A firm’s ordinary capabilities are the ones that enable us to perform efficiently and effectively, those essential routines and practices that often require having a high level of technical need supporting these activities.
In contrast, dynamic capabilities are those higher-level competencies that determine a firm’s ability to integrate, build, and reconfigure both the resources and skills to possibly shape, they have the power to transform, and then be deployed to meet rapidly changing business environments, to take advantage of these changing conditions. We need to seek out the dynamic ones and nurture these as they give us the real ability to grow and build our new capacity.
Recognizing the importance of Dynamic Capabilities
Dynamic capabilities are about selecting the right things to do and getting them done, while ordinary skills are about doing something right. The former implicates dynamic efficiency, the latter static efficiency.