In 2001 P.N. SubbaNarasimha has published an article with the title “Strategy in Turbulent Environments: The
Role of Dynamic Competence” in the scholary journal MANAGERIAL AND DECISION ECONOMICS (22: 201–212 (2001): DOI: 10.1002/mde.1017).

According to SubbaNarasimha turbulent environments exist…

“because of escalating global competition, decreasing product life-cycles, increasing rates of technological change, and increasing inter-connectedness among disparate and previously disconnected environmental elements pose thorny problems for firms seeking to achieve sustained competitive advantage.”

So he points out that…

“Many of the existing strategy models are ill equipped to provide solutions. Their insufficiency
can be traced to the assumptions underlying the industrial organization (IO) economics paradigm that has served as the intellectual foundation for much strategy research.”

This is a popular argument but I am not sure if it is true. Of course the concepts of IO have to adopted to the recent changes in many industries and have to be further developed but I would disagree to state that they are insufficient. I like the following statement of SubbaNarasimha…

“Given that organization and environment are two sides of the strategy coin, the resource-based perspective’s potential for helping understand sources of sustained competitive advantage in turbulent environments will be better realized if the environment is incorporated into analyses of firm resources.”

Also interesting is his definition of turbulence…

“Turbulence is defined as the dynamic heterogeneity characterizing organizational environments.”

SubbaNarasimha stated that turbulence can be viewed from a supply-side perspective and a demand-side perspective. In his paper he also introduced the term “dynamic competence” which is defined as…

“Continuing this detailed examination of organizational knowledge, the focus here is on its variety generating property, which is labelled dynamic competence and it is suggested how this property facilitates successful adaptation in turbulent environments.”

This is very close to the term of dynamic capabilities (I would say that it is adressing the same issue).