Dynamic Capabilities and Innovation to Deal with the Impacts of Covid-19

Objective: to assess the extent to which dynamic and innovative capabilities contribute to companies facing turbulent crisis scenarios such as the covid-19 pandemic. Methods: the research is characterized by a quantitative approach through an online survey and analysis by structural equation modeling (SEM). The study sample consisted of 166 companies. Results: The results showed that in the face of crisis environments (unexpected situations), companies with dynamic capabilities could deal more effectively with impacts in the face of crisis. On the other hand, but less significantly (p<0.10), innovation presents itself as a context of risk enhanced by crisis scenarios. Conclusions: The article theoretically contributes to the relationship between the themes of dynamic capacity, innovation, and impacts of the crisis, through a structural model, in the context of the pandemic generated by covid-19. From a managerial and practical perspective, the research highlights the importance of developing dynamic capabilities to face crises, as well as innovation, in the sense of being ready to face difficult scenarios, showing that companies with developed dynamic capabilities were able to face the crisis more satisfactorily. Finally, through factor analysis in a methodological way, the research refines the relationship between relevant themes (dynamic capacity and innovation) given the empirical-contextual axis (covid-19 crisis).

DYNAMIC CAPABILITIES AND STRATEGIES FOR COPING WITH THE COVID-19 PANDEMIC CRISIS

The theory of dynamic capabilities addresses the reconfiguration and development of organizational skills in the face of intense changes, observing organizational environment and resources. With the discovery of the SARS-CoV-2 respiratory syndrome, the COVID-19 pandemic arises, affecting the global economy and creating a scenario of uncertainty for organizations. This article aims to identify strategies for coping with the crisis in the face of the COVID-19 pandemic under the lens of dynamic capabilities. For this purpose, multiple case studies were carried out in ten companies in the metropolitan region of Porto Alegre, in Rio Grande do Sul, a descriptive research with a qualitative approach. The research presents the actions of companies to face the crisis in the face of the pandemic and relates to the microfoundations that support dynamic capabilities: sensing, seizing and reconfiguring. The results show that dynamic capabilities tend to contribute in this context, by identifying opportunities and threats, taking advantage of opportunities and reconfiguring routines. The study identifies company practices related to each of the micro-foundations, as well as suggestions based on the literature. It was found that the companies studied can still develop their dynamic capabilities, especially about reconfiguring microfunding.