How to Adapt to Discontinuous Change? Bridging Dynamic Capabilities and Ambidexterity Perspectives

Two important perspectives for understanding how firms adapt to discontinuous change are dynamic capabilities and ambidexterity. In this paper we put forward a conceptual integration of these two perspectives, and we use in-depth case studies of three large firms to illustrate our arguments. Our case studies suggest that it is not possible to identify a universal set of dynamic capabilities for adapting to change. Rather, we find that a distinct set of capabilities is seen depending on which of three modes of adaptation (structural separation, contextual integration, or sequential alternation) the firm has prioritized. These insights allow us to contribute a contingency perspective to dynamic capability research, and to offer guidance to managers about the alternative approaches they might take when seeking to adapt to discontinuities in their environment.