Demystifying the multi-level nature of dynamic capabilities: An integrative model of dynamic capabilities and knowledge mechanisms

The dynamic capabilities perspective has become one of the most vibrant approaches to strategic management. Despite its growing popularity, it has faced criticism because of ambiguity and contradictions in dynamic capabilities literature. There has been increasing calls to address the fragmentation in the literature and provide empirically collaborated insights. This paper explores the multi-level nature of dynamic capabilities in the Information Technology Security context and empirically investigates the impact of microfoundations of dynamic capabilities on firm capability renewal and reconfiguration. It overcomes the challenge associated with fragmentation in dynamic capabilities by presenting an integrative model for dynamic capabilities and knowledge mechanisms. By explicating where dynamic capabilities reside, we can more purposely impact on them to advance our scholarly understanding and proffer practical managerial interventions to directly enhance specific abilities of sensing, seizing and reconfiguring to achieve superior outcomes. The research employed the Gioia qualitative case study research methodology and research methods used were 35 semi-structured interviews and observations. Drawing on the research findings, the paper presents a conceptual model for the multi-level microfoundations of dynamic capabilities in knowledge-intensive domains with relevance for theory and practice.