Dynamic capabilities and strategic management

Strategic Management JournalVolume 18, Issue 7 p. 509-533 Research ArticleFree Access Dynamic capabilities and strategic management David J. Teece, Corresponding Author David J. Teece Haas School of Business, University of California, Berkeley, California, U.S.A.Institute of Management, Innovation and Organization, Haas School of Business, University of California, Berkeley, CA 94720–1930, U.S.A.Search for more papers by this authorGary Pisano, Gary Pisano Graduate School of Business Administration, Harvard University, Boston, Massachusetts, U.S.A.Search for more papers by this authorAmy Shuen, Amy Shuen School of Business, San Jose State University, San Jose, California, U.S.A.Search for more papers by this author David J. Teece, Corresponding Author David J. Teece Haas School of Business, University of California, Berkeley, California, U.S.A.Institute of Management, Innovation and Organization, Haas School of Business, University of California, Berkeley, CA 94720–1930, U.S.A.Search for more papers by this authorGary Pisano, Gary Pisano Graduate School of Business Administration, Harvard University, Boston, Massachusetts, U.S.A.Search for more papers by this authorAmy Shuen, Amy Shuen School of Business, San Jose State University, San Jose, California, U.S.A.Search for more papers by this author First published: 04 December 1998 https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-ZCitations: 1,276AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat 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 difficult-to-trade knowledge assets and complementary assets), and the evolution path(s) it has adopted or inherited. The importance of path dependencies is amplified where conditions of increasing returns exist. Whether and how a firm’s competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding internally) 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 internal 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. Citing Literature Volume18, Issue7August 1997Pages 509-533 RelatedInformation