Element contents
Series: Elements in Business Strategy
Dynamic Capabilities
History and an Extension
Published online by Cambridge University Press: 22 July 2022
Summary
The development of salient ideas and publications on dynamic capabilities is given, extended by ideas outside the literature of strategic management. Dynamic capability is presented as an interdisciplinary subject to which knowledge is central. Diversity of knowledge is treated in terms of cognitive distance, limited through organisational focus. To deal with diversity, development and uncertainty, evolutionary theory and the notion of entropy are used. The relation between individual and organisational knowledge is modelled with the notion of a script and linguistic ideas. The governance of collaborative relations for innovation is discussed, including trust, which are also dynamic capabilities.
Information
- Type
- Element
- Information
- Series: Elements in Business StrategyOnline ISBN: 9781009029025Publisher: Cambridge University PressPrint publication: 11 August 2022
References
Abelson, R. P. (1976), ‘Script processing in attitude formation and decision making’, in Carroll, J. S. and Payne, J. W. (eds.), Cognition and social behavior, Hillsdale, NJ: Erlbaum, pp. 33–45.Google Scholar
Anderson, P. and Tushman, M. (1990), ‘Technological discontinuities and dominant designs: A cyclical model of technological change’, Administrative Science Quarterly, 35 /4, 604–32.Google Scholar
Argyris, C. and Schön, D. (1974), Theory in practice: Increasing professional effectiveness, San Francisco, CA: Jossey-Bass.Google Scholar
Barney, J. B. (2001), ‘Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view’, Journal of Management, 27, 643–50.Google Scholar
Baum, J. A. C. and Singh, J. V. (1994), ‘Organizational hierarchies and evolutionary processes: Some reflections on a theory of organizational evolution’, in Baum, J. A. C. and Singh, J. V. (eds.), Evolutionary dynamics of organizations, Oxford: Oxford University Press, pp. 3–20.CrossRefGoogle Scholar
Bindra, S., Srivastava, S., Sharma, D. and Ongsukal, V. (2020), ‘Reviewing knowledge-based dynamic capabilities through meta analysis’, Journal for Global Business Advancement, 13/3, 273–95.Google Scholar
Bingham, C. B. and Eisenhardt, K. M. (2011), ‘Rational heuristics: The “simple rules” that strategists learn from process experience’, Strategic Management Journal, 32/13, 1437–64.CrossRefGoogle Scholar
Boyd, R. and Richerson, P. J. (1985), Culture and the evolutionary process, Chicago, IL: University of Chicago Press.Google Scholar
Brown, J. S. and Duguid, P. (1996), ‘Organizational learning and communities of practice’, in Cohen, L. and Sproull, L. S. (eds.), Organizational learning, London: Sage, pp. 58–82.Google Scholar
Burgelman, R. A. (1983), ‘Corporate entrepreneurship and strategic management’, Management Science, 29/12, 1349–64.Google Scholar
Chesbrough, H. (2003), Open innovation: The new imperative for creating and profiting from technology, Boston, MA: Harvard Business School Press.Google Scholar
Child, J. (2002), ‘A configurational analysis of international joint ventures’, Organization Studies, 23/5, 781–815.Google Scholar
Cohen, M. D. and Levinthal, D. A. (1990), ‘Absorptive capacity: A new perspective on learning innovation’, Administrative Science Quarterly, 35, 128–52.CrossRefGoogle Scholar
Coleman, J. S. (1988), ‘Social capital in the creation of human capital’, American Journal of Sociology, 94 (special supplement), 95–120.Google Scholar
Collis, D. J. (1994), Research note: ‘How valuable are organizational capabilities?’, Strategic Management Journal, 15/510, 143–52.Google Scholar
Crossan, M. and Berdrow, I. (2003), ‘Organizational learning and strategic renewal’, Strategic Management Journal, 24/11, 1087–115.Google Scholar
Dawkins, R. (1983), ‘Universal Darwinism’, in Bendall, D. S. (ed.), Evolution from molecules to man, Cambridge: Cambridge University Press, pp. 403–25.Google Scholar
De Dreu, C., Balliet, D. and Halevy, N. (2014), ‘Parochial cooperation in humans: Forms and functions of self-sacrifice in intergroup conflict’, Advances in Motivation Science 1, 1–47.Google Scholar
Digman, J. M. (1990), Personality structure: Emergence of the five factor model’, Annual Review of Psychology, 41, 417–40.Google Scholar
Edelman, G. M. (1987), Neural Darwinism: The theory of neuronal group selection, New York: Basic Books.Google Scholar
Eldredge, N. and Gould, S. J. (1972), ‘Punctuated equilibria: An alternative to phyletic gradualism’, in Schopf, T. J. M. (ed.), Models in paleobiology, San Francisco, CA: Freeman, Cooper and Co, pp. 82–115.Google Scholar
Flavell, J. H. (1967), The developmental psychology of Jean Piaget, Princeton, NJ: Van Nostrand.Google Scholar
Foss, N. J. (2002), ‘Edith Penrose: economics and strategic management’, in Pitelis, C. (ed.) The growth of the firm: The legacy of Edith Penrose, Oxford: Oxford University Press, pp. 147–64.Google Scholar
Garud, R. and Rappa, M. A. (1996), ‘A socio-cognitive model of technology evolution: The case of cochlear implants’, in Meindl, J. R., Stubbart, C. and Porac, J. F. (eds.), Cognition within and between organisations, London: Sage, pp. 441–74.Google Scholar
Gersick, C. J. G. (1991), ‘Revolutionary change theories’, Academy of Management Review, 16/1, 10–36.Google Scholar
Gilsing, V. A., Nooteboom, B., Vanhaverbeke, W. P. M., Duijsters, G. M. and van den Oord, A. (2008), ‘Network embeddedness and the exploration of novel technologies: Technological distance, betweenness centrality and density’, Research Policy, 37, 1717–31.CrossRefGoogle Scholar
Gould, S. J. (1989), ‘Punctuated equilibrium in fact and theory’, Journal of Social Biological Structure 12, 117–36.CrossRefGoogle Scholar
Granovetter, M. S. (1973), ‘The strength of weak ties’, American Journal of Sociology, 78/6, 1360–81.Google Scholar
Griliches, Z. (1990), ‘Patent statistics as economic indicators’, Journal of Economic Literature, 28, 1661–707.Google Scholar
Hannan, M. T. and Freeman, J. (1984), ‘Structural inertia and organizational change’, American Sociological Review, 49, 149–64.Google Scholar
Hayek, F. von (1945), ‘The use of knowledge in society’, American Economic Review, 35/4, 519–30.Google Scholar
Henderson, R. M. and Clark, K. (1990), ‘Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms’, Administrative Science Quarterly, 35/1, 9–30.Google Scholar
Hirschman, A. O. (1970), Exit, voice and loyalty, Cambridge, MA: Harvard University Press.Google Scholar
Hodgson, G. M. (2002b), ‘Darwinism in economics: From analogy to ontology’, Journal of Evolutionary Economics, 12, 259–81.Google Scholar
Hodgson, G. M. and Knudsen, T. (2006), ‘Why we need a generalized Darwinism, and why generalized Darwinism is not enough’, Journal of Economic Behavior and Organization, 61, 1–19.Google Scholar
Hosking, G. (2019), ‘The decline of trust in government,’ in Sasaki, M. (ed.) Trust in contemporary society, Leiden: Brill, pp. 77–103.Google Scholar
Janow, R. (2003), ‘Shannon entropy applied to productivity of organisations’, IEEE Xplore. IEMC ’03 Proceedings. Managing technologically driven organizations: The human side of innovation and change, 25–29, doi: 10.1109/IEMC.2003.1252225.CrossRefGoogle Scholar
Kahneman, D. and Tversky, A. (1979), ‘Prospect theory: “An Analysis of Decisions under Risk”’, Econometrica, 47/2, 263–91.Google Scholar
Kirzner, I. (1973), Competition and entrepreneurship, Chicago,IL: University of Chicago Press.Google Scholar
Klein Woolthuis, R., Hillebrand, B. and Nooteboom, B. (2005), ‘Trust, contract and relation development’, Organisation Studies, 26, 813.Google Scholar
Kraaijenbrink, J., Spender, J. C. and Groen, A. (2010), ‘The resource-based view: A review and assessment of its critiques’, Journal of Management, 30/1, 344–72.Google Scholar
Krackhardt, D. (1999), ‘The ties that torture: Simmelian tie analysis in organizations’, Research in the Sociology of Organizations, 16, 183–210.Google Scholar
Lachmann, L. (1978), ‘An Austrian stocktaking: unsettled questions and tentative answers’, in Spadaro, L. (ed.), New directions in Austrian economics, Kansas City, MO: Sheed Andrews and McMeel, pp. 1–18.Google Scholar
Lakatos, I. and Musgrave, A. (1970), Criticism and the growth of knowledge, Cambridge: Cambridge University Press.Google Scholar
Lavie, D. (2006), ‘Capability reconfiguration: An analysis of incumbent responses to technological change’, The Academy of Management Review, 31/1, 153–74.Google Scholar
Leman, P., Bremmer, A., Parker, R. D. and Gauvain, M. (2019), Developmental psychology, New York: McGraw-Hill.Google Scholar
Leonard-Barton, D. (1992), ‘Core capabilities and core rigidities: A paradox in managing new product development’, Strategic Management Journal, 1, 111–25.Google Scholar
Lindenberg, S. (2003), ‘Governance seen from a framing point of view: the employment relationship and relational signalling’ in Nooteboom, B. and Six, F. E. (eds.), The trust process: Empirical studies of the determinants and the process of trust development, Cheltenham, UK: Edward Elgar Publishing, pp. 37–57.Google Scholar
Loasby, B. (2002), ‘The significance of Penrose’s theory for the development of economics’, in Pitelis, C. (ed.), The Growth of the Firm; The Legacy of Edith Penrose, Oxford: Oxford University Press, pp. 45–60.Google Scholar
Malachowski, A. (2013), The Cambridge companion to pragmatism, Cambridge: Cambridge University Press.Google Scholar
March, J. G. (1991), ‘Exploration and exploitation in organizational learning’, Organization Science, 2/1, 101–23.Google Scholar
McKelvey, W. (1982), Organizational systematics: Taxonomy, evolution, classification, Berkeley: University of California Press.Google Scholar
Metcalfe, J. S. (1998), Evolutionary economics and creative destruction, London: Routledge.Google Scholar
Mintzberg, H. and Waters, J. A. (1985), ‘Of strategies, deliberate and emergent’, Strategic Management Journal, 6, 237–72.Google Scholar
Mokyr, J. (1990), The lever of riches: Technological creativity and economic progress, Oxford: Oxford University Press.Google Scholar
Narayaman, V. K., Lee, L. J. and Kamerer, B. (2011), ‘The cognitive perspective in strategy: An integrative review’, Journal of Management, 37/11, 305–51.Google Scholar
Nelson, R. R. (2008), ‘Economic development from the perspective of evolutionary economic theory’, Oxford Development Studies 36/1, 9–21.Google Scholar
Nelson, R. R. and Winter, S. (1982), An evolutionary theory of economic change, Cambridge: Cambridge University Press.Google Scholar
Nettle, D. (2006), ‘The evolution of personality variation in humans and other animals’, American Psychologist, 11/6, 622–31.Google Scholar
Nooteboom, B. (1994), ‘Innovation and diffusion in small business: Theory and empirical evidence’, Small Business Economics, 6, 327–47.Google Scholar
Nooteboom, B. (2000), Learning and innovation in organisations and economies, Oxford: Oxford University Press.Google Scholar
Nooteboom, B. (2004), ‘Competence and governance: How can they be combined?’ Cambridge Journal of Economics, 28/4, 505–25.Google Scholar
Nooteboom, B. (ed.) (2006), Knowledge and learning, Vol. I: Fundamentals of embodied cognition, Vol II: Knowledge and learning in organizations, Cheltenham, UK: Edward Elgar Publishing.Google Scholar
Nooteboom, B. (2009), A cognitive theory of the firm; Learning, governance and dynamic capabilities, Cheltenham, UK: Edward Elgar Publishing.Google Scholar
Nooteboom, B. (2019), ‘Uncertainty and the economic need for trust’, in Sasaki, M. (ed): Trust in contemporary society, Leiden: Brill, pp. 60–76.Google Scholar
Nooteboom, B., van Haverbeke, P. M., Duijsters, G. M., Gilsing, V. A. and Oord, A. van den (2007), ‘Optimal cognitive distance and absorptive capacity’, Research Policy, 36, 1016–34.Google Scholar
Radnitzky, G. and Bartley, W. W. III (eds.) (1987), Evolutionary epistemology, theory of rationality, and the sociology of knowledge, La Salle: Open Court, pp. 91–114.Google Scholar
Richardson, G. B. (2002), ‘Mrs. Penrose and neoclassical theory’, in Pitelis, C. (ed.), The growth of the firm; The legacy of Edith Penrose, Oxford: Oxford University Press, pp. 37–44.Google Scholar
Romanelli, E. and Tushman, M. Y. (1994), ‘Organizational transformation as punctuated equilibrium: An empirical test’, Academy of Management Journal, 37/5, 1141–66.Google Scholar
Rosenberg, A. (2000), Darwinism in philosophy, social science and policy, Cambridge: Cambridge University Press.Google Scholar
Schein, E. H. (1985), Organizational culture and leadership, San Francisco, CA: Jossey-Bass.Google Scholar
Schilke, O. and Goerzen, A. (2010), ‘Alliance management capability: An Investigation of the construct and its measurement’, Journal of Management, 36/5, 1192–219.Google Scholar
Schilke, O., Hu, S. and Helfat, C. A. (2018), ‘Quo vadis, dynamic capabilities? A content-analytic review of the current state of knowledge and recommendations for future research’, Academy of Management Journal, 12, 390–439.Google Scholar
Shackle, G. (1961), Decision, order and time in human affairs, Cambridge: Cambridge University Press.Google Scholar
Shank, R. and Abelson, R. (1977), Scripts, plans, goals and understanding, Hillsdale, NJ: Erlbaum.Google Scholar
Simmel, G. (1950), The Sociology of Georg Simmel, translation by Kurt Wolff, Glencoe, IL: Free Press.Google Scholar
Six, F. E. (2005), The trouble with trust, the dynamics of interpersonal trust building, Cheltenham, UK: Edward Elgar Publishing.Google Scholar
Smircich, L. (1983), ‘Organization as shared meaning’, in Pondy, L. R., Frost, P. J., Morgan, G. and Dandridge, T. C. (eds.), Organizational symbolism, Greenwich, CT: JAI Press, 55–65.Google Scholar
Smith, P. B. and Bond, M. H. (1993), Social psychology across cultures, London: Prentice Hall.Google Scholar
Solomon, M. (2006), ‘Group think versus the wisdom of the crowds: The social epistemology of deliberation and dissent’, The Southern Journal of Philosophy, 44, 28–40.CrossRefGoogle Scholar
Spender, J. C. (1996a), ‘Making knowledge the basis of a dynamic theory of the firm’, Strategic Management Journal, 17, 45–62.Google Scholar
Spender, J. C. (1996b), ‘Organisational knowledge, learning and memory: Three concepts in search of a theory, Journal of Change Management, 9/11, 63–78.Google Scholar
Spender, J. C. and Grant, R. M. (1996), ‘Knowledge and the firm: Overview’, Strategic Management Journal, 17, 5–9.Google Scholar
Teece, D. and Pisano, G. (1994), The dynamic capabilities of firms, Laxenburg Austria: International Institute for Applied Systems Analysis.Google Scholar
Teece, D. J., Pisano, G. and Shuen, A. (1997), ‘Dynamic capabilities and strategic management’, Strategic Management Journal, 18/7, 509–33.Google Scholar
Teece, D. (2007), ‘Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance’, Strategic Management Journal 28, 1319–50.Google Scholar
Testa, B. and Kier, L. B. (2000), ‘Emergence and dissolvence in the self-organization of complex systems’, Entropy, 2, 1–25.Google Scholar
Thiel, C. (1965), Sinn und Bedeutung in der Logik Gottlob Frege’s, Meisenheim am Glan, GER: Anton Hain.Google Scholar
Tomasello, M. (2016), A natural history of human morality, Cambridge, MA: Harvard University Press.Google Scholar
Tsoukas, H. and Chia, R. (2002), ‘On organizational becoming: Rethinking organisational change’, Organization Science, 13/5, 567–82.Google Scholar
Tushman, M. L. and Anderson, P. (1986), ‘Technological discontinuities and organizational environments’, Administrative Science Quarterly, 31, 439–65.Google Scholar
Tushman, M. L. and Romanelli, E. (1985), ‘Organizational evolution: A metamorphosis model of convergence and reorientation’, Research in Organizational Behavior, in: Staw, B. A. and Cummings, L. L., Greenwich Conn.: JAI Press, 171–222.Google Scholar
Weick, K. F. and Roberts, K. H. (1993), ‘Collective mind in organizations’, Administrative Science Quarterly, 39, reprinted in M. D. Cohen and L. S. Sproull (eds.), Organizational learning, 1996, London: Sage, pp. 330–58.Google Scholar
Wernerfelt, B. (1995), ‘The resource‐based view of the firm: Ten years after’, Strategic Management Journal, 16/3, 171–74.Google Scholar
Williamson, O. E. (1975), Markets and hierarchies: Analysis and anti-trust implications, New York: Free Press.Google Scholar
Winter, S. G. (2003), ‘Understanding dynamic capabilities’, Strategic Management Journal, 24/10, 991–5.Google Scholar
Witt, U. (2005), ‘The evolutionary perspective on organizational change and the theory of the firm’, in Dopfer, K. (ed.), The Evolutionary Foundations of Economics, Cambridge: Cambridge University Press, pp. 339–64.Google Scholar
Yamagushi, T. and Yamagushi, M. (1994), ‘Trust and commitment in the United States and Japan’, Motivation and Emotion, 18/2, 129–66.Google Scholar
Zheng, S. A., Zhang, W. and Du, J. (2011), ‘Knowledge-based dynamic capabilities and innovation in networked environments’, Journal of Knowledge Management, 15/6, 1055–151.Google Scholar
Zollo, M. and Winter, S. G. (2002), ‘Deliberate learning and the evolution of dynamic capabilities’, Organization Science, 13/3, 339–51.Google Scholar
Accessibility standard: Unknown
Why this information is here
This section outlines the accessibility features of this content - including support for screen readers, full keyboard navigation and high-contrast display options. This may not be relevant for you.Accessibility Information
Accessibility compliance for the HTML of this element is currently unknown
and may be updated in the future.
- 3
- Cited by