Abstract
How can organizations put dynamic capabilities into practice? This article focuses on the power
of organizational design, showing how managers can harness new organizational forms to build
a capacity for sensing, shaping and seizing opportunities. Fast-moving environments favor open
organization and self-organizing processes that quickly convert individual capabilities into
actionable collective intellect. However, such self-organizing processes require managers to
design and execute them. Using Valve Corporation as a case example, this article shows how
new design principles- such as polyarchy, social proofs, and new forms of open organization-
allow organizations to build dynamic capabilities for sustained innovation in dynamic environments.