Enabling Interpersonal Dynamic Capability: Four Emerging Collaborative Practices in Globally Distributed Software Development

Dynamic capabilities (DCs) are noted drivers of organizations’ competitive advantage in fast-changing, digitalizing operating environments. However, research has reached no consensus on the essence of DCs, and the focus has shifted from managerial excellence to employee involvement and participation. The interpersonal view of DCs is suggested as crucial in enabling organizations’ change capacity. At the same time, globally distributed work is a common operating model today but often hindered by tensions and collaborative challenges. In this qualitative single-case study, we explore the collaborative practices enabling interpersonal DC in globally distributed software research and development (R&D). By semi-structured interviews with senior key informants from a northern European site of a case organization, inductive and abductive analyses, and the practice perspective, we identified four emerging practices nurturing organizational dynamism in global software work: dialogical organizational development, constructive working culture, global open engagement, and facilitated shared learning. The findings highlight the role of employees and create a new understanding of the influence of collaborative practices in generating DCs in a global R&D working environment. Finally, the paper proposes a dynamic model for evaluating the development of such practices and suggests a stronger adoption of the practice perspective in further study of DCs.