Dynamic Capabilities

Foundational Concepts

David J. Teece (University of California, Berkeley)

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English

Cambridge University Press
02 October 2025

Business studies: general; Business strategy; Business innovation; Management: leadership & motivation

Series: Elements in Business Strategy

The dynamic capabilities framework outlines the means by which the managers of business enterprises foster and exercise organizational and technological capabilities and business strategy to address current and anticipated market and geopolitical conditions. In a firm with strong dynamic capabilities, managers can establish and periodically renew the competitive advantage of the business enterprise by not just responding to but shaping the business environment. This Element relates the dynamic capabilities framework to important concepts from the business and economics literature, demonstrating how it applies to today's business challenges. It also offers a capabilities perspective on a theory of the firm. Most existing theories of the firm caricature today's business enterprise. For advanced students of business, this Element provides a deeper understanding of the dynamic capabilities framework. For managers and boards, it shows how the analytical tools and mindsets that help to make their firms future-ready can be better understood in terms of the dynamic capabilities framework. This Element is also available as Open Access on Cambridge Core.

By: David J. Teece (University of California Berkeley)
Imprint: Cambridge University Press
Country of Publication: United Kingdom
Dimensions: Height: 229mm, Width: 152mm, Spine: 5mm
Weight: 138g
ISBN: 9781009562744
ISBN 10: 1009562746
Series: Elements in Business Strategy
Pages: 86
Publication Date: 02 October 2025
Audience: Adult education , Tertiary & Higher Education
Format: Paperback
Publisher's Status: Active

1. Introduction; 2. Capabilities: an introduction; 3. Dynamic capabilities: some foundational concepts; 4. The economic theory of the firm; 5. Building a capabilities theory of the firm; 6. Conclusions; References.