Dynamic and Integrative Capabilities for Profiting From Innovation in Digital Platform-Based Ecosystems

39 Pages Posted: 12 Feb 2018

See all articles by Constance E. Helfat

Constance E. Helfat

Tuck School of Business at Dartmouth

Ruth Raubitschek

USDOJ/ATR Economic Analysis Group

Date Written: January 1, 2018

Abstract

For firms at the center of platform-based ecosystems, Teece (2017a) argues that dynamic capabilities can enable the firms to create and capture value by building ecosystems and designing appropriate business models. In line with the original Profiting From Innovation (PFI) framework, Teece (2017a) also argues that complementary asset providers may be able to capture substantial value. Here we provide a theoretical analysis that explains the ways in which dynamic capabilities underpin not only value creation but also value capture by platform leaders. We propose that three types of dynamic capabilities at a minimum are critical for platform leaders: innovation capabilities, environmental scanning and sensing capabilities, and integrative capabilities for ecosystem orchestration. We further argue that integrative capabilities play a key role in improving the ability of platform leaders to capture value.

Suggested Citation

Helfat, Constance E. and Raubitschek, Ruth, Dynamic and Integrative Capabilities for Profiting From Innovation in Digital Platform-Based Ecosystems (January 1, 2018). Tuck School of Business Working Paper No. 3122046. Available at SSRN: https://ssrn.com/abstract=3122046 or http://dx.doi.org/10.2139/ssrn.3122046

Constance E. Helfat (Contact Author)

Tuck School of Business at Dartmouth ( email )

Hanover, NH 03755
United States

Ruth Raubitschek

USDOJ/ATR Economic Analysis Group ( email )

450 5th St., NW; Ste 900
Economic Analysis Group
Washington, DC 20530
United States

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