Managerial Decision and Resource Reallocation: A Dynamic Capability Perspective

Abstract

Problem statement: The study has mainly been created to present a study on the significance of dynamic capability thereby stressing on the factors that can be dealt with in organizations through the use of dynamic capabilities. Approach: The literature review illustrates the effects of dynamic capabilities on managerial decisions and resource allocation. Results: The study reveals that the use of dynamic capabilities enables an organization to use strategic measures that prevent them for negative impacts; rather they are assisted through the availability of appropriate measures in achievement of organizational goals. Dynamic capabilities have shown to focus on appropriate selection and allocation of resources and decision making by the organizational leaders and managers. Conclusion: The study of dynamic capability can be said to be an important contribution in the researches made on organizational issues and for the success of different companies.