In modern conditions the firm's innovation
policy is a major factor in its sustainable development.
Since its creation the theory of the company's dynamic
capabilities is associated with the development of
innovation as a prerequisite for realizing competitive
advantages and corporate goals. Dynamic capabilities
are seen as a factor for change, reconfiguration of
existing resources and building new resources and
competencies within the company that allow the
development of new products and the development of
new processes. Therefore, the purpose of the study is to
reveal the role of the dynamic capabilities and the
impact of the dynamic environment for the development
of innovations and the realization of the company goals
by developing a conceptual model: "Dynamic
capabilities - Innovation in product/ process –
Competitive advantage" to be applied and tested in the
activities of the construction firm.
Keywords : Competitive Advantages, Construction Market, Construction Firm, Dynamic Capabilities, Functional Competencies, Innovation, Performance.