Firm Resources and Sustained Competitive Advantage

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 examines the nature of the core capabilities of a firm, focusing in particular on their interaction with new product and process development projects. Two new concepts about core capabilities are explored here. First, while core capabilities are traditionally treated as clusters of distinct technical systems, skills, and managerial systems, these dimensions of capabilities are deeply rooted in values, which constitute an often overlooked but critical fourth dimension. Second, traditional core capabilities have a down side that inhibits innovation, here called core rigidities. Managers of new product and process development projects thus face a paradox: how to take advantage of core capabilities without being hampered by their dysfunctional flip side. Such projects play an important role in emerging strategies by highlighting the need for change and leading the way. Twenty case studies of new product and process development projects in five firms provide illustrative data.

https://www.jstor.org/stable/pdfplus/2486355.pdf

Core capabilities and core rigidities: a paradox in managing new product development

This paper combines the concept of weak ties from social network research and the notion of complex knowledge to explain the role of weak ties in sharing knowledge across organization subunits in a...

The Search-Transfer Problem: The Role of Weak Ties in Sharing Knowledge across Organization Subunits.

Chapter 1: The functional source of innovation general patterns economic explanation shifting and predicting the sources of innovation innovation as a distributed process. Chapter 2: Users as innovators. Chapter 3: Variations in the functional source of innovation. Chapter 4: Why does the functional source of innovation vary? How do innovators benefit from innovations? Do benefit expectations differ? Chapter 5: The hypothesis in testable form methods five empirical studies discussion. Chapter 6: Shifting the functional source of innovation. Chapter 7: Root of the problem: market research constrained by user experience Lead users as a solution testing the method discussion. Chapter 8: Innovation cooperation between competing firms applications for innovation management.

The sources of innovation

Massachusetts General Hospital: CABG Surgery (A)

Computer-aided modeling for managers

Scharffen Berger Chocolate Maker (A)

La competencia y la función de fabricación

The tremendous increase in international business over the past decade has required a substantial number of corporations to deal with the risks arising from fluctuations in currency values. To do this, corporate treasurers have developed a number of decision rules to guide them in hedging against these risks. Based on the author9s experience with many financial officers involved in conducting these activities, several major alternative decision rules have been identified. Using decision theory as a reference point, this article discusses these practices in terms of their benefits and costs to the firm. A description of how many of the practical problems can be handled with decision theory and some suggested changes in corporate control procedures in this area are provided.

http://cmr.ucpress.edu/content/ucpcmr/17/4/41.full.pdf

Steven C. Wheelwright

Papers

Massachusetts General Hospital: CABG Surgery (A)

Computer-aided modeling for managers

Scharffen Berger Chocolate Maker (A)

La competencia y la función de fabricación

Applying Decision Theory to Improve Corporate Management of Currency-Exchange Risks