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"A Theory of Change in Turbulent Environments: The Sequencing of Dynamic Capabilities Following Industry Deregulation"

Michael L. Pettus, Yasemin Y. Kor, and Joseph T. Mahoney


First Author :

Michael L. Pettus
Tabor School of Business
Associate Professor, Millikin University
1184 West Main Street
Decatur, IL 62522


Second Author :

Yasemin Y. Kor
Business Administration
Assistant Professor, University of Delaware
214 Lerner Hall
Newark, DE 19716

Third Author :

Joseph T. Mahoney
Business Administration
Professor of Strategic Management, University of Illinois at Urbana-Champaign
1206 S. Sixth Street
140C Wohlers Hall, MC 706
Champaign, IL 61820

Abstract :
The dynamics of change and the path-dependent evolution of resources and capabilities are central concerns of contemporary strategic management. This paper integrates the resource-based and dynamic capabilities literatures to explain why development of dynamic capabilities is especially important for firms that transition from regulated to deregulated environments. We develop a theoretical model and specific propositions concerning the pattern and sequencing of dynamic capability development within environments experiencing substantial change, specifically in newly deregulated industries. We discuss implications of the proposed theoretical model for both research and managerial practice.
Manuscript Received : 2007
Manuscript Published : 2007
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