Continuous Improvement Initiatives for Dynamic Capabilities Development : A Systematic Literature Review

Purpose: This study analyses the existing literature on continuous improvement (CI) initiatives and dynamic capabilities (DCs) development to answer the question whether CI initiatives foster development of DCs in organizations.Design/methodology/approach: We performed a systematic literature review (SLR), following several steps. After an exhaustive search of the main scholarly databases (EBSCOhost, Web of Knowledge, Scopus, ProQuest and Emerald Insight), we chose 19 studies and analysed them in depth.Findings: The results obtained identify issues such as a growing trend in the publication of studies, the dominant position of the US, and the predominance of empirical papers. We classified the literature according to whether it considers CI as a DC in itself, as an enabler of DC or as a result of the DC. We also identify the main critical success factors to be implemented in CI initiatives (CIIs) in order to enhance the development of DCs. Finally, based on the following and on analysis of the specific DCs literature, we include 10 theoretical propositions for possible future research.Originality/value: CIIs such as Lean Management, Six Sigma and Total Quality Management have been widely implemented in organizations. Despite their reputation, the effects of these initiatives on long-term benefits are fraught with controversy, which motivates our SLR of CIIs and DCs. DCs theory tackles the question of how firms can sustain their advantage and profits in the long term, making this perspective ideal for tackling controversy on the benefits of CIIs