• local governments
• Innovation
• social capital
• political skill
• ambidexterity
• mindfulness

Public administration, strategic management and organizational behaviour have found an intersection in behavioural microfoundation of dynamic capabilities. The aspects are treated through literature reviews and empirical analyses. The attention is on public organizations. Municipalities are characterized by proximity to external stakeholders and the possibility to apply strategic concepts, such as dynamic capabilities. Two dynamic capabilities are relevant: innovation and ambidexterity. The thesis defines these constructs and studies their antecedents. In microfoundation, two major fields are cognitive capabilities and social capital. A survey is administered in Italian local governments. Data collection is significant: 551 municipal employees working in 50 municipalities. The results confirm that cognitive capabilities, mindfulness and political skills, and social capital, internal and external, may have positive effects on individual dynamic capabilities in local governments.