Dynamic capabilities as balancing: The interplay of ordinary capabilities, signature processes, and organizational identity

Purpose - In this study, we investigate the still overlooked interplay between the functioning of dynamic capabilities and changes in organizational identity values. Dynamic capabilities’ action of orchestrating resources and competences, and consequently organizational routines, can challenge how people define themselves as members of an organization. Design/methodology/approach – Data on two in-depth qualitative case studies on cooperative companies in the retail and food sectors were collected using interviews and secondary sources (e.g. blogs, presentations). Findings - Our grounded model shows how dynamic capabilities’ action resides in keeping a balance between changes in ordinary capabilities, organizational identity values, and signature processes. These latter represent the idiosyncratic processes of a company that are based on its heritage and past choices. Originality/value - We contribute to the literature on dynamic capabilities by explaining how they maintain ordinary capabilities, identity values and signature process in a state of dynamic balance to tackle opportunities and threats.