Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance
Version of Record online: 7 AUG 2007
Copyright © 2007 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 28, Issue 13, pages 1319–1350, December 2007
How to Cite
Teece, D. J. (2007), Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strat. Mgmt. J., 28: 1319–1350. doi: 10.1002/smj.640
- Issue online: 24 OCT 2007
- Version of Record online: 7 AUG 2007
- Manuscript Revised: 20 JUN 2007
- Manuscript Received: 16 FEB 2004
- intangible assets;
- business ecosystems;
- managerial capitalism;
- global competitiveness
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.