infonet-economy

Why does corporate R&D perform differently? The Dynamic Capability (DC) theory could be a useful conceptual lens to focus on why some firms consistently outperform within a dynamic environment. However research in this area is still spare. This paper seeks to summarize state of the art research on the DC theory especially works linking with R&D management. It discusses important fundamentals which require to be taken into closer consideration in future research of DC in R&D such as the emergence of multilayered dynamism in R&D management. Our literature review suggests paying more attention to specific micro processes and drivers behind these capabilities in order to understand the formation of DC. It also points out that modern R&D management has developed into an integrated management field comprising a wide variety of complementary management issues offering novel opportunities for DC building. The emergence of ‘higher order' capability i.e. DC could follow an evolutionary path.