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 firm's (specific) asset positions (such as the firm's portfolio of difftcult-to- trade knowledge assets and complementary assets), and the evolution path(s) it has aflopted or inherited. The importance of path dependencies is amplified where conditions of increasing retums exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding intemally) 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 intemal 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 rival's costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.

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Dynamic capabilities and strategic management

This paper focuses on dynamic capabilities and, more generally, the resource-based view of the firm. We argue that dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making, and alliancing. They are neither vague nor tautological. Although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence, they have significant commonalities across firms (popularly termed ‘best practice’). This suggests that they are more homogeneous, fungible, equifinal, and substitutable than is usually assumed. In moderately dynamic markets, dynamic capabilities resemble the traditional conception of routines. They are detailed, analytic, stable processes with predictable outcomes. In contrast, in high-velocity markets, they are simple, highly experiential and fragile processes with unpredictable outcomes. Finally, well-known learning mechanisms guide the evolution of dynamic capabilities. In moderately dynamic markets, the evolutionary emphasis is on variation. In high-velocity markets, it is on selection. At the level of RBV, we conclude that traditional RBV misidentifies the locus of long-term competitive advantage in dynamic markets, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high-velocity markets. Copyright © 2000 John Wiley & Sons, Ltd.

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Dynamic capabilities, what are they?

Marketing inherited a model of exchange from economics, which had a dominant logic based on the exchange of “goods,” which usually are manufactured output The dominant logic focused on tangible resources, embedded value, and transactions Over the past several decades, new perspectives have emerged that have a revised logic focused on intangible resources, the cocreation of value, and relationships The authors believe that the new perspectives are converging to form a new dominant logic for marketing, one in which service provision rather than goods is fundamental to economic exchange The authors explore this evolving logic and the corresponding shift in perspective for marketing scholars, marketing practitioners, and marketing educators

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Evolving to a New Dominant Logic for Marketing

Given assumptions about the characteristics of knowledge and the knowledge requirements of production, the firm is conceptualized as an institution for integrating knowledge. The primary contribution of the paper is in exploring the coordination mechanisms through which firms integrate the specialist knowledge of their members. In contrast to earlier literature, knowledge is viewed as residing within the individual, and the primary role of the organization is knowledge application rather than knowledge creation. The resulting theory has implications for the basis of organizational capability, the principles of organization design (in particular, the analysis of hierarchy and the distribution of decision-making authority), and the determinants of the horizontal and vertical boundaries of the firm. More generally, the knowledge-based approach sheds new light upon current organizational innovations and trends and has far-reaching implications for management practice.

https://memberfiles.freewebs.com/84/90/65819084/documents/TOWARD%20A%20KNOWLEDGE-BASED%20THEORY%20OF%20THE.pdf

Toward a Knowledge-Based Theory of the Firm

In this article we offer a view that suggests that a firm's critical resources may span firm boundaries and may be embedded in interfirm resources and routines. We argue that an increasingly important unit of analysis for understanding competitive advantage is the relationship between firms and identify four potential sources of interorganizational competitive advantage: (1) relation-specific assets, (2) knowledge-sharing routines, (3) complementary resources/capabilities, and (4) effective governance. We examine each of these potential sources of rent in detail, identifying key subprocesses, and also discuss the isolating mechanisms that serve to preserve relational rents. Finally, we discuss how the relational view may offer normative prescriptions for firm-level strategies that contradict the prescriptions offered by those with a resource-based view or industry structure view.

https://www.jstor.org/stable/pdfplus/259056.pdf

The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage

Much has been written about university–industry partnerships, but relatively little research has focused on the effects of such collaboration on conflict among university departments or on broader types of entrepreneurial behavior involving local, regional, and even global initiatives. This broader perspective, which we call “campus entrepreneurship,” offers more avenues for universities to establish a foundation for long‐term success at a time when public support for higher education appears to be in decline. The dynamic capabilities framework and leadership theory developed in the fields of strategic management and organizational behavior, respectively, are applied herein to provide guidance to university leaders seeking to embrace a comprehensive multifaceted entrepreneurial approach to campus priorities and activities.

Managing campus entrepreneurship: Dynamic capabilities and university leadership

The following sections are included:EXTERNAL SOURCING OF R&DInternational Strategic AlliancesPrecommercial Research ConsortiaUniversity-Industry Research CollaborationCONCLUSIONNotesReferences

Strategic Alliances And Industrial Research

This article is based on the proceedings of a leadership seminar held at University of California, Berkeley on November 17, 2003. As an introduction to the topic, this article first discusses some of the central issues in the field of leadership, some internal tensions in the field, and the relationship between leadership theory and practice. The seminar brought together four distinguished scholars and business leaders to converse about leadership, not only from the perspectives of the different experiences the participants have in business, foundation, and academic institutions, but also with respect to issues such as: What is laudable and what is despicable leadership? What is the role of leadership in business school research and curriculum? What is the relation between leaders and managers? How does governance temper leadership? The panelists were: John Reed, known for his long-term leadership role as CEO of CitiCorp (and most recently as interim chairman and CEO of NYSE); Eric Wanner, President of the Russell Sage Foundation; Professor James March, Stanford University; and Professor David Teece, University of California, Berkeley.

Reflections on (Schumpeterian) Leadership: A Report on a Seminar on Leadership and Management Education

This book examines the manner in which successful firms develop, transfer, protect, and capture value from technological innovation. In essence, it is about “knowledge management”, which lies at the foundation of firm level competitive advantage in today's global economy. The essays contain some of the fundamental contributions to the field of knowledge management by one of its best-known thinkers; they also constitute an immensely practical guide for those managers who wish to look below the surface of what is going on in Silicon Valley and elsewhere.

Essays in Technology Management and Policy: Selected Papers of David J Teece

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.

David J. Teece

Papers

Managing campus entrepreneurship: Dynamic capabilities and university leadership

Strategic Alliances And Industrial Research

Reflections on (Schumpeterian) Leadership: A Report on a Seminar on Leadership and Management Education

Essays in Technology Management and Policy: Selected Papers of David J Teece

Strategic Talent Management: Managing expert talent