Understanding dynamic capabilities through knowledge management

Abstract

Purpose This paper sets out to integrate research on knowledge management with the dynamic capabilities approach. This paper will add to the understanding of dynamic capabilities by demonstrating that dynamic capabilities can be seen as composed of concrete and well‐known knowledge management activities. Design/methodology/approach This paper is based on a literature review focusing on key knowledge management processes and activities as well as the concept of dynamic capabilities, the paper connects these two approaches. The analysis is centered on knowledge management activities which then are compiled into dynamic capabilities. Findings In the paper eight knowledge management activities are identified; knowledge creation, acquisition, capture, assembly, sharing, integration, leverage, and exploitation. These activities are assembled into the three dynamic capabilities of knowledge development, knowledge (re)combination, and knowledge use. The dynamic capabilities and the associated knowledge management activities create flows to and from the firm's stock of knowledge and they support the creation and use of organizational capabilities. Practical implications The findings in the paper demonstrate that the somewhat elusive concept of dynamic capabilities can be untangled through the use of knowledge management activities. Practicing managers struggling with the operationalization of dynamic capabilities should instead focus on the contributing knowledge management activities in order to operationalize and utilize the concept of dynamic capabilities. Originality/value The paper demonstrates that the existing research on knowledge management can be a key contributor to increasing our understanding of dynamic capabilities. This finding is valuable for both researchers and practitioners.

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