Dynamic capabilities based on HeXie Management Theory

Dynamic capabilities have been considered as the most important factors for business firms to obtain sustainable competitive advantages.However,little consistent has been reached on what dynamic capabilities are and how they evolve over time.On an organizational learning perspective,we redefined organizational dynamic capabilities,analyzed how they evolve over time,and further identified determinants of dynamic capabilities based on the framework of HeXie Management Theory.We proposed that(1)Dynamic capabilities include organizations' cognitive capabilities to understand and interpret environment changes,and reconfigure capabilities of resources following the transformation of HeXie Theme.These two capabilities are mainly supported by organizational members' learning capabilities.(2)Dynamic capabilities emerge and evolve with the interaction of knowledge exploration and exploitation.Exploration mainly focuses on how an organization renews itself to reply to the changing environment,while exploitation mainly concerning to how an organization uses the knowledge explored.(3)Senior executives of organizations are critical factors influencing the evolution of dynamic capabilities.(4)Dynamic capabilities are critical sources of organizational sustainable competitive advantages.We contribute to dynamic capability theories by adding cognitive capabilities into the conception of dynamic capabilities,analyzing the evolving process of dynamic capabilities,and identifying determinants of the process.