Explicating dynamic capabilities: the nature and microfoundations
of (sustainable) enterprise performance
Strat. Mgmt. J., 28 (13):
1319--1350 (December 2007)DOI: 10.1002/smj.640
Abstract
This paper draws on the social and behavioral sciences in an endeavor
to specify the nature and microfoundations of the capabilities necessary
to sustain superior enterprise performance in an open economy with
rapid innovation and globally dispersed sources of invention, innovation,
and manufacturing capability. Dynamic capabilities enable business
enterprises to create, deploy, and protect the intangible assets
that support superior long- run business performance. The microfoundations
of dynamic capabilities—the distinct skills, processes, procedures,
organizational structures, decision rules, and disciplines—which
undergird enterprise-level sensing, seizing, and reconfiguring capacities
are difficult to develop and deploy. Enterprises with strong dynamic
capabilities are intensely entrepreneurial. They not only adapt to
business ecosystems, but also shape them through innovation and through
collaboration with other enterprises, entities, and institutions.
The framework advanced can help scholars understand the foundations
of long-run enterprise success while helping managers delineate relevant
strategic considerations and the priorities they must adopt to enhance
enterprise performance and escape the zero profit tendency associated
with operating in markets open to global competition. Copyright ©
2007 John Wiley & Sons, Ltd.