Understanding Dynamic Capabilities? A Case of Health Systems Change
30 Pages Posted: 6 Sep 2018
Date Written: August 27, 2018
Dynamic capabilities have been asserted as the requirement to maintain sustained competitive advantage even in highly dynamic environments. Literature shows that routines are associated with change and dynamic capabilities drive organizational change. How are these three concepts related? Part of the problem of our understanding of the interrelationships is due to our incomplete understanding of dynamic capabilities. Are they routines? Are they a product of environmental change?
Health systems undergo epidemiological transitions over time. What facilitates such a transformation can throw light on how strategic change is managed.
To clear our understanding of dynamic capabilities and their relationships with routines and strategic change we use a case study of transitions achieved by a state health system. We show that dynamic capabilities are not routines but a learnt pattern of activity driven by decisions of the top management which determines the strategic alignment of the organization. They are cross functional, generic in nature, need focus and attention to be activated and managed. They drive all organizational processes which determine resource allocation, creation of infrastructure, capabilities development through training and Routinisation of new activity pattern in staff at the operational level.
Keywords: dynamic capabilities, routines, strategic alignment, health systems
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