Evolutionary Economics , Routines , and Dynamic Capabilities

Evolutionary economics has been a key influence on strategic management, and especially on the dynamic capabilities framework, where it is a foundational pillar. However, the emphasis by evolutionists is on fleshing out a theory of routines while downplaying the bold entrepreneurial moves that drive the business enterprise—and the economic system—forward. The dynamic capabilities framework, by embracing the role of entrepreneurial managers—including the development of a change-oriented organizational culture, the achievement of asset alignment, and the placing of bold (but smart) bets—provides the basis for a more realistic model of firms as they compete in fast-changing and uncertain business environments.