From Christine Hayes’ Yale course Introduction to the Old Testament:
Most scholars would concur that many of these books contain older material, but that the books reached their final form, their final written form, only later, in the post-exilic period. Now, if these books contain material that predates the exile, is it legitimate for us to speak of them and study them as a response to the national calamities, particularly the destruction and defeat and exile, 587/586.
In answer to this question, we’ll consider a relatively recent approach to the study of the Bible. It’s an approach known as canonical criticism. Canonical criticism grew out of a dissatisfaction with the scholarly focus on original historical meanings to the exclusion of a consideration of the function or meaning of biblical texts for believing communities in various times and places — a dissatisfaction with the focus on original context and original meaning to the exclusion of any interest in how the text would have served a given community at a later time, a community for which it was canonical. At what point did these stories and sources suddenly become canonical and have authority for communities? And when they did, how were they read and understood and interpreted?
So the historical, critical method was always primarily interested in what was really said and done by the original, biblical contributors. Canonical criticism assumes that biblical texts were generated, transmitted, reworked, and preserved in communities for whom they were authoritative, and that biblical criticism should include study of how these texts functioned in the believing communities that received and cherished them.
So emphasis is on the final received form of the text. [There’s] much less interest in how it got to be what it is; more interest in what it is now rather than the stages in its development. There’s a greater interest and emphasis in canonical criticism on the function of that final form of the text in the first communities to receive it and on the processes of adaptation by which that community and later communities would re-signify earlier tradition to function authoritatively in a new situation.
So a canonical critic might ask, for example: what meaning, authority, or value did a biblical writer seek in a tradition or story when he employed it in the final form of his text? What meaning, authority, or value would a community, would his community have found in it, and what meanings and values would later communities find in it when that text became canonical for them? How did they re-signify it to be meaningful for them? Why did religious communities accept what they did as canonical rather than setting certain things aside? Why was something chosen as canonical and meaningful for them when it came from an earlier time?