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.

/pdf/dynamic-capabilities-and-strategic-management-4iyi34iyh6.pdf

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.

/pdf/dynamic-capabilities-what-are-they-3cn0mb9rpo.pdf

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

/pdf/evolving-to-a-new-dominant-logic-for-marketing-bnlxqi06a2.pdf

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

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.

/pdf/on-the-smallest-saleable-patent-practicing-unit-doctrine-an-3pn983unvk.pdf

On the 'Smallest Saleable Patent Practicing Unit' Doctrine: An Economic and Public Policy Analysis

This work provides a collection of Teece's most important writings in the related areas of strategy and technology and their implications for public policy. Among the key topics addressed are: technology and technology transfer; antitrust issues; regulation and deregulation; and technology policy.

Strategy, technology, and public policy

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-

/pdf/competencies-capabilities-and-the-neo-schumpeterian-3e34io0xix.pdf

Competencies, Capabilities and the Neo-Schumpeterian Tradition

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.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2603751_code785949.pdf?abstractid=2603751&mirid=1

Patents and 'Patent Wars' in Wireless Communications: An Economic Assessment

https://journals.sagepub.com/doi/pdf/10.1177/01492063221082555

David J. Teece

Papers

On the 'Smallest Saleable Patent Practicing Unit' Doctrine: An Economic and Public Policy Analysis

Strategy, technology, and public policy

Competencies, Capabilities and the Neo-Schumpeterian Tradition

Patents and 'Patent Wars' in Wireless Communications: An Economic Assessment

Bringing the Manager Back Into Management Scholarship