Which of the following statements about Dynamic Capability Theory are TRUE? Select ALL that apply.

✅ Option A is correct—Dynamic Capability Theory helps companies adjust their competencies to

market changes.

✅ Option B is correct—Dynamic capabilities contribute to competitive advantage.

✅ Option D is correct—Information sharing within the supply chain is key to building dynamic

capabilities.

🔗Option C is incorrect—Dynamic Capability Theory does not focus on cost reduction, but rather on

agility and responsiveness to market changes.

Note: This section also covers Porter’s 5 Forces, STEEPLE, and the Product Life Cycle, which are

important topics for revision!

(See LO 2.1, p.88)