducted with four Brazilian multinationals in the pulp and paper industry. These firms develop dynamic capabilities to adapt to a changing environment by monitoring it and learning from their stakeholders, nurturing mutually beneficial relationships and partnerships with other organizations, and constantly adopting or influencing social strategies. This paper’s findings extend the literature that converges social strategies and dynamic capabilities by presenting evidence that these firms are developing and deploying a dynamic capability to implement social strategies. The findings also show that firms can develop complex and dynamic capabilities to manage stakeholder demands at local and global levels. Finally, this paper contributes to the dynamic capability and social strategy literature by demonstrating that such capability is critical in managing multiple stakeholders.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:fgv:eaerae:v:63:y:2023:i:5:a:89764

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