There was a full house for the latest Charles Cooper memorial lecture, given by Professor Sidney G. Winter, former Chief Economist of the US General Accounting Office. Professor Winter spoke at length about ‘Dynamic Capability — The Concept and How It Helps Us Understand Economic Change’ in a session rounded off by more questions than time allowed. http://www.merit.unu.edu/permalink.php?id=993
Recent strategic management literature has suggested the age of sustainable competitive advantage has ended, that we instead live in the age of temporary advantage. However, dynamic capabilities, routines that adapt resources, are considered to be a source of sustainable competitive advantage. This paper addresses a gap in the literature by proposing a theory of individual level dynamic capability development. This paper also proposes dynamic capabilities which are organized by the four dimensions of the learning orientation construct are positively associated sustainable competitive advantage.
This is a presentation given in the MBS MSc Innovation Management course taught by Prof. Silvia for group assignment to introduce and discuss the paper Dynamic Capabilities and Strategic Management by Teece D., Pisano G., and Shuen A. in 1997.
Recent strategic management literature has suggested the age of sustainable competitive advantage has ended, that we instead live in the age of temporary advantage. However, dynamic capabilities, routines that adapt resources, are considered to be a source of sustainable competitive advantage. This paper addresses a gap in the literature by proposing a theory of individual level dynamic capability development. This paper also proposes dynamic capabilities which are organized by the four dimensions of the learning orientation construct are positively associated sustainable competitive advantage.
This is a presentation given in the MBS MSc Innovation Management course taught by Prof. Silvia for group assignment to introduce and discuss the paper Dynamic Capabilities and Strategic Management by Teece D., Pisano G., and Shuen A. in 1997.
Modeling Dynamic Capabilities and Corporate Entrepreneurship for Innovation ...Ruta Aidis
With limited resources and the need for constant innovation, entrepreneurship is perceived as an important factor for assuring economic growth and development at the venture and national levels. In this conceptual paper, we focus our analysis to corporate entrepreneurship as it contributes to the innovative processes within a venture. Though corporate entrepreneurship is a quite well explored phenomenon, few efforts have been made to elaborate on the antecedents and cohesion between dynamic capabilities and corporate entrepreneurship especially for high growth economies. This paper aims to explore the role of the dynamic capabilities as the antecedent of corporate entrepreneurship and the nature of the cohesion between them. The authors model the cohesion between dynamic capabilities and corporate entrepreneurship and argue that it generates business innovations that in turn generate aggregate demand and growth of the economy.
The History of Strategy and Its Future Prospects | A.T. KearneyKearney
For too many years, companies have been hobbled by the vicious cycle of busy thinking, frenetic activity, bureaucratic planning, and other hallmarks of corporate strategies. Research confirms the negative effects these conditions have on strategic output. Recognizing that new thinking was needed to reclaim strategy, A.T. Kearney set out to write the next chapter and set a new course for the future of strategy.
A.T. Kearney’s FutureProof Strategy offers a solution for organizations facing profound strategic challenges. Based on the combination of three fundamental principles—drawing inspiration from the future, being organizationally inclusive, and creating a portfolio of competitive opportunities—a new future for strategy has been written.
A.T. Kearney: History of strategy and its future prospectsSemalytix
From The Art of War to The War for Talent, strategy has been evolving for centuries. What we have learned in the past 2,500 years is highlighted here—not only where strategy began but also why it is on the verge of reclaiming its rightful place in history.
Strategy, for most of its 2,500-year history, was one-dimensional. Warmongers were largely focused on avoiding wars by not instigating them and business was mostly focused on building power and monopolies. The past 50 years have more than made up for this one-way view as strategy hit its prime and spewed out countless new ideas and solutions.
But as the strategies piled up so did the complexity, and the chance that any one overall strategy was the answer to ever expanding strategic freedom was trampled in the competitive scramble.
As a result, we are in for some interesting times. Strategy is on the verge of reinventing itself and reclaiming its rightful place at the top of the business food chain. We believe that strategy will come back as a much more powerful guiding force of organizational energy, which we are excited about because it brings "strategy" and "doing" back together again—something we wholeheartedly believe in.
This paper constructs a brief history of strategy within a framework of noteworthy publications. We generalize, simplify, and cut corners, not out of ignorance but to create a holistic overview to show where strategy has been and where we believe it is now headed.
- See more at: http://www.atkearney.com/paper/-/asset_publisher/dVxv4Hz2h8bS/content/the-history-of-strategy-and-its-future-prospects/10192#sthash.3JIQGHKj.dpuf
Modeling Dynamic Capabilities and Corporate Entrepreneurship for Innovation ...Ruta Aidis
With limited resources and the need for constant innovation, entrepreneurship is perceived as an important factor for assuring economic growth and development at the venture and national levels. In this conceptual paper, we focus our analysis to corporate entrepreneurship as it contributes to the innovative processes within a venture. Though corporate entrepreneurship is a quite well explored phenomenon, few efforts have been made to elaborate on the antecedents and cohesion between dynamic capabilities and corporate entrepreneurship especially for high growth economies. This paper aims to explore the role of the dynamic capabilities as the antecedent of corporate entrepreneurship and the nature of the cohesion between them. The authors model the cohesion between dynamic capabilities and corporate entrepreneurship and argue that it generates business innovations that in turn generate aggregate demand and growth of the economy.
The History of Strategy and Its Future Prospects | A.T. KearneyKearney
For too many years, companies have been hobbled by the vicious cycle of busy thinking, frenetic activity, bureaucratic planning, and other hallmarks of corporate strategies. Research confirms the negative effects these conditions have on strategic output. Recognizing that new thinking was needed to reclaim strategy, A.T. Kearney set out to write the next chapter and set a new course for the future of strategy.
A.T. Kearney’s FutureProof Strategy offers a solution for organizations facing profound strategic challenges. Based on the combination of three fundamental principles—drawing inspiration from the future, being organizationally inclusive, and creating a portfolio of competitive opportunities—a new future for strategy has been written.
A.T. Kearney: History of strategy and its future prospectsSemalytix
From The Art of War to The War for Talent, strategy has been evolving for centuries. What we have learned in the past 2,500 years is highlighted here—not only where strategy began but also why it is on the verge of reclaiming its rightful place in history.
Strategy, for most of its 2,500-year history, was one-dimensional. Warmongers were largely focused on avoiding wars by not instigating them and business was mostly focused on building power and monopolies. The past 50 years have more than made up for this one-way view as strategy hit its prime and spewed out countless new ideas and solutions.
But as the strategies piled up so did the complexity, and the chance that any one overall strategy was the answer to ever expanding strategic freedom was trampled in the competitive scramble.
As a result, we are in for some interesting times. Strategy is on the verge of reinventing itself and reclaiming its rightful place at the top of the business food chain. We believe that strategy will come back as a much more powerful guiding force of organizational energy, which we are excited about because it brings "strategy" and "doing" back together again—something we wholeheartedly believe in.
This paper constructs a brief history of strategy within a framework of noteworthy publications. We generalize, simplify, and cut corners, not out of ignorance but to create a holistic overview to show where strategy has been and where we believe it is now headed.
- See more at: http://www.atkearney.com/paper/-/asset_publisher/dVxv4Hz2h8bS/content/the-history-of-strategy-and-its-future-prospects/10192#sthash.3JIQGHKj.dpuf
Follow the Ants: The Knowledge Economy & Big Data ManagementZola Dube
According to the premise of strategic planning, the world is supposed to hold still while a plan is being developed and then stay on the predicated course while that plan is being implemented.
- Henry Minzberg, 1994
The greatest challenge facing the New Knowledge Economy is balancing Big Data Management with Data Latency, while fostering a culture of Best Talent Remixing to continuously hold it all together. Aptly dubbed “wicked”, the new world of business is characterized as dynamic, fast-paced, volatile and unpredictable. This environment has brought heightened challenges and risks to virtually all business industries and organizations. Ancient Zulu philosophy holds a wealth of intelligence on how to observe the new environment.
Public Power Forward: IT's Role in the Changing Electric UtilityKent Landrum
How IT leaders in public utilities can prepare for an uncertain future. Provides a 5-step process to achieve business and IT alignment: (1) vignette-based strategy, (2) capability modeling, (3) program and project governance, (4) solution portfolio management, and (5) delivery framework. Authored by Kent Landrum.
Business Innovation Report by TrendsSpotting: Innovation Strategy, Performanc...Taly Weiss
The purpose of this review is to provide a deep understanding of innovation and its business potential. We will focus on innovation outcomes in terms of performance and present empirical findings linking innovation to business success. We introduce basic definitions of innovation, explore the most common forms of innovation (adding examples and case studies) and discuss disruptive innovation. We identify key innovation strategies developed and tested in academic and business research. We glance into rankings of the most innovative companies to learn on their performance and growth potential. Finally we will study how companies measure innovation and what parameters are critical for them to follow. At the end of the report, we have compiled an insightful “take away” and present extensive case study summarizing key innovation aspects in innovation implementation.
The 140 page PPT report is targeted at innovation stakeholders aiming to promote innovation efforts linked to business success & growth
Why aren't companies responding to digital? Seeing the Light vs. Feeling the ...Ben Gilchriest
Originally posted Jan., 2013. Version 3.0 update posted August, 2014.
Every industry is being impacted by digital; social media, mobile apps., data analytics, more agile technology, cloud….and the new customer expectations that this engenders. It's broadly accepted that this is challenging familiar business models and creating new levels of competition that can unseat well established companies. Whilst these companies are reacting, investing heavily in digital, is this enough? This document provides a brief summary of the Digital Inflection point; that whilst a response to digital may add value, it might not necessarily prepare a company for the combination of existing, or future, elements that have a disruptive impact on the industry as a whole. It briefly describes how successful companies have responded to this by smartly balancing digital and transformational efforts to realise a Digital Advantage. It was presented at a recent symposium so is an abridged version. To find out more please do get in touch.
China’s Economic Embrace of Africa - An International Comparative PerspectiveUNU-MERIT
This paper discusses the entry of China into the game of foreign finance in Africa. It analyses the
scope, destination and sectoral distribution of Chinese financial flows and trade in comparison
with Western patterns and trends of aid, foreign direct investment (FDI) and trade. China’s
foreign aid and manufacturing investment flow to Africa’s physical infrastructure and productive
sectors of agriculture and manufacturing fill the vacuum which emerged when Western financial
flows shifted to other sectors and activities. In contrast, China’s trade patterns with Africa highly
resemble those of Africa’s leading Western trading partners. Africa imports manufactured goods
and exports primary goods. Differences in relative factor endowments of labour, capital and
natural resources are largely responsible for the pattern of Sino-African trade.
Insurgents in motion: Counterinsurgency and insurgency relocation in IraqUNU-MERIT
http://youtu.be/zqcM1jE_BoY
Recent studies in general are positive regarding the effectiveness of US counterinsurgency programs in Iraq. The right mix of coercion, ethnic strategy, and public goods provision, it is argued, makes Iraqis less likely to rebel against the US army and the Iraqi government, thus reducing insurgent violence. In fact, the number of insurgent attacks dramatically declined shortly after the change in the counterinsurgency strategy in 2007. How robust is the positive finding? A common assumption behind previous analyses is that insurgent attacks have a strong local root and is unlikely to be reproduced in other areas. Violation of this spatial independence assumption, however, can potentially bias towards the positive result. Based on the novel spatial dynamic panel data (SDPD) model, my analysis shows that spatial dependence should be addressed and cannot be assumed away. Results based on the new model also reveal that, conditional upon other strategies, the effects of a counterinsurgency strategy vary considerably both in magnitude and direction, suggesting that some policy mixes could be counterproductive. Policy makers seeking to adopt similar strategies in Afghanistan should take the relocation into account in their policy evaluations.
Migrant and Refugee Integration in Global Cities: The Role of Cities and Busi...UNU-MERIT
Migrant and Refugee Integration in Global Cities: New Brief
A new UNU policy brief, launched in Maastricht on 21 May 2014, examines immigration experiences in eight diverse cities around the world: Auckland (New Zealand), Buenos Aires (Argentina), Chicago (USA), Kuala Lumpur (Malaysia), Lisbon (Portugal), Nairobi (Kenya), Rotterdam (The Netherlands), and São Paulo (Brazil).
This brief summarizes a joint research project between The Hague Process on Refugees and Migration (THP) and UNU-MERIT and its School of Governance. The project analysed how businesses and governments in global cities are contributing to the integration of migrant and refugee populations, either through outreach, specialized programmes, the provision of services, or targeted funding of non-governmental organizations (NGOs); and to what extent these contributions can be deepened or expanded.
By looking at integration from the perspective of public-private partnerships between city level governments and businesses, this research blazes a trail and presents a number of important findings that can be of value to the policy community.
Recommendations include: 1) Establish networks and fora to share experiences and identify potential partners both within and between cities; 2) Learn each other’s language and take note of “loaded” terms; and 3) Acknowledge diversity while recognizing commonality, particularly in terms of services for different migrant groups.
A Micro Financing Framework for Rural Water and Sanitation provisioning in Su...UNU-MERIT
When it comes to water and sanitation, does self-supply let governments off the hook? Or do people simply need access, regardless of who supplies the service? A new joint publication by UNU-INWEH and UNU-MERIT explores a hybrid mechanism of microfinance for small community water and sanitation supplies. See our blog and report for more... http://www.merit.unu.edu/harnessing-microfinance-and-social-networks-for-wash/
Thinking of getting a dog? Be aware that breeds like Pit Bulls, Rottweilers, and German Shepherds can be loyal and dangerous. Proper training and socialization are crucial to preventing aggressive behaviors. Ensure safety by understanding their needs and always supervising interactions. Stay safe, and enjoy your furry friends!
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
MATATAG CURRICULUM: ASSESSING THE READINESS OF ELEM. PUBLIC SCHOOL TEACHERS I...NelTorrente
In this research, it concludes that while the readiness of teachers in Caloocan City to implement the MATATAG Curriculum is generally positive, targeted efforts in professional development, resource distribution, support networks, and comprehensive preparation can address the existing gaps and ensure successful curriculum implementation.
Delivering Micro-Credentials in Technical and Vocational Education and TrainingAG2 Design
Explore how micro-credentials are transforming Technical and Vocational Education and Training (TVET) with this comprehensive slide deck. Discover what micro-credentials are, their importance in TVET, the advantages they offer, and the insights from industry experts. Additionally, learn about the top software applications available for creating and managing micro-credentials. This presentation also includes valuable resources and a discussion on the future of these specialised certifications.
For more detailed information on delivering micro-credentials in TVET, visit this https://tvettrainer.com/delivering-micro-credentials-in-tvet/
Executive Directors Chat Leveraging AI for Diversity, Equity, and InclusionTechSoup
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
Cooper Lecture 2013
1. DYNAMIC CAPABILITY:
THE CONCEPT AND HOW IT HELPS US
UNDERSTAND ECONOMIC CHANGE
]
Sidney G. Winter
Cooper Lecture
The Wharton School
UNU-MERIT
KNOWLEDGE FOR INNOVATION
6 November 2013
2. Objectives and themes
• Illuminate some aspects of the business side of innovation –
deriving from the fact that the business actors are out to make
money, and they both adapt to change and cause it.
• Explore the meaning of “change” and its contrast with “continuity” –
and the implications for innovation, profitability and development.
• Highlight the main issues in recent discussions of “dynamic
capability.”
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
2
4. Perceptions of change
• “You could not step twice into the same river; for other
waters are ever flowing on to you.” -- Heraclitus (attrib.)
• “What has been is what will be, and what has been done is
what will be done, and there is nothing new under the sun.”
-- Ecclesiastes 1:9 (English Standard Version)
• “Plus ça change, plus c’est la même chose.”
-- J-B A Karr (1849)
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
4
5. Dynamic capability in brief
“Innovation in semiconductors? I’m not sure there is
innovation in semiconductors. They just keep doing the
same thing, over and over.”
-- Dr. Ralph Gomory
(circa 1983, when he was VP for R&D at IBM.
Quoted with permission.)
KNOWLEDGE FOR INNOVATION
6. ??? “Over and over” ???
• The thing “they” (particularly Intel) were doing over and over
was stepping along the miniaturization trajectory of
semiconductor technology.
• That is, enacting “Moore’s Law” – squeezing more transistors
onto a chip.
• Gomory certainly was not denying that progress was being
made in semiconductors, but somehow he didn’t find it very
exciting – because the process was in many ways repetitive.
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
6
7. Moore’s Law … per Intel today (www.intel.com)
“Intel co-founder Gordon Moore is a visionary.
His bold prediction, popularly known as Moore's Law, states
that the number of transistors on a chip will double
approximately every two years.
Intel, which has maintained this pace for decades, uses this
golden rule as both a guiding principle and a springboard for
technological advancement, driving the expansion of functions
on a chip at a lower cost per function and lower power per
transistor, by shrinking feature sizes while introducing new
materials and transistor structures.”
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
7
8. Counterpoints to the semiconductor (Intel) story
• The charming stories of many iPhone apps, individual entries
in a vast domain of creativity and “entrepreneurship.”
• The sad story of Smith Corona, later SCM, a typewriter
company that struggled to transition to the electronic age,
and succeeded to a point – but wound up in Chapter 11
bankruptcy, failed again after it emerged, and was liquidated
in 2001.
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
8
9. Danneels on the Smith Corona case.
“The above history shows that Smith Corona was successful in
transitioning within its product category, going from mechanical
to electric to electronic typewriters to personal word
processors. However, it was not able to transition into other
categories. The company never achieved more than 11.8
percent (in 1995) of sales from products outside of typewriters
and their accessories and supplies (see Table 1).”
-- Erwin Danneels, “Trying to Become a Different Kind of
Company: Dynamic Capability at Smith Corona,” SMJ 2011
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
9
11. Background: Knowledge and production
• The ability to achieve a certain productive result is often
considered to derive from having “the ingredients” and “the
recipe” – the latter being some symbolically rendered
account of how to achieve the result. Call this the “recipe
theory.”
• In our alternative view, the ingredients are needed and, the
recipe may be helpful, but what is also needed is the ability
to implement – to actually perform the specific actions that
achieve the result. Call this the “capability theory.”
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
11
12. The sources of capability
• At the individual level, we refer to capability as “skill”. As is well
known, the acquisition of skill involves an element of practice,
and acquiring high skill demands a lot of practice.
• In organizations, organizational routines serve as the “nervous
system” that supports effective action. Like skills, effective
routines are developed through practice.
• “An organizational capability is a high-level routine (or collection
of routines) that, together with its implementing input flows,
confers upon an organization's management a set of decision
options for producing significant outputs of a particular type.”
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
12
13. Distinguishing capabilities
• Every viable business has capabilities of some sort that
permit it to transform inputs into outputs, sell the output, buy
more inputs and keep going. These we call “ordinary” or
“operational” capabilities. They enable the firm to “ make a
living now.”
• Some businesses have “dynamic capabilities,” systematic
activities that permit them to modify ordinary capabilities so
as to continue to make a living, or make an even better living,
in the future. (The concept embraces much, but not all, of
what is usually called innovative activity.)
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
13
14. “Capabilities” vs. “Problem-solving”
• The idea of dynamic capability, like that of ordinary
capability, centrally involves an affirmation of the crucial role
played by learning and practice. DC is “learned
competence” for dealing with change.
• There are other ways to change, ways in which practice plays
a lesser role relative to creative insight, systematic thought,
or dogged pursuit of goals.
• Part of the interest in the subject arises from the challenge of
parsing the relative roles of dynamic capability and these
alternatives. (See Gomory quote again).
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
14
15. Technological paradigms
The semiconductor case illustrates most vividly the point that
dynamic capabilities are often centered on the routinized
pursuit of a “technological paradigm”, tracing out over time a
“technological trajectory”.
(See the June 2008 special issue of Industrial and Corporate
Change, commemorating Giovanni Dosi’s Research Policy
paper of 1982, “Technological Paradigms and Technological
Trajectories.”)
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
15
16. Where “dynamic capability” came from:
Teece, Pisano and Shuen, Strategic Mgmt J. 1997
“The
global competitive battles in high-technology industries
such as semiconductors, information services, and software
have demonstrated the need for an expanded paradigm to
understand how competitive advantage is achieved.
“The term 'dynamic' refers to the capacity to renew
competences so as to achieve congruence with the changing
business environment;
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
16
17. Update : Teece in SMJ 2007, “Explicating Dynamic
Capabilities
… in today’s fast-moving business environments
open to global competition, and characterized by dispersion
in the geographical and organizational sources of innovation
and manufacturing, sustainable advantage requires more
than the ownership of difficult-to-replicate (knowledge) assets.
It also requires unique and difficult-to-replicate dynamic
capabilities. These capabilities can be harnessed to
continuously create, extend, upgrade, protect, and keep
relevant the enterprise’s unique asset base.
David Teece (2007: 1319)
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
17
18. Sustainable competitive advantage?
• This emphasis on congruence with a changing competitive
environment marks the dynamic capabilities approach as
different from prior approaches in the strategic management
literature, which generally associated sustainable advantage
with a static position that was immunized against challenge
for some reason.
• Depending on circumstances, DCs may operate primarily
reactively, to adapt to identified change, or proactively, to
innovate.
• The line between these can blur, however.
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
18
19. The basic economics of dynamic capability
• In the adaptive application, a firm might hedge its commitments
to its ordinary capabilities by investing in preparedness for
various environmental contingencies, so as to smoothly
negotiate a possible future change.
•
But there are many possible contingencies and preparedness
per se generates no revenue in the short term; it is an overhead
cost burden.
• Because of its overhead costs, the use of dynamic capability as a
simple hedge against change is necessarily limited, and a
realistic option only for larger firms.
KNOWLEDGE FOR INNOVATION
19
20. Implications of scale
• A common scenario is that a startup firm is born with an
initial product idea is hand, or almost in hand. This idea may
be the product of random inspiration, or more likely, it is the
result of exposure to some knowledge source.
• While this idea may yield success in the short term, few such
ideas have durable success without follow-on improvements
• Because of the cost burden, a small startup is likely to have
difficulty in transcending its initial success and producing a
continuing flow of improvements.
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
20
21. Conceptual controversy
• The original characterization of dynamic capabilities
provoked skepticism on the ground that the concept is
tautological, a phenomenon recognizable only by its
desirable effects and successful instances.
• The emphasis here on is learned competence, acquired at a
cost, and with no guarantees as to the duration of benefits.
It is not tautological and not a “rule for riches.”
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
21
22. What are we talking about here?
• Is dynamic capability best thought of as an organizational
attribute, or as a skill of the top management team …
perhaps just the CEO?
• Should primary emphasis should be given to the activities of
R&D scientists and engineers, or to managerial cognition
and tasks?
• Is dynamic capability built primarily through learning from
experience, or are human resources policies a fundamental
factor?
• Can we say “all of the above”?
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
22
23. Schumpeterian antecedents
“…mere growth of the economy, as
shown by the growth of population and
wealth,” is not “development.” (TED: 63)
In TED, development is the result of
innovations by entrepreneurs, disrupting
the equilibrium “circular flow.”
I. The Theory of Economic
Development, 1911 [1934]
II. Capitalism, Socialism and
Democracy, 3rd ed, 1950
KNOWLEDGE FOR INNOVATION
In CSD, Schumpeter speaks of the
“routinization of innovation”, and
ascribes a central role to corporate R&D.
S.G. Winter
MERIT
2013
23
24. Routinization of innovation?
“… it is much easier now than it has been in the past to do
things that lie outside familiar routine – innovation itself is
being reduced to routine. Technological progress is
increasingly becoming the business of teams of trained
specialists who turn out what is required and make it work in
predictable ways….” CSD: 132.
• This sounds like routinization of product development, i.e.,
“invention,” which is not innovation in Schumpeter’s sense.
• Dynamic capability is a kindred idea to the routinization of
Schumpeter II, but it is a broader idea than Schumpeter’s.
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
24
26. Expanding the examples
• There are many other companies that, like Intel, have
maintained market success over many decades on the basis
of extending a central technological competence
• The struggles of the pharma companies to negotiate
changing drug discovery regimes are broadly analogous to
those of Intel with miniaturization.
• A quite different class of examples is provided by the large
replicator organizations in fast food, mass retailing, hotels,
furniture, banking.
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
26
27. Replication in economic evolution
• A central problem for any evolutionary theory is how a “type”
becomes extended in space and time.
• In standard economics, there has been a tendency to
trivialize this process, but it is both interesting and
important to development.
• The dynamic capabilities of replicator organizations reside in
the central structures that guide the geographic extension of
the network and support it.
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
27
28. Replication studies: the questions
• Origins and growth.
• Learning – about the product, the system, and the replication
process.
• Replication methods – how much flexibility?
• Site heterogeneity – picking sites, coping with idiosyncrasy
• Organization forms – franchises vs. company-owned,
control, incentives.
• Public policy aspects – regulatory, trade, acceptance.
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
28
29. Generalizations about dynamic capability
1. Dynamic capability is a pervasive phenomenon in the global
economy and a major source of economic change in many
sectors.
2. It is most characteristically illustrated in large organizations
that have had success in doing “the same thing” over
periods of many decades.
3. Success requires repeatedly overcoming novel, multidimensional challenges – not just technical challenges.
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
29
30. Much of the resulting change is to be celebrated, but the total
amount of social change being produced is enormous whether
it is desirable or not. In one area after another, significant
concerns arise precisely because of the sustained innovative
prowess of large organizations.
Uncertainty? Who suffers the uncertainty? Sustainable
advantage? How about sustainable development?
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
30
31. Bibliography of cited and related works
Danneels, E. (2010). "Trying to become a different type of company: Dynamic
capability at Smith Corona." Strategic Management Journal 32: 1-31.
Dosi, G. (1982). "Technological paradigms and technological trajectories."
Research Policy 11: 147-162.
Dosi, G., R. R. Nelson, et al. (2000). The Nature and Dynamics of Organizational
Capabilities. Oxford, Oxford University Press.
Helfat, C. E., S. Finkelstein, et al. (2007). Dynamic Capabilities: Understanding
Strategic Change in Organizations. Malden, MA, Blackwell.
Schumpeter, J. (1934 [1911]). The Theory of Economic Development. Cambridge,
Harvard University Press.
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
31
32. Bibliography 2
Schumpeter, J. A. (1950). Capitalism, Socialism and Democracy. New York,
Harper and Row.
Teece, D., G. Pisano, et al. (1997). "Dynamic capabilities and strategic
management." Strategic Management Journal 18(7): 509-533.
Teece, D. J. (2007). "Explicating dynamic capabilities: The nature and
microfoundations of (sustainable) enterprise performance." Strategic
Management Journal 28: 1319-1350.
Teece, D. J. (2009). Dynamic Capabilities and Strategic Management. New York,
Oxford University Press.
Winter, S. G. (2000). "The satisficing principle in capability learning." Strategic
Management Journal 21(Oct-Nov (special issue)): 981-996.
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
32
33. Bibliography 3
Winter, S. G. (2003). "Understanding dynamic capabilities." Strategic
Management Journal 24: 991-995.
Winter, S. G. (2008). Dynamic capability as a source of change. The Institutions
of the Market:: Organisations, Social Systems and Governance. N. Beck and A.
Ebner. Oxford, Oxford University Press.
Winter, S. G. (2010). The replication perspective on productive knowledge.
Dynamics of Knowledge, Corporate Systems and Innovation. H. Itami, K.
Kunisoki, T. Numagami and A. Takeishi. Berlin, Springer-Verlag: 95-121.
Winter, S. G. and G. Szulanski (2001). "Replication as strategy." Organization
Science 12: 730-743.
Zollo, M. and S. G. Winter (2002). "Deliberate learning and the evolution of
dynamic capabilities." Organization Science 13: 339-351.
KNOWLEDGE FOR INNOVATION
S.G. Winter
MERIT
2013
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