The Mobilization of Dynamic Capabilities: The Case of Lojas Renner

Abstract

This article analyzes the trajectory of one of the most successful retail firms in Brazil. A longitudinal analysis was performed by describing the mobilization of resources and capabilities during the history of over 90 years of the firm. By exploring the concept of dynamic capabilities, it was possible to describe strategic decisions and actions made during different periods of growth and crisis. The methodological design of the research was twofold. First, primary data were collected from interviews with ten top executives that conducted the firm during the last 50 years. Second, an extensive collection of documents were analyzed, including internal notes, releases, annual reports, communications to stockholders, articles in the press, and others, with a total of 600 pages of raw material. Concerning the main theoretical contributions of the article, it was possible to identify four mechanisms of mobilization of dynamic capabilities: leverage, creation, access, and release of resources and capabilities. With respect to the managerial implications, the study showed that the selective ability of decision makers in linking together the four mobilization mechanisms are essential in periods of stability and turbulence.