Dynamic Capability Link with Firm Performance: Evidence from a Vietnamese IT Company

Dynamic capabilities are particularly important for companies in the information technology (IT) industry. A large amount of work has been done to define capabilities, but less effort has been invested in examining the interlinkages of these capabilities, or their relative importance in different market situations. These two areas are crucial, because the very nature of dynamic capabilities is in the changes that they cause to other capabilities in the company in adapting to market movements. Our paper reports the results of a survey on a Vietnamese ICT company that addresses this twin gap, and shows how the dynamic capability of innovation capability is linked to the firm performance when working together with other capabilities and resources different markets. The results also have practical implications that are described at the end of the paper.