CAF-7 · Chapter 5 · Question 3 of 15
The ability of an entity to successfully recognize the need for change in its environment and respond by innovating its products, processes, and services is formally defined as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Dynamic capabilities
Explanation
Dynamic capabilities refer to an organization's capacity to purposefully adapt, change, and innovate in response to a rapidly changing external environment to sustain its competitive advantage.
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