Systems Analysis and Design


In this paper, we use a computer simulation to explore the effects of dynamic capabilities on the evolution of businessprocesses. Dynamic capability is conceptualized as variation and selective retention (Campbell, 1965; Bickhard andCampbell, 2003) which governs the development and adaptation of business process. The model demonstrates that variationand selective retention of business processes explain the evolution of business process. The effect between variation andselective retention is offsetting. When variation dominates the evolution, business process will become increasingly morecomplex, however when selective retention dominates, business process will become less complex. The interaction betweenvariation and selective retention also determines the evolutionary trajectory of business process.