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

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. 

Uncommon methods and metrics for local entrepreneurial ecosystems

The following sections are included:IntroductionWhat's Special about Virtual?Types of InnovationThe Case of Industry StandardsThe IBM PC: Virtual Successor or Failure?The Virtuous VirtualsChoosing the Right Organizational DesignScale and Scope

When is Virtual Virtuous? Organizing for Innovation

Human resource management strategy and practice: from individual motivation to dynamic capabilities

Special Issue of Strategic Organization: “Strategic Management Theory and Universities”

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.

David J. Teece

Papers

Uncommon methods and metrics for local entrepreneurial ecosystems

When is Virtual Virtuous? Organizing for Innovation

Human resource management strategy and practice: from individual motivation to dynamic capabilities

Special Issue of Strategic Organization: “Strategic Management Theory and Universities”

Patent Enforcement in an Uncertain World: Widespread Infringement and the Paradox of Value for Patented Technologies