Meaning of dynamic capability building
Dynamic Capability Building
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Meaning and definition of dynamic capability building :
Dynamic Capability Building: John Hagel III and John Seely Brown, in their book, “The Only Sustainable Edge” define capability as the recurring mobilization of tangible and intangible resources for the delivery of distinctive value in excess of cost. Companies must take a more dynamic view of capabilities. Otherwise, they will find themselves outflanked by more aggressive competitors. Sustainable competitive advantage will ultimately come from a firm’s institutional capacity to rapidly strengthen its distinctive capabilities and to accelerate learning across enterprise boundaries. As Hagel and Brown mention, “….the primary role of the firm should be to accelerate the knowledge and capability building of its members so that all can create even more value. This perspective broadens managerial attention from the tasks of allocating existing resources to the tasks of deepening knowledge and capability in an increasingly uncertain environment. “Hagel and Brown suggest three mechanisms to accelerate capability building. Processes can be outsourced and in combination with offshoring can give the firm access to specialized capabilities. Distributed networks of specialized companies can also help in mobilizing resources. By bringing together people with diverse backgrounds and skills to solve business problems, capability building can again be accelerated.
For the term dynamic capability building may also exist other definitions and meanings, the meaning and definition indicated above are indicative not be used for medical and legal or special purposes.
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Glossary of knowledge terms
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