Dynamic capabilities in the software process

Software development is an important dynamic capability of a software-developing organisation. This paper explores product development in general and software development in particular from the viewpoint of the dynamic capabilities research stream that is associated with the Resource-based View (RBV) of the firm. We discuss software development from a process viewpoint, assessing each phase separately. The main results of the paper are twofold: first, via a dynamic capabilities-based analysis of the software process, we formulate by inductive reasoning a general product development resource transformation typology that supports the analysis of developing and managing industrial product innovation activities through a dynamic capabilities approach. Second, we present a research agenda that incorporates a synthesis of recent scholarly discourse about dynamic capabilities into product development and especially software development research.

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