Dynamic Capability as Fashion

Abstract

Beginning in the latter half of the 1990s through the early 2000s, research on dynamic capability (DC) emerged. Teece, Pisano, and Shuen (1997) were famous for being quoted even while only having a working paper, which was subsequently published. They were followed by Eisenhardt and Martin (2000). Then, researchers such as Zollo and Winter (2002) studied routines and organizational learning with a focus on the keyword "capability." These three influential papers cited the following concepts as elements that comprise DC: 1) the level of environmental change; 2) organizational processes or routines; 3) resource configuration; 4) the role of managers (for example, decision making with regard to resource investment); and 5) learning mechanisms. Later, many researchers adopted a resource-based view (RBV) and presented their studies as incorporating DC if they contained the keywords "change," "competitive advantage," or "capability" even though they were merely descriptions of static resource states and discussions of their changes. By casually labeling research on R&D, acquisitions, or alliances as DC theory, these later studies a) caused ambiguity and confusion with regard to what "dynamic" means and b) lost sight of the essence of DC theory with various solutions concerning whether the concept can be explained with the stable characteristic of capability.

Multi-functional Factories

“…Our results suggest that to increase global market competitiveness and sustain superiority over transplants in new product proposal and development, it may be effective to build production sites that are fully self-contained in multiple functionalities. Multi-functionality at a production site may result in greater costs but is expected to also result in better dynamic capability (Fukuzawa, 2015b) to respond to environment changes through increased ability to create new markets via new product proposal/development.…”

Criticisms on “the Innovator's Dilemma” Being in a Dilemma

“…Articles reviewing these are now emerging(Corsi & Di Minin, 2014). 3 SeeFukuzawa (2015), which is a detailed review of research on dynamic capability.…”

Why can Toyota's <i>keiretsu</i> recover from earthquakes quickly?

“…In the above two cases of the Great East Japan Earthquake and the Kumamoto Earthquake, the informal, flat (non-hierarchical) networks created by regular jishuken enabled the mutual accumulation of knowhow among organizations and the formation of In short, although the Toyota keiretsu holds a competitive advantage even during times of disaster recovery, the dynamic capabilities needed to respond to changes wrought by natural disasters (Fukuzawa, 2015;Kikuchi & Iwao, 2016;Teece, Pisano, & Shuen, 1997) require inter-organizational and interfirm relationships throughout the entire supplier system (Dyer & Singh, 1998).…”