Hierarchical Dynamic Capabilities and Strategic Entrepreneurship in Changing Industrial Environments

The research fields of dynamic capabilities and strategic entrepreneurship have developed concurrently but separately. This study aims to bridge the gap in research on the underlying linkage between the two independent areas, both of which are critical for firms to sustain competitiveness in changing industrial environments. Drawing upon insights from the integrated perspective of hierarchical dynamic capabilities, strategic entrepreneurship, and environmental dynamics, an explicit theoretical framework is put forward to achieve a better understanding of the ways through which hierarchical dynamic capabilities promote strategic entrepreneurship. Moreover, through the proposed theoretical lens, this study further explores the detailed mechanisms of how first-order and second-order dynamic capabilities improve strategic entrepreneurship with regard to uncertainty of market conditions.