ABSTRACT
David J. Teece shared an interest in exploring how a firm can sustain their competitiveness and outperform competition. In his work Dynamic Capabilities and Strategic Management, Teece seeks explanations on how a company can create and sustain a competitive advantage in changing environments and against extensive market competition. The game theoretical approach to strategic management argues that firms could gain competitive advantage by a series of strategic moves and the resource based perspective. The resource-based view argues that the firm can be viewed as a collection of resources. David Teece's work does not oppose the traditional views, but in addition to the major traditions he suggested a perspective which helps to study the kind of capabilities that a firm must acquire to establish competitive advantage in industries with rapid technological change. According to Teece, integrating economic theories with strategic management could address both theoretical and practical issues related to organizational design and firm boundaries.
