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Table Table 1 Growth that compounds

Dynamic capability depends on market velocity

Match the form of a dynamic routine to market velocity before calling it transferable.

Synthetic diagnosticModerately dynamic marketHigh-velocity market
Capability formDetailed, analytic, stable routineSimple, experiential, fragile process
Main coordination assetCodified sequence and predictable handoffsFast judgment and shared experience
Transfer questionCan the routine be documented and adapted?Which learning signal keeps the process alive?
Main riskStability becomes rigidityExperience becomes fragile when conditions shift
Evidence boundaryRepeatability under relatively stable conditionsUseful action despite unpredictable outcomes

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Reference & Evidence

Source: Author's synthetic diagnostic grounded in Eisenhardt and Martin (2000) and Teece et al. (1997). Descriptions are illustrative and do not assess a live firm's routines.

Each line is a claim from the register this journal publishes against, resolved from the register at build time.

  • A Named processes, not an abstraction: "dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making, and alliancing": and "they are neither vague nor tautological" Eisenhardt & Martin. (2000) · EM00-C1
  • A Both halves in one sentence: "although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence, they have significant commonalities across firms (popularly termed ‘best practice’)" Eisenhardt & Martin. (2000) · EM00-C2
  • A The two market regimes: "in moderately dynamic markets, dynamic capabilities resemble the traditional conception of routines", while "in high-velocity markets, they are simple, highly experiential and fragile processes with unpredictable outcomes" Eisenhardt & Martin. (2000) · EM00-C3
  • A The framework’s own scope sentence: it "analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change", resting advantage on "distinctive processes", "asset positions" and "the evolution path(s) it has adopted or inherited" Teece, Pisano & Shuen. (1997) · TPS97-C1
  • A Advantage sits in the combining, not the owning: "distinctive processes (ways of coordinating and combining), shaped by the firm’s (specific) asset positions (such as the firm’s portfolio of difficult-to-trade knowledge assets and complementary assets)" Teece, Pisano & Shuen. (1997) · TPS97-C2
  • A Path dependence is conditional, and they say when: "the importance of path dependencies is amplified where conditions of increasing returns exist", with erosion depending on "the stability of market demand, and the ease of replicability" Teece, Pisano & Shuen. (1997) · TPS97-C3

Grades: A, verified against the printed page of the primary source · B, primary source, text layer only · C, authoritative secondary · D, reported.

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