Staged development of dynamic capabilities: a study of international joint ventures in India

Abstract

This article investigates the microfoundations of different stages of development of dynamic capa-bilities ( DCs ) in international joint ventures ( IJVs ). We conducted case-based research for three het-erogeneous IJVs in the Indian life insurance space. Data collection involved detailed interviews and access to other archival data. Results offer interesting insights on (1) the process of the development of dynamic capabilities and (2) the relative importance of different stages in the development of dynamic capabilities. Sensing and seizing are the two stages in which dynamic capabilities are built, and recon guration/transformation is inherently subsumed within the stage of seizing. We also found that broad-spectrum parental contribution across different functions impedes the development of dynamic capability.