DEVELOPING DYNAMIC CAPABILITIES TO MEET SUSTAINABLE DEVELOPMENT CHALLENGES

Abstract

Dynamic capabilities are recognized as key factors for the adaptation of the firm to its changing environment. For two decades, a new pressure has been added on the shoulders of firms: they have to integrate sustainable development considerations in their strategy. This paper explores the impact of those new sustainability requirements on the dynamic capabilities that a firm should develop and sustain to remain competitive in turbulent environments. In particular, which new innovation capabilities are required to integrate environmental, social and financial objectives? To answer this question, we first consider the dynamicity levels identified in the literature in relationship with the turbulence of the firm's environment and we study what level is required for which type of sustainable innovation. Secondly, we look at the three fundamental natures of dynamic capabilities (sensing, seizing, transforming) and identify typical new requirements coming from sustainability challenges. We apply this reflection to Green IT innovations.