Antecedents and Consequences of Dynamic Capabilities: A Multilevel Review of Innovation Research

In order to cope with environmental changes, the dynamic capabilities view suggests that firms need to continuously adapt and renew their resources. However, empirical work that specifically focuses on the dynamic capabilities view is relatively limited. Therefore, we respond to recent calls for further research and review empirical studies in the field of innovation that are relevant to dynamic capabilities, in order to gain new insights into dynamic capabilities. Following the disaggregation of dynamic capabilities into sensing, seizing, and transforming capacity, we identify 110 prior empirical studies, which have examined the antecedents and consequences of dynamic capabilities-related activities in innovation. Our findings suggest that antecedents of dynamic capabilities-related activities originate at multiple levels of analysis and that dynamic capabilities-related activities lead to superior innovation and firm performance. By revealing shortcomings of the empirical capabilities-related innovation literature, we propose an agenda for future research on both dynamic capabilities and innovation.