This article examines the role of dynamic capabilities in strategy. In their early formulation of strategic advantage, Learned, Christensen, Andrews, and Guth spoke of distinctive competences and the resource strengths and weaknesses that determine sustainable competitive advantage. However, this part of their message was obscured for some time as the competitive forces paradigms dominated. The point of taking a capabilities perspective is to examine closely the characteristics of the firm's internal assets, capabilities, and competencies and their impact on strategy and performance. The evidence is becoming clear that these, not market competition, are the determinants of sustained differences in performance levels from one firm to another.
Keywords: dynamic capabilities; business strategy; strategic advantage; strategy formulation; competitive forces paradigms; internal assets
Article. 14535 words.
Subjects: Business and Management ; Business Strategy
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