Title: A study on resource stretch and leverage from the perspective of dynamic capabilities

Authors: Thuy Dung Pham Thi; Chi Minh Nguyen; Nam Tien Duong; Van Kien Pham

Addresses: Ho Chi Minh City University of Economics and Finance (UEF), 141-145 Dien Bien Phu, Ward 15, Binh Thanh District, Ho Chi Minh City, Vietnam ' Ho Chi Minh City University of Economics and Finance (UEF), 141-145 Dien Bien Phu, Ward 15, Binh Thanh District, Ho Chi Minh City, Vietnam ' Ho Chi Minh City University of Economics and Finance (UEF), 141-145 Dien Bien Phu, Ward 15, Binh Thanh District, Ho Chi Minh City, Vietnam ' Ho Chi Minh City University of Economics and Finance (UEF), 141-145 Dien Bien Phu, Ward 15, Binh Thanh District, Ho Chi Minh City, Vietnam

Abstract: The dynamic capabilities view, documented in many strategic management studies, addresses how firms integrate, build, and configure the resource-bases to respond to the market dynamism. This study aims to present an overview of these previous studies and to explore the relationship between internal and external dynamics of a firm, which has received little attention in the literature body. Drawing on a case-centred narrative approach, we analysed the cases of five companies in various industries. Our findings show remarkable similarities among the interviewed companies' narratives, which reveal five basic themes: top managers' awareness leverage, industrial relationship leverage, strategic leverage, corporate knowledge leverage and corporate asset leverage. These themes reflect how dynamic capabilities are utilised to adapt, manipulate, and expand the resource-base within an organisation to either explore or exploit new opportunities. Accordingly, firms can understand the role of the dynamic capabilities in resource management and properly direct future managerial activities.

Keywords: dynamic capabilities; market changes; resource leverage; business environment; competitive advantages.

DOI: 10.1504/IJBIR.2023.134891

International Journal of Business Innovation and Research, 2023 Vol.32 No.3, pp.410 - 428

Received: 27 Feb 2021
Accepted: 08 May 2021
Published online: 16 Nov 2023 *

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