LAUSR

ABSTRACT This study analyzes how Chinese enterprises build and enhance dynamic capabilities during the reform and opening-up period, illustrating the transition from reliance on personal and political relationships in the startup phase to dependence on technology and global market information in the maturity phase. The research indicates that changes in the policy environment are key drivers for the formation of dynamic capabilities. Enterprises must continuously adjust their strategies and relational capital to swiftly adapt to policy changes and maintain competitiveness. This study not only deepens the understanding of the process-oriented theory of dynamic capabilities but also offers new perspectives on the strategic behavior of enterprises in emerging markets, particularly regarding how the dynamics of the institutional environment influence the formation and utilization of dynamic capabilities. The research emphasizes the strategic importance of relational capital and explores how enterprises continuously adjust relational capital to build and enhance dynamic capabilities. The findings provide concrete operational strategies and deep insights for enterprise managers and policymakers, helping them more effectively grasp the key factors of enterprise growth and environmental adaptation.