Dynamic capabilities theory is an extension of the resource-based view, developed principally by David Teece, Gary Pisano, and Amy Shuen in a widely cited 1997 paper, that focuses on a firm's capacity to integrate, build, and reconfigure its internal and external resources and competencies in response to rapidly changing business environments. Where the resource-based view emphasizes the value of a firm's existing resource base, dynamic capabilities theory emphasizes the processes by which firms sense opportunities and threats, seize them, and transform their resource base over time. The concept is widely used in strategic management to explain how some firms sustain competitive advantage under conditions of rapid technological or market change while others do not.
Facts
Core ClaimDynamic capability is an organization's capability to purposefully adapt its resource base by sensing, seizing and reconfiguring resources to match a changing competitive environment. 1 Cross-Tradition Connections
Associated With
Innovation-management literature analyzes open innovation through the dynamic capabilities a firm needs to absorb external knowledge.
Dynamic capabilities theory (Teece, Pisano and Shuen) is presented as an extension of the resource-based view.
Sources
1. Wikipedia, Dynamic Capabilities
WikipediaWikipedia, Dynamic capabilities lead sectionQuote, Wikipedia, Dynamic capabilities lead section
The concept was defined by David Teece, Gary Pisano, and Amy Shuen, in their 1997 paper Dynamic Capabilities and Strategic Management
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