Dynamic Capabilities and Organizational Agility: Risk, Uncertainty, and Strategy in the Innovation Economy
Open accessAbstract
“Organizational agility” is often treated as an immutable quality, implying that firms need to be in a constant state of transformation. However, this ignores that such transformations, while often essential, come at a cost. They are not always necessary, and may not even be possible. This article explores agility at a more fundamental level and relates it more specifically to dynamic capabilities. It demonstrates that it is first essential to understand deep uncertainty, which is ubiquitous in the innovation economy. Uncertainty is very different from risk, which can be managed using traditional tools and approaches. Strong dynamic capabilities are necessary for fostering the organizational agility necessary to address deep uncertainty, such as that generated by innovation and the associated dynamic competition. This article explores the mechanisms by which managers may calibrate the required level of organizational agility, deliver it cost effectively, and relate it to strategy.
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Firms respond to the complex regulatory framework through partnering agility.
“Firms respond to the complex regulatory framework through partnering agility .”
From Artificial intelligence in innovation management: A review of innovation capabilities and a taxonomy of <scp>AI</scp> applications (2025) · cites this paper as Teece et al., 2016
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Technological paradigms and technological trajectories
Dosi, G. (1982) · Research Policy · doi:10.1016/0048-7333(82)90016-6 · Cited by 6,685 · see citing works
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Mastering digital transformation: The nexus between leadership, agility, and digital strategy
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“The role of managers is limited without having a strategy and adjusting it when needed (Teece et al., 2016).”
BackgroundInfluentialPetricevic, O., & Teece, D. J. (2019) · Journal of International Business Studies · doi:10.1057/s41267-019-00269-x · Cited by 501 · see citing works
Self-citationTallon, P. P., Queiroz, M., Coltman, T., & Sharma, R. (2019) · The Journal of Strategic Information Systems · doi:10.1016/j.jsis.2018.12.002 · Cited by 453 · see citing works
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“Parallel debates persist on whether organizational agility constitutes an innate enterprise trait dependent on existing structures and culture versus a dynamic capability inviting development and cultivation (Teece et al. 2016).”
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Capability-Based Theories of Multinational Enterprise Growth
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Self-citation
- Authors
- Teece, D., Peteraf, M., & Leih, S.
- ORCID
- Teece, David
- Venue
- California Management Review
- Publisher
- SAGE Publications
- Published
- 2016-08
- Volume
- 58
- Issue
- 4
- Pages
- 13-35
- ISSN
- 0008-1256 (ISSN-L)
- 2162-8564
- OpenAlex
- W2483540831
- Cited by
- 2,317
- References
- 1
- Citations by year
- 2026: 444 · 2025: 374 · 2024: 294 · 2023: 293 · 2022: 276 · 2021: 239 · 2020: 176 · 2019: 101 · 2018: 77 · 2017: 38 · 2016: 3 · 2013: 1
- FWCI
- 175.57
- Type
- journal article
- Language
- en
- Open access
- green
- escholarship.org
- Licence
- Locations
- California Management Review (publishedVersion)
- eScholarship (California Digital Library) (submittedVersion, cc-by-nc-nd)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
- Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Organizational Management and Leadership
- Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategies and Innovation
- Keywords
- dynamic capabilities, organizational agility, deep uncertainty, risk management, innovation economy, dynamic competition, strategy, organizational change
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