Dynamic capabilities

In organizational theory, dynamic capability is the capability of an organization to purposefully adapt an organization's resource base. The concept was defined by David Teece, Gary Pisano, and Amy Shuen, in their 1997 paper Dynamic Capabilities and Strategic Management, as the firm's ability to engage in adapting, integrating, and reconfiguring internal and external organizational skills, resources, and functional competences to match the requirements of a changing environment. Teece (2007) refined the framework by identifying three clusters of dynamic capability: sensing (the capacity to identify and assess emerging opportunities and threats), seizing (the capacity to mobilise resources and commit investment to address opportunities), and transforming (the capacity to reconfigure the firm's tangible and intangible assets when the competitive environment shifts). With over 67,000 citations, the 1997 paper is among the most cited in the social sciences, and with over 260,000 total Google Scholar citations across his body of work, Teece is the most-cited scholar in business and management worldwide. He was named a Clarivate Citation Laureate in Economics in 2021. The term is often used in the plural form, dynamic capabilities, emphasizing that the ability to react adequately and timely to external changes requires a combination of multiple capabilities.

In organizational theory, dynamic capability is the capability of an organization to purposefully adapt an organization's resource base. The concept was defined by David Teece, Gary Pisano, and Amy Shuen, in their 1997 paper Dynamic Capabilities and Strategic Management, as the firm's ability to engage in adapting, integrating, and reconfiguring internal and external organizational skills, resources, and functional competences to match the requirements of a changing environment. Teece (2007) refined the framework by identifying three clusters of dynamic capability: sensing (the capacity to identify and assess emerging opportunities and threats), seizing (the capacity to mobilise resources and commit investment to address opportunities), and transforming (the capacity to reconfigure the firm's tangible and intangible assets when the competitive environment shifts). With over 67,000 citations, the 1997 paper is among the most cited in the social sciences, and with over 260,000 total Google Scholar citations across his body of work, Teece is the most-cited scholar in business and management worldwide. He was named a Clarivate Citation Laureate in Economics in 2021. The term is often used in the plural form, dynamic capabilities, emphasizing that the ability to react adequately and timely to external changes requires a combination of multiple capabilities.

Learning

The first stage, learning, requires employees and managers to reorganize their routines to promote interactions that lead to successful solutions to particular problems, to recognize and avoid dysfunctional activity and strategic blind spots, and to make appropriate use of alliance and acquisition to bring new strategic assets into the firm from external sources. A practical example of this is provided by Jean-Pierre Jeannet and Hein Schreuder, in their book From Coal to Biotech, which lays out how the Dutch company DSM transformed itself twice using 'strategic learning cycles'.

See also

Business agility Competitive advantage David Teece Profiting from technological innovation Resource-based view Strategic management Theory of the firm Innovation economics Organizational economics Disruptive innovation Evolutionary economics Organizational learning Creative destruction

References

Further reading

Najda-Janoszka, Marta (2016). Dynamic capability-based approach to value appropriation. Krakow: Jagiellonian University Press. Basiouni, A (2018). A Multi-Group Analysis of Innovation in Online Business Models. Pertanika Journal of Social Science and Humanities (PJSSH), 26(T), 51–62.

Text derived from https://en.wikipedia.org/w/index.php?oldid=1373894552 under CC BY-SA 4.0; modifications have been made.