The Effect of Dynamic Capabilities under Financial Crisis—Case Studies in U.S. Financial Industry

Abstract

As the business environment becomes more unstable, capital flows more rapidly across the worldwide, so financial industry is facing more and more challenges. Within an organization, dynamic capabilities are used to gather resources to address challenges. In the 2008 financial crisis, many investment banks fell, but those who survived did have superior competitive advantages than those fell. Previous studies show that dynamic capabilities would make firms gain more competitive advantages, especially in the highly dynamism environment. Therefore, it is important to identify how those dynamic capabilities affect firms’ performance in 2008 financial crisis, and making the stories valuable for making strategies in the future.