ABSRJ 2016 Volume 7, Number 1

Co-evolution of dynamic capabilities and value propositions from a process perspective

Tapio Riihimäki
University of Turku, Finland

Valtteri Kaartemo
University of Turku, Finland

Peter Zettinig
University of Turku, Finland

Managers need to be able to identify and develop their organization’s dynamic capabilities for value creation opportunities. Although earlier dynamic capabilities literature has highlighted the importance of market creation, it has not examined dynamic capabilities and value propositions development process. Utilizing a modified steering wheel tool and a longitudinal case of a multinational enterprise (MNE) in ship building industry, we mapped the joint development of dynamic capabilities and value propositions. Our analysis revealed the developments to be accumulative and path-dependent. With this study we contribute to dynamic capabilities, MNE, and process research. Furthermore, we unearth critical events and paths for managers guiding their companies through the service business development process in our ever-globalizing world.

Keywords: value propositions; dynamic capabilities; process; multinational companies

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