Dynamic Capabilities in the Persence of a Strategic Paradox
Toshiro Wakayama Karen LaPierre
Prior research in dynamic capabilities has seldom addressed the question of how they operate over time in the presence of conflicting objectives of a strategic paradox, particularly beyond the exploration-exploitation contention. In the context of aggregation-adaptation paradox, we have collected and analyzed a large number of specific activities and changes in the resource base through an in-depth case study based on 46 interviews and other data sources. Our findings reveal new conceptual insights on the process side of dynamic capabilities: coevolutionary interplay between pro-aggregation and pro-adaptation changes in the resource base, paradox-enacting dynamic capabilities at the level of discrete activities with differing blends of aggregation and adaptation, and organizational constructs for paradox-enacting dynamic capabilities which are in stark contrast to known forms of organizational ambidexterity.