Can Dynamic Capabilities Generates Long-Term Competitive Advantages?

Technical Notes on Eisenhardt and Martin (2000)

Abstract

This article reviews Eisenhardt and Martin (2000), one of the major works on dynamic capabilities, elaborates on the approach to dynamic capabilities proposed in that paper and reexamines its originality and contribution to theory. In contrast to what is asserted by prior research, Eisenhardt and Martin (2000) argue that dynamic capabilities have commonalities across firms, and that there is no direct link between dynamic capabilities and long-term competitive advantage. In addition Eisenhardt and Martin (2000) point out that resource configuration, not dynamic capabilities, is the source of long-term competitive advantage of firms. Therefore, referring to Eisenhardt and Martin (2000) and claiming that dynamic capabilities are the source of long-term competitive advantage is misleading.