The Technological Transformation Process for Dynamic Capabilities in Business Operations

Dynamic capabilities enable companies to react agilely to changing competitive or environmental conditions. However, there is a lack of understanding the influences of the technological transformation process. Therefore, in this article, we examine the interrelationships and influences that the technological transformation process and digital competencies have on dynamic capabilities. Following an empirically calibrated system dynamics approach, three simulation studies are conducted investigating the development of dynamic capabilities in technological change, the influence of digital competencies on dynamic capabilities, and the relationship between dynamic technological capabilities and the competitiveness of companies. The results show that the impact of technological transformation is changing the concept of dynamic skills and that digital competencies are becoming increasingly important in this context. Thereby, a positive relationship between the determinants of digital maturity and the concept of dynamic capabilities is discovered. In addition, competitive advantages for companies can be realized through the targeted training of dynamic skills.