Your company, a small software development firm, has attracted many of the top young programmers in your area. as a result, the apps you produce have been praised for their innovative features and intuitive user experience. according to the bathtub metaphor in the dynamic capabilities perspective, what is the best way for you to protect against resource leakage?

The best strategy for the company is to work on the drivers of dynamic capabilities. The core drivers of dynamic capability are processes, positions, and paths. Processes define the standard procedures and activities to run the day to day operations. Positions reflect the company’s approach towards technology, intellectual capital, its prospects of market share, and prospects. The paths indicate the substitutes and their prospects in terms of returns.

Explanation:

In order to develop a competitive advantage for the firm, let us take a look at critical aspects of the case.

Bathtub metaphor describes that there should be enough water available in the tub to do the job i.e., that company’s inflow or retention of the right human resource should surpass the outflows from the company. On the other hand, the dynamic capabilities perspective states that the external business environment of the firm is changing. The external business environment extends but not limited to the technological changes, the competitive situations, and cultural framework. The companies the fail to amend and align its strategies to the change are prone to failure. One such example is the case of Nokia, which failed to adopt the changes in the cell phone market and ran out of business.

The companies need to evolve themselves for improving their internal processes, their positions, and paths. The processes provide the ease of operations for employees and enable them to work with heir ease. The company should also invest in strengthening the technology, growth opportunities for employees, and the business models under the head of positions. The path analysis enables the firm to foresee the competitive environment changes and act accordingly to retain its key resources.