Dynamic Capabilities and Strategic Management David J. Teece, Gary Pisano and Amy Shuen 1997

Introduction The fundamental question in the field of strategic management is how firms achieve and sustain competitive advantage.

Models of Strategy Emphasizing the Exploitation of Market Power Competitive forces approach Strategic conflict approach Game theory Co-opetition

Models of Strategy Emphasizing Efficiency Resourced-based perspective The dynamic capabilities approach: Overview

Toward A Dynamic Capabilities Framework Terminology: Factors of Production Resources Organizational Routines/Competences Core Competences Dynamic Capabilities The firm’s ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments Products

Toward A Dynamic Capabilities Framework Market and Strategic Capabilities The key of building a conceptual frame work related to dynamic capabilities is to identify the foundations upon which distinctive and difficult to replicate advantages can be built, maintained, and enhanced. Identify what is not strategic(need, unique and difficult to replicate). Fundamental distinctions between markets and internal organization. The properties of internal organization cannot be replicated…

Toward A Dynamic Capabilities Framework Processes, positions, and paths. The competitive advantage of firms lies with its managerial and organizational processes, shaped by its asset position, and the paths available to it.

Toward A Dynamic Capabilities Framework Processes Organizational and managerial processes Learning Coordination/integration

Toward A Dynamic Capabilities Framework Positions Technological assets Financial assets Reputational assets Structural assets Institutional assets Market assets

Toward A Dynamic Capabilities Framework Paths Path dependencies Technological opportunities Assessment

Toward A Dynamic Capabilities Framework Replicability and imitatability of organizational processes and positions Replication Imitation

Conclusion

Conclusion Efficiency vs. market power Normative implication Unit of analysis and analytic focus Strategic change Entry strategies Entry timing Diversification Focus and specialization