Understanding Change to Create Innovations through Dynamic Capabilities

Emil William Thattakath

Abstract


Purpose. To define, analyse and categorise change in accordance with setting a correct goal to create the required innovation in a particular market by a company. After discovering the suitable innovation type the company aims to create the change in its environment using Dynamic Capabilities as its tool. To efficiently implement the scheme the dynamic capabilities of the company should be harvested through certain means. Dynamic capability was referred to as “the capacity of an organization to purposefully create, extend, or modify its resource base” by Helfat. This involves strategic management in appropriately adapting, integrating, and reconfiguring internal and external organizational drawbacks, resources, and functional competences to match the requirements to create the appropriate change or cope with the changing environment.

To avoid the this paper intends to resolve this issue by thoroughly defining the meaning of change in relation to the type of innovation a company should seek to attain and finally devising the required dynamic capabilities for implementation of the scheme

Methodology. The paper undertakes to establish a new model of understanding change its application and methods to do so. In relation to this the literature review related to change, Innovation and Dynamic Capability is carried out ultimately establishing areas where empirical research could be carried out in future research.

Results. A new model of understanding change has been formed which includes necessary-good, unnecessary-good, necessary-bad and unnecessary bad change types. The identification of the change type a company wants to create after which allocating those into the categories will allow the company to specifically create useful change in form of innovation. The efficient introduction of this innovation into the market is carried out through the company’s dynamic capabilities. The identification of factors inhibiting and encouraging dynamic capabilities are analysed as a result helping the company specific areas to focus on. The importance of disruptive innovations have also been illustrated.

The theoretical contribution. This paper aims to directly contribute in the fields of strategic management, innovation management and human resource management. In a manner there is an efficient integration between the specific fields through efficient illustration and theoretical substantiation.

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Keywords: Change, Innovation, Dynamic Capabilities

Paper type: Theoretical paper.

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