The Vertical Model of Capability Dynamism

Dynamic capabilities refer to the capacities of the organization to routinely renew and reconfigure its operational capabilities. Dynamic capabilities include sensing and seizing opportunities to create or remediate value as well as to reconfiguring. To effectively manage the organization's dynamic capabilities in digital transformation managers have to fully understand them. In this paper, this issue is addressed, first by defining capability dynamism as the degree to which the organizational capabilities and resources can be systematically and routinely reconfigured or renewed, then conceptualizing it as a multi-level, multi-stage construct of four levels, or orders, of sensing, seizing and reconfiguration capacities. Finally, based on a systematic literature review, a Capability Dynamism Framework (CDF) was put forward.