Deconstructing and reconstructing the capability hierarchy

Damian Hine, Rachel Parker, Lisette Pregelj and Martie-Louise Verreynne

Industrial and Corporate Change, 2014, vol. 23, issue 5, 1299-1325

Abstract: In this article we develop a hierarchical framework of ordinary capabilities, dynamic functional capabilities, and dynamic learning capabilities. These three levels of capabilities differ across four interdependent internal dimensions of predominant resources, routine patterning, learning, and strategic intent. The levels are also influenced by external environmental velocity. This framework progresses the ongoing debate surrounding the capability hierarchy and offers a novel view of capabilities. We also provide direction regarding how the framework can lead future research toward a validated measurable model that contributes to solving the definitional and associated measurement debates around ordinary and dynamic capabilities.

Date: 2014
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