Dynamic Capabilities, Innovation and Organizational Learning: Interrelations and Impact on Firm Performance

Scholars state that various difficulties emerge in attempts to empirically measure the concept of dynamic capabilities and its relationship with the other variables. As Arend and Bromiley (2009) asserted, a dynamic capabilities perspective offers an incomplete theory, employing a variety of concepts without clearly defining its domain of relevance. It could be assumed that conceptual model of dynamic capabilities and its interdependence with other significant variables could offer an explanation as to why some companies achieve competitive advantage in a volatile environment while others do not. Thus, the purpose of this paper is to contribute to the field of respective research in explaining, what is the relation between dynamic capabilities, organizational learning and innovations and what impact the latter relations have on firm performance. Through the review of the findings of other researchers, authors provide theoretical model, and set the foundation for further empirical testing.