Dynamic advantage

• Main Author: WYATT, Stephen Richard
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: global corporation; competitive advantage; dynamic capabilities; evolving markets; transformation; leadership team; Business
• Online Access: https://ink.library.smu.edu.sg/etd_coll/137; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1136&context=etd_coll
• Institution: Singapore Management University

Approximately eighty per cent of the value of most listed firms is driven by expectations of their future earning stream. Yet past and current period results are decreasingly relevant as indicators of future performance as the speed of change in business, technology, trends and markets increases. For many companies instability is the new norm, agility and preparing for future changes are essential capabilities. This research, drawing on experiences of 30 global corporations, shows that far from being giants with slow reactions, several global corporations are able to leverage their extensive networks and their participation in a wide diversity of market contexts to increase their capacity to act dynamically. Today they are out-performing both local and global competitors; they are achieving Dynamic Advantage. I present an integrated model that describes how a global corporation can build its capacity to compete dynamically, exploring the drivers of motivation and ability for the leadership of the firm as well as identifying key enabling mechanisms and processes that should be developed. I also discuss the key strategic choices for a firm that decides to compete dynamically and the hurdles that must be overcome to align the organization with this approach.