Is Evolutionary Theory Under-Determined? An Examination of Competing Hypothesis on Dynamic Capabilities

VASSOLO, R. S.; ANAND, J.

Management Research

Sharpe

Año: 2008 vol. 6 p. 47 - 61

1536-5433

Firms frequently need to update their capabilities in changing environments but face significant barriers to accomplish this goal due to the stickiness of their routines, local search constraints, bounded rationality, uncertain imitability and causal ambiguity. Under high levels of uncertainty, dynamic capabilities are often externally oriented, involving acquisitions and alliances. However, non-unique but competitive predictions about the behavior of these capabilities arise from the evolutionary theory.  We test these competitive hypotheses analyzing portfolios of acquisitions and alliances made by pharmaceutical firms in search of portfolios of biotech capabilities. The analysis of portfolios enables us to better identify “common practices” in the pharmaceutical industry than using a transactional level focus.  We develop implications for the evolutionary theory and for managerial practice.