ABSTRACT
This chapter provides an overview of dynamic capabilities drawing insights from theoretical and empirical studies to consider the types of processes or routines that might provide new ventures with the capacity to develop and renew their competencies. The problem for new ventures is that, compared to large firms, they have fewer resources at hand, and thus the dynamic capabilities will likely be different. One key dynamic capability, therefore, will be the ability to accumulate and integrate resources from outside of the firm to respond to problems or opportunities quickly and effectively. Entrepreneurs managing new and small ventures will have to face the challenge of dealing with crises, obstacles and opportunities while working with limited resources. The capacity to perform will depend on how you approach and apply your skills and knowledge to reconfigure your available resources in response to contingencies, such as changing markets, or other crises.
