Dynamic capabilities in the software and information services industry. A case-study analysis in Argentina from a business model perspective

Abstract

This study explores the relation between the strategies and business models (BM) configurations and the capability-augmenting efforts pursued software and information services (SIS). Through a multiple case-study research design, examining four SIS firms operating in Argentina, it seeks to understand, in particular, the nature of the dynamic capabilities (DC) developed by these firms, i.e. their ability to integrate, reconfigure and enlarge their base of strategic resources and ordinary capabilities. The findings of the study shed light on the two-way relation between the components of the BM and the nature DC. In the case of standardized product-oriented strategies, firms privilege integrating ‘sense’ DC to grasp market’s needs and demands with ‘seize’ DC to develop products able to exploit commercialization opportunities. In service-oriented strategies, ‘sense’ DC are focused on the identification of the features among the wide variety of customers’ demands which are scalable. Whereas ‘seize’ DC are rather focused on project management skills to integrate the architectures and accumulated reusable pieces of codes with capabilities to continuous improvement processes.