4.7 Review

On the conceptualization and measurement of dynamic capabilities for sustainability: Building theory through a systematic literature review

Journal

BUSINESS STRATEGY AND THE ENVIRONMENT
Volume 30, Issue 1, Pages 135-175

Publisher

WILEY
DOI: 10.1002/bse.2614

Keywords

dynamic capabilities; hierarchical view; measurement; sustainability; sustainable development; systematic literature review

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This study proposes a unified framework that distinguishes different facets of dynamic capabilities for sustainability based on the types of performance they predict. It highlights the dependence of different forms of dynamic capabilities on different levels of sustainability outcomes in corporate strategies. The study adds new insights to the literature and provides guidance on the operationalizations of dynamic capabilities for sustainability.
We performed a systematic literature review to explore and understand how the 23-year long debate about dynamic capabilities has addressed sustainability issues. Based on this, we propose a unifying framework that distinguishes different facets of dynamic capabilities for sustainability (DCsS) based on the different types of performance they are more suitable to predict. The theoretical contribution is twofold. First, we add to the literature by highlighting the dependence of different forms of DCsS on different levels of the centrality of sustainability outcomes in corporate strategies. Second, we shed light on the operationalizations of DCsS by providing guidance on the adoption of pertinent constructs and measurement models. The review concludes with a discussion of the managerial implications of the proposed conceptual framework to help decision makers better understand, which strategic moves to make to achieve their intended sustainability goals.

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