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Showing papers by "David J. Teece published in 2007"


Journal ArticleDOI
TL;DR: In this paper, the authors draw on the social and behavioral sciences in an endeavor to specify the nature and microfoundations of the capabilities necessary to sustain superior enterprise performance in an open economy with rapid innovation and globally dispersed sources of invention, innovation, and manufacturing capability.
Abstract: This paper draws on the social and behavioral sciences in an endeavor to specify the nature and microfoundations of the capabilities necessary to sustain superior enterprise performance in an open economy with rapid innovation and globally dispersed sources of invention, innovation, and manufacturing capability. Dynamic capabilities enable business enterprises to create, deploy, and protect the intangible assets that support superior long- run business performance. The microfoundations of dynamic capabilities—the distinct skills, processes, procedures, organizational structures, decision rules, and disciplines—which undergird enterprise-level sensing, seizing, and reconfiguring capacities are difficult to develop and deploy. Enterprises with strong dynamic capabilities are intensely entrepreneurial. They not only adapt to business ecosystems, but also shape them through innovation and through collaboration with other enterprises, entities, and institutions. The framework advanced can help scholars understand the foundations of long-run enterprise success while helping managers delineate relevant strategic considerations and the priorities they must adopt to enhance enterprise performance and escape the zero profit tendency associated with operating in markets open to global competition. Copyright  2007 John Wiley & Sons, Ltd.

9,400 citations


Journal ArticleDOI
TL;DR: In this article, the authors show how managers can shape both the appropriability regime and the architecture of the industry in ways that can benefit the innovator by blunting the actions of others who may endeavor to tap into the stream of profit generated by innovation.
Abstract: Capturing value from innovation requires innovators to figure out how to blunt inroads into the profit stream by imitators, customers, suppliers, and other providers of complementary products and services. In making strategic decisions around technology commercialization, managers often assume that the intellectual property environment and the architecture of the industry are beyond their control. This need not be so. This article shows how managers can shape both the appropriability regime and the architecture of the industry in ways that can benefit the innovator by blunting the actions of others who may endeavor to tap into the stream of profit generated by innovation. Even small firms can play important roles. Tools include putting information into the public domain, helping to shape standards, and promoting modularity.

412 citations


Journal ArticleDOI
TL;DR: In this article, the authors discuss some of the implications of Penrose's work as well as its limitations, and briefly discuss the usefulness of adopting a "Penrosean" capability perspective in multinational enterprise (MNE) strategy analysis.
Abstract: Penrose’s legacy is a curious one. Much cited, but little read, her work is recognized as one of the main intellectual foundations for modern resource based theories of business strategy and theories of organizational routines and capabilities. However, Penrose did not aim to contribute to the field of strategy; her goal was to advance understanding of the nature of the firm and its growth. Nevertheless, there are important insights in Penrose’s work that have implications for international business and for strategy. We discuss some of the implications of Penrose’s work as well as its limitations. We also briefly discuss the usefulness of adopting a “Penrosean” capability perspective in multinational enterprise (MNE) strategy analysis. The dynamic capabilities framework puts entrepreneurial management into the theory of multinational enterprise, a task Penrose left untouched.

203 citations


Journal ArticleDOI
TL;DR: The importance of the management of the business enterprise in economic growth and development has been highlighted by as discussed by the authors, who argue that business enterprises must be able to sense opportunities, seize or execute on such opportunities, and reconfigure and transform as circumstances dictate.
Abstract: Economic growth theory has underplayed the importance of the management of the business enterprise in economic growth and development. In today's global economy, business enterprises must be able to sense opportunities, seize or execute on such opportunities, and reconfigure and transform as circumstances dictate. In order to accomplish this, management must be intensely entrepreneurial. Moreover, success in high technology sectors requires the employment and effective use of many skilled individuals (the literati). This has its own peculiar challenges for management and organisation, including the need to design collegial organisation structures with low authority, good incentives, and a culture of commitment. Industrial models of organisation with deep hierarchies need to be abandoned in favour of distributed leadership models where the employment relation is understood in non-traditional terms.

49 citations


OtherDOI
TL;DR: A manager/entrepreneur can bargain and negotiate and buy or sell or swap investments/assets, orchestrate internal assets (intrapreneurship), and transact with the owners of external assets (entrepreneurship).
Abstract: capital market. He or she exerts much effort to induce potential investors to share the company’s views (often optimistic) about its prospects. This executive is much closer to Schumpeter’s entrepreneur than to the entrepreneur of current neoclassical theory. Whether the firm expands or contracts is determined not just by how its customers respond to it, but by how insightful, sanguine and energetic its owners and managers are about its opportunities” (p. 31). The manager/entrepreneur plays a key role in achieving asset selection and the “coordination” of economic activity, particularly when complementary assets must be assembled. The manager/entrepreneur can bargain and negotiate and buy or sell or swap investments/assets, orchestrate internal assets (intrapreneurship) and transact with the owners of external assets (entrepreneurship). He is likely to have strong skills in working out new “business models”, which define the architecture of new businesses (Chesbrough and Rosenbloom, 2002). The astute performance of this function will help achieve what Porter (1996) calls “strategic fit”, not just with internally controlled assets, but with the assets of alliance partners. The manager/entrepreneur can also shape learning processes with the firm. These are not functions which can be achieved by markets divorced from manag-

10 citations


01 Jan 2007
TL;DR: In this article, the authors discuss some of the implications of Penrose's work as well as its limitations, and briefly discuss the usefulness of adopting a "Penrosean" capability per- spective in multinational enterprise (MNE) strategy analysis.
Abstract: and Key Results ■ Penrose's legacy is a curious one. Much cited, but little read, her work is recog- nized as one of the main intellectual foundations for modern resource based the- ories of business strategy and theories of organizational routines and capabilities. ■ However, Penrose did not aim to contribute to the field of strategy; her goal was to advance understanding of the nature of the firm and its growth. Nevertheless, there are important insights in Penrose's work that have implications for inter- national business and for strategy. ■ We discuss some of the implications of Penrose's work as well as its limitations. We also briefly discuss the usefulness of adopting a "Penrosean" capability per- spective in multinational enterprise (MNE) strategy analysis. ■ The dynamic capabilities framework puts entrepreneurial management into the theory of multinational enterprise, a task Penrose left untouched.

4 citations