This chapter reviews the dynamic capability literature to explore relationships between definition, operationalization, and measurement of dynamic capability. Subsequently, we develop a design-oriented approach toward dynamic capability that distinguishes between design rules, recurrent patterns of behavior, operating routines and processes, market and competitive conditions, and performance outcomes. This framework serves to develop a number of propositions for further research. As such, we integrate the literature on dynamic capability that primarily draws on economics, with a design-oriented approach
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William Martel (1978) studied this question.
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