scispace - formally typeset
Search or ask a question

Showing papers by "David J. Teece published in 2014"


Journal ArticleDOI
TL;DR: The dynamic capabilities framework has had a significant impact on strategic management theory and practice, but the sizable literature on the topic has not always been unified as discussed by the authors, highlighting key elements that have been omitted or poorly integrated into the dynamic capabilities literature: the role of individual action by entrepreneurial managers, role of resources, strategy, and distinction between ordinary and dynamic capabilities.
Abstract: The dynamic capabilities framework has had a significant impact on strategic management theory and practice, but the sizable literature on the topic has not always been unified. This paper begins with a restatement of the framework encompassing clarifications and extensions that have occurred since it was introduced. The paper highlights key elements that have been omitted or poorly integrated into the dynamic capabilities literature: the role of individual action by entrepreneurial managers, the role of resources, strategy, and the distinction between ordinary and dynamic capabilities. Dynamic capabilities is advanced as a multidisciplinary framework to explain long-run enterprise performance. Ambidexterity and other related frameworks are tailored versions of dynamic capabilities. Linkages between (strategic) management theory and (Austrian) economic theory are explored. The concepts of x-inefficiency and d-ineffectiveness are compared.

962 citations


Journal ArticleDOI
TL;DR: In this paper, a dynamic capabilities-based theory of the multinational enterprise (MNE) is developed, with a focus on what has come to be known as "internalization" theory.
Abstract: This paper develops a dynamic capabilities-based theory of the multinational enterprise (MNE). It first reviews scholarship on the MNE, with a focus on what has come to be known as “internalization” theory. One prong of this theory develops contractual/transaction cost-informed governance perspectives; and another develops technology transfer and capabilities perspectives. In this paper, it is suggested that the latter has been somewhat neglected. However, if fully integrated as part of a more complete approach, it can buttress transaction cost/governance issues and expand the range of phenomena that can be explained. In this more integrated framework, dynamic capabilities coupled with good strategy are seen as necessary to sustain superior enterprise performance, especially in fast-moving global environments. Entrepreneurial management and transformational leadership are incorporated into a capabilities theory of the MNE. The framework is then used to explain how strategy and dynamic capabilities together determine firm-level sustained competitive advantage in global environments. It is suggested that this framework complements contract-based perspectives on the MNE and can help integrate international management and international business perspectives.

877 citations


Journal ArticleDOI
TL;DR: In this article, the Oviatt-McDougall framework of sustainable international ventures is extended by relating the elements of the framework to existing scholarship on the multinational enterpr....
Abstract: This paper expands on the Oviatt–McDougall framework of sustainable international ventures. It does so by relating the elements of the framework to existing scholarship on the multinational enterpr...

133 citations


Journal ArticleDOI
TL;DR: The Dynamic Capabilities Framework as discussed by the authors was developed to enhance understanding of strategic agility in high-tech firms operating in highvelocity markets, and is shown to be relevant for the Upstream Oil and Gas sector, in the context of five industry game-changers.

111 citations


Journal ArticleDOI
TL;DR: In this article, a case study of the Global Exploration Division of a major IOC, Supermajor EXP, demonstrates how EXP identified and prioritized their dynamic capabilities through a strategic assessment, built, strengthened and evolved them through dialogical, collaborative and iterative processes that were informed by learning, sustained them by establishing new organizational structures and reinforced them through cultural initiatives.

60 citations


Journal ArticleDOI
TL;DR: This study clarifies the origins of the dynamics of the dynamic capabilities framework and provides a brief overview of key topics and empirical research, along with some ideas for future research.
Abstract: Work on dynamic capabilities is proving to be a fruitful direction in understanding the nature of the firm. Despite its popularity, some scholars have attacked the dynamic capability theory as lacking theoretical underpinnings. In this study, we clarify the origins of the dynamics of the dynamic capabilities framework. Standard operating procedures, routines and the concept of routinization are important elements of understanding the contribution of ordinary capabilities and dynamic capabilities within this stream of literature. Based on the insights of the non-strategic model of Cyert and March, through the dynamic evolutionary theory of the firm in Nelson and Winter, then through the efforts by Teece, Pisano and Shuen (1997) and Teece (2007, 2014), dynamic capabilities have evolved into a dominant theory of the field of strategic management. We provide a brief overview of key topics and empirical research, along with some ideas for future research.

56 citations


Book ChapterDOI
01 Jul 2014
TL;DR: In this article, the authors discuss the management of talent in terms of the dynamic capabilities framework, which is one of the foundational pillars of dynamic capabilities, and discuss the importance of expert knowledge for the creation and management of technology in the global economy.
Abstract: Introduction The previous chapter focused on using the resource-based view (RBV) of strategy to think about talent. One of the key critiques that it made of the talent management perspective was that it overplays the importance of general management and underplays the value of expert knowledge and is antithetical to the RBV that has come to dominate the field of strategy. The RBV is one of the foundational pillars of dynamic capabilities. This chapter builds on the previous arguments, and discusses the management of talent in terms of the dynamic capabilities framework. In recent decades, expert talent has become more important than ever for the creation and management of technology in the global economy (Albert and Bradley, 1997; Reich, 2002). Many job categories are becoming so complex and interdependent that managing them in a traditional structured hierarchical format is no longer a realistic option. Some decomposition of processes into specialized functional tasks is still necessary, but deep hierarchies are too cumbersome and inflexible.

15 citations


Posted Content
TL;DR: In this paper, the authors analyzed the choice of a firm's market entry strategy from various theoretical perspectives, such as transaction cost economics, the resource-based view, the capabilities perspective and the eclectic framework.
Abstract: A firm’s business strategies regarding the choice of a market, market entry timing, and entry mode can significantly influence the firm’s performance. A number of factors such as control, experience, and cultural distance can influence the formulation of a firm’s market entry strategy – e.g. whether to choose between licensing and franchising or between joint ventures or wholly owned subsidiaries. Scholars have analyzed the choice of a firm’s market entry strategy from various theoretical perspectives, such as transaction cost economics, the resource-based view, the capabilities perspective and the eclectic framework.

11 citations


Posted Content
TL;DR: In this article, the authors examine various conceptual issues raised by the patent wars and conclude that patent wars are the natural consequence of the multi-invention nature and massive growth of the industry and the probabilistic and non-self-enforcing nature of patents with the resulting uncertainty about patent validity and infringement.
Abstract: We examine various conceptual issues raised by the “patent wars” that have occurred in recent years in telecommunications. We conclude that “patent wars” are the natural consequence of the multi-invention nature and massive growth of the industry and the probabilistic and non-self-enforcing nature of patents with the resulting uncertainty about patent validity and infringement, and that concerns about patents have not precluded the successful development and deployment of telecommunications standards or the massive commercial success of new telecommunications technology.

10 citations


Posted Content
TL;DR: In this article, the authors examine various conceptual issues raised by the patent wars and conclude that patent wars are the natural consequence of the multi-invention nature and massive growth of the industry and the probabilistic and non-self-enforcing nature of patents with the resulting uncertainty about patent validity and infringement.
Abstract: We examine various conceptual issues raised by the “patent wars” that have occurred in recent years in telecommunications. We conclude that “patent wars” are the natural consequence of the multi-invention nature and massive growth of the industry and the probabilistic and non-self-enforcing nature of patents with the resulting uncertainty about patent validity and infringement, and that concerns about patents have not precluded the successful development and deployment of telecommunications standards or the massive commercial success of new telecommunications technology.

4 citations


Posted Content
TL;DR: In this paper, the authors identify three types of market failures that relate to the existence and structure of multinational enterprises: transaction costs are high relative to the administrative costs of organizing an activity internally, the relative inefficiency of markets for the transfer of knowledge and capabilities, and markets do not exist at all until individuals exercise entrepreneurship and deploy resources to create or co-create them.
Abstract: Anticipating complex contractual issues, which can lead to to market ‘failures’, managers often choose to bring economic activity inside the firm. (We are of course using “failure” in a comparative institutional context reflecting an understanding that better ways of organizing are possible.) Such internalization, in turn, implies FDI in partially or wholly owned subsidiary companies. There are at least three types of market failures that relate to the existence and structure of multinational enterprises (MNEs). The first occurs when transaction costs are high relative to the administrative costs of organizing an activity internally. A second type of market failure concerns the relative inefficiency of markets for the transfer of certain types of resources, such as knowledge and capabilities. In a third case, markets do not exist at all until individuals exercise entrepreneurship and deploy resources to create or co-create them.