ABSTRACT
This study examines how established firms reconfigure resources and capabilities under technological uncertainty by comparing Toyota and Honda's electric vehicle (EV) strategies. Drawing on Teece's (2007) dynamic capabilities framework of sensing, seizing, and transforming, the study adopts a comparative longitudinal case approach covering 2019–2026. Despite facing broadly similar environmental conditions, the two firms pursued contrasting strategies. Toyota followed a multi-pathway approach characterized by gradual capability accumulation, resource recombination, and preservation of technological options. Honda initially pursued a more concentrated EV strategy involving substantial EV-specific investments and external partnerships, but subsequently reassessed and redeployed resources as market conditions changed. The findings suggest that existing resource configurations influence how firms sense technological change and make resource commitments, while these commitments subsequently shape their capacity for further reconfiguration. The study highlights the recursive relationship between dynamic capabilities and resource configuration under technological uncertainty.
Keywords
Dynamic Capability, EV Industry, Toyota, Honda