DYNAMIC CAPABILITIES: FOSTERING AN INNOVATION-FRIENDLY ENVIRONMENT IN BRAZIL

Even though twenty years have elapsed since the publication of the paper Dynamic Capabilities and Strategic Management (Teece, Pisano & Shuen, 1997), many scholars and some executives maintain their interest in this framework so as to better understand how firms develop, maintain competitive advantage, and sustain superior enterprise performance. Individual firm performance depends not only on the markets in which firms compete and the environments in which they are embedded, but also on managerial acumen. Being aware of developments in the environment within which a firm competes is part of a manager's responsibilities. Another component of strong dynamic capabilities involves recognizing that one should also be able to shape the environment. Dynamic capabilities lie partly with the firm and partly with the management team. It is very important to connect across boundaries, organizational and geographic, to find ideas from the outside. Those who venture out and augment their firms' dynamic capabilities will herald the progress of their local communities and their country.