Building Dynamic Capabilities in Rapid Innovation-based Industries
Edited by Stuart Wall, Carsten Zimmermann, Ronald Klingebiel and Dieter Lange
Chapter 11: Strategic Value Chain Redefinitions: Operationalising the Dynamic Capability View
Ronald Klingebiel and Dieter Lange ABSTRACT In this chapter, we aim to bring together the Dynamic Capability View (DCV) of competitive advantage with the pragmatic approaches of strategy professionals. Contrary to popular belief, capability-driven concepts of strategic renewal have been in application for a considerable time. The emphasis here is upon an approach used by several strategic consultancies: namely the Value Chain Redefinition (VCR) concept, which resembles a meta-capability that identifies firm capability levels and needs within specific parts of the organisation. Perhaps a surprising implication is that many of the difficulties associated with the operationalisation of the DCV have been independently resolved by practitioners, even though researchers are still looking for ways of translating and communicating their DCV findings. It can therefore be argued that gaining advantages through dynamic capability configurations is already a more deliberately managed stratagem than is often assumed. INTRODUCTION A capability does not merely represent a further resource in the interplay of other resources such as financial assets, technology, or manpower, but rather a distinctive and arguably superior approach to allocating resources. The capabilities method of resource allocation is somewhat idiosyncratic to companies and is found in repositories of historical learning that create a web of skills and routines. Such capabilities can be very complex and organisations may master complex tasks and solve challenging problems without fully understanding the internal functioning of the responsible capability. Capabilities are, therefore, ‘somewhat mysterious 270 Strategic value chain redefinitions 271 social phenomena’ (Dosi, Nelson and Winter 2000) and often...
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