Dynamic Capabilities: Closing the Competence Gap in Order to Assure Exploitation of New Opportunities
Current dynamics of business environment and challenges that businesses are facing force firms to reorganize resources for becoming more effective at opportunity identification and exploitation. However, exploitation of new opportunities is often challenged by competency gap at the firm level. Often current level of competence of the firm does not meet the requirements coming with the new opportunities. In the literature on management science, learning is perceived as one of the greatest contributors in smooth and directed resource reconfiguration process. The outcome of learning is often linked to new knowledge and competencies that allow successful exploitation of identified opportunities within an external and internal business environment. Therefore, this paper aims to propose hypothetical model on how the successful implementation of new business opportunities is linked to multiple-loop organizational learning and closing of the competence gap of the firm. The aim is achieved by synergizing extant literature in the fields of dynamic capabilities, entrepreneurship and organizational learning. Critical analysis of relevant research leads to the development of a conceptual model explaining the process of how the firm is able to close the competence gap and assure successful opportunity exploitation within the firm. This results in the formation of the research questions for future empirical research. The study adds value to the existing literature by identifying the learning process that stimulates successful opportunity exploitation, drawing on the multiple-loop learning perspective, and applying dynamic capabilities framework.