Title: A theory of change in turbulent environments: the sequencing of dynamic capabilities following industry deregulation

Authors: Michael L. Pettus, Yasemin Y. Kor, Joseph T. Mahoney

Addresses: Tabor School of Business, Millikin University, 1184 West Main Street, Decatur, IL 62522, USA. ' Department of Management, Moore School of Business, University of South Carolina, 1705 College Street, Columbia, SC 29208, USA. ' Department of Business Administration, University of Illinois at Urbana-Champaign, 140C Wohlers Hall, 1206 South Sixth Street, Champaign, IL 61820, USA

Abstract: The dynamics of change and the path-dependent evolution of resources and capabilities are central concerns of contemporary strategic management. This paper integrates the resource-based and dynamic capabilities literatures to explain why development of dynamic capabilities is especially important for firms that transition from regulated to deregulated environments. We develop a theoretical model and specific propositions concerning the pattern and sequencing of dynamic capability development within environments experiencing substantial change, specifically in newly deregulated industries. We discuss implications of the proposed theoretical model for both research and managerial practice.

Keywords: dynamic capabilities; industry deregulation; turbulent environments; change management; strategic management; resource-based view; RBV.

DOI: 10.1504/IJSCM.2009.024509

International Journal of Strategic Change Management, 2009 Vol.1 No.3, pp.186 - 211

Published online: 07 Apr 2009 *

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