A Conceptual Framework in Building Dynamic Capabilities in Highly Competitive Industry

Abstract

In highly competitive industry, as such in Indonesian Television Industry, the companies should have the ability to respond the competition, in a very narrow window time. Dynamic Capability concept from David Teece, Gary Pisano, and Amy Shuen is in an excellent concept in addressing this situation and became the central of thought in building organization capability to face the competition. Dynamic capabilities took a significant attention from researcher and continue to draw more new concepts and theories. However based on Jeffrey T Macher and David C Mowery, only few researchers focused to the organizational process in developing this capability inside the organizations. Organizational capabilities are built from organizational routines, structures, and processes. It also requires resources, which are available through internal development or acquisition, and lead by a manager or entrepreneurial leader that improve existing routine or create the new ones. The dynamic market forces the organization to explore and exploit the internal and external resources to reach a level of innovation and win the competition. An entrepreneur leader has a high potential to initiate exploitation of internal resources and exploration of external resources, as well as proactively initiate strategic and innovative steps, manage risk, in order to optimize the organization capability and gain competitive advantage. This paper intended to explore a conceptual framework to develop dynamic capabilities in the organization and bring Indonesian Television Industry into the discussion of industrial dynamic competition.