Business models and dynamic capabilities
TL;DR: There is a need for future empirical work to flesh out the details of the relationships between business models, dynamic capabilities, and strategy, and studies that provide a better understanding of business model innovation, implementation, and change are needed.
About: This article is published in Long Range Planning.The article was published on 2017-07-01 and is currently open access. It has received 1038 citations till now. The article focuses on the topics: Business rule & Component business model.
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TL;DR: It is revealed that digital transformation is an ongoing process of using new digital technologies in everyday organizational life, which recognizes agility as the core mechanism for the strategic renewal of an organization's business model, collaborative approach, and eventually the culture.
760 citations
01 Jan 2019
TL;DR: Tesis de investigación presentada como requisito for optar al titulo de Magister en Administracion MSc. as mentioned in this paper, linea de Investigación: Gestion del Conocimiento y Capacidades Dinamicas.
Abstract: Tesis de investigacion presentada como requisito para optar al titulo de: Magister en Administracion MSc. -- Linea de Investigacion: Gestion del Conocimiento y Capacidades Dinamicas.
614 citations
Cites background from "Business models and dynamic capabil..."
...…en las capacidades dinámicas: Contrastación empírica en Empresas Colombianas Intensivas en uso de conocimiento 6.6 Muestra La literatura sobre capacidades dinámicas advierte la importancia de estudiar este fenómeno en sectores que tienen un alto dinamismo competitivo y tecnológico (Teece, 2018)....
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TL;DR: In this article, the authors examined the differences and similarities among how digitalization influences a company's value creation, proposition and capture, as well as how firms cope with challenges presented by increased digitalization.
Abstract: Increased digitalization has influenced various business activities including companies’ business models (BMs) by enabling various new forms of cooperation between companies and leading to new product and service offerings as well as new forms of company relationships with customers and employees. At the same time, this digitalization has put pressure on companies to reflect on their current strategy and explore new business opportunities systematically and at early stages. While research on digitalization in the context of BMs is now gaining increased attention, a research gap still exists in this field since the number of empirical insights is limited. The paper aims to discuss these issues.,Qualitative empirical data collected from 12 key informants working in two distinctive industries, the media and automotive industries, were collected. An investigation was carried out to examine the differences and similarities among how digitalization influences a company’s value creation, proposition and capture, as well as how firms cope with challenges presented by increased digitalization.,The findings of the study show that, whilst digitalization is generally considered to be important, the value proposition itself as also the position in the value network determine the perceived available options for business model innovation (BMI) by digitalization. Moreover, the organizational capacities and employee competences were identified as future challenges that will be faced by both industries.,The findings of this study have revealed that representatives of the media and automotive industries perceive both the pressures and opportunities of digitalization regarding BMI; its application and exploitation, however, remain challenging. This study contributes to the existing body of knowledge by providing empirical insights in the context of digitalization and BMI.
453 citations
TL;DR: There is limited evidence on the use of DT for dealing with the consequences of extreme events, such as COVID-19, and the managerial implications of using DT within SMEs to deal with the repercussions of CO VID-19 and securing business continuity are discussed.
340 citations
Cites background from "Business models and dynamic capabil..."
...To resolve this issue, dynamic capabilities theory (Teece, Pisano, & Shuen, 1997; Teece, 2007; Teece, Peteraf, & Leih, 2016; Teece, 2018) could explain why SMEs adjust their resources to sustain their competitive advantage in a constantly changing context (Eisenhardt & Martin, 2000)....
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...Therefore, it is through ‘sensing’, ‘seizing’ and ‘orchestrating’ (Teece, 2018) of resources and capabilities that SMEs would need to initiate to secure business continuity in uncertain environments, such as COVID-19....
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01 Oct 2020
TL;DR: In this article, the authors analyzed how small and medium enterprises cope with environmental changes due to the COVID-19 pandemic by pursuing the business model transformation with the support of digital technologies.
Abstract: The objective of this study was to analyze how small and medium enterprises (SMEs) cope with environmental changes due to the COVID-19 pandemic by pursuing the business model transformation with the support of digital technologies. To achieve the objective, this study used a multiple case study design with qualitative analysis to examine the data obtained from interviews, observation, and field visits. Seven manufacturing SMEs from Indonesia were selected using a theoretical sampling technique, with the purpose of achieving some degree of variation to allow us to undertake replication logic. Our analysis demonstrates that SMEs adopt a different degree of digital transformations, which can be summarized into three paths, depending on the firms’ contextual factors. First, SMEs with a high level of digital maturity who respond to the challenges by accelerating the transition toward digitalized firms; second, SMEs experiencing liquidity issues but a low level of digital maturity who decide to digitalize the sales function only; and, third, the SMEs that have very limited digital literacy but are supported by a high level of social capital. This last group of firms solves the challenges by finding partners who possess excellent digital capabilities. The qualitative case study method allows us to conduct in-depth and detailed analysis, but has thin generalizability. To address this limitation, future research can use a survey covering various industries to test the proposed theory that has resulted from this study, so that the generalizability can be assured.
250 citations
References
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TL;DR: In this article, the authors examined the link between firm resources and sustained competitive advantage and analyzed the potential of several firm resources for generating sustained competitive advantages, including value, rareness, imitability, and substitutability.
46,648 citations
"Business models and dynamic capabil..." refers background in this paper
...While the resource-based viewof the firm focuses on the bringing together of assets that meet the four key criteria defined by Barney (1991) for resources and capabilities that can support durable competitive advantagedvaluable, rare, imperfectly imitable, and non-substitutable (VRIN)dthis is only…...
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TL;DR: The dynamic capabilities framework as mentioned in this paper analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change, and suggests that private wealth creation in regimes of rapid technology change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm.
Abstract: 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.
27,902 citations
"Business models and dynamic capabil..." refers background in this paper
...Dynamic capabilities, which are underpinned by organizational routines and managerial skills, are the firm's ability to integrate, build, and reconfigure internal competences to address, or in some cases to bring about, changes in the business environment (Teece et al., 1997; Teece, 2007)....
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TL;DR: Seeks to present a better understanding of dynamic capabilities and the resource-based view of the firm to help managers build using these dynamic capabilities.
Abstract: 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.
13,128 citations
TL;DR: In this paper, the authors draw on the social and behavioral sciences in an endeavor to specify the nature and microfoundations of the capabilities necessary to sustain superior enterprise performance in an open economy with rapid innovation and globally dispersed sources of invention, innovation, and manufacturing capability.
Abstract: This paper draws on the social and behavioral sciences in an endeavor to specify the nature and microfoundations of the capabilities necessary to sustain superior enterprise performance in an open economy with rapid innovation and globally dispersed sources of invention, innovation, and manufacturing capability. Dynamic capabilities enable business enterprises to create, deploy, and protect the intangible assets that support superior long- run business performance. The microfoundations of dynamic capabilities—the distinct skills, processes, procedures, organizational structures, decision rules, and disciplines—which undergird enterprise-level sensing, seizing, and reconfiguring capacities are difficult to develop and deploy. Enterprises with strong dynamic capabilities are intensely entrepreneurial. They not only adapt to business ecosystems, but also shape them through innovation and through collaboration with other enterprises, entities, and institutions. The framework advanced can help scholars understand the foundations of long-run enterprise success while helping managers delineate relevant strategic considerations and the priorities they must adopt to enhance enterprise performance and escape the zero profit tendency associated with operating in markets open to global competition. Copyright 2007 John Wiley & Sons, Ltd.
9,400 citations
"Business models and dynamic capabil..." refers background in this paper
...Dynamic capabilities, which are underpinned by organizational routines and managerial skills, are the firm's ability to integrate, build, and reconfigure internal competences to address, or in some cases to bring about, changes in the business environment (Teece et al., 1997; Teece, 2007)....
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...Above these are a layer of dynamic capabilities, which can be divided into “microfoundations” and higher-order capabilities (Teece, 2007)....
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TL;DR: In this article, the authors explain why innovating firms often fail to obtain significant economic returns from an innovation, while customers, imitators and other industry participants be- nefit.
7,020 citations