A Literature Review on Adaptive Strategies and Dynamic Capabilities in Automotive Manufacturing Firms


International Research Journal of Economics and Management Studies
© 2026 by IRJEMS
Volume 5  Issue 5
Year of Publication : 2026
Authors : Ang Andri Pribadi, Haris Maupa, Cokki
irjems doi : 10.56472/25835238/IRJEMS-V5I5P103

Citation:

Ang Andri Pribadi, Haris Maupa, Cokki. "A Literature Review on Adaptive Strategies and Dynamic Capabilities in Automotive Manufacturing Firms" International Research Journal of Economics and Management Studies, Vol. 5, No. 5, pp. 25-32, 2026. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V5I5P103

Abstract:

The global automotive industry is undergoing a profound transformation driven by the transition toward electrification, creating significant challenges for manufacturing firms in adapting their strategies and capabilities. This study aims to provide an integrative understanding of adaptive strategies and dynamic capabilities in automotive manufacturing firms through a structured literature review. Drawing on 20 peer-reviewed articles indexed in Scopus and Web of Science, this study applies a thematic analysis approach to identify key patterns, theoretical perspectives, and conceptual relationships across the literature. The findings reveal that dynamic capabilities play a central role in enabling firm adaptation; however, their effectiveness is context-dependent. Among the three dimensions of dynamic capabilities, reconfiguring capability emerges as the most critical, highlighting the importance of structural transformation in asset-intensive industries. The analysis also shows that adaptive strategies are heterogeneous and predominantly reactive, shaped by regulatory pressures, technological uncertainty, and managerial cognition. Furthermore, adaptation extends beyond firm-level responses to include value chain reconfiguration and ecosystem transformation, with institutional and policy environments acting as key drivers. This study contributes to the literature by refining the dynamic capabilities framework in the context of technological disruption, integrating fragmented research streams, and proposing an integrative perspective linking internal capabilities, strategic orientation, and external environments. Practically, the findings suggest that managers should prioritize capability reconfiguration and organizational transformation, while policymakers should design coherent regulatory frameworks to support industry transition. Future research is encouraged to adopt multi-level and longitudinal approaches to further advance understanding in this rapidly evolving domain.

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Keywords:

Dynamic Capabilities, Adaptive Strategies, Automotive Industry, Electrification, Technological Transition, Value Chain Transformation, Industrial Policy, Strategic Management.