Dynamic capabilities and strategic management
- ISSN: 01432095
- ISBN: 9780198296805
- DOI: 10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
- PubMed: 20859841
- arXiv: z0024
Abstract
The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firms (specific) asset positions (such as the firms portfolio of difficult-to-trade knowledge assets and complementary assets), and the evolution path(s) it has adopted or inherited. The importance of path dependencies is amplified where conditions of increasing returns exist. Whether and how a firms competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding internally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing internal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rivals costs, and excludes new entrants.
Dynamic capabilities and strategic management
Author(s): David J. Teece, Gary Pisano, Amy Shuen
Source: Strategic Management Journal, Vol. 18, No. 7 (Aug., 1997), pp. 509-533
Published by: John Wiley & Sons
Stable URL: http://www.jstor.org/stable/3088148
Accessed: 19/07/2010 14:20
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