Leadership & Entrepreneurship as Dynamic Capabilities

Leadership Associate three types of DC capability frames activities.

DCs can adapt their leadership activities to better understand the nature of leadership or take actions in response to the environment to solve collaborative problems. In particular, it is based on the tripartite tri-partite scheme of sensing, seizing and reconfiguring capabilities (Teece, 2007; Foss, Schmidt, and Teece, 2022).

Sensing means using a “wide lens” to overcome uncertainty (Brusoni, Prencipe, and Pavitt, 2001) and exercising strategic, persuasive communication and cognitive leadership (Witt, 1998). As a detailed leadership activity for sensing, it is necessary to be able to present the company's vision by persuading stakeholders to participate in the investment.

Seizing capability means attracting stakeholders from disparate sectors to invest and agree on a common vision by engaging as stakeholders in the company. The key is to create a mutually acceptable contract and achieve consensus among the participants(Teece, 2007).

Finally, reconfiguring is solving unforeseen problems driven by system-wide knowledge of incentives, competencies, skills, and customer needs. That means dealing with unforeseen issues that aren't addressed by agreed-upon rules through engaging in problem solving efforts.

In this blog, we introduce to the literature on leadership in DC by demonstrating a framework that explains why and how leadership is needed to exploit.

Conclusion

Successful application of dynamic leadership capabilities has implications for the nature of Entrepreneurship, the characteristics of the role of the leader, and the leader's ability to take a benefit. While new reconfiguration and reorganization problems do not solve in any environment, when they do the task of leadership is to bring about adjustment through dynamic capabilities in order to sustain robustness and deal with emerging issues.

Successfully solving coordination and cooperation problems requires that other participants accept rules, the leader is likely to be well organized to proper a specific part of the value stream associated with the noble value proposal (Yang, Hurmelinna-Laukkanen, Sharma, and Westerlund, 2021).

References

Brusoni, S., Prencipe, A. and Pavitt, K. (2001) ‘Knowledge specialization, organizational coupling, and the boundaries of the firm: why do firms know more than they make?’, Administrative Science Quarterly, 46(4), pp. 597-621.

Witt, U. (1998) ‘Imagination and leadership–the neglected dimension of an evolutionary theory of the firm’, Journal of Economic Behavior & Organization, 35(2), pp. 161-177.

Teece, D. J. (2007) ‘Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance’, Strategic Management Journal, 28(13), pp. 1319-1350.

Foss, N. J., Schmidt, J. and Teece, D. J. (2022) ‘Ecosystem leadership as a dynamic capability’, Long Range Planning, 102270.

Teece, D.J. (2017) ‘Dynamic capabilities and (digital) platform lifecycles, Entrepreneurship, Innovation, and Platforms’, In: Advances in Strategic Management, 37(0), pp. 211–225.

Yang, J., Hurmelinna-Laukkanen, P., Sharma, A. and Westerlund, M. (2021) ‘Value appropriation and innovation collaboration dynamics: A review and research agenda’, International Journal of Innovation Management, 25(10), 2140007.