Cross-border Market Co-creation, Dynamic Capabilities and the Entrepreneurial Theory of the Multinational Enterprise

The concepts of asset co-specialization and dynamic capabilities have been instrumental in furthering the organization and strategy scholarship agenda, but have so far had limited impact to the theory of the MNE and FDI. In addition, the role of entrepreneurial management in orchestrating system-wide value creation through market and eco-system creation and co-creation, in order to advance private appropriation, has been all but ignored. We claim that these ideas can help explicate the nature of the MNE in the knowledge-based, semi-globalized economy. The nature of the MNE in its turn should not be seen as separable from either the objectives of the agents (entrepreneurs) who set them up or its essence – the employment of strategy to capture co-created value.Asset Co-specialisation; Dynamic Capabilities; Cross-border Market and Ecosystem Co-creation; Theory of MNE and FDI; Entrepreneurial Theory

The (new) nature and essence of the firm

Extant explanations of the nature and scope of firms, such as transaction costs, property rights, metering and “resources” can be integrated into a more general (capability based) theory of the nature and essence of the firm that recognizes the importance to the firm of creating (and capturing) value from innovation. We note that the appropriability of returns from creative and innovative activity often requires the entrepreneurial creation and co-creation of markets. Accordingly, market failure and transaction costs approaches need to be revamped to capture the essence of entrepreneurial and managerial activity that extends beyond the mere exercise of authority. We suggest that the nature and objective of the firm in an economy with innovation and incomplete markets is to capture value (profit) from its advantages and actions; and that the way in which the firm tries to achieve this (by establishing quasisustainable competitive advantage) is its essence. This is non-separable from its nature and objectives.firm, nature, essence, innovation, dynamic capabilities

Telecommunications in Transition: Unbundling, Reintegration, and Competition

The world economy is experiencing a technological revolution, fueled by rapid advances in microelectronics, optics, and computer science, that in the 1990s and beyond will dramatically change the way people everywhere communicate, learn, and access information and entertainment. This technological revolution has been underway for about a decade. The emergence of a fully-interactive communications network, sometimes referred to as the Information Superhighway, is now upon us. This highway, made possible by fiber optics and the convergence of several different technologies, is capable of delivering a plethora of new interactive entertainment, informational, and instructional services that are powerful and user-friendly. The transition from analog to digital technologies, the expanding bandwidth of the enabling platform, and the shift from regulated to competitive environments have all served to make the 1990s the decade in which the Information Superhighway will be built and used. A true revolution in the delivery of entertainment, information, transactions, and telecommunications services is at hand. This paper outlines these technological changes and explores their implications for competition policy, industry structure, and business organization. Part I introduces competition as an organizational model and discusses the existing structure of the telecommunications industry in the United States. Part II describes recent technological advances that change the conditions underlying the current regulatory structure of the telecommunications industry and challenges the effectiveness and validity of the current regulatory scheme. Part III discusses how innovation impacts what has been considered the natural monopoly of local exchange. Part IV advances five principles that should guide policy modification. Part V explores how eliminating the line-of-business restrictions created by the Modification of the Final Judgment1 between the government and American Telephone and Telegraph Co. will accelerate competition and stimulate the development of the Information Superhighway. Ameritech\u27s Customer First Plan is presented as a viable means to enhance competition, avoid redundant investment, and increase service innovations and technological advances. Part VI discusses the impact of removing interLATA restrictions

Market Sensing, Dynamic Capability, and Competitive Dynamics

This is a research commentary to the following article: Hunt, S. D., & Madhavaram, S. (2019). Adaptive marketing capabilities, dynamic capabilities, and renewal competences: The “outside vs. inside” and “static vs. dynamic” controversies in strategy, Industrial Marketing Management, in press. https://doi.org/10.1016/j.indmarman.2019.07.004

Dynamic capabilities in the upstream oil and gas sector: Managing next generation competition

AbstractThe Dynamic Capabilities Framework, originally developed to enhance understanding of strategic agility in high-tech firms operating in high-velocity markets, is shown to be relevant for the Upstream Oil and Gas sector, in the context of five industry game-changers. Here operational and general managers with key strategic decision-making responsibilities significant challenges created by increased demand for energy resources, new technologies that have opened unconventional plays, increased competition, shrinking global geoscience and engineering talent pools, and the reality and perception of environmental risks. The Dynamic Capabilities Framework is distinguished from other “textbook” strategic methodologies and is applied to today’s upstream strategic context and inflection point. Dynamic capabilities join with strategy to empower an organization’s ability to integrate, build and reconfigure internal and external competencies to address rapidly changing markets. Dynamic capabilities differ from ordinary capabilities in that they orchestrate clusters of ordinary capabilities, best practices and competencies to gain competitive and performance advantages – capturing opportunities and managing strategic risks. Three dynamic capabilities are described that have particular importance for upstream oil and gas companies in the new business environment: (1) ambidexterity across mature and emerging domains; (2) the ability to manage the upstream business ecosystem; and (3) the ability to manage Health, Safety, Security and Environmental (HSSE) considerations in the multinational corporation and throughout the business ecosystem

Cross-border Market Co-creation, Dynamic Capabilities and the Entrepreneurial Theory of the Multinational Enterprise

The concepts of asset co-specialization and dynamic capabilities have been instrumental in furthering the organization and strategy scholarship agenda, but have so far had limited impact to the theory of the MNE and FDI. In addition, the role of entrepreneurial management in orchestrating system-wide value creation through market and eco-system creation and co-creation, in order to advance private appropriation, has been all but ignored. We claim that these ideas can help explicate the nature of the MNE in the knowledge-based, semi-globalized economy. The nature of the MNE in its turn should not be seen as separable from either the objectives of the agents (entrepreneurs) who set them up or its essence – the employment of strategy to capture co-created value

The (new) nature and essence of the firm

Extant explanations of the nature and scope of firms, such as transaction costs, property rights, metering and “resources” can be integrated into a more general (capability based) theory of the nature and essence of the firm that recognizes the importance to the firm of creating (and capturing) value from innovation. We note that the appropriability of returns from creative and innovative activity often requires the entrepreneurial creation and co-creation of markets. Accordingly, market failure and transaction costs approaches need to be revamped to capture the essence of entrepreneurial and managerial activity that extends beyond the mere exercise of authority. We suggest that the nature and objective of the firm in an economy with innovation and incomplete markets is to capture value (profit) from its advantages and actions; and that the way in which the firm tries to achieve this (by establishing quasisustainable competitive advantage) is its essence. This is non-separable from its nature and objectives