Strategic Reconfigurations

Strategic Reconfigurations

Building Dynamic Capabilities in Rapid Innovation-based Industries

Edited by Stuart Wall, Carsten Zimmermann, Ronald Klingebiel and Dieter Lange

This path-breaking book provides unique insights into the organisational realities of strategic reconfigurations in uncertain markets, thus advancing the dynamic capability perspective.

Chapter 5: Strategic Management Theory and the State: Insights from the Dynamic Capabilities View

Dan Breznitz and Carsten Zimmermann

Subjects: business and management, organisational innovation, strategic management, economics and finance, industrial organisation, innovation and technology, organisational innovation


Dan Breznitz1 and Carsten Zimmermann2 ABSTRACT With the changes brought about by the rise of new rapid-innovation-based industries and the international fragmentation of production, we lack a theory with which to conceptualize our understanding of the role of the state in industrial development. We argue, however, that exactly such a framework already exists in the management literature. The best analogy for expressing the role of the state in industrial development is in terms of a strategic manager within an unmanageable conglomerate. The state role can therefore be seen as one of creating dynamic capabilities and stimulating their usage within the ‘corporation’, which is in this case, the national economy. It provides signals to induce agents to utilize resources and capabilities to enable the development of long-term competitive advantage in the global market place. This chapter develops these insights for the specific case of rapid-innovation-based industrial development. It also demonstrates why we believe this framework can lead to a superior understanding of the empirical reality, thus providing a powerful tool for future policy formulation. INTRODUCTION In the recent past a variety of regions and states have successfully grown their rapid-innovation-based industries. In some regions, globalization and the fragmentation of production have been the initiator and momentum to enhance this development. Though there is a variety of literature on the various success stories, we lack a theoretical framework to help structure the idiosyncrasies of the multifaceted approaches that states have taken. This is even more compelling since current government approaches are 107...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information