In this chapter we reviewed the extant literature on dynamic capabilities with a view to move the debate towards the development of a positive theory on antecedents and consequences of the development and effectiveness of dynamic capabilities. To do so we proposed a framework that broadens the object of change beyond purely behavioral constructs such as processes and routines, and embraces the challenge of understanding how firms learn to manipulate subtle aspects of human nature such as emotions, motivation, and identity. The core claim is that a broader notion of DC which includes non-behavioral aspects in both the objects and consequences of their deployment as well as in the factors explaining their origins and evolution will not only improve the descriptive power of the model of organizational evolution and long-term performance, compared to the received one based on solely behavioral mechanisms (learning, change, and operating routines). It will also produce a qualitatively different (and potentially powerful from a descriptive standpoint) set of dynamics among its main components. The non-behavioral objects of the change action of these holistic DCs could in fact influence the evolutionary patterns of the DCs themselves, potentially creating positive feedback loops which will enhance the self-generated emergence of change dynamics over and above the deliberate action of top management. The consequences could be particularly virtuous in terms of evolutionary and technical fit, if the management can appreciate the importance of these evolutionary processes, leverage the power of their change dynamics, and guide them appropriately towards the achievement of evolutionary and technical fit.
The argument has been developed and illustrated with the help of three managerial contexts, which provided some grounding into the change decisions that managers make and the change capabilities necessary to make them in the appropriate way. They are the new product development, the post-acquisition integration, and the social and environmental sustainability challenge. The managerial implications from the consideration of a broader concept of DCs, which includes the subtler aspects of human nature that antecede the overt behavioral outcomes, will be specific for each of the contexts analyzed. All those implications will have in common one important feature, however: they will potentially allow corporate managers and leaders to understand how to unleash the power of the human side of dynamic capabilities, leveraging the emergent nature of evolutionary change, and thus significantly amplifying, if properly guided, the firm’s capacity to generate and sustain technical and evolutionary fit.
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