The Value of a Legally Astute Top Management Team: A Dynamic Capabilities Approach

Oxford Handbook of Dynamic Capabilities (David J. Teece & Sohvi Leih, eds. Mar. 2016). DOI: 10.1093/oxfordhb/9780199678914.013.027

48 Pages Posted: 22 Jul 2016  

Constance E. Bagley

Yale University

Date Written: March 14, 2016

Abstract

This article, from The Oxford Handbook of Dynamic Capabilities (David J. Teece & Sohvi Leih, eds. 2016), describes the construct of “legal astuteness” and explains why it is a valuable dynamic capability. It also examines the systems approach to law and strategy, which embeds the top management team within the firm’s “ecosystem.” The discussion begins with an overview of the dynamic capabilities approach to competitive advantage and proceeds by identifying the requirements of legal astuteness: a set of value-laden attitudes about the importance of law and ethical behavior to firm success; a proactive approach to management, regulation, and risk; context-specific knowledge of the law and the appropriate use of legal tools; and strategically astute counsel. The article then explains how legally astute top management teams can augment contracts with relational governance; practice strategic compliance management; enhance, combine, protect, and reconfigure tangible and intangible assets; and manage human resources more effectively. Finally, it outlines degrees of legal astuteness.

Keywords: legal astuteness, dynamic capability, systems approach, top management team, ecosystem, law, competitive advantage, strategic compliance management, human resources management

JEL Classification: D02, D23, D86, G18, G34, G38, K20, K42, O30, L22, L10

Suggested Citation

Bagley, Constance E., The Value of a Legally Astute Top Management Team: A Dynamic Capabilities Approach (March 14, 2016). Oxford Handbook of Dynamic Capabilities (David J. Teece & Sohvi Leih, eds. Mar. 2016). DOI: 10.1093/oxfordhb/9780199678914.013.027. Available at SSRN: https://ssrn.com/abstract=2811424

Constance E. Bagley (Contact Author)

Yale University ( email )

20 Fox Den Way
New Haven, CT 06525
United States

HOME PAGE: http://winninglegally.com

Register to save articles to
your library

Register

Paper statistics

Downloads
61
rank
321,299
Abstract Views
468
PlumX