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The Nature and Dynamics of Organizational Capabilities$
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Giovanni Dosi, Richard R. Nelson, and Sidney Winter

Print publication date: 2001

Print ISBN-13: 9780199248544

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0199248540.001.0001

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Dynamic Capabilities and Strategic Management

Dynamic Capabilities and Strategic Management

Chapter:
(p.334) 12 Dynamic Capabilities and Strategic Management
Source:
The Nature and Dynamics of Organizational Capabilities
Author(s):

David J. Teece (Contributor Webpage)

Gary Pisano

Amy Shuen

Publisher:
Oxford University Press
DOI:10.1093/0199248540.003.0013

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

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