Dynamic Capabilities Are Higher Order Capabilities That Enable Companies to Renew

question 2

True/False

Dynamic capabilities are higher order capabilities that enable companies to renew their portfolio of capabilities to react to changing markets.

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Definitions:

Risk environments

Contexts or situations that expose individuals or organizations to hazards or potential harm related to their activities or decisions.

Assign probabilities

The act of estimating the likelihood of various outcomes or events happening.

Critical risks

Critical risks are the significant threats that could severely impact an organization's ability to achieve its objectives or continue operations.

Bounded rationality

A concept suggesting that individuals make decisions based on limited information, limited time, and cognitive limitations.