Podcast
Questions and Answers
What is primarily facilitated by dialogue in an organization?
What is primarily facilitated by dialogue in an organization?
How does learning initially occur in an organization?
How does learning initially occur in an organization?
Which method contributes to the codification of learning within an organization?
Which method contributes to the codification of learning within an organization?
What role does organizational dialogue play in knowledge sharing?
What role does organizational dialogue play in knowledge sharing?
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What can be categorized under individual learning in an organization?
What can be categorized under individual learning in an organization?
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What is the first routine in the dynamic capabilities framework?
What is the first routine in the dynamic capabilities framework?
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Which of the following best describes the 'Seizing' routine?
Which of the following best describes the 'Seizing' routine?
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How do organizations ensure systematic learning?
How do organizations ensure systematic learning?
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What is a primary activity associated with the 'Transforming' routine?
What is a primary activity associated with the 'Transforming' routine?
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What process involves insight and ideas transitioning from individuals to the firm?
What process involves insight and ideas transitioning from individuals to the firm?
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Which concept is not part of the dynamic capabilities framework?
Which concept is not part of the dynamic capabilities framework?
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What does 'Learning' in the sensing routine primarily involve?
What does 'Learning' in the sensing routine primarily involve?
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According to the framework, which type of routine helps convert individual insight to organizational knowledge?
According to the framework, which type of routine helps convert individual insight to organizational knowledge?
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What is essential for assessing a firm from a dynamic capabilities perspective?
What is essential for assessing a firm from a dynamic capabilities perspective?
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Which of the following is NOT a common mistake when assessing dynamic capabilities?
Which of the following is NOT a common mistake when assessing dynamic capabilities?
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In the context of dynamic capabilities, what does 'seizing' refer to?
In the context of dynamic capabilities, what does 'seizing' refer to?
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Which of the following activities falls under 'transforming' in dynamic capabilities?
Which of the following activities falls under 'transforming' in dynamic capabilities?
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What should a firm deliberately implement to effectively manage its portfolio of competencies?
What should a firm deliberately implement to effectively manage its portfolio of competencies?
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What are the three types of routines that make up Dynamic Capabilities?
What are the three types of routines that make up Dynamic Capabilities?
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What is a challenge faced by corporations when focusing on competencies across SBUs?
What is a challenge faced by corporations when focusing on competencies across SBUs?
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Which of the following is NOT a suggested method to manage and allocate competencies systematically?
Which of the following is NOT a suggested method to manage and allocate competencies systematically?
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Which aspect is associated with the 'Seizing' component of Dynamic Capabilities?
Which aspect is associated with the 'Seizing' component of Dynamic Capabilities?
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What type of structures are necessary to balance control and flexibility in managing competencies?
What type of structures are necessary to balance control and flexibility in managing competencies?
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Which of the following best describes the purpose of 'Learning' in Dynamic Capabilities?
Which of the following best describes the purpose of 'Learning' in Dynamic Capabilities?
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What consequence can arise from focusing too much on competencies across strategic business units (SBUs)?
What consequence can arise from focusing too much on competencies across strategic business units (SBUs)?
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In the context of competencies, what is the main goal of encouraging aligned behavior?
In the context of competencies, what is the main goal of encouraging aligned behavior?
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Which term describes the routines focused on the identification and recognition of opportunities within a firm's capabilities?
Which term describes the routines focused on the identification and recognition of opportunities within a firm's capabilities?
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What is primarily required when firms seek to add new competencies and integrate them into existing structures?
What is primarily required when firms seek to add new competencies and integrate them into existing structures?
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What do dynamic capabilities NOT refer to in an organization?
What do dynamic capabilities NOT refer to in an organization?
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What role does 'unlearning' play in the transformational routines of a firm?
What role does 'unlearning' play in the transformational routines of a firm?
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Which combination of strategies is indicative of transformational routines for competency portfolio management?
Which combination of strategies is indicative of transformational routines for competency portfolio management?
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To overcome organizational inertia, what changes might managers need to implement?
To overcome organizational inertia, what changes might managers need to implement?
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What process is essential for firms to transform their competencies systematically?
What process is essential for firms to transform their competencies systematically?
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How should dynamic capabilities be viewed in the context of a firm's resource and competency portfolio?
How should dynamic capabilities be viewed in the context of a firm's resource and competency portfolio?
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Study Notes
Dynamic Capabilities
- Dynamic capabilities are made up of three types of routines: sensing, seizing and transforming
- These routines are the basis around which a firm successfully operates
- These routines enable a firm to gain, maintain and leverage a competitive advantage
- These routines are a firm's ability to sense opportunities, seize them, and transform their resource base
- Firms need to systematically learn, manage and transform to be competitive
Sensing
- Sensing is about learning, which is the process of acquiring and applying knowledge
- This process is vital for a firm's ability to identify new opportunities and threats
- Sensing routines generate and absorb knowledge
- This happens through a series of activities that starts with individuals, moves to groups and then to the organisation
Seizing
- Seizing is about managing and allocating resources effectively
- Firms need to be able to manage their core competencies to achieve maximum value
- This can be a challenge for traditional, hierarchical organisations with siloed structures
- Seizing involves consistent routines that managing core competencies more effectively
Transforming
- Transforming is about reconfiguring the firm's resource and competency portfolio
- It is the process of adding, transferring, and shedding competencies
- This can be a major challenge for organisations as it involves change and risk.
- Transformation is about unlearning old ways of doing things and embracing new ideas and approaches.
How to Learn
- Learning happens by maximising individual exposure to learning opportunities
- Learning happens by facilitating knowledge articulation and sharing
- Learning happens by enabling the codifying of learning
How to Manage
- Managing is done through clear internal formal coordination processes including:
- Organisational structures that balance control and flexibility
- Processes for allocating competencies and resources to exploit new market opportunities
- Encouraging aligned behaviour
How to Transform
- Transforming can happen through a mixture of incremental and step change approaches
- This includes formal processes to "add" and integrate new competencies
- Transforming can be achieved through a variety of methods: R&D, strategic alliances, and mergers and acquisitions.
How to Assess Dynamic Capabilities
- Look for specific, deliberate and consistent routines/processes operating in the organisation
- You need to find specific and concrete evidence of sensing, seizing and transforming routines, not just assumed
- Dynamic capabilities act on the resource and competency portfolio of the firm. They are not a single competency in themselves.
Common Mistakes
- Dynamic capabilities act on the mix of competences and resources, not a single one.
- You need to identify the specific, deliberate process, not just assume they exist.
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Description
This quiz explores the concept of dynamic capabilities, which include the routines of sensing, seizing, and transforming. These routines are crucial for firms to identify opportunities, allocate resources, and maintain a competitive edge in the market. Test your understanding of how these elements contribute to successful organizational practices.
