Re-conceptualizing dynamic capabilities in the light of sustainability

In this paper, we argue for a re-conceptualization of dynamic capabilities that explicitly integrates sustainability. We begin by exploring aspects where sustainability requires a different approach to the standard business outlook, namely in the range of actors that have an interest in the company and in the nature of the interdependencies that arise from managerial decision-making. We show how these aspects have implications for the conventional treatment of dynamic capabilities. Hence, we argue that our understanding of dynamic capabilities needs to change as sustainability reframes the context of mainstream business operations. This discussion leads us to develop the concept of sustainability-driven dynamic capabilities that act hierarchically on dynamic capabilities orientated towards renewal and regeneration