Paper info

THE ROLE OF DYNAMIC CAPABILITIES IN THE NETWORK APPROACH OF STRATEGIZING

Maria Magyar, Tibor Mandják, Zsuzsanna Szalkai , Edit Neumann-Bódi and Judit Simon

The paper was published at the 32nd IMP-conference in Poznan, Poland in 2016.

The aim of this conceptual paper is to provide a better understanding about dynamic capabilities in the network approach represented by IMP. Within the framework of this article the concept of dynamic capabilities as improvement of the resource-based approach will be shortly presented, then the theoretical background of strategy, strategizing in network perspectives will be discussed. The theoretical framework for this article is provided firstly by experts’ works from the dynamic capabilities (including Teece et al., 1997: Eisenhardt et al., 2000: Teece, 2007: Katkalo et al, 2010), on the other hand most relevant literatures published by the IMP Group in connection with dynamic relationships and strategizing (Håkansson and Snehota, 1995: Håkansson and Ford, 2002: Gadde et al., 2003: Baraldi et al., 2007). The paper also applies the concept of dynamic ‘relationship’ capabilities noted by Vilmányi et al (2014). After theoretical review the authors illustrate the interpretation of dynamic capabilities through a case study about a successful Hungarian electronic products supplier company, assuming that the existence and proper way to use the dynamic capabilities are basic conditions for the company’s success. The authors highlight the fact that the effective strategizing is based on perfect knowledge of the companies' dynamic capabilities, which are necessary for the companies to find the favourable network position through managing relationships.