Chapter

Dynamic Capabilities and Strategic Management

David J. Teece, Gary Pisano and Amy Shuen

in The Nature and Dynamics of Organizational Capabilities

Published in print November 2001 | ISBN: 9780199248544
Published online November 2003 | e-ISBN: 9780191596155 | DOI: http://dx.doi.org/10.1093/0199248540.003.0013
 Dynamic Capabilities and Strategic Management

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The chapter tries to conceptualize different forms of competence and relate them to both organization theory and strategic management. A general premise is that organizations embody coherent structures of tasks and competences, with distinctive governance modes, which do not replicate either pure market arrangements or any ‘nexus of contracts’. The authors identify the specificities of each firm in terms of (1) organizational processes (including their operating routines), (2) positions (broadly defined to cover their specific assets, their location along the value chain, and their relationships with suppliers and customers), and (3) paths (i.e. their patterns of change in the former two sets of characteristics). The chapter emphasizes the stickiness over time of distinct organizational capabilities and, thus, also the constraints that the past learning history of the organization puts upon the degrees of discretionality of strategic management. This perspective on organizations and organizational learning clearly shifts the focus of analysis from rather product positioning or ‘clever strategizing’ to the process of problem‐solving and organizational governance, and, dynamically, to competence‐enhancing strategies.

Keywords: capabilities; competences; governance; learning; organization theory; organizational change; problem solving; processes; routines; strategic management

Chapter.  13920 words. 

Subjects: Microeconomics

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