Dynamic Capabilities and Organizational Failure: A Longitudinal Study of Turnaround and Decline

While most research, like Dayioglu et al. (2024) and Mwanza & Dar (2025), examines dynamic capabilities as drivers of success, there’s far less attention on their role in organizational decline or attempted recovery. This idea flips the lens: what happens to dynamic capabilities during organizational crises and attempted turnarounds? By tracking cases over time, this study would identify patterns where dynamic capabilities are reactivated, newly developed, or, conversely, become inert due to structural or cultural rigidities. The findings could challenge the “always beneficial” assumption of dynamic capabilities and offer actionable insights for firms facing existential threats.

References:

1. The Impact of Business Environmental Factors on Performance Through Strategic Agility and Business Model Innovation: An Analysis Based on Dynamic Capabilities Theory. Mustafa Dayioglu, Fatma Küskü, D. Cetindamar (2024). IEEE transactions on engineering management.
2. Role of dynamic capabilities in public sector performance: a strategic management perspective. P. M. Mwanza, Javaid Ahmad Dar (2025). International Journal of Research In Business and Social Science.