Dynamic Capabilities and Open Innovation

Question 1

Definition Dynamic Capabilities (2)

Answer 1

• The firm’s ability to integrate, build and reconfigure internal and external competencies to address rapidly changing environments
• Meta capabilities, higher level tasks that direct ordinary activities to high pay-off endeavors (orchastrate firm resources)

Question 2

Dynamic Capability Dimensions

• Sensing
• Seizing
• Reconfiguring

Answer 2

• Sensing: Identification, development and assessment of opportunities
• Seizing: Mobilization of resources to address needs and opportunities
• Reconfiguring: Continued transformation of resource base and capabilities

Question 3

Activity areas of Dynamic Capabilities (6)

Answer 3

• New Product Development capabilities
• Alliance Management capabilities
• Acquisition and Innovation capabilities
• Dynamic Marketing capabilities
• Dynamic Collaboration capabilities
• Dynamic Managerial capabilities

Question 4

New Product Development Capability

• Goal
• Measurement
• Results

Answer 4

• Goal: gain a strategic advantage in constantly changing environments
• Measurement: objective for undertaking innovation project in past 3 years (new technological fields, new markets, extend new products, introduce new product generation)
• Results: curvilinear inverted u-shape between competitive advantage due to NPD capability and environmental dynamism – most useful in medium dynamism

Question 5

Alliance Management Capability

• Goal
• Measurement
• Results

Answer 5

• Goal: gain a strategic advantage in constantly changing environments
• Measurement: interorganizational learning/coordination, alliance transformation/proactiveness/portfolio coordination
• Results: curvilinear inverted u-shape betweeen competitve advantage due to AM capability and environmental dynamism – most useful in medium/high dynamism

Question 6

Closed Innovation - Definition (1+6)

Answer 6

• New products discovered, developed and commercialized internally
• > smart people work for us
• > to profit from R&D, must discover, develop, ship ourselves
• > discovering it ourselves = first to market
• > first to commercialize = we win
• > if we create most/best ideas, we win
• > should control our IP so competitors don’t profit

Question 7

Open Innovation - Definition (1+8)

Answer 7

• Ideas and innovations can originate from external sources
• > not all smart people work for us, find and tap their knowledge
• > external R&D can create significant value
• > internal R&D is needed to claim a portion thereof
• > we don’t have to originate the research to profit from it
• > building a better business model is better than getting to market first
• > If we make the best of internal & external ideas, we win
• > we should profit from other’s use of our IP
• > we should buy other’s IP if it advances our BM