Dynamic capabilities and business processes: a trajectory view

In this paper, we use a computer simulation to explore the effects of dynamic capabilities on the evolution of business processes. Dynamic capability is conceptualized as variation and selective retention (Campbell, 1965; Bickhard and Campbell, 2003) which governs the development and adaptation of business process. The model demonstrates that variation and selective retention of business processes explain the evolution of business process. The effect between variation and selective retention is offsetting. When variation dominates the evolution, business process will become increasingly more complex, however when selective retention dominates, business process will become less complex. The interaction between variation and selective retention also determines the evolutionary trajectory of business process.