2022
DOI: 10.1017/mor.2022.37
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A Capabilities Framework for Dynamic Competition: Assessing the Relative Chances of Incumbents, Start-Ups, and Diversifying Entrants

Abstract: This essay argues that to assess the likelihood that incumbent firms will successfully make the required transformations to their strategy and operations in the face of technological transformations, it is not sufficient to investigate their dynamic capabilities. Whether an incumbent is likely to succeed in its effort to change itself via dynamic capabilities depends also on how quickly start-ups or diversifying entrants can build ordinary capabilities to offer the new technology at scale. We offer a framework… Show more

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Cited by 7 publications
(14 citation statements)
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“…These factors suggest that start-ups and diversifying entrants are in a stronger position than Murmann and Vogt (2022) propose, but for reasons different than those suggested by Jiang and Lu (2022). Our observations flow from a recognition of the panoply of individual and organizational skills now needed, given technological evolution in recent years.…”
Section: Introductionmentioning
confidence: 74%
See 3 more Smart Citations
“…These factors suggest that start-ups and diversifying entrants are in a stronger position than Murmann and Vogt (2022) propose, but for reasons different than those suggested by Jiang and Lu (2022). Our observations flow from a recognition of the panoply of individual and organizational skills now needed, given technological evolution in recent years.…”
Section: Introductionmentioning
confidence: 74%
“…First, one must ask which of the capabilities set out there can now be outsourced to EV manufacturing suppliers – for example, companies that can do for Apple in cars what Foxconn has long done for them in smartphones. Second, Murmann and Vogt's (2022) ‘Software Development’ should be redefined and segmented to focus on separate user experience and DSP ecosystems that will increasingly define the user experience and brand identity.…”
Section: Discussionmentioning
confidence: 99%
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“…This is a follow-up discussion about the Chinese electric vehicle (EV) sector, in particular the relative prospects of traditional automotive manufacturers and new ‘species’, four years after our last conversation on this topic (Jiang & Lu, 2018). It is also a response to Murmann and Vogt's (2022) latest article, which goes beyond Teece's (2018) focus on dynamic capabilities and constructs a systematic framework of firm capabilities to understand the competitive dynamics during a transformational shift of products.…”
Section: Introductionmentioning
confidence: 99%