Investigating the Transformation and Transition Processes Between Dynamic Capabilities: Evidence from DHL

Abstract

Understanding the emergence, development, growth, or termination of dynamic capabilities (DCs) remains a critical topic of organizational research. This study contributes to and expands this stream of research by investigating the transformation and transition between two distinct DCs—acquisition-based and innovation-based—within the global logistics provider DHL across four time brackets from 1997 to 2006. Using content analysis of interviews with DHL’s managers and secondary sources, we identify DCs through bundles of underlying routines and track their evolution. Our findings provide evidence that a specific DC undergoes transformation before the company transitions to another DC, following a reactive sequence. These insights contribute to research on capability development by challenging traditional life-cycle explanations.