Academy of Management Perspectives· 2014Q1
The Foundations of Enterprise Performance: Dynamic and Ordinary Capabilities in an (Economic) Theory of Firms
- 1,933citations
- Q1SCImago
- 2014year
Short summary
This paper clarifies and extends the dynamic capabilities framework, highlighting the roles of individual action, resources, strategy, and the distinction between ordinary and dynamic capabilities to explain long-run enterprise performance.
AI-generated from the title and abstract; the full text is not read.
Key points
- The dynamic capabilities framework is restated with clarifications and extensions.
- Key omitted elements include individual action, resources, strategy, and the ordinary vs. dynamic capability distinction.
- Dynamic capabilities are proposed as a multidisciplinary framework for explaining long-run enterprise performance.
- Ambidexterity and related frameworks are presented as tailored versions of dynamic capabilities.
AI-generated from the title and abstract; the full text is not read.
Abstract
The dynamic capabilities framework has had a significant impact on strategic management theory and practice, but the sizable literature on the topic has not always been unified. This paper begins with a restatement of the framework encompassing clarifications and extensions that have occurred since it was introduced. The paper highlights key elements that have been omitted or poorly integrated into the dynamic capabilities literature: the role of individual action by entrepreneurial managers, the role of resources, strategy, and the distinction between ordinary and dynamic capabilities. Dynamic capabilities is advanced as a multidisciplinary framework to explain long-run enterprise performance. Ambidexterity and other related frameworks are tailored versions of dynamic capabilities. Linkages between (strategic) management theory and (Austrian) economic theory are explored. The concepts of x-inefficiency and d-ineffectiveness are compared.
The authors' abstract, as published at the source. Academy of Management Perspectives, 2014 · DOI ↗
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Field: Strategy and Management
Strategy and ManagementBusiness, Management and Accounting