NESTA Crime Online - University of Brighton Repository

Chain upgrading. This refers to the moving to a new value chain. 168 In a legitimate
business this could involve a move from manufacturing radios to computers. In Storm
Worm upgrading is exemplified by their move from spamming to becoming Internet
Service Providers for criminals.
2.2 Capabilities and specialisation
Specialisation is causing changes in the skills needed to perpetrate cybercrime
at different points in the value chain. Cybercriminals adapt their capabilities to
create and exploit opportunities for innovative forms of credit card fraud and
identity theft.
The second component of the ecosystem relates to capabilities. A firm’s capability is “a
collection of routines that confers upon an organisation’s management the ability to
produce significant outputs of a particular type”. 169 Scholars, however, argue that
dynamic capabilities, more than just ‘routine’ capabilities, are required to create and
sustain competitive advantage in a changing business environment. 170 Dynamism
connotes change, so dynamic capabilities are those that extend, modify or create
ordinary capabilities 171 to meet the challenges and demands of the marketplace. Such
capabilities therefore underpin the ability of an organisation to make best use of new
equipment or technologies to produce novel and innovative products or services, and
hence improve their productivity and competitive advantage. 172 Dynamic capabilities
may be developed from within the firm through training 173 or through continuous
168 Kaplinsky R, and Morris M., (2001).
169 Winter, S. G., (2000), “The satisficing principle in capability learning.” Strategic Management Journal 21
(Oct-Nov (special issue)): pp.981-996.
170 Teece, D., G. Pisano, and A. Shuen, (1997), “Dynamic capabilities and strategic management.” Strategic
Management Journal 18: 509-533.
171 Winter, S.G. 2000. (Winter. S.G. (2002). Understanding Dynamic Capabilities,
http://bus8020kelly.alliant.wikispaces.net/file/view/Understanding+Dynamic+Capabilities.pdf.
172 Bessant, J., and S. Caffyn, (1997), “High-involvement innovation through continuous improvement.”
International Journal of Technology Management, 14(1), 7–28; Rao, S., Tang, J., and Wang, W., (2002), “The
Importance of Skills and Innovation and Productivity.” International Productivity Monitor, 4, 1-26.
173 Bessant, J., and J. Buckingham, (1993), “Organizational learning for effective use of CAPM.” British Journal
of Management, 4(4), 219-234.
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