Based on the resource-based view, creating and maintaining a long-term competitive advantage requires significant attention to developing and nurturing dynamic capabilities in emerging markets. This study considers environmental dynamism as a moderating variable, then builds a theoretical model for innovation strategy and dynamic capabilities, and finally summarizes the building mechanism for dynamic capabilities. The empirical results find that an innovation strategy can build and upgrade dynamic capabilities in both stable and rapidly changing environments. Managerial implications and future research directions are discussed.
Jiao, Hao, Ilan Alon, and Yu Cui (2010). ?Environmental dynamism, Innovation and dynamic capabilities: the case of China,? Journal of Enterprising Communities: People and Places in the Global Economy (Forthcoming).
Journal of Enterprising Communities: people and places of global economy