The problem and the solution. Organizations that create their own dynamic capabilities are better able to sustain competitive advantage. Organizational dynamic capabilities are abilities to integrate, build, and reconfigure internal and external competencies to address rapidly changing environments. Knowledge management initiatives can play an important role to help integrate organizational resources, align organizational business processes, rebuild organizational learning culture, and strengthen organizational social capital. This article includes the following themes: (a) knowledge management and dynamic capabilities are intertwined; (b) through knowledge management, effective organizational process alignment can enhance dynamic capabilities; and (c) knowledge management and social capital influence each other and, further, both strengthen dynamic capabilities.
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