Showing papers by "David J. Teece published in 2016"
TL;DR: In this paper, the authors argue that strong dynamic capabilities are necessary for fostering the organizational agility necessary to address deep uncertainty, such as that generated by innovation and the associated dynamic competition, and explore the mechanisms by which managers may calibrate the required level of organizational agility, deliver it cost effectively, and relate it to strategy.
Abstract: “Organizational agility” is often treated as an immutable quality, implying that firms need to be in a constant state of transformation. However, this ignores that such transformations, while often essential, come at a cost. They are not always necessary, and may not even be possible. This article explores agility at a more fundamental level and relates it more specifically to dynamic capabilities. It demonstrates that it is first essential to understand deep uncertainty, which is ubiquitous in the innovation economy. Uncertainty is very different from risk, which can be managed using traditional tools and approaches. Strong dynamic capabilities are necessary for fostering the organizational agility necessary to address deep uncertainty, such as that generated by innovation and the associated dynamic competition. This article explores the mechanisms by which managers may calibrate the required level of organizational agility, deliver it cost effectively, and relate it to strategy.
964 citations
TL;DR: In the real world, managers are called on to fill entrepreneurial and leadership roles: sensing opportunities, developing and implementing viable business models, building capabilities, and guiding the organization through transformations.
318 citations
TL;DR: In this paper, the authors draw on a range of intellectual roots, ranging from financial economics to organization theory, to design theory, and to human cognition, to help other managers lead their organizations to higher levels of performance.
Abstract: This special issue draws on a range of intellectual roots—ranging from financial economics to organization theory, to design theory, and to human cognition. The goal of this special issue is to bring scholars from different disciplines together with practitioners who have had success applying the framework so as to help other managers lead their organizations to higher levels of performance.
188 citations
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TL;DR: The following sections are included:Monopoly vs. Efficiency Interpretations of the Multinational EnterpriseHost-Country ControlsDynamic Considerations Conclusion as discussed by the authors, which is an extension of the previous sections.
Abstract: The following sections are included:Monopoly vs. Efficiency Interpretations of the Multinational EnterpriseHost-Country ControlsDynamic ConsiderationsConclusionREFERENCES
180 citations
TL;DR: In this paper, the authors compare and contrast strategic decisions and leadership propensities of chancellors at UC Berkeley and presidents at Stanford University and suggest that the presence of leaders who marry strategic thinking and capabilities development enhance the likelihood of a university's competitive fitness and long-term survival.
Abstract: This study explores relationships between campus leadership and the organizational-level dynamic capabilities that underpin the management of research universities. Our observations suggest that the presence of leaders who marry strategic thinking and capabilities development enhance the likelihood of a university’s competitive fitness and long-term survival. We compare and contrast strategic decisions and leadership propensities of chancellors at UC Berkeley and presidents at Stanford University. Our findings help explain why Stanford has advanced in relation to Berkeley and hint at the challenges and opportunities facing Berkeley chancellors. We also suggest that it is timely for university presidents to begin to manage proactively the university and, to the extent possible, its innovation ecosystem to increase the chances that their institutions will continue to prosper in an increasingly competitive environment that is also exposed to uncertainty and change.
96 citations
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TL;DR: The productivity slowdown and the competitive difficulties experienced by many American firms in domestic and international markets have triggered considerable research into the reasons for the observed changes as discussed by the authors, and various writers have suggested that miseducation may be part of the problem.
Abstract: The productivity slowdown and the competitive difficulties experienced by many American firms in domestic and international markets have triggered considerable research into the reasons for the observed changes. Although rarely featured in systematic analysis of productivity trends, various writers have suggested that management miseducation may be part of the problem. In an award-winning article, Robert Hayes and William Abernathy assert
74 citations
TL;DR: In this paper, the authors explore the mechanisms by which managers may calibrate the required level of organizational agility, deliver it cost effectively, and relate it to strategy, and provide a set of principles and practices that differ according to whether a firm is managing regular risk or deep uncertainty.
Abstract: “Organizational agility” is often treated as an immutable quality, where it is implied that firms need to be in a constant state of transformation. But such advice ignores that changes and transformations, while often essential, come with a cost, are not always necessary, and may not even be possible. Our approach is to explore agility at a more fundamental level and relate it more specifically to dynamic capabilities. We find it essential to first understand deep uncertainty, which is ubiquitous in the innovation economy. It is very different from risk, which can be managed using traditional tools and approaches. Strong dynamic capabilities are necessary for fostering the organizational agility necessary to address deep uncertainty, such as that generated by innovation and the associated dynamic competition. We explore the mechanisms by which managers may calibrate the required level of organizational agility, deliver it cost effectively, and relate it to strategy. We provide a set of principles and practices that differ according to whether a firm is managing regular risk or deep uncertainty. These distinctions are critical, as the mistaken use of risk management tools in an environment of deep uncertainty can bring false comfort. Our approach embraces concepts from both financial economics (e.g., hedging and real options) and strategic management theory (e.g., managerial/entrepreneurial asset orchestration). We conclude that strong dynamic capabilities are essential when firms face deep uncertainty, which they frequently do in interdependent economies experiencing rapid technological change and financial disruption.
59 citations
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TL;DR: In this article, the authors use the dynamic capabilities framework to analyze the emerging model of meta-MNE and draw contrasts between the traditional, home-centric MNE and the traditional MNE, and consider the ways in which nations still matter and the policy implications of the emergence of the meta MNE.
Abstract: Established theories of the multinational enterprise (MNE) were created for a different, less globally competitive world. Today’s MNEs are moving toward the stateless ideal type known as a metanational. Because considerable central authority remains, we call the emerging model the meta-MNE and use the dynamic capabilities framework to analyze this phenomenon. Strong dynamic capabilities, including asset orchestration, are necessary both for the very existence of the meta-MNE and for sustaining its competitive advantage. We draw contrasts between the meta-MNE and the traditional, home-centric MNE. We consider the ways in which nations still matter and the policy implications of the emergence of the meta-MNE. We also discuss recent developments in China that have greatly shaped the environment facing existing and future meta-MNEs.
54 citations
TL;DR: In this paper, the authors use the Dynamic Capabilities framework to analyze the capability of MNEs to shape and adapt to changing environments and find that strong dynamic capabilities, including asset orchestration, are necessary both for the existence of the meta-MNE and for sustaining its competitive advantage.
Abstract: Plain language summary
Today's multinational enterprises (MNEs) exhibit characteristics that have not been discussed very much in previous studies They are stateless in the sense that operations are spread across nations, but also maintain some central authority We call such MNEs ‘meta-MNEs’ and analyze them using the Dynamic Capabilities framework, a key framework in strategic management We find that the capability of MNEs to shape and adapt to changing environments is necessary for the emergence and success of the meta-MNE We also discuss prospects for meta-MNEs in the context of China
Technical summary
Established theories of the multinational enterprise (MNE) were created for a different, less globally competitive world Today's MNEs are moving toward the stateless ideal type known as a metanational Because considerable central authority remains, we call the emerging model the meta-MNE and use the Dynamic Capabilities framework to analyze this phenomenon Strong dynamic capabilities, including asset orchestration, are necessary both for the very existence of the meta-MNE and for sustaining its competitive advantage We draw contrasts between the meta-MNE and the traditional, home-centric MNE We consider the ways in which nations still matter and the policy implications of the emergence of the meta-MNE We also discuss recent developments in China that have greatly shaped the environment facing existing and future meta-MNEs Copyright © 2016 Strategic Management Society
45 citations
TL;DR: In this paper, a developmental industrial strategy that aims to help capture for the nation state co-created value hence foster the strategic SCA of the nation, by leveraging dynamic organizational capabilities is proposed.
Abstract: Economics and management literatures fail to properly articulate the interrelationship between enterprise-level appropriability/value capture strategies and the acquisition and sustainability of economy-wide co-created value. We propose a developmental industrial strategy that aims to help capture for the nation state co-created value hence foster the strategic SCA of the nation, by leveraging dynamic organizational capabilities.
TL;DR: In this article, the authors discuss a number of conceptual and pragmatic problems with the SSPPU doctrine, including concerns about the fact that the smallest saleable patent practicing unit (SSPPU) may be a component that accounts for only a small fraction of the value of the overall infringing product.
Abstract: We discuss the recently developed court-originated legal doctrine that patent infringement damages should use as the damages base the selling price of the “smallest saleable patent practicing unit” (SSPPU). The doctrine appears to have been motivated by concerns that using a broader damages base risks overcompensating patent holders by basing damages on product features the patent holder did not invent. We note that very few real-world licenses use the SSPPU as the royalty base. We discuss a number of conceptual and pragmatic problems with the SSPPU doctrine, including concerns about the fact that the SSPPU may be a component that accounts for only a small fraction of the value of the overall infringing product. In a recent controversial change to its IP policy, the IEEE-SA recently endorsed basing royalties for standards-essential patents on the “smallest saleable compliant Implementation” of the relevant IEEE-SA standard. The most recent appellate court decision on the subject has rejected a categorical rule requiring the use of the SSPPU.
TL;DR: The guest editors to the special issue on dynamic capabilities are Asta Pundziene, Asta and David J Teece, David J.
Abstract: Author(s): Pundziene, Asta; Teece, David J | Abstract: An introduction by the guest editors to the special issue on dynamic capabilities.
TL;DR: In order to begin developing a base of paying licensees in the context of widespread infringement, IP owners must sometimes significantly discount licensing terms in their early negotiations with a view that successful licenses, even at a relatively low price, will deliver value by buttressing the credibility of the IP, provide a source of cash to fund subsequent enforcement actions, and (perhaps) clarify the boundaries of IP rights.
Abstract: In order to begin developing a base of paying licensees in the context of widespread infringement, IP owners must sometimes significantly discount licensing terms in their early negotiations – with a view that successful licenses, even at a relatively low price, will deliver value by buttressing the credibility of the IP, provide a source of cash to fund subsequent enforcement actions, and (perhaps) clarify the boundaries of the IP rights. Fuzzy IP rights and contracting difficulties pose interesting licensing and damages issues in the context of widespread infringement.
TL;DR: In this article, the authors show that Lemley and Shapiro's proposal is not "best practices" for any standards-setting organization and suffers from a number of practical and conceptual problems.
Abstract: We respond to a recent proposal by Profs. Lemley and Shapiro for compulsory binding final-offer (baseball-style) arbitration for disputes over licensing FRAND-commited standards-essential patents. We demonstrate that, contrary to their suggestions, their proposal is not "best practices" for any standards-setting organization and suffers from a number of practical and conceptual problems.
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TL;DR: In this article, the authors compare and contrast strategic decisions and leadership propensities of chancellors at UC Berkeley and presidents at Stanford University and suggest that the presence of leaders who marry strategic thinking and capabilities development enhance the likelihood of a university's competitive fitness and long-term survival.
Abstract: This study explores relationships between campus leadership and the organizational-level dynamic capabilities that underpin the management of research universities. Our observations suggest that the presence of leaders who marry strategic thinking and capabilities development enhance the likelihood of a university’s competitive fitness and long-term survival. We compare and contrast strategic decisions and leadership propensities of chancellors at UC Berkeley and presidents at Stanford University. Our findings help explain why Stanford has advanced vis-a-vis Berkeley and hint at the challenges and opportunities facing Berkeley chancellors. We also suggest that it is timely for university presidents to begin to manage proactively the university and, to the extent possible, its innovation ecosystem to increase the chances that their institutions will continue to prosper in an increasingly competitive environment that is also exposed to uncertainty and change.