Understanding the Concept of Dynamic Capabilities by Dismantling Teece, Pisano, and Shuen (1997)’s Definition

The concept of dynamic capabilities (DCs) is gaining popularity in management field particularly in strategic management. The concept that is still new and contemporary has attracted many arguments that may lead to confusion. To understand the basic concept of DCs, looking back to the definition in Teece, Pisano and Shuen 1997’s working paper will be crucial not just because the authors are among the first to seriously promote DCs but also among the most referred article in the management field of 1990s and even still today. Hence, the objective of this review paper is to understand the basic concept of DCs by scrutinizing the definition in Teece, Pisano and Shuen (1997) that will give benefit to those who are new to the concept and wanting a quick insight on it. The definition is dismantled into six questions where the contested arguments (when applicable) relating to each of the questions are drawn from mainly various DCs literature that is not means to be conclusive and exhaustive.