Unbundling dynamic capabilities: an exploratory study of continuous product innovation

In order to understand better the organizational sources of continuous innovation, this paper provides an in-depth analysis of Oticon A-S, a leading company in the hearing-aid industry, which showed an impressive ability to develop new products in the nineties. Findings highlight that dynamic capabilities are made up of: knowledge creation and absorption, knowledge integration and knowledge reconfiguration. Discussion links the findings to previous literature and shows how these knowledge-based processes are all based on a coherent mix of organizational resources. Copyright 2003, Oxford University Press.