Showing papers by "David J. Teece published in 2022"

A wider‐aperture lens for global strategic management: The multinational enterprise in a bifurcated global economy

Abstract: Research Summary The growth of China and President Xi's policies have transformed the global economy in ways that global strategy and international business (IB) scholars have yet to reflect fully in their research. The global economy is increasingly bifurcated between a China-centered authoritarian system and a market-oriented democratic system, generating complications and perils largely unknown since the end of the Cold War. The global business environment now bears faint resemblance to existing models in IB. To properly analyze the new reality, global strategy and IB scholars need to adopt a wider-aperture, systems-theoretic view that will require the cross-fertilization of ideas and collaboration with other disciplines such as international political economy. This engagement will allow the development of more broadly based frameworks, theories, and models that can assist decision makers in the private and public sectors. Managerial Summary Strategic rivalry between China and the West requires managers to face a new reckoning. China remains the world's factory, but it has a tenuous relationship to even-handed rules of law, both domestically and internationally. China leverages access to its market and has aligned with other autocratic countries to reshape the world order. Many firms have straddled the divide and tried to play by two sets of rules. This is not viable longer term. The strategic decisions of Western firms, particularly those involved with advanced and, especially, dual-use technologies, are consequential to the future of democracy. A systemic view of the long-term health of the enterprise may reveal the need to choose. Choosing democracy means, at minimum, guarding intellectual property, enhancing organizational capabilities, coordinating with peers, and protecting national security.

Value Impedance and Dynamic Capabilities: The Case of MedTech Incumbent-Born Digital Healthcare Platforms

Abstract: During the last decade, MedTech companies started to invest in building digital healthcare platforms to maintain their competitiveness in the Digital Economy. However, launching a new digital platform business revealed several challenges that MedTech incumbents must overcome, including value impedance. This is caused by digital transformation gaps, which, when left unmanaged, can stall digital healthcare platforms’ growth and even lead to their demise. This article distills four dynamic capabilities: sensing the internal environment, value-capturing through connectedness, orchestrating silos, and transforming organizational boundaries. These mitigate value impedance and bestow competitive advantage to MedTech incumbents’ digital platform business.

Dynamic capabilities and governance: An empirical investigation of financial performance of the higher education sector

Abstract: Research Summary We postulate that resource allocation decisions consistent with dynamic capabilities can improve financial performance, but that governance moderates the relationship between resource allocation flexibility and financial performance. Using more than a decade of data on US public universities, we find that flexibility has much more impact when matched by lower levels of governance that allow greater expenditure autonomy for university executives and administrators. Managerial Summary Organizations are increasingly subject to conflicting demands imposed by their institutional environments. Given the importance of governance arrangements, we apply strategic management concepts to public universities and investigate the effect of external governance arrangements on university performance. We show that universities that reallocate resources more regularly are more likely to run larger budget surpluses. This is far more likely to be true at universities where external governance arrangements allow greater executive discretion.

Uncommon methods and metrics for local entrepreneurial ecosystems

Abstract: Scholars are always searching for better data, new models and novel theories. This special issue presents new empirical approaches for studying local entrepreneurial ecosystems. Our objective is to provide insights into the state of the art of the new methodologies and uncommon data to study the dynamics and functioning of local entrepreneurial ecosystems. ‘Uncommon data’ refers to curated data from digital sources, with bespoke indicators derived from social media and interpretations derived from observation. The papers propose new methods and measures and draw upon a wide variety of empirical evidence, from large sample analyses of archival data to detailed qualitative investigations. The authors outline the need for multidisciplinary approaches and dynamic research designs that incorporate firm-level dynamics as a key dimension of entrepreneurial ecosystems. Taken together, the papers provide important insights into the major issues facing policymakers and researchers of entrepreneurship.

Managing Multi-Sided Platforms: Platform Origins and Go-to-Market Strategy

Abstract: Multi-sided platforms (MSPs) are becoming increasingly important in contemporary economies. This special issue of California Management Review aims to stimulate collective discussion among researchers and practitioners on advancing diverse types of MSPs and on better understanding their future development. This article analyzes five contributions to this special issue and explores the growth trajectories of MSPs. There are three types of platforms: born-platform, platform-born adjacent, and incumbent-born. And they rely respectively on three market entry strategies: market creation, market broadening, and market deepening. This article also spotlights the coopetition dynamics of the platforms.

Strategy Dynamics and the Theory of the Firm: Homage to Richard Rumelt

Abstract: Richard Rumelt helped pioneer many key ideas in the field of strategic management, including how the ownership of unique bundles of resources determines competitive outcomes, how isolating mechanisms protect rent streams, and how entrepreneurship drives the firm’s choices of markets and resources. He chose not to build these insights into an integrated framework. However, his perspective on strategy and his emphasis on coherent actions for the firm is both complementary to and connected with the concept of organizational capabilities. The dynamic capabilities framework builds on Rumelt’s work and can serve as a basis for advancing the strategic theory of the firm on which Rumelt began work in the 1980s.