Nature of Technology and Technological Change

Dynamic capability can be defined as a firm’s capability to acquire, reconfigure and integrate resources. Dynamic capabilities are vital on a day to day business operation and sustainability. Dynamic capabilities influence the competitive advantage of Saudi Arabian firms. Dynamic Capabilities of Apple in Saudi Arabia Some big organizations in Saudi Arabia have managed to reinvent themselves through a transformation while others are not able to adapt. This has been attributed to a lack of certain capabilities that enable them to adapt as well as promote changes such as the ability to acquire other companies and research and development (Helfat, & Peteraf, 2015). Hence it is more than its financial strength, operating efficiency, and patent portfolio. The dynamic capabilities of Apple company in Saudi Arabia include; managerial capability, technological capability, marketing capability, research and development capability, innovation capability, and human resource capability.

Apple company managers play a significant role in developing managerial dynamic capabilities particularly in reconfiguring the company’s resource base. This allows the company to achieve a competitive advantage. Part of what has enabled the company the company to adapt to changes in its leadership. Innovation capabilities allow the company to scan search and discover and implement innovative opportunities. The company also has a deep institutional knowledge concerning the processes of reinvention (Wamba, Gunasekaran, Akter, Ren, Dubey& Childe, 2017). The company utilizes technologies to create processes through which the management team can continuously capture institutional knowledge. Institutional knowledge concerns understanding the cultural values, standards, processes, systems, and detailed information about an organization. The company has a team of experienced personnel’s dedicated to developing new products and techniques in order to gain a competitive advantage.

Therefore simultaneous recognition and exploitation of marketing opportunities allow the company to retain a competitive advantage. The company simultaneously redesigns its business model using technological capabilities. Technological capabilities help the company exploit its resource base in order to develop new products that add customer value in the market. During innovations, employees are offered training and mentorship programs to ensure that they gain knowledge and skills necessary to ensure that innovation is successful (Wilden, & Gudergan, 2015). Simultaneous innovation projects and activities help the company to retain a competitive advantage. Human resource managers together with the management team have developed a compensation plan to ensure employees are motivated and satisfied. Employees receive simple, straightforward and attractive pay per performance rewards whereby they are rewarded based on their performance and the company’s profitability.

High performing employees receive great rewards and they are motivated to work harder to gain more in the next year. While low performing employees receive fewer rewards and are encouraged to work hard to receive more in the next year (Teece, 2014). Employees strive to achieve set targets and the company is in a position to retain a competitive advantage. It has a strong commitment and dedication to utilizing dynamic capabilities and it has been successful. The identified dynamic capabilities for Apple company in Saudi Arabia include; managerial capabilities, research and development capabilities, technological capabilities, innovation capabilities, and marketing capabilities. A detailed analysis has been provided to explain how each dynamic capability helps the company to retain a competitive advantage. References Helfat, C.