Dynamic Capabilities and (Digital) Platform Lifecycles
Entrepreneurship, Innovation, and Platforms
ISBN: 978-1-78743-080-8, eISBN: 978-1-78743-079-2
Publication date: 16 September 2017
Abstract
The dynamics of platforms, particularly the eventual need for renewal, are too often neglected. This chapter adopts a four-stage model – Birth, Expansion, Leadership, and Self-Renewal – to analyze the requirements at each stage of the platform lifecycle in terms of its dependence on the high-level dynamic capability categories of sensing, seizing, and transforming. The requirements evolve from a heavy emphasis on generative sensing and planning-stage seizing in the birth phase, through greater emphasis on “seizing” activities and minor transformations as the platform, ideally, grows and stabilizes. When platform renewal is called for, the emphasis returns to sensing future possibilities and generating new ideas for a platform and business model, developing them alongside the existing business, and eventually undertaking a major transformation to restart the platform lifecycle. An awareness of these lifecycle changes can help managers adopt a longer-term perspective on the competitive requirements of their platform-based business.
Keywords
Acknowledgements
Acknowledgments
I wish to thank Greg Linden for helpful comments and assistance.
Citation
Teece, D.J. (2017), "Dynamic Capabilities and (Digital) Platform Lifecycles", Entrepreneurship, Innovation, and Platforms (Advances in Strategic Management, Vol. 37), Emerald Publishing Limited, Leeds, pp. 211-225. https://doi.org/10.1108/S0742-332220170000037008
Publisher
:Emerald Publishing Limited
Copyright © 2017 Emerald Publishing Limited