As technology accelerates the dynamism in the global markets, companies are forced to adapt to the changing landscape. A company’s success in navigating the external environment depends on their dynamic capabilities. One of the most critical moments for many companies’ is when they conduct an IPO. Research into how an IPO affects a firm is necessary since newly listed firms have been shown to underperform compared to private firms. Dynamic capabilities have been observed to be of critical importance for IPO firms and previous research suggests that an IPO changes processes that affects a firm's ability to develop dynamic capabilities. This study explores how the development of dynamic capabilities is affected by changes to microfoundations following an IPO. The study gains insight into the subject by conducting interviews with executives from Swedish firms that underwent the IPO process during 2018-2020. The empirical findings indicate that seven microfoundations are affected by going public. The study contributes to prevailing literature by laying the groundwork for future research on how a firm's ability to develop dynamic capabilities is affected by going public and it has the potential to be a practical tool when making strategic decisions during and after an IPO process.

Dynamic capabilities, a relatively new concept in strategic management, are subject to a variety of streams and points of view in the available literature, where the focus is still mainly on debating the general concepts, overall frameworks and classifications. The current consensus is that dynamic capabilities are highly context-based, depending on firm types, timeframes and a variety of other factors. However, what current research fails to adequately address are studies of individual cases of particular types of firms in their specific business environments, as well as how dynamic capabilities and their foundations are created and how they evolve in a specific, limited context. What these individual cases can contribute to the overall area of research are refined tools and frameworks for context-specific creation of dynamic capabilities, and thus their importance cannot be ignored. This study uses qualitative research to observe a case of a commercial higher-education institution in Sarajevo, Bosnia and Herzegovina, a developing market. The organization is highly IT-reliant, and one of the main characteristics of the institution is its flexibility and adaptability to change. In the recent couple or years, the institution switched several crucial partners, whose resources it uses for teaching. These factors make this organization interesting for investigation of dynamic capabilities in the particular context of constant change. The study uses mainly observation, but is supplemented by an interview and questionnaires. The researcher spent time working at the institution during a crucial timeframe of alliance-switching, and this experience fuels the observation. The results, including a developed model, present a good way to observe dynamic capabilities in a particular context, one based on activities and foundations that fuel dynamic capabilities in organizations.

This paper reviews the status quo of the empirical and theoretical literature on the determinants of the elasticity of substitution between capital and labor. Our focus is on the two-input constant elasticity of substitution (CES) production function. By example of the U.S., we highlight the distinctive heterogeneity in empirical estimates of σ at both the aggregate and industrial level and discuss potential methodological explanations for this variation. The main part of this survey then focuses on the determinants of σ. We first review several approaches to the microfoundation of production functions, especially the CES production function. Second, we outline the construction of an aggregate elasticity of substitution (AES) in a multi-sectoral framework and investigate its dependence on underlying sectoral elasticities. Third, we discuss the influence of the institutional framework on the determination of σ. The concluding section of this review identifies a number of potential empirical and theoretical avenues for future research. Overall, we demonstrate that the effective elasticity of substitution (EES), which is typically estimated in empirical studies, is generally not an immutable deep parameter but depends on a multitude of technological, non-technological and institutional determinants.