Dynamic Capabilities and Strategic Management
Abstract
Different approaches to strategy view sources of wealth creation and the essence of the strategic problem faced by firms differently. The competitive forces framework sees the strategic problem in terms of market entry, entry deterrence, and positioning; game-theoretic models view the strategic problem as one of interaction between rivals with certain expectations about how each other will behave; resource-based perspectives have focused on the exploitation of firm-specific assets. Each approach asks different, often complementary questions. A key step in building a conceptual framework related to dynamic capabilities is to identify the foundations upon which distinctive and difficult to replicate advantages can be built.
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Adopting AI through a staged, capability-focused approach enables SMEs to progressively develop the dynamic capabilities essential for sensing, seizing, and reconfiguring resources in response to evolving technological opportunities.
“Adopting AI through a staged, capability-focused approach enables SMEs to progressively develop the dynamic capabilities essential for sensing, seizing, and reconfiguring resources in response to evolving technological opportunities (Teece et al., 1997).”
From Artificial Intelligence Adoption for Sustainable Development in SMEs: Challenges, Strategic Pathways, and Lessons for Developing Economies (2026) · cites this paper as Teece et al., 1997
The Dynamic-Capabilities school posits that firms perpetually discern, appropriate, and metamorphose these assets within volatile contexts.
“The Dynamic-Capabilities school posits that firms perpetually discern, appropriate, and metamorphose these assets within volatile contexts (Teece et al., 1997;Eisenhardt & Martin, 2000).”
From Digital transformation: a comparative analysis of SME digital maturity models (2025) · cites this paper as Teece et al., 1997
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Innovation, organizational capabilities, and the born-global firm
Knight, G. A., & Cavusgil, S. T. (2004) · Journal of International Business Studies · doi:10.1057/palgrave.jibs.8400071 · Cited by 3,013 · see citing works
The Case for Viewing Business Models as Abstractions of Strategy
Seddon, P. B., & Freeman, P. (2004) · Communications of the Association for Information Systems · doi:10.17705/1cais.01325 · Cited by 205 · see citing works
Gong, Y., & Janssen, M. (2021) · Journal of theoretical and applied electronic commerce research · doi:10.4067/s0718-18762021000100104 · Cited by 55 · see citing works
Sandeep, M. M., & Lavanya, V. (2026) · Journal of Management Development · doi:10.1108/jmd-03-2024-0082 · Cited by 8 · see citing works
Holland, J. (2026) · International Journal of Sustainability in Business and Economics · doi:10.51137/wrp.ijsbe.502 · Cited by 5 · see citing works
Digital transformation: a comparative analysis of SME digital maturity models
Ondrík, P., & Jankal, R. (2025) · Entrepreneurship and Sustainability Issues · doi:10.9770/w7354634293 · Cited by 2 · see citing works
- Authors
- Teece, D. J., Pisano, G., & Shuen, A.
- Venue
- Resources, Firms, And Strategies
- Publisher
- Oxford University PressOxford
- Published
- 1997-12-11
- Pages
- 268-285
- OpenAlex
- W4388151924
- Cited by
- 3,313
- References
- 0
- Citations by year
- 2026: 23 · 2025: 35 · 2024: 205 · 2023: 338 · 2022: 295 · 2021: 297 · 2020: 258 · 2019: 237 · 2018: 233 · 2017: 225 · 2016: 183 · 2015: 147 · 2014: 142 · 2013: 127 · 2012: 122
- FWCI
- 52.58
- Type
- book chapter
- Language
- en
- Open access
- closed
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
- Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategies and Innovation
- Social Sciences › Business, Management and Accounting › Strategy and Management › Management and Organizational Practices
- Keywords
- dynamic capabilities, strategic management, game-theoretic model, resource-based view, firm-specific assets, market entry, entry deterrence, firm positioning
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