Dynamic Capabilities (dynamic + capability)

Distribution by Scientific Domains
Distribution within Business, Economics, Finance and Accounting


Selected Abstracts


Identifying, Enabling and Managing Dynamic Capabilities in the Public Sector*

JOURNAL OF MANAGEMENT STUDIES, Issue 5 2007
Amy L. Pablo
abstract In this paper, we examine how a public sector organization developed a new strategic approach based on the identification and use of an internal dynamic capability (learning through experimenting). In response to the need for continual performance improvement in spite of reduced financial resources, this organization engaged in three overlapping phases as they shifted to this strategic approach. First, managers identified appropriate latent dynamic capabilities. Next, they used their leadership skills and built on established levels of trust to enable the use of these dynamic capabilities. Finally, they managed the tension between unrestricted development of local initiatives and organizational needs for guidance and control. [source]


Dynamic Capabilities: Current Debates and Future Directions

BRITISH JOURNAL OF MANAGEMENT, Issue 2009
Mark Easterby-Smith
The field of dynamic capabilities has developed very rapidly over the last ten years. In this paper we discuss the evolution of the concept, and identify two major current debates around the nature of dynamic capabilities and their consequences. We then review recent progress as background to identifying the contributions of the seven papers in this special issue, and discuss the relative merits of qualitative and quantitative studies for investigating dynamic capabilities. We conclude with recommendations for future research arguing for more longitudinal studies which can examine the processes of dynamic abilities over time, and for studies in diverse industries and national contexts. [source]


Dynamic Capabilities: An Exploration of How Firms Renew their Resource Base

BRITISH JOURNAL OF MANAGEMENT, Issue 2009
Véronique Ambrosini
The aim of this paper is to extend the concept of dynamic capabilities. Building on prior research, we suggest that there are three levels of dynamic capabilities which are related to managers' perceptions of environmental dynamism. At the first level we find incremental dynamic capabilities: those capabilities concerned with the continuous improvement of the firm's resource base. At the second level are renewing dynamic capabilities, those that refresh, adapt and augment the resource base. These two levels are usually conceived as one and represent what the literature refers to as dynamic capabilities. At the third level are regenerative dynamic capabilities, which impact, not on the firm's resource base, but on its current set of dynamic capabilities, i.e. these change the way the firm changes its resource base. We explore the three levels using illustrative examples and conclude that regenerative dynamic capabilities may either come from inside the firm or enter the firm from outside, via changes in leadership or the intervention of external change agents. [source]


A General Dynamic Capability: Does it Propagate Business and Social Competencies in the Retail Food Industry?*

JOURNAL OF MANAGEMENT STUDIES, Issue 1 2006
Alfred A. Marcus
abstract Given that firms have both business and social goals, an important unanswered question is whether a general dynamic capability breeds competencies in both these areas. In studies of the US retail food industry, we find that while a general dynamic capability affects firms' competence in supply chain management (a business competency), it does not affect their competence in environmental management (a social competency). Firm mission and the extent to which firms obtain technical assistance are found to affect the acquisition of this latter competency. These findings offer insights into the resource-based view (RBV) of the firm and provide lessons for corporate social responsibility. They reveal more precisely what a general dynamic capability yields and how far its reach extends, suggesting that the factors that drive competitive advantage are not the same as those that drive social responsibility. [source]


Organizational Dynamic Capability and Innovation: An Empirical Examination of Internet Firms

JOURNAL OF SMALL BUSINESS MANAGEMENT, Issue 3 2009
Jianwen (Jon) Liao
This paper extends the dynamic capability perspective into the study of innovation by entrepreneurial firms. Drawing from both the resource-based view and the dynamic capability perspective, this paper explores theoretically and examines empirically the different roles played by a firm's resource stock (endowment of resources and capabilities) and its integrative capabilities (ability to recognize opportunities as well as to configure and deploy resources) in the process of firm innovation. Our structural equation modeling results, based on a sample of 120 Internet-based companies, indicate that both the firm's resource stock and integrative capabilities affect its innovation. Additionally, we also found that the relationship between resource stock and innovation is mediated by integrative capabilities. That is, merely possessing well-endowed resource stock per se is not sufficient for innovation. Thus, it is the firm's ability to mobilize its resources and capabilities and align them dynamically with the changing opportunities in the environment that is of vital importance as the firm constantly innovates to survive and create its own competitive advantage. In the hypercompetitive and fast changing Internet-based environment, such a need for dynamic capabilities is especially accentuated. Implications and suggestions for future research are provided. [source]


Major Innovation as a Dynamic Capability: A Systems Approach,

THE JOURNAL OF PRODUCT INNOVATION MANAGEMENT, Issue 4 2008
Gina Colarelli O'Connor
Major innovation (MI), composed of both radical and really new innovation, is an important mechanism for enabling the growth and renewal of an enterprise. Yet it is poorly managed in most established firms, and success stories are rare. This conceptual article draws on systems theory, recent advances in dynamic capabilities theory, and the management of innovation literature to offer a framework for building an MI dynamic capability. The framework is composed of seven elements that together form a management system rather than a process-based approach to nurturing radical innovation. These system elements are (1) an identifiable organization structure; (2) interface mechanisms with the mainstream organization, some of which are tightly coupled and others of which are loose; (3) exploratory processes; (4) requisite skills and talent development, given that entrepreneurial talent is not present in most organizations; (5) governance and decision-making mechanisms at the project, MI portfolio, and MI system levels; (6) appropriate performance metrics; and (7) an appropriate culture and leadership context. It is argued that dynamic capabilities for phenomena as complex as MI must be considered in a systems fashion rather than as operating routines and repeatable processes as the literature currently suggests. A set of propositions is offered regarding how each element should play out in this parallel management system. Finally, each element's role in the major innovation system is justified in terms of four criteria required by systems theory: (1) The system is identifiable, and its elements are interdependent; (2) the effect of the whole is greater than the sum of the parts; (3) homeostasis is achieved through interaction and networking with the larger organization; and (4) there is a clear purpose in the larger system in which the MI management system is embedded. Examples are given to demonstrate these criteria. Systems theory offers a new way of thinking about dynamic capability development and management. [source]


Dynamic capabilities: A review and research agenda

INTERNATIONAL JOURNAL OF MANAGEMENT REVIEWS, Issue 1 2007
Catherine L. Wang
The notion of dynamic capabilities complements the premise of the resource-based view of the firm, and has injected new vigour into empirical research in the last decade. Nonetheless, several issues surrounding its conceptualization remain ambivalent. In light of empirical advancement, this paper aims to clarify the concept of dynamic capabilities, and then identify three component factors which reflect the common features of dynamic capabilities across firms and which may be adopted and further developed into a measurement construct in future research. Further, a research model is developed encompassing antecedents and consequences of dynamic capabilities in an integrated framework. Suggestions for future research and managerial implications are also discussed. [source]


Dynamic capabilities in early-phase entrepreneurship

KNOWLEDGE AND PROCESS MANAGEMENT: THE JOURNAL OF CORPORATE TRANSFORMATION, Issue 3 2006
Paolo Boccardelli
The dynamic capabilities perspective has received increasing attention in the field of strategic management research. By focusing not only on the competitive advantage that is provided by a certain resource constellation, but also on the change of firms' resources over time to fit changing business environments, this perspective underlines the strategic importance of innovation. Despite the apparent interest in the dynamics of firm resources, there is still limited empirical evidence for how the strategic matching of resources and market needs is actually done, particularly in more rapidly changing environments. In order to investigate this process, an empirical study of 59 start-ups in the Swedish mobile Internet industry was performed. A first finding from the study is that start-ups which change market focus have a significantly higher probability to survive their first years. Furthermore, it is seen that in most cases, the change in market focus takes place without any related change in the technological resources that are used by the firm, indicating that an important factor at this stage is the flexible use of resources in searching for a suitable match between resources and market opportunities. This mode of learning and adaptation is very different from earlier proposed models focusing on the acquisition and transformation of resources. Instead, the early-stage dynamic capabilities reveal themselves as bricolage, that is, the capacity to re-interpret and re-combine already existing resources and thereby improve their fit with the demands of the market environment. The results suggest that earlier proposed dynamic capabilities frameworks need to be modified, by taking into account the single entrepreneur as a source of dynamic capabilities, and by introducing the concept of resource flexibility. In terms of managerial implications, the findings underline the importance for entrepreneurs to balance the striving for distinctive capabilities that provide competitive advantage and the experimentation and improvisation needed to adapt to changes in the market. Copyright © 2006 John Wiley & Sons, Ltd. [source]


Technology-Based New Product Development Partnerships,

DECISION SCIENCES, Issue 2 2006
John E. Ettlie
ABSTRACT Hypotheses were developed to capture the dynamic capabilities that result from interfirm partnerships during the joint new product development (NPD) process,the ability to build, integrate, and reconfigure existing resources to adapt to rapidly changing environments. These capabilities, in turn, were proposed to have a positive impact on NPD performance outcomes: (a) proportion of new product success and (b) superior new product commercialization. In contexts where the locus of innovation is rapidly changing, the impact of interfirm NPD dynamic capabilities was hypothesized to be diminished in high-technology contexts, especially for buyers (original equipment manufacturers) and to a lesser extent for suppliers. Still, technology-based interfirm NPD partnerships were predicted to ultimately outperform low-technology ones in both NPD performance outcomes. Finally, information technology (IT) support for NPD was hypothesized to influence the interfirm NPD partnership's dynamic capabilities. Using survey data from 72 auto company managers and their suppliers, the proposed model in which IT support for NPD influences the success of interfirm NPD partnerships through the mediating role of interfirm NPD partnership dynamic capabilities in high- and low-technology contexts was generally supported. The results shed light on the nature of technology-based interfirm NPD partnerships and have implications for their success. Theoretical and managerial implications are discussed. [source]


What are dynamic capabilities and are they a useful construct in strategic management?

INTERNATIONAL JOURNAL OF MANAGEMENT REVIEWS, Issue 1 2009
Véronique Ambrosini
The dynamic capability perspective extends the resource-based view argument by addressing how valuable, rare, difficult to imitate and imperfectly substitutable resources can be created and how the current stock of valuable resources can be refreshed in changing environments. The concept of dynamic capabilities emerged in the 1990s, and the field has advanced considerably since. This paper presents a review as well as a synthesis of the extant literature. This synthesis first highlights, that dynamic capabilities are shaped by enabling and inhibiting variables within and outside the firm, including the perceptions and motivations of managers; secondly, it identifies processes that create dynamic capabilities; and thirdly, it explains that dynamic capabilities do not automatically lead to performance improvements. Finally, the paper addresses some areas of confusion and contradiction that hamper the development of the literature. [source]


Dynamic capabilities: A review and research agenda

INTERNATIONAL JOURNAL OF MANAGEMENT REVIEWS, Issue 1 2007
Catherine L. Wang
The notion of dynamic capabilities complements the premise of the resource-based view of the firm, and has injected new vigour into empirical research in the last decade. Nonetheless, several issues surrounding its conceptualization remain ambivalent. In light of empirical advancement, this paper aims to clarify the concept of dynamic capabilities, and then identify three component factors which reflect the common features of dynamic capabilities across firms and which may be adopted and further developed into a measurement construct in future research. Further, a research model is developed encompassing antecedents and consequences of dynamic capabilities in an integrated framework. Suggestions for future research and managerial implications are also discussed. [source]


Stages of Organizational Transformation in Transition Economies: A Dynamic Capabilities Approach

JOURNAL OF MANAGEMENT STUDIES, Issue 3 2010
Sarah E. A. Dixon
abstract How do organizations previously dominated by the state develop dynamic capabilities that would support their growth in a competitive market economy? We develop a theoretical framework of organizational transformation that explains the processes by which organizations learn and develop dynamic capabilities in transition economies. Specifically, the framework theorizes about the importance of, and inter-relationships between, leadership, organizational learning, dynamic capabilities, and performance over three stages of transformation. Propositions derived from this framework explain the pre-conditions enabling organizational learning, the linkages between types of learning and functions of dynamic capabilities, and the feedback from dynamic capabilities to organizational learning that allows firms in transition economies to regain their footing and build long-term competitive advantage. We focus on transition contexts, where these processes have been magnified and thus offer new insights into strategizing in radically altered environments. [source]


A Capability-Based Framework for Open Innovation: Complementing Absorptive Capacity

JOURNAL OF MANAGEMENT STUDIES, Issue 8 2009
Ulrich Lichtenthaler
abstract We merge research into knowledge management, absorptive capacity, and dynamic capabilities to arrive at an integrative perspective, which considers knowledge exploration, retention, and exploitation inside and outside a firm's boundaries. By complementing the concept of absorptive capacity, we advance towards a capability-based framework for open innovation processes. We identify the following six ,knowledge capacities' as a firm's critical capabilities of managing internal and external knowledge in open innovation processes: inventive, absorptive, transformative, connective, innovative, and desorptive capacity. ,Knowledge management capacity' is a dynamic capability, which reconfigures and realigns the knowledge capacities. It refers to a firm's ability to successfully manage its knowledge base over time. The concept may be regarded as a framework for open innovation, as a complement to absorptive capacity, and as a move towards understanding dynamic capabilities for managing knowledge. On this basis, it contributes to explaining interfirm heterogeneity in knowledge and alliance strategies, organizational boundaries, and innovation performance. [source]


Identifying, Enabling and Managing Dynamic Capabilities in the Public Sector*

JOURNAL OF MANAGEMENT STUDIES, Issue 5 2007
Amy L. Pablo
abstract In this paper, we examine how a public sector organization developed a new strategic approach based on the identification and use of an internal dynamic capability (learning through experimenting). In response to the need for continual performance improvement in spite of reduced financial resources, this organization engaged in three overlapping phases as they shifted to this strategic approach. First, managers identified appropriate latent dynamic capabilities. Next, they used their leadership skills and built on established levels of trust to enable the use of these dynamic capabilities. Finally, they managed the tension between unrestricted development of local initiatives and organizational needs for guidance and control. [source]


Role of Knowledge in Value Creation in Business Nets*

JOURNAL OF MANAGEMENT STUDIES, Issue 5 2006
Kristian Möller
abstract This paper focuses on the role of knowledge in intentionally created business networks called nets. Nets are seen to offer firms collective benefits beyond those of a single firm or market transaction. We propose that the types of knowledge and learning required in the management of different types of business net are dependent on the value creation characteristics of the net types. Based on this we suggest a classification of three generic net types ,,current business nets', ,business renewal nets', and ,emerging new business nets', and argue that they pose different conditions for management in nets. Using this framework and integrating notions from the industrial network approach, strategic management and dynamic capabilities view, and organizational learning we make a number of observations and propositions about the role of knowledge and learning in the three types of business net. The paper contributes to the emerging theory of network management. [source]


Organizational Dynamic Capability and Innovation: An Empirical Examination of Internet Firms

JOURNAL OF SMALL BUSINESS MANAGEMENT, Issue 3 2009
Jianwen (Jon) Liao
This paper extends the dynamic capability perspective into the study of innovation by entrepreneurial firms. Drawing from both the resource-based view and the dynamic capability perspective, this paper explores theoretically and examines empirically the different roles played by a firm's resource stock (endowment of resources and capabilities) and its integrative capabilities (ability to recognize opportunities as well as to configure and deploy resources) in the process of firm innovation. Our structural equation modeling results, based on a sample of 120 Internet-based companies, indicate that both the firm's resource stock and integrative capabilities affect its innovation. Additionally, we also found that the relationship between resource stock and innovation is mediated by integrative capabilities. That is, merely possessing well-endowed resource stock per se is not sufficient for innovation. Thus, it is the firm's ability to mobilize its resources and capabilities and align them dynamically with the changing opportunities in the environment that is of vital importance as the firm constantly innovates to survive and create its own competitive advantage. In the hypercompetitive and fast changing Internet-based environment, such a need for dynamic capabilities is especially accentuated. Implications and suggestions for future research are provided. [source]


Knowledge exploitation, knowledge exploration, and competency trap

KNOWLEDGE AND PROCESS MANAGEMENT: THE JOURNAL OF CORPORATE TRANSFORMATION, Issue 3 2006
Weiping LiuArticle first published online: 11 AUG 200
It is no surprise that knowledge exploitation and knowledge exploration have become the consistent theme in organizational learning literature. Strategy and organization theorists have similarly observed the dynamic capabilities anchored in a firm's ability to simultaneously exploit current technologies and resources to secure efficiency benefits, and creating variation through exploratory innovation. While some studies argue that excessive exploration or excessive exploitation can lead to a competency trap, the ,competency trap' component actually has received less empirical scrutiny. This paper provides a study about how competency traps are formed in the process of knowledge exploration and exploitation as well as their effects on business performance. The paper includes three main sections: First, the theoretical interpretation of the ,competency trap' construct is broadened by investigating the formation of competency traps based on organizational learning theory; second, factors leading to the formation of different competency traps are identified; and third, the relationship between an organization's competency trap and business performance is investigated. The article ends with a discussion of implications for the organizational learning literature. Copyright © 2006 John Wiley & Sons, Ltd. [source]


Dynamic capabilities in early-phase entrepreneurship

KNOWLEDGE AND PROCESS MANAGEMENT: THE JOURNAL OF CORPORATE TRANSFORMATION, Issue 3 2006
Paolo Boccardelli
The dynamic capabilities perspective has received increasing attention in the field of strategic management research. By focusing not only on the competitive advantage that is provided by a certain resource constellation, but also on the change of firms' resources over time to fit changing business environments, this perspective underlines the strategic importance of innovation. Despite the apparent interest in the dynamics of firm resources, there is still limited empirical evidence for how the strategic matching of resources and market needs is actually done, particularly in more rapidly changing environments. In order to investigate this process, an empirical study of 59 start-ups in the Swedish mobile Internet industry was performed. A first finding from the study is that start-ups which change market focus have a significantly higher probability to survive their first years. Furthermore, it is seen that in most cases, the change in market focus takes place without any related change in the technological resources that are used by the firm, indicating that an important factor at this stage is the flexible use of resources in searching for a suitable match between resources and market opportunities. This mode of learning and adaptation is very different from earlier proposed models focusing on the acquisition and transformation of resources. Instead, the early-stage dynamic capabilities reveal themselves as bricolage, that is, the capacity to re-interpret and re-combine already existing resources and thereby improve their fit with the demands of the market environment. The results suggest that earlier proposed dynamic capabilities frameworks need to be modified, by taking into account the single entrepreneur as a source of dynamic capabilities, and by introducing the concept of resource flexibility. In terms of managerial implications, the findings underline the importance for entrepreneurs to balance the striving for distinctive capabilities that provide competitive advantage and the experimentation and improvisation needed to adapt to changes in the market. Copyright © 2006 John Wiley & Sons, Ltd. [source]


Using R&D portfolio management to deal with dynamic risk

R & D MANAGEMENT, Issue 5 2008
Serghei Floricel
We develop a theoretical framework for understanding why firms adopt specific approaches for the management of innovation project portfolios. Our theory focuses on a key contingency factor for innovation, namely the dynamics of competitive environments. We use four dimensions to characterize the patterns of environmental dynamics: velocity, turbulence, growth and instability. The paper then proposes the concept of dynamic risk as a determinant of portfolio management processes. Dynamic risk results from second-order learning by a firm confronted with a specific dynamic pattern in its environment. This learning concerns the likely nature of threats and the required updating of cognitive frameworks in such environments. Attempts to deal with dynamic risk enable various actors inside the firm to understand what kind of dynamic capabilities are needed in their innovation portfolio management processes. As a result of this diffuse learning, firms tend to favor certain common characteristics in their concrete portfolio management activities. To advance the theorizing of these characteristics, the paper also proposes four dimensions of portfolio management: structure, commitment, emergence and integration. Based on arguments inspired by the dynamic capability and related literatures, we advance a series of hypotheses, that relate environmental dynamics dimensions and portfolio management dimensions. These hypotheses are tested based on a survey of 795 firms in a variety of sectors and on four continents, using original scales and structural equation modeling methods. The results show, among other findings, that high-velocity environments favor structured as well as integrated portfolio management approaches, while high-growth environments favor approaches that are structured but commit significant resources to each project as well. Turbulent environments favor approaches that are emergent, but also, contrary to our expectations, have high resource commitment levels. Finally, firms in unstable environments have a marginal preference for emergent approaches. Results could help advance the dynamic contingency theoretical perspective on dynamic capabilities, as well as improve the practice of innovation portfolio management. [source]


Building dynamic capabilities for innovation: an exploratory study of key management practices

R & D MANAGEMENT, Issue 2 2008
Hyunsuk Lee
While both the innovation literature and the dynamic capabilities perspective identify loose processes as most appropriate for high uncertainty domains, this produces little reassurance to organizations seeking to improve their ability to commercialize innovations. This paper takes the position that practices for managing innovation project leaders are a key component of an organization's dynamic capabilities for innovation. Our comparative case analysis of divisions of two established Korean organizations suggests that managerial practices include the deployment of entrepreneurial resources having particular skills, characteristics, and motivation. In addition, we identify the relational and decision support roles of managers. [source]


Dynamic or Static Capabilities?

THE JOURNAL OF PRODUCT INNOVATION MANAGEMENT, Issue 5 2009
Process Management Practices, Response to Technological Change
Whether and how organizations adapt to changes in their environments has been a prominent theme in organization and strategy research. Within this research, there is controversy about whether organizational routines hamper or facilitate adaptation. Organizational routines give rise to inertia but are also the vehicles for change in recent work on dynamic capabilities. This rising interest in routines in research coincides with an increase in management practices focused on organizational routines and processes. This study explores how the increasing use of process management practices affected organizational response to a major technological change through new product developments. The empirical setting is the photography industry over a decade, during the shift from silver-halide chemistry to digital technology. The advent and rise of practices associated with the new ISO 9000 certification program in the 1990s coincided with increasing technological substitution in photography, allowing for assessing how increasing attention to routines through ISO 9000 practices over time affected ongoing responsiveness to the technological change. The study further compares the effects for the incumbent firms in the existing technology with nonincumbent firms entering from elsewhere. Relying on longitudinal panel data models as well as hazard models, findings show that greater process management practices dampened response to new generations of digital technology, but this effect differed for incumbents and nonincumbents. Increasing use of process management practices over time had a greater negative effect on incumbents' response to the rapid technological change. The study contributes to research in technological change by highlighting specific management practices that may create disconnects between firms' capabilities and changing environments and disadvantage incumbents in the face of radical technological change. This research also contributes to literature on organizational routines and capabilities. Studying the effects of increasing ISO 9000 practices undertaken in firms provides an opportunity to gauge the effects of systematic routinization of organizational activities and their effects on adaptation. This research also contributes to management practice. The promise of process management is to help firms adapt to changing environments, and, as such, managers facing technological change may adopt process management practices as a response to uncertainty and change. But managers must more fully understand the potential benefits and risks of process management to ensure these practices are used in the appropriate contexts. [source]


Intellectual Property, Architecture, and the Management of Technological Transitions: Evidence from Microsoft Corporation

THE JOURNAL OF PRODUCT INNOVATION MANAGEMENT, Issue 3 2009
Alan MacCormack
Many studies highlight the challenges facing incumbent firms in responding effectively to major technological transitions. Though some authors argue that these challenges can be overcome by firms possessing what have been called dynamic capabilities, little work has described in detail the critical resources that these capabilities leverage or the processes through which these resources accumulate and evolve. This paper explores these issues through an in-depth exploratory case study of one firm that has demonstrated consistently strong performance in an industry that is highly dynamic and uncertain. The focus for the present study is Microsoft, the leading firm in the software industry. The focus on Microsoft is motivated by providing evidence that the firm's product performance has been consistently strong over a period of time in which there have been several major technological transitions,one indicator that a firm possesses dynamic capabilities. This argument is supported by showing that Microsoft's performance when developing new products in response to one of these transitions,the growth of the World Wide Web,was superior to a sample of both incumbents and new entrants. Qualitative data are presented on the roots of Microsoft's dynamic capabilities, focusing on the way that the firm develops, stores, and evolves its intellectual property. Specifically, Microsoft codifies knowledge in the form of software "components," which can be leveraged across multiple product lines over time and accessed by firms developing complementary products. The present paper argues that the process of componentization, the component "libraries" that result, the architectural frameworks that define how these components interact, and the processes through which these components are evolved to address environmental changes represent critical resources that enable the firm to respond to major technological transitions. These arguments are illustrated by describing Microsoft's response to two major technological transitions. [source]


Major Innovation as a Dynamic Capability: A Systems Approach,

THE JOURNAL OF PRODUCT INNOVATION MANAGEMENT, Issue 4 2008
Gina Colarelli O'Connor
Major innovation (MI), composed of both radical and really new innovation, is an important mechanism for enabling the growth and renewal of an enterprise. Yet it is poorly managed in most established firms, and success stories are rare. This conceptual article draws on systems theory, recent advances in dynamic capabilities theory, and the management of innovation literature to offer a framework for building an MI dynamic capability. The framework is composed of seven elements that together form a management system rather than a process-based approach to nurturing radical innovation. These system elements are (1) an identifiable organization structure; (2) interface mechanisms with the mainstream organization, some of which are tightly coupled and others of which are loose; (3) exploratory processes; (4) requisite skills and talent development, given that entrepreneurial talent is not present in most organizations; (5) governance and decision-making mechanisms at the project, MI portfolio, and MI system levels; (6) appropriate performance metrics; and (7) an appropriate culture and leadership context. It is argued that dynamic capabilities for phenomena as complex as MI must be considered in a systems fashion rather than as operating routines and repeatable processes as the literature currently suggests. A set of propositions is offered regarding how each element should play out in this parallel management system. Finally, each element's role in the major innovation system is justified in terms of four criteria required by systems theory: (1) The system is identifiable, and its elements are interdependent; (2) the effect of the whole is greater than the sum of the parts; (3) homeostasis is achieved through interaction and networking with the larger organization; and (4) there is a clear purpose in the larger system in which the MI management system is embedded. Examples are given to demonstrate these criteria. Systems theory offers a new way of thinking about dynamic capability development and management. [source]


Dynamic Capabilities: Current Debates and Future Directions

BRITISH JOURNAL OF MANAGEMENT, Issue 2009
Mark Easterby-Smith
The field of dynamic capabilities has developed very rapidly over the last ten years. In this paper we discuss the evolution of the concept, and identify two major current debates around the nature of dynamic capabilities and their consequences. We then review recent progress as background to identifying the contributions of the seven papers in this special issue, and discuss the relative merits of qualitative and quantitative studies for investigating dynamic capabilities. We conclude with recommendations for future research arguing for more longitudinal studies which can examine the processes of dynamic abilities over time, and for studies in diverse industries and national contexts. [source]


Dynamic Capabilities: An Exploration of How Firms Renew their Resource Base

BRITISH JOURNAL OF MANAGEMENT, Issue 2009
Véronique Ambrosini
The aim of this paper is to extend the concept of dynamic capabilities. Building on prior research, we suggest that there are three levels of dynamic capabilities which are related to managers' perceptions of environmental dynamism. At the first level we find incremental dynamic capabilities: those capabilities concerned with the continuous improvement of the firm's resource base. At the second level are renewing dynamic capabilities, those that refresh, adapt and augment the resource base. These two levels are usually conceived as one and represent what the literature refers to as dynamic capabilities. At the third level are regenerative dynamic capabilities, which impact, not on the firm's resource base, but on its current set of dynamic capabilities, i.e. these change the way the firm changes its resource base. We explore the three levels using illustrative examples and conclude that regenerative dynamic capabilities may either come from inside the firm or enter the firm from outside, via changes in leadership or the intervention of external change agents. [source]


How the Resource-based and the Dynamic Capability Views of the Firm Inform Corporate-level Strategy

BRITISH JOURNAL OF MANAGEMENT, Issue 4 2003
Cliff Bowman
Summary This paper explains that the resource-based view essentially addresses issues of competitive strategy, but by integrating some arguments from its evolutionary version, the dynamic capability view, it can be extended to inform our understanding of corporate-level strategy. We concentrate on the issue of value creation from corporate centres and ask how the centre can possess or provide resources. The primary dynamic capabilities identified by Teece, Pisano and Shuen (1997) are elaborated into six distinct modes of resource creation. Each mode is considered in relation to a set of organizational design parameters. We then propose resource-creating configurations that are congruent with respect to the modes and the required states of the design parameters. We point out areas of tension that are likely to arise if corporations try to combine different modes of resource creation. We conclude that corporate centres may possess resources but must display dynamic capabilities otherwise they will destroy shareholder value. [source]


Developing a dynamic project learning and cross-project learning capability: synthesizing two perspectives

INFORMATION SYSTEMS JOURNAL, Issue 6 2008
Sue Newell
Abstract Driven by the complexity of new products and services, project work has become increasingly common in all types of organizations. However, research on project learning suggests that often project teams do not meet their stated objectives and, moreover, there is limited organizational learning from the experiences of project work. We use the dynamic capabilities framework to argue that building a dynamic project learning capability is useful for organizations that make extensive use of projects. We use both survey and interview data to discuss the key ways in which such a dynamic capability can be built. Our survey data demonstrate the importance of documenting project learning, but our interview data show that teams are often remiss at documenting their learning. The results from the two different approaches are synthesized using Boland & Tenkasi's notions of perspective-making and perspective-taking. Importantly, combining the results from the two sets of data suggests that organizations need to emphasize the benefits from project reviews and documentation and explore ways in which the documents produced can be made more useful as boundary objects to encourage the sharing of learning across projects. [source]


A Capability-Based Framework for Open Innovation: Complementing Absorptive Capacity

JOURNAL OF MANAGEMENT STUDIES, Issue 8 2009
Ulrich Lichtenthaler
abstract We merge research into knowledge management, absorptive capacity, and dynamic capabilities to arrive at an integrative perspective, which considers knowledge exploration, retention, and exploitation inside and outside a firm's boundaries. By complementing the concept of absorptive capacity, we advance towards a capability-based framework for open innovation processes. We identify the following six ,knowledge capacities' as a firm's critical capabilities of managing internal and external knowledge in open innovation processes: inventive, absorptive, transformative, connective, innovative, and desorptive capacity. ,Knowledge management capacity' is a dynamic capability, which reconfigures and realigns the knowledge capacities. It refers to a firm's ability to successfully manage its knowledge base over time. The concept may be regarded as a framework for open innovation, as a complement to absorptive capacity, and as a move towards understanding dynamic capabilities for managing knowledge. On this basis, it contributes to explaining interfirm heterogeneity in knowledge and alliance strategies, organizational boundaries, and innovation performance. [source]


Identifying, Enabling and Managing Dynamic Capabilities in the Public Sector*

JOURNAL OF MANAGEMENT STUDIES, Issue 5 2007
Amy L. Pablo
abstract In this paper, we examine how a public sector organization developed a new strategic approach based on the identification and use of an internal dynamic capability (learning through experimenting). In response to the need for continual performance improvement in spite of reduced financial resources, this organization engaged in three overlapping phases as they shifted to this strategic approach. First, managers identified appropriate latent dynamic capabilities. Next, they used their leadership skills and built on established levels of trust to enable the use of these dynamic capabilities. Finally, they managed the tension between unrestricted development of local initiatives and organizational needs for guidance and control. [source]


A General Dynamic Capability: Does it Propagate Business and Social Competencies in the Retail Food Industry?*

JOURNAL OF MANAGEMENT STUDIES, Issue 1 2006
Alfred A. Marcus
abstract Given that firms have both business and social goals, an important unanswered question is whether a general dynamic capability breeds competencies in both these areas. In studies of the US retail food industry, we find that while a general dynamic capability affects firms' competence in supply chain management (a business competency), it does not affect their competence in environmental management (a social competency). Firm mission and the extent to which firms obtain technical assistance are found to affect the acquisition of this latter competency. These findings offer insights into the resource-based view (RBV) of the firm and provide lessons for corporate social responsibility. They reveal more precisely what a general dynamic capability yields and how far its reach extends, suggesting that the factors that drive competitive advantage are not the same as those that drive social responsibility. [source]