Effect of organizational risk orientation and change disposition on dynamic capabilities: An emerging markets perspective

Abstract

This conceptual paper address an important gap in the dynamic capabilities literature by conceptualizing that organizational risk orientation and organizational change disposition are critical determinant factors that affect the creation as well as utilization of dynamic capabilities. While fields such as entrepreneurship, innovation, change management and strategic decision making have theorized the effect of risk orientation and change disposition on various organizational outcomes, the dynamic capabilities theory has a gap as it largely ignores these aspects. Further, we put forward several propositions that relate these determinant factors to each of the micro-foundations of dynamic capabilities, i.e. (1) sensing opportunities and threats; (2) making timely decisions; (3) making market oriented decisions; and (4) changing resources base.