2018 Volume 10 Issue 1 Pages 35-52
With the arrival of the era of IoT (and AI), many existing companies are in great haste to change their strategies and reorganize resources to grasp opportunities for starting new businesses, strengthening existing businesses, or defending existing businesses from the radical offence from companies which utilize IoT. However, because existing theories are unable to account for the unprecedented and simultaneous shift in strategy and resources, there exists no satisfactory approach which can analyze the emerging phenomenon and provide prescriptions for the companies rushing to adapt. For example, theories centered on strategy do not incorporate the concept of resources, and the dynamic capability (DC) perspective does not include a concept of strategy.
In order to improve this situation, this paper proposes a theory of dynamic managerial capabilities (DMCs). DMCs consists of dynamic strategy capabilities (DSCs) and dynamic resource capabilities (DRCs). The former explains change in strategy and the latter explains change in resources over time. The DMC theory offers a basic approach to managing this new era of IoT, with some elaboration including that about platform strategy, and gives researchers a great opportunity to build and develop upon the theory.