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Managerial Implications

http://academlib.com/3793/management/... Business leaders may not necessarily directly or deliberately rely on "theory" in identifying and implementing strategies for their firms. Many may believe that theories are useful for academic exercises only. But many of the strategic frameworks, tools, and techniques that they employ as practitioners have been grounded in the theoretical approaches discussed within this chapter. For instance, IBM's transformation from a technology/hardware company to a broad-based global solutions firm is an excellent example of how a dynamic capabilities approach can help a firm adapt its core competencies to a rapidly changing environment.32 Likewise, the pharmaceutical industry and the strategic resource value of patents as firm sustainable competitive advantages provide a relevant context for understanding RBV. Competitive dynamics can be seen where there are widespread industry paradigm changes and shrinking markets, such as in the airline industry. ...