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Hand in Glove: Open Innovation and the Dynamic Capabilities Framework

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  • Teece, David J.

Abstract

Open innovation involves some of the most strategic functions of the enterprise, and yet relatively little has been written about how it fits into a larger strategic management framework. This article fills that gap by relating open innovation to the dynamic capabilities framework and begins by briefly summarizing the two perspectives. It then reviews the modest theoretical and empirical literature that looks at open innovation from a capabilities perspective. It identifies where open innovation fits into the dynamic capabilities framework and explores how treating open innovation as a separate construct can enrich a dynamic capabilities approach to the management of the enterprise. A case study of China's Haier then provides an example of these principles in practice.

Suggested Citation

  • Teece, David J., 2020. "Hand in Glove: Open Innovation and the Dynamic Capabilities Framework," Strategic Management Review, now publishers, vol. 1(2), pages 233-253, June.
    • Handle: RePEc:now:jnlsmr:111.00000010
    DOI: 10.1561/111.00000010
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    Citations

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    Cited by:

    1. Soluk, Jonas & Decker-Lange, Carolin & Hack, Andreas, 2023. "Small steps for the big hit: A dynamic capabilities perspective on business networks and non-disruptive digital technologies in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    2. Sjödin, David & Liljeborg, Alexander & Mutter, Sermed, 2024. "Conceptualizing ecosystem management capabilities: Managing the ecosystem-organization interface," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    3. Ana Carvalho, 2023. "A Duality Model of Dynamic Capabilities: Combining Routines and Improvisation," Administrative Sciences, MDPI, vol. 13(3), pages 1-18, March.
    4. Throngvid Hongsaprabhas & Xavier Parisot, 2022. "The Thai SME Open Innovation Food-Machinery Flexibility Model: Six Patterns of Coupled Knowledge Flows," International Journal of Knowledge and Systems Science (IJKSS), IGI Global, vol. 13(2), pages 1-18, April.
    5. Hong-Jing Jia & Zi-Yin Zhuang & Yan-Xiang Xie & Yi-Xi Wang & Shi-Ying Wu, 2023. "Research on Dynamic Capability and Enterprise Open Innovation," Sustainability, MDPI, vol. 15(2), pages 1-23, January.
    6. Liping Liu & Lichuan Cui & Qian Han & Chunyu Zhang, 2024. "The impact of digital capabilities and dynamic capabilities on business model innovation: the moderating effect of organizational inertia," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    7. Nalinda Nuwan & Mohd Shukri & Ali Khatibi, 2024. "Managerial Strategies for Organisational Resilience in SME Sector," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 11(1), pages 385-404, November.
    8. Cherbib, Jihene & Bahri, Fadia & Berraies, Sarra & Chebbi, Hela, 2023. "Towards the co-evolution of multinationals' and local firms' global strategies in an uncertain environment: Insights from International Joint Ventures," Journal of International Management, Elsevier, vol. 29(6).
    9. Jiatao Li & Ari Van Assche & Lee Li & Gongming Qian, 2022. "Foreign direct investment along the Belt and Road: A political economy perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(5), pages 902-919, July.
    10. Shahid Latif & Safrul Izani Mohd Salleh & Mazuri Abd. Ghani & Bilal Ahmad, 2023. "Developing Management Accounting Systems as a Change Process for Economic Sustainability: A Case of Sportswear Manufacturing SME," South Asian Journal of Business and Management Cases, , vol. 12(2), pages 207-221, August.
    11. Reiter, Andreas & Stonig, Joachim & Frankenberger, Karolin, 2024. "Managing multi-tiered innovation ecosystems," Research Policy, Elsevier, vol. 53(1).
    12. Vasi, Melissa & Sansone, Giuliano & English, Vincent, 2024. "Exogenous crises and SMEs resilience: The Dynamic Open Innovation Funnel," Technovation, Elsevier, vol. 129(C).
    13. Barrett, Gillian & Tsekouras, George, 2022. "A tango with a gorilla: An exploration of the microfoundations of open innovation partnerships between young innovative companies and multi-national enterprises," Technovation, Elsevier, vol. 117(C).
    14. Tobias D. Herbst & J. Piet Hausberg, 2024. "Improving Innovation Performance by Means of Open Innovation: The Role of Entrepreneurial Orientation and Information Technology Capability," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 21(03), pages 1-31, May.
    15. Heldt, Lisa & Beske-Janssen, Philip, 2023. "Solutions from space? A dynamic capabilities perspective on the growing use of satellite technology for managing sustainability in multi-tier supply chains," International Journal of Production Economics, Elsevier, vol. 260(C).
    16. Linde, Lina & Sjödin, David & Parida, Vinit & Wincent, Joakim, 2021. "Dynamic capabilities for ecosystem orchestrationA capability-based framework for smart city innovation initiatives," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    17. Julia Köhler & Sönnich Dahl Sönnichsen & Philip Beske‐Jansen, 2022. "Towards a collaboration framework for circular economy: The role of dynamic capabilities and open innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2700-2713, September.
    18. Rhaiem, Khalil & Doloreux, David, 2024. "Inbound open innovation in SMEs: A microfoundations perspective of dynamic capabilities," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    19. Johannes W. F. C. van Lieshout & Andre H. J. Nijhof & Gijs J. W. Naarding & Robert J. Blomme, 2021. "Connecting strategic orientation, innovation strategy, and corporate sustainability: A model for sustainable development through stakeholder engagement," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4068-4080, December.
    20. Nicola Bellini & Marina Raglianti, 2023. "Reluctant Innovators: Dynamic Capabilities and Digital Transformation of Italian Opera Houses in the Pandemic Crisis," Administrative Sciences, MDPI, vol. 13(3), pages 1-12, March.
    21. Ricci, Riccardo & Battaglia, Daniele & Neirotti, Paolo, 2021. "External knowledge search, opportunity recognition and industry 4.0 adoption in SMEs," International Journal of Production Economics, Elsevier, vol. 240(C).
    22. Hoang Thu Thao & Xuemei Xie, 2024. "Fostering green innovation performance through open innovation strategies: do green subsidies work?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 18641-18671, July.
    23. Jeandri Robertson, 2020. "Competition in Knowledge Ecosystems: A Theory Elaboration Approach Using a Case Study," Sustainability, MDPI, vol. 12(18), pages 1-19, September.
    24. Orelj, Ana & Torfason, Magnus Thor, 2022. "They didn't ask: Online innovation communities as a latent dynamic capability," Technological Forecasting and Social Change, Elsevier, vol. 180(C).

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