Renewing the resource base in line with the dynamic capabilities view: a key to sustained competitive advantage in the IT industry

The purpose of this paper is to indicate that firms which renew their resource base in line with the dynamic capabilities view can generate and sustain a competitive advantage and thus the related firm performance. In order to investigate the relationships involved, in-depth interviews were conducted in six representative IT firms. The results suggest that firms with a stronger commitment to deploying dynamic capabilities are more successful and hold the potential for a sustained competitive advantage. We also found that innovation capability, managerial capability and human resource capability are the most relevant capabilities that allow firms to successfully adapt to a changing environment and the highly demanding IT market.