Dynamic capabilities in a turbulent market environment: empirical evidence from international retailers in China

Abstract

Dynamic capabilities, understood as the ability to renew a firm's competences, enable a firm to attain competitive advantage over time, and successful performance in a turbulent environment. The present research explored the dynamic capabilities of international retailers in China from a grounded theory perspective. In-depth interviews with top managers identified 11 dimensions of dynamic capabilities. Their specificities in the field of retail internationalization, and the implications for how to build and classify dynamic capabilities for international retailers through the firm's strategic activities in the host country, are discussed.

Keywords:

• dynamic capabilities
• retail internationalization
• turbulence
• China
• grounded theory

Acknowledgements

This research was funded by a grant from the China Retail Research Center, Tsinghua University (Grant ID: 100004003).