Understanding collaborative innovation from a dynamic capabilities perspective

Purpose: This paper aims to understand the key factors affecting collaborative innovation in a destination management organisation from a dynamic capability perspective. Design/methodology/approach: An in-depth case study was conducted using semi-structured interviews with the CEO and Chairman of the destination management organisation (DMO) and internal DMO documents from 2011 to 2016. Thematic analysis was carried out on the data both deductively, with generic themes identified and informed by theory, and inductively, where detailed subthemes were developed from the data. Findings: The success of innovation in the context of a DMO depends on having a strong base of microfoundations that underpin the DMO’s capabilities to sense and seize opportunities and reconfigure its assets for competitive advantage. Collaboration with the key players in the sector has been the essential elements of these microfoundations. Research limitations/implications: This study has been conducted within a single DMO case study. Future research should test the proposed models in different types of organisations and collaborative contexts. Practical implications: The proposed dynamic capability framework helps managers achieve collaborative innovation, leading to competitive advantage through better development of relevant capabilities. Originality/value: The study represents a first attempt to understand the key factors enabling successful collaborative innovation in the context of DMOs, from a dynamic capability perspective. The unique opportunity of accessing information and witnessing the changes in a DMO over a period of five years enabled the authors to gain in-depth insights and comprehensive understanding as to why and how a UK DMO has been successful in enhancing its business performance through a successful collaborative innovation.