TOWARD DIGITAL DYNAMIC CAPABILITIES - A THEORETICAL EXPLORATION

Internet/Management of Information System study is a burgeoning, cross-disciplinary field in business and technology. Its development always accompanies evolving industry change, so it seems that the best strategy is not to use only existing theories for researching on-going phenomena and future evolution of Internet related issues. Alternatively, theorists in this particular field have a strong tradition of drawing from diverse aspects of social science such as human behavior, economics, strategy, and general management to derive rich discussion to address practitioners’ concerns.New theories are continuously brought into this field, particularly those that dominate in other areas with different contexts. The exposure this contributes to theory in the Information System/Internet context could potentially yield critical insights and provide feedback for further refinement of theories.This paper provides a brief review of the dynamic capability framework then incorporates the latest expansion of IT capabilities. This brings the Enterprise 2.0 system architecture into the discussion of popular management frameworks. Such an extension is expected to generate a more detailed categorization of digital dynamic capabilities. First, the key terminology of digital dynamic capabilities is presented. Second, the importance of organizational and environmental factors is emphasized in dynamic capabilities analysis. Finally, future empirical research with digital dynamic capabilities is considered.