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Problem statement: The study has mainly been created to present a study on the significance of dynamic capability thereby stressing on the factors that can be dealt with in organizations through the use of dynamic capabilities. Approach: The literature review illustrates the effects of dynamic capabilities on managerial decisions and resource allocation. Results: The study reveals that the use of dynamic capabilities enables an organization to use strategic measures that prevent them fordoi:10.3844/jssp.2011.632.634 fatcat:zyivrmh5g5dqjf7ovdysbs3gbi