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Rita McGrath and Roger L. Martin on the Nature of Competitive Advantage

Thinkers & Ideas

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The Dynamic Capability Theory of Growth

I think we may be looking at different phases in the evolution of a company. The original dynamic capability theory of growth es articulated by edith penrose, but who studied how firms grow. Once you remove that retained earnings virtuous cycle, now you're in a situation where many more companies are going to be more rushed for time. I do think what is different now is the power of network effects. And i do think there'll be potentially a refusal to continue with that. There's a lot of discontent on the regulatory front for that.

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