Peer-Reviewed Journal Details
Mandatory Fields
Hilliard, RM; Goldstein, D.
Strategic Organization
Identifying and measuring dynamic capability using search routines
In Press
Optional Fields
capabilities, dynamic capabilities, methodology, organisational routines, search routines
Much attention has been paid to the theoretical and empirical difficulties of identifying dynamic capability, given that it is a latent construct that is difficult to observe. There is consensus that dynamic capability should be defined so as to distinguish the capability for change from the change achieved: it is the organisation’s capacity to change its resource base. But operationalising this idea has proven difficult. We propose an empirical representation based on a modest theoretical extension: the accepted definition implies that dynamic capability is constituted in organic engagement with the operating resources it is intended to change. This extension allows us to represent dynamic capability using a widely recognised, observable underpinning of dynamic capability – search routines. Using data on Irish manufacturers’ efforts to adapt to a heightened environmental-regulation regime, we draw from environmental-management research and the evolutionary and behavioural theories of the firm to specify criteria for identifying, categorising and measuring search routines and using this to construct a dynamic capability measure. The contribution is to present a replicable, theory-based protocol for studying dynamic capability and its complex relationship with firm performance and evolutionary fitness.
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