<![CDATA[Although dynamic capability theory has been widely applied in private-sector organizations, its use in non-Western public-sector contexts remains limited. Existing studies have paid limited attention to how culturally embedded norms shape the microfoundations of sensing, seizing, and transforming in public problem-solving processes. This study examines how institutionalized interpretations of Javanese norms, particularly unggah-ungguh (hierarchical subordination) and sendiko dawuh (obedience to authority), influence the enactment of dynamic capabilities in local government bureaucracy. Using an explanatory qualitative multi-case study of 17 sub-districts (Kapanewon) in Sleman Regency, Indonesia, this research draws on document analysis, focus group discussions, in-depth interviews, and field observations conducted between 2021 and 2025. The findings revealed uneven enactment of sensing, seizing, and transforming capabilities across sub-districts. Hierarchical cultural norms tend to encourage reactive, complaint-driven sensing rather than proactive environmental scanning, constrain seizing by prioritizing procedural compliance over innovation, and limit transforming to incremental structural adjustments that emerge mainly under strong and legitimate leadership. This study contributes to the public administration literature by demonstrating that culture functions not merely as a contextual background but also as a conditioning mechanism that simultaneously enables bureaucratic coordination and constrains organizational learning and bottom-up innovation. The study extends dynamic capability theory by incorporating culturally mediated hierarchy as a conditional factor that shapes adaptive governance in public bureaucracies. It also enriches street-level bureaucracy scholarship by highlighting the role of meso-level leaders (Panewu) as cultural brokers navigating tensions between authority and adaptive responsiveness.]]>
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