Online Communities and Dynamic Capabilities: A Cross-Case Examination of Sensing, Seizing, and Reconfiguration

Strategy researchers have long been concerned with the sources of competitive advantage, i.e., why some firms’ performance is superior over others. One argument to answer this question is provided by the dynamic capability view which posits that some firms are better at adapting to a changing business environment than others. This study scrutinizes online communities and their interplay with dynamic capabilities. We present evidence which shows that organizations may use online communities to sense and shape opportunities and threats, to seize opportunities, and to reconfigure the enterprise’s intangible and tangible assets, thus helping their host organizations adapt to a changing business environment. In doing so, the paper bridges the strategy and the information systems literature and provides novel empirical insights into the strategic use of information technology.