Criteria for Distinctive Capabilities: Sustainability and Appropriability PPT

This PPT slide, part of the 17-slide Distinctive Capabilities Framework PowerPoint presentation, outlines 2 essential criteria—Sustainability and Appropriability—that a capability must meet to be recognized as truly distinctive. This framework is critical for firms aiming to leverage their unique capabilities effectively.

Sustainability is defined as the ability of a firm to maintain its distinctiveness and superiority over time, even in the face of competitors attempting to imitate or replicate its capabilities. A capability is deemed sustainable only if it endures over time. The slide suggests that one effective approach to achieving sustainability is for a firm to enhance its capabilities at a faster pace than its competitors, primarily through continuous learning and innovation. This implies that organizations must not only develop their capabilities, but also ensure that they evolve in a way that keeps them ahead of the competition.

On the right side, Appropriability is discussed as the firm's ability to secure the benefits derived from its capabilities for itself. This means that the firm must ensure that the advantages gained from its distinctive capabilities are not diluted or absorbed by external stakeholders, such as customers, employees, or shareholders. If these benefits are not retained within the firm, the value of the capability is significantly diminished. The slide highlights that one method to enhance appropriability is through effective management of Intellectual Property (IP) rights, ensuring that the firm can capitalize on its unique capabilities without external interference.

Overall, the slide emphasizes that for a capability to be truly distinctive, it must not only stand out, but also be sustainable and appropriable, ensuring long-term value creation for the firm.

This slide is part of the Distinctive Capabilities Framework PowerPoint presentation.

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Innovation Management Competitive Advantage Core Competencies Distinctive Capabilities Value Creation Sustainability Innovation

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