Organization Science · 2009 · 368 citations · 57 references
ManagementOrganizational BehaviorStrategic ManagementCompetitive AdvantageDynamic CapabilitiesNew Product DevelopmentCapability BuildingCapability DevelopmentFirm CapabilitiesOrganizational CapabilitiesProduct DevelopmentProduct InnovationAllocation Of Managerial AttentionCapabilities-based ViewCapability ComparisonCapability Evolution AnalysisDistinctive CapabilitiesFirm Capability BuildingFirm-specific CapabilitiesHierarchy
Understanding organizational renewal and competitive advantage may require shifting focus from capabilities as aggregate entities to the practical realities of core organizational processes. This inductive study of product development in a leading design firm demonstrates that ordinary activities are central to shaping the evolution of capabilities, challenging the prevailing view of capabilities as collectives. The findings show that mindful microactivities across all organizational levels shape product development capabilities, that timely managerial interventions can encode successful experiments into higher‑level capabilities, and that these higher‑level capabilities increase process homogeneity and performance through stabilized managerial attention.
In contrast to the prevailing interpretation of capabilities as collectives, this inductive study of product development in a leading design firm highlights the centrality of the myriad ordinary activities that may shape the evolution of capabilities. A detailed comparison of 90 diverse product development processes over a 15-year period shows, first, that mindful microactivities carried out by individuals in and around the organization and at all levels of the organizational hierarchy are central in shaping the content of the product development capability and its dynamic adaptation. Understanding organizational renewal and competitive advantage may hence require a partial shift in focus from capabilities as aggregate entities, to the practical realities of core organizational processes. Second, this more fine-grained perspective leads to a set of insights on how organizational renewal may be partially shaped by timely managerial interventions aimed at encoding successful experiments into higher-level organizational capabilities. Third, higher-level capabilities resulting from the conversion of heterogeneous experiences display higher process homogeneity and a permanent increase in performance, because of stabilization of managerial attention. My findings contribute to unveiling the concept of capabilities, extending prior research on dynamic capabilities and organizational renewal and providing a lens for research on the microfoundations of capability evolution and organizational advantage.
57
Dynamic capabilities and strategic management
David J. Teece, Gary P. Pisano, Amy Shuen · Strategic Management Journal · 1997 · 31.5K citations
An Evolutionary Theory of Economic Change.
Brian J. Loasby, Richard R. Nelson, Sidney G. Winter · The Economic Journal · 1983 · 21.7K citations
Building Theories from Case Study Research
Kathleen M. Eisenhardt · Academy of Management Review · 1989 · 16.2K citations
Dynamic capabilities: what are they?
Kathleen M. Eisenhardt, Jeffrey A. Martin · Strategic Management Journal · 2000 · 14.4K citations · Full text