An organizational learning perspective on conceptualizing dynamic and substantive capabilities

While researchers have conceptualized both dynamic and substantive capabilities in a variety of ways, there are still no established measures for either dynamic or substantive capabilities. Although learning has been referred to as a specific type of process underlying the evolution and development of dynamic capabilities, the deep connection between dynamic capabilities and organizational process research has not yet been adequately explored. There is a need for conceptualization and operationalization of these different aspects of the learning process. In this paper, we address these gaps in the literature by drawing upon concepts from the organizational learning, marketing and strategic management fields to understand better and define dynamic and substantive capabilities concepts. First, we define dynamic and substantive capabilities and form a theoretical foundation for their conceptualization. We then develop and test specific item measures for each construct. Our findings support our conceptualization and measurement of both these important aspects of organizational performance.