226 Int. J. Business Innovation and Research, Vol. 17, No. 2, 2018 Copyright © 2018 Inderscience Enterprises Ltd. Dynamic capabilities development and business model innovation: evidences from IT industry in an emerging country Afonso Ricardo Paloma Vicente*, Marcos Ferasso and Márcia Ramos May Graduate Program in Management, Federal University of Parana, Av. Lothário Meissner, 632, Jd. Botânico, Curitiba – PR, 80210-170, Brazil Email: arpvicente@gmail.com Email: admmarcosferasso@gmail.com Email: marciarmay@gmail.com *Corresponding author Abstract: This research has had as main objective to analyse how the development of DC improve BM innovation, in the context of IT high-techs in an emergent country. We performed multiple case studies with multiple data collection techniques. The main findings revealed that the process of developing DC depends on how knowledge and information are managed and acquired by the high-techs. Results evidenced that the more diverse is the set of elements of BM, the more a company develop their DC. The results corroborate to the literature of microfoundations of DC by influencing on how knowledge is managed by each company. As novelty, this research sheds some lights on the relation of DC development and BM innovation and suggests some highways for future researches. Keywords: dynamic capabilities; DC; business model innovation; information technology industry. Reference to this paper should be made as follows: Vicente, A.R.P., Ferasso, M. and May, M.R. (2018) ‘Dynamic capabilities development and business model innovation: evidences from IT industry in an emerging country’, Int. J. Business Innovation and Research, Vol. 17, No. 2, pp.226–248. Biographical notes: Afonso Ricardo Paloma Vicente is a PhD candidate at Graduate Program in Management, Federal University of Parana, Brazil. He earned his Bachelor Diploma in Administration from University of the West of Parana, Brazil in 2013, and MSc in Management from Federal University of Parana, Brazil in 2016. His research interests include dynamic capabilities, innovation capabilities, indirect capabilities, business model innovation and innovation ecosystems. Marcos Ferasso earned his Bachelor Diploma in Management from University of the West of Santa Catarina, Brazil in 2002, his Specialisation Diploma in Business Management from University of the West of Santa Catarina, Brazil in 2005 and Local Development from International Labour Organization/United Nations, Italy in 2006. He earned his MSc in Management from Federal University of Rio Grande do Sul, Brazil in 2009, with an exchange period as a Visiting Researcher at Euromed-Marseille Ecole de Management, France.