Dynamic Capabilities

Assignment 2

Question 1: How do the ideas in the article on dynamics capability differ from the articles on RBV?

In Teece, Pisano and Shuen’s article, 4 approaches connected with strategic management were analysed: competitive forces, strategic conflict, RBV and dynamic capabilities paradigm. The dynamic capabilities approach expands RBV to understand how competitive advantage is achieved. Rapid and flexible product innovation is not enough; firms also need management capability to redeploy internal and external competences. Dynamic capabilities are organized in 3 sections: processes (coordination, integration, learning and

reconfiguration), positions (technological, complementary, financial, reputational, structural, institutional, marked assets and organizational boundaries) and paths. Path dependency defines what choices are open to the firm today and in the future as the enterprise is influenced by its past development. However, these key aspects of dynamic capabilities approach are not critical in RBV.No, I disagree asset position, path dependency too is imp and process is part of resources. The point is these 3 together help the org deal with the extenal environmnet and RBV suggests that if you have a particular bundle of resources that is enough.... Moreover, the replicability and imitability is not stressed as resulting in unique advanatges in dynamic capabilities view...best practice. Competitive advantage can be achieved due to routines, skills and complementary assets of the firm, these three together may be known to other firms but the ability to reconfigure resources are difficult to imitate. RBV also emphasizes idiosyncratic, scarce and difficult-to-imitate resources. RBV doesn’t analyze replicability, but it is indicated as one of the focal concerns in dynamic capabilities

view as it supports geographical and product line expansion and makes foundation for learning and improvements. So? In their article, Eisenhardt and Martin discuss...