Explication Dynamic Capabilities: the nature and microfoundations of (sustainable) enterprise performance

1. Explication Dynamic Capabilities: the nature and microfoundations of (sustainable) enterprise performance David J. Teece Shinyoung Kim Operations Management

2. What are Dynamic Capabilities? Dynamic Capabilities = Dynamic + Capabilities

3. Why Dynamic Capabilities? Open Economy High Technology Open UserInnovation Cospecialized Asset Enterpreneurship ….

4. Dynamic capabilities framework

5. Elements of an ecosystem framework for “Sensing” market and technological opportunities Processes to Tap Developments in Exogenous Science and Technology Processes to Direct Internal R&D & Select New Technologies AnalyticalSystems (and Individual Capacities) to Learn and to Sense,Filter, Shape, and Calibrate Opportunities. Processes to Identify Target Market Segments, Changing Customer Needs, and Customer Innovation. Processes to Tap Supplier & Complementor Innovation.

6. Strategic decision skills/ execution • for “Seizing” market and technological opportunities Delineating the Customer Solution and the Business Model Selecting the Technology and Product Architecture; Designing Revenue Architectures; Selecting Target Customers; Designing Mechanisms to Capture Value. Selecting Enterprise Boundaries to Manage Complements and“Control”Platforms Calibrating Asset Specificity; Controlling Bottleneck Assets; Assessing Appropriability; Recognizing, Managing, Capturing CospecializationEconomies Enterprise Structures, Procedures, Designs and Incentives for Seizing Opportunities Selecting Decision-Making Protocols Recognizing Inflexion Points and Complementarities; Avoiding Decision Errors and AnticannibalizationProclivities Building Loyalty and Commitment Demonstrating Leadership; Effectively Communicating; Recognizing Non-Economic Factors, Values, andCulture

7. Combination, reconfiguration, and asset protection skills • for “Transforming” market and technological opportunities Cospecialization Managing Strategic Fit So That Asset Combinations Are Value Enhancing. Decentralization and Near Decomposability Adopting Loosely Coupled Structures; Embracing Open Innovation; Developing Integration Coordination Skills. Continuous Alignment and Realignment of Specific Tangible and Intangible Assets. Governance Achieving Incentive Alignment; Minimizing Agency Issues; Checking Strategic Malfeasance; Blocking Rent Dissipation. Knowledge Management Learning;KnowledgeTransfer; Know-howIntegration; Achieving Know-how and Intellectual Property Protection.

8. “Orchestration” Dynamic capabilities

9. Let’s Think about ….Conflicting views on • Sustainable Competitive Advantage D. J. Teece Vs. M. E. Porter

10. Dynamic Capabilities at DYNAMIC CAPABILITIES: A GUIDE FOR MANAGERS byDavid J. Teece (2011)

11. How to build Entrepreneurship? “Capturing value is never certain, but it can be managed.”

12. Thank You!