Abstract

Dynamic capabilities represent an important determinant of competitive advantage in turbulent environments. However, despite intense work in the area, the topic of dynamic capability antecedents remains heavily under-researched. Understanding the sources of dynamic capabilities would give organizations the instruments to rationally improve their chance to obtain and sustain competitive advantage. We contribute to the literature on information technology dynamic capabilities focusing on three sources of dynamic capabilities: organizational processes, firm history and firm's assets. We lay the theoretical and methodological groundwork for our explanation and we empirically test the model focusing on an emerging capability we term Digital Data Genesis (DDG) . We define DDG as the dynamic capability of (1) choosing information technology to unobtrusively generate and capture data in digital form, (2) integrating the IT in the appropriate business processes, and (3) managing the digital data so captured. Our results show that the organizational processes of sensing and learning, the historical information dynamic capability, and the historical IT dynamic capability influences the DDG dynamic capability.

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