Dynamic Capabilities-Based and Environment Serving Organization-Based Concepts in Strategic Management: Are They Complementary? A Theoretical Overview
Abstract
In the last few decades resource-based concepts have been discussed and seemingly accepted by many scholars in strategic management. Some have argued and challenged them since many companies struggle to obtain and apply the strategic tools to enhance their performance and competitiveness. Competitive advantage is moving toward a different paradigm, following dynamic competition and market turbulence. In the current era of the digital economy a company’s top and general managements can be blamed for not smartly leveraging their resources and responding to their customers on time with the right offerings. Therefore, it is difficult to sustain competitive advantage. This research, using theories and a practical approach, discuss the relevance of strategic management concepts, especially Dynamic Capabilities-based, Resource-based and Environment Serving Organization-based (ESO-based) perspective in the current industrial context, as the real root of strategic management theories. This paper concludes that both Dynamic Capabilities-Based as well as Resource-Based concepts complement the ESO-based concept and therefore deserved to be explored further as a strategic formula for companies.
Keywords: resource-based; dynamic-capabilities; ESO-based; competitive advantage
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