Innovation capability as a source of competitive advantage in Slovenian information technology firms

The paper aims to promote innovation capability as a source of competitive advantage in the IT industry. Our review of the literature highlights the importance of the dynamic capabilities perspective and innovation as a field of study in today's dynamic environment. The main assumption is that innovation capability is one of the most dominant dynamic capabilities, particularly in high-velocity markets such as in the IT industry. To test our presumption, we conduct an exploratory case study of a key representative firm in the IT industry in Slovenia. The results show that innovation capability does indeed play a dominant role in sustaining a competitive position. To bolster our study, we also present the relevant internal and external sources of innovation capability, and expose the importance of a continuous commitment to sense, seize and reconfigure capabilities as part of dynamic capabilities. From a practitioners' point of view, we believe that the results could encourage managers to think and understand how this can be useful in practice.