Abstract
The dynamic capabilities framework, which emerged in the strategic management literature during the 1990s, appears to have become one of the dominant paradigms in the field. At a practical level, the managerial activities that support dynamic capabilities are the sensing of opportunities, the seizing of such opportunities and the transforming of the enterprise, as needed. Dynamic capabilities reside within organizations and are shaped by organizational heritage and prior management decisions. Of particular significance are top management decisions and the manner in which management orchestrates strategic assets inside and outside the firm. An enterprise with strong dynamic capabilities will adapt to the business environment as changes occur. It can also shape that environment by joining with suppliers and complementors to co-create new markets and impact government policy and industry activity.
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Teece, D.J. (2018). Dynamic Capabilities. In: Augier, M., Teece, D.J. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-00772-8_689
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DOI: https://doi.org/10.1057/978-1-137-00772-8_689
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