RECAP Analysis: A Novel Analytical Tool for Strategic Diagnosis in Dynamic Environments

ABSTRACT Strategic diagnosis remains a persistent challenge for managers operating in dynamic environments. Existing frameworks—from SWOT to VRIO—have been criticized for being either analytically shallow or theoretically inaccessible as practical tools. This study introduces the Resources , Embeddedness , Capabilities , Appropriability and Positioning (RECAP) analysis: a conceptual diagnostic framework that integrates insights from the Resource‐Based View, Dynamic Capabilities View and positioning theory into a single, operationalizable instrument. Operationalized through a diagnostic matrix and radar chart, RECAP has the potential to enable managers to systematically assess strategic alignment across five interdependent dimensions, identify gaps between internal assets and external demands, and derive targeted improvement priorities. An illustrative application to a technology‐based SME in the solar energy sector demonstrates the framework's evaluative and prescriptive utility. RECAP advances strategy research by bridging fragmented theoretical perspectives into a coherent, actionable tool, while offering practitioners a structured means to enhance organizational adaptability and sustained competitive advantage.