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Original research
DYNAMIC CAPABILITIES AS A CATALYST FOR ECONOMIC GROWTH AND POVERTY ALLEVIATION IN DEVELOPING ECONOMIESPages 103-118
Abstract
Economic growth continues to be a critical avenue for poverty alleviation. However, despite sustained efforts to stimulate the economic growth, poverty remains persistent in many developing economies, indicating that growth alone is insufficient to deliver inclusive socio-economic outcomes. This challenge calls for a strategic rethinking of how firms contribute to development beyond traditional macroeconomic approaches. Traditional growth models often overlook firm-level adaptability. Dynamic Capabilities offers a missing link. This paper examines how a firm’s Dynamic Capabilities can serve as a strategic mechanism for inclusive economic growth and poverty alleviation. Using a conceptual and integrative review approach, the paper synthesizes literature from strategic management, sustainability, innovation and development economics to explain how the dynamic capabilities enable firms to enhance productivity, generate employment and foster income stability. This paper advances that when firms embed sustainability and ethical governance considerations into their dynamic capabilities, they are better positioned to pursue innovation-led growth that integrates marginalized populations into economic value chains. The study presents a conceptual model illustrating the pathways through which dynamic capabilities translate firm-level strategic adaptability into macro-level inclusive growth outcomes. This paper extends the application of dynamic capabilities beyond competitive advantage to the domain of socio-economic development. In practice, it offers insights for policymakers on the importance of capability-building interventions and for managers on aligning strategic renewal with sustainable development goals. The paper concludes by identifying pathways for future empirical inquiry to test the proposed framework across developing economies.
Keywords: Pandemic, Dynamic Capabilities, Economic Growth, Strategic Management, Poverty Alleviation, Sustainability. .
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Brian Hamisi Kitsao, 
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