Dynamics of dynamic capabilities - the case of public broadcasting

Abstract

Our study highlights the internal dynamics of strategic renewal by exploring the functioning of dynamic capabilities during strategic renewal in a public organisation facing rapid changes in its environments. The analysis focuses on how the organisation's capacities to sense, seize, and reconfigure manifest themselves in the organisational context, and how they relate to each other. The empirical data was collected at the Finnish Broadcasting Company by means of a quantitative survey for all personnel. According to the results, the dynamic capabilities differ between the organisational sub-units, and the context affects the way they relate to change performance. In addition, the sensing capability seems to have an indirect effect on the organisation's change performance, mediated by the seizing and reconfiguring capabilities. Our study conceptually and empirically contributes to the young tradition of applying the dynamic capability view in the context of public organisations.