Main Article Content
Abstract
This study aims to examine the evolution of Dynamic Capability Theory by integrating organizational agility and adaptive judgment perspectives toward the development of Dynamic Capability Theory 4.0. Using a systematic literature review approach guided by the PRISMA framework, this study synthesizes prior research on dynamic capabilities, sensing, seizing, reconfiguring, organizational agility, managerial cognition, digital transformation, artificial intelligence, and organizational resilience. The findings indicate that the traditional sensing–seizing–reconfiguring framework remains theoretically relevant but requires extension to address contemporary organizational environments characterized by technological disruption, uncertainty, and rapid market change. Organizational agility emerges as both an antecedent and an outcome of dynamic capability development, enabling firms to respond quickly and flexibly to environmental turbulence. In addition, adaptive managerial judgment functions as a critical microfoundation that determines how organizations interpret information, make strategic decisions, and reconfigure resources effectively. Digital transformation and artificial intelligence further reshape the development of dynamic capabilities by strengthening data-driven sensing, strategic decision-making, innovation, and organizational resilience. This study contributes to strategic management literature by proposing an integrative perspective of Dynamic Capability Theory 4.0, which combines sensing, seizing, and reconfiguring with agility, adaptive judgment, digital intelligence, and resilience. The review provides theoretical implications for future research and practical insights for organizations seeking to sustain competitive advantage in complex and technology-mediated environments.
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References
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- Leemann, N., & Kanbach, D. K. (2021). Toward a taxonomy of dynamic capabilities – a systematic literature review. Management Research Review. https://doi.org/10.1108/mrr-01-2021-0066
- Lieshout, J. W. F. C. van, Velden, J. M. van der, Blomme, R. J., & Peters, P. (2021). The interrelatedness of organizational ambidexterity, dynamic capabilities and open innovation: A conceptual model towards a competitive advantage. European Journal of Management Studies. https://doi.org/10.1108/ejms-01-2021-0007
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- Riyadi, T. (2026). Managerial capabilities and organizational agility in entrepreneurial firms. Directiva: Journal of Corporate and Creative Business Management. https://doi.org/10.66203/directiva.01102
- Singh, B., & Sheoran, M. (2025). Unravelling strategic agility: A meta-analytical study of its key components. Contemporary Social Science. https://doi.org/10.62047/css.2025.09.30.186
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- Tamirat, S., & Amentie, C. (2023). Advances in knowledge-based dynamic capabilities: A systematic review of foundations and determinants in recent literature. Cogent Business &Amp; Management. https://doi.org/10.1080/23311975.2023.2257866
- Walter, A. (2020). Organizational agility: Ill-defined and somewhat confusing? A systematic literature review and conceptualization. Management Review Quarterly. https://doi.org/10.1007/s11301-020-00186-6
- Wilke, B., & Kanbach, D. K. (2026). IT-enabled dynamic capabilities: Classification and evolution of key concepts in the literature. Journal of Organizational Change Management. https://doi.org/10.1108/jocm-04-2024-0177
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References
Abuowaida, S., Al-Arqan, A., & Al-Mhasneh, K. (2025). Artificial intelligence and organizational decision-making: Transforming strategic choices in the era of digital intelligence. 2025 International Conference on Decision Aid Sciences and Applications (DASA). https://doi.org/10.1109/DASA68193.2025.11498922
Agostini, L., Nosella, A., Sarala, R. M., & Nkeng, C. (2023). Emerging trends around strategic flexibility: A systematic review supported by bibliometric techniques. Management Decision. https://doi.org/10.1108/md-02-2023-0135
Airyq, I. M., Pertiwi, M. I., & Aswin. (2024). Progressive organizational culture as a strategy to improve human resource performance in the VUCA era. Management Analysis Journal. https://doi.org/10.15294/maj.v13i3.24228
Alajmi, N. H. (2026). Resource‐centered transformation paths: The role of digital transformation in optimizing SME resources for sustainable entrepreneurship. Business Strategy and the Environment. https://doi.org/10.1002/bse.70535
Amin, N. ul, & Khan, M. A. (2024). Driving competitive advantage in the digital era: The role of dynamic capabilities, innovation, and leadership. Dinasti International Journal of Economics, Finance &Amp; Accounting. https://doi.org/10.38035/dijefa.v5i5.3873
Boikanyo, D. H. (2024). Utilization Of 4ir Technologies To Enhance Strategic Intelligence And Dynamic Capabilities For A Sustainable Competitive Advantage. Business Excellence and Management. https://doi.org/10.24818/beman/2024.14.1-01
Chavarnakul, T., Xu, L. D., Bi, Z., Shankar, A., Dhiman, G., Viriyasitavat, W., & Hoonsopon, D. (2025). A systematic literature review on resilient digital transformation, examining how organizations sustain digital capabilities. HighTech and Innovation Journal. https://doi.org/10.28991/hij-2025-06-02-021
Chen, K. (2026). From VRIN to velocity: Integrating resource-based view and dynamic capabilities for competitive advantage in AI-accelerated markets. International Theory and Practice in Humanities and Social Sciences. https://doi.org/10.70693/itphss.v3i1.282
D., F. (2025). Artificial intelligence (AI) and healthcare capabilities: A systematic review and research directions. https://doi.org/10.12688/f1000research.158477.2
Deshati, E. (2023). Staying ahead of the curve: An analysis of strategic agility and its role in ensuring firm survival in a dynamic business environment. European Scientific Journal. https://doi.org/10.19044/esj.2023.v19n13p28
Dickson, R. (2025). Organizational resilience as the springboard for organizational success in a turbulent business environment. European Journal of Management, Economics and Business. https://doi.org/10.59324/ejmeb.2025.2(2).01
Farias Vilhena, F. A. de, Silva, A. T. P. D., Sousa, B., Souza, C. A. de, Souza, E. J. A. de, Santos, E. M. dos, Santos, F. G. dos, Nascimento, I. J. B. M. F. do, & Araújo, P. R. de. (2026). Dynamic capabilities and technological innovation: A systematic review of strategic mechanisms for business competitiveness. American Journal of Innovation in Science and Engineering. https://doi.org/10.54536/ajise.v5i1.5994
Gan, W., & Xiao, M. (2025). Generative AI - driven reconstruction of innovation models in SMEs: Mechanisms and pathways from knowledge creation to intelligent decision-making. Journal of Social Development and History. https://doi.org/10.71052/jsdh/uneo9550
Giugula, C. M., & Dinu, D. G. (2026). Adaptive coherence in strategic change: Workforce agility, strategic human resources management, and employee well‐being. Strategic Change. https://doi.org/10.1002/jsc.70078
Guo, Y. (2025). An analysis of the correlation between corporate strategic flexibility and dynamic adaptability to the market environment. Scientific Notes of the Russian Academy of Entrepreneurship. https://doi.org/10.24182/2073-6258-2025-24-4-39-45
Haryanto, T., Hurriyati, R., & Sultan, Mokh. A. (2026). Big data analytics capabilities, strategic agility, and firm performance: A systematic literature review. Jurnal Locus Penelitian Dan Pengabdian. https://doi.org/10.58344/locus.v5i3.5119
Hrosul, V., Yermachenko, V., Zubkov, S., Kolesnyk, A., & Semerád, M. (2025). Enterprise digital resilience capability framework: An integrated dynamic capability approach. Entrepreneurship and Sustainability Issues. https://doi.org/10.9770/e4483987593
Humdan, E. A. (2026). The agility-innovation nexus: Exploring the dynamic interplay for innovation and supply chain advantage. Journal of Innovation Management. https://doi.org/10.24840/2183-0606_014.001_0002
Hurel, M. M. I., Herrera, A. A. M., & Durango, J. N. R. (2026). Organizational resilience and agility in SMEs: A systematic review with global perspectives for emerging economies. Journal of Organizational Change Management. https://doi.org/10.1108/jocm-06-2025-0580
Iglesias-Pardo, A. P., Moyano‐Fuentes, J., Marin, J. M., & Nascimento, D. (2026). Exploring the impact of industry 4.0 information technologies on supply chain responsiveness: A dynamic capabilities theory perspective. IEEE Transactions on Engineering Management. https://doi.org/10.1109/TEM.2025.3640362
Jayampathi, E. K. (2025). Organizational agility: A systematic literature review. South Asian Journal of Business Insights. https://doi.org/10.4038/sajbi.v5i1.77
Joshi, S. (2025). Leadership in the age of AI: Review of quantitative models and visualization for managerial decision-making. World Journal of Advanced Research and Reviews. https://doi.org/10.30574/wjarr.2025.26.1.1415
Kero, C. A., & Bogale, A. T. (2023). A systematic review of resource-based view and dynamic capabilities of firms and future research avenues. International Journal of Sustainable Development and Planning. https://doi.org/10.18280/ijsdp.181016
Kucharska, W., Kucharski, M., & Balcerowski, T. (2024). The KLC cultures synergy for organizational agility. Trust, risk-taking attitude, and critical thinking as moderators. European Conference on Knowledge Management. https://doi.org/10.34190/eckm.25.1.2307
Kurniawati, H. D. (2026). Microfoundations of dynamic capabilities in artificial intelligence adoption for competitive advantage. Lentera Negeri. https://doi.org/10.29210/991810
Lee, J., & Song, J. H. (2026). Increasing organizational sustainability: Implications of a meta-analysis on organizational agility. Learning Organization. https://doi.org/10.1108/tlo-07-2024-0211
Leemann, N., & Kanbach, D. K. (2021). Toward a taxonomy of dynamic capabilities – a systematic literature review. Management Research Review. https://doi.org/10.1108/mrr-01-2021-0066
Lieshout, J. W. F. C. van, Velden, J. M. van der, Blomme, R. J., & Peters, P. (2021). The interrelatedness of organizational ambidexterity, dynamic capabilities and open innovation: A conceptual model towards a competitive advantage. European Journal of Management Studies. https://doi.org/10.1108/ejms-01-2021-0007
Lu, H., & Shaharudin, M. S. (2024). Role of digital transformation for sustainable competitive advantage of SMEs: A systematic literature review. Cogent Business & Management. https://doi.org/10.1080/23311975.2024.2419489
Marin, I., & Marin, R. (2024). Organizational agility: Thriving in a highly dynamic and turbulent environment. STRATEGICA 2024 – Innovation and Responsibility: Leading People and Building Sustainable Economies. https://doi.org/10.25019/str/2024.025
Martin, J. A., & Bachrach, D. G. (2018). A relational perspective of the microfoundations of dynamic managerial capabilities and transactive memory systems. Industrial Marketing Management. https://doi.org/10.1016/J.INDMARMAN.2018.07.008
McKay, K., Gandhok, T., & Shah, D. (2023). Designing serious games for senior executive strategic decision making. International Journal of Games Based Learning. https://doi.org/10.4018/ijgbl.329221
Mishra, S., Sharma, A., Shivhare, A., & Srivastava, M. (2026). Dynamic capabilities, organizational resilience and ESG performance in healthcare. Journal of Health Organization and Management. https://doi.org/10.1108/jhom-01-2026-0032
Munara, K. J., Kamil, U. S. A., Rizki, M., Pahala, I., & Handaru, A. W. (2025). Strategic technology adaptation framework: AI, IoT, and the shift in strategic paradigms. JEMSI (Jurnal Ekonomi, Manajemen, Dan Akuntansi). https://doi.org/10.35870/jemsi.v11i3.4154
Muriu, D. (2026). Digital dynamic capabilities and bank adaptation to technological disruption. Journal of Business and Strategic Management. https://doi.org/10.47941/jbsm.3605
Ngeche, J. (2022). Superior strategy capabilities and sustainable competitive advantage: A theoretical paper. Research Journal of Business and Finance. https://doi.org/10.58721/rjbf.v1i1.81
Odeesh, J. Y. (2025). How does strategic leadership enable organizational resilience in digital transformation? TMP Universal Journal of Law, Business, and Management. https://doi.org/10.69557/0wk3yd28
Pitelis, C. N., Teece, D., & Yang, H. (2023). Dynamic capabilities and MNE global strategy: A systematic literature review‐based novel conceptual framework. Journal of Management Studies. https://doi.org/10.1111/joms.13021
Popadiuk, S., Luz, A. R. S., & Kretschmer, C. (2018). Dynamic capabilities and ambidexterity: How are these concepts related? Revista de Administração Contemporânea. https://doi.org/10.1590/1982-7849RAC2018180135
Prakasa, Y., Saenchaiyathon, K., & Rungruang, P. (2025). Cultivating organizational agility and innovation performance in the emerging era: A bibliometrics investigation. KnE Social Sciences. https://doi.org/10.18502/kss.v10i13.18966
Rivero, O. (2025). The role of artificial intelligence in strategic decision-making: Transforming managerial strategies in the digital age. European Journal of Studies in Management and Business. https://doi.org/10.32038/mbrq.2025.33.03
Riyadi, T. (2026). Managerial capabilities and organizational agility in entrepreneurial firms. Directiva: Journal of Corporate and Creative Business Management. https://doi.org/10.66203/directiva.01102
Singh, B., & Sheoran, M. (2025). Unravelling strategic agility: A meta-analytical study of its key components. Contemporary Social Science. https://doi.org/10.62047/css.2025.09.30.186
Syamsir, S., Saputra, N., & Mulia, R. A. (2025). Leadership agility in a VUCA world: A systematic review, conceptual insights, and research directions. Cogent Business &Amp; Management. https://doi.org/10.1080/23311975.2025.2482022
Tamirat, S., & Amentie, C. (2023). Advances in knowledge-based dynamic capabilities: A systematic review of foundations and determinants in recent literature. Cogent Business &Amp; Management. https://doi.org/10.1080/23311975.2023.2257866
Walter, A. (2020). Organizational agility: Ill-defined and somewhat confusing? A systematic literature review and conceptualization. Management Review Quarterly. https://doi.org/10.1007/s11301-020-00186-6
Wilke, B., & Kanbach, D. K. (2026). IT-enabled dynamic capabilities: Classification and evolution of key concepts in the literature. Journal of Organizational Change Management. https://doi.org/10.1108/jocm-04-2024-0177
Xu, Z., & Abdullah, N. L. (2024). A multi-dimensional framework of dynamic capabilities in emerging economies’ multinationals: A systematic review of the literature. International Journal of Emerging Markets. https://doi.org/10.1108/ijoem-08-2023-1314