Chapter

Resource-Based View Theory

Authors:
To read the full-text of this research, you can request a copy directly from the author.

Abstract

Resource-based view (RBV) theory has been discussed in strategic ­management and Information Systems (IS) for many years. Although many ­extensions and elaborations of RBV have been published over the years, to a considerable extent, most of them have identified critical resources and investigated the impact of resources on competitive advantage and/or other organization issues such as corporative environmental performance, profitability, and strategic alliance. Nevertheless, the orchestration of resources seems to influence these results. There still remains the issue of resource relations in an organization, the internal interaction of resources, especially IT resources with non-IT resources and the process of IT resource interaction with other resources within a firm which we have called resource impressionability. To fill these gaps in IS literature, we propose the new concept of resource orchestration in order to answer resource impressionability issues during implementation of IT projects. KeywordsResource-based View (RBV)-Competitive Advantage-Resource-Capability-Resource Orchestration

No full-text available

Request Full-text Paper PDF

To read the full-text of this research,
you can request a copy directly from the author.

... Subsequently, strategy researchers began to view firms as a collection of resources and capabilities and started considering the internal resources as the source of competitive advantage (Srivastava, 2005), hence the birth of the resource-based view. The resource-based view (RBV) suggested that firms possess resources, a subset of which enables them to achieve competitive advantage, and a subset of those that lead to superior long-term performance (Wade, 2005). It is a method of analysing and identifying a firm's strategic advantages based upon assessing its distinct combination of assets, skills, capabilities and intangibles as an organization (Pearce & Robinson, 2011). ...
... To this extent, a stream of strategy research has emerged that generally posits that organizational resources and capabilities that are rare, valuable, non-substitutable and imperfectly imitable form the basis for a firm's sustained competitive advantage (Barney, 1991). That advantage can be sustained over longer time periods to the extent that the firm is able to protect against resource imitation, transfer, or substitution (Wade, 2005). The resource-based view of organizational strategy and competitive advantage as argued out by Conner (1991) and Wennerfelt (1984) has thus engendered a great deal of theoretical and empirical effort which have strongly supported it (the resource-based view) ( (Schoemarker, 1993;(Hansen, 1989)). ...
Article
Full-text available
In a global perspective, firms are focusing to becoming more competitive by launching competitive strategies that give them an edge over others, hence the emergence of core competence as a central concept for competitive strategy. The purpose of this paper was to establish the influence of Organizational Capabilities on the Performance of Sugar Companies in Kenya. The study adopted casual comparative research design while purposive sampling technique was used to select the respondents, who were mainly the departmental heads from all the sugar companies in Western Kenya. Questionnaires and interview schedules were used to collect primary data. On the other hand, secondary sources of data collection used in this study were published papers, journals, articles, reports and information from the internet. Quantitative data was coded and analyzed using Statistical Package for Social Sciences (SPSS version 20). Both descriptive and inferential statistical tools that included the use of mean, standard deviation, Karl Pearson Correlation and Regression models were used in the study. On reliability of research instruments, a Cronbach's Alpha of coefficient of 0.830 was attained out of the possible 39 items, implying that the research instruments were reliable since the value was way above the recommended 0.7 in social sciences. From the study findings, there exists a statistically significant correlation between organizational capability and performance of sugar manufacturing firms (r= 0.653, p≤0.01).The findings of the study forms a basis of reference by interested parties in strategic management in future.
... Indeed, the resource orchestration concept has already been incorporated into the study of e-commerce [41] and e-government [56]. Although relevant studies remain scarce, extant studies cover all three salient aspects of resource orchestration: resources, the environment and action. ...
... Although relevant studies remain scarce, extant studies cover all three salient aspects of resource orchestration: resources, the environment and action. Taher [56] identifies three types of organizational resources involved in resource orchestrationprecedency resources, dependent resources and upshot resources -and investigates the relationships among them in accordance with the impressionability perspective. Wang et al. [64] find that resource structuring plays a more important role in the business value of information technology creation in a stable environmental context, whereas capability building is more important in dynamic environments. ...
... Entrepreneur orientation and customer relationship management are the becoming a business strategy in improving business performance (Saraswati & Santika, 2019), based on the RBV (Resources Based View) theory (Mousavi et al., 2018;Taher, 2012). Business capability in managing human resources and business resources to increase profits, where the higher the net profit margin, the better the operation of a business cycle. ...
Article
Research in the field of marketing management with RBV Theory in improving business performance at river tourism objects. Entrepreneurial orientation and dynamic capability become independent variables with customer relationship management as mediation in improving business performance. Research analysis with SEM-PLS on 350 river customers in Kereng Bangkirai, Central Kalimantan, Indonesia. The research results show that entrepreneurial orientation is not directly significant to business performance, while customer relationship management is significant. Dynamic result ability is not significant to business performance and significant to customer relationship management. These results can be an introduction that business performance is very important with the role of entrepreneurial orientation and dynamic capabilities with customer relationship management mediation. Result implications can increase business capabilities with entrepreneurial oriented business strategies, dynamic capabilities and customer relationship management in improving business performance. In further research can consider market sensing capability as mediation.
... According to ROT, different resource have different features and uniqueness, such that resources originating from different organizations have their complementary nature and can generate specific potential advantages in the process of resource integration [38]. It is consistent with external integration, which emphasizes achieving resource integration across organizational boundaries. ...
Article
Full-text available
In the context of the development of industry 4.0 embedded in various industries, organizations face stiffening competition from external dynamically changing and unpredictable environments. To remain competitive and sustainable in this era, organizations need resilience and innovation capability. Therefore, this paper aims to investigate the association between external integration, resilience, innovation capability, and logistics service providers (LSPs) operational performance. Moreover, this research investigates the mediating effects of sustainable logistics and innovation capability between external integration and LSPs operational performance. Based on Resource orchestration theory, a framework has been drawn. The survey of 273 Chinese LSPs was examined through the PLS-SEM technique. The findings indicate that external integration has a positive relationship with logistics resilience and innovation capability, which have a positive impact on LSPs’ operational performance. The results also show that innovation capability positively mediates the relationship between external integration and operational performance. Unexpectedly, logistics resilience has not played a mediating role between external integration and operational performance. This study makes contributions to the construction of a mechanism of LSP performance improvement by integrating the external environment, resilience, and innovation. The paper also advanced the theory of resource orchestration theory by adding these two mediators of logistics resilience and innovation capability.
... Previous studies on resource orchestration process involve three salient aspects including resources, actions, and capabilities. For example, Taher (2012) found three categories of organizational resources in the process of resource orchestration including precedency resources, dependent resources, and upshot resources; that study also investigated their interrelationships from an impressionability perspective. Baert, Meuleman, Debruyne, and Wright (2016) identified eight distinctive resource-related actions involved in resource orchestration in portfolio entrepreneurship and further grouped them into three categories including sharing (i.e., accessing, multiplying, redeploying), transforming (i.e., incubating and decoupling), and harmonizing (i.e., aligning, complementing, pruning). ...
Article
Full-text available
Artificial intelligence (AI) is regarded as the next digital frontier in government, with many potential applications for economic development as well as sustainable urbanization. Governments have started experimenting with AI, but empirical research on how to leverage and implement AI remains limited. This study analyzed two cases of AI implementation in a large city and identified various AI capabilities useful for government. More importantly, purposeful orchestration of AI-related resources such as data, knowledge, algorithms, and information systems is necessary for developing strong AI capabilities. The findings indicate two different types of orchestration: policy-driven orchestration focuses on the integration of resources, while innovation-driven orchestration focuses on triangulation. This study contributes to the growing body of knowledge on AI in government by revealing and conceptualizing different paths and approaches to AI implementation. They also serve to inform practitioners' planning of AI implementation.
... A company's capacity to reap the benefits of IT use (BUTI) influences that company's ability to engage in competitive actions ( According to Taher (2012), the BUTI are evident along operational, tactical, and strategic dimensions. Moreover, these benefits can be financial, non-financial, or intangible in nature, but can nonetheless provide value to the organization and affect firm performance (Melville et al., 2004;Yoshikuni and Albertin, 2017). ...
Article
Full-text available
A central question for researchers and practitioners is whether and how knowledge management strategy (KMS) and information technology (IT) strategy alignment can help attain a competitive advantage. To address this question, this study draws on information strategic alignment (ITSA), and empirically examines the relationship between a firm’s KMS and IT on competitive performance. The survey examined empirical data from 225 Brazilian companies using the partial least squares path modeling to test the hypotheses proposed herein. The findings demonstrated that KMS exert significant, positive effects on ITSA, benefits of IT use (BUTI), business process performance (BPP), and firm performance (FP). The results suggest that researchers and practitioners should look beyond the direct effects on FP, and identify how KMS and ITSA can be leveraged to enable and support BPP, and thereby contributed to knowledge management strategy and IT business value literature.
... The complementarity association between IMC and Internal IS Integration Capability was addressed in the literature (Graupner & Mädche, 2012); however, it was not empirically tested. Complementarity implies the valorization of a resource, or capability, due to the presence of the other capability; this effect must happen simultaneously (Adegbesan, 2009;Taher, 2012). ...
Article
Full-text available
Purpose: The aim of this study is to assess the influence of Information Management Capability (IMC) on Companies’ Sustainable Competitive Advantage (SCA) based on the qualitative approach. Design/methodology/approach: This study presents results of a multiple-case study carried out in three leading companies in their sector in Brazil (a credit union, a fashion retailer, and a furniture manufacturer). Findings: The results point towards a series of connections between Information System capacities (information management and integration) and organizational capacities (flexibility, reconfigurations, and agility), which were observed through content analysis applied to the inter-occurrence of intermediate categories of these capacities. Originality/value: The strategic impact of information technology resources and capacities remains a source of controversy in the literature. This study contributes to the literature on Information Systems Management and Sustainable Competitive Advantage (SCA). These are influenced by resources and abilities related to information rather than just technological resources.
... As resources become scarce, the firm can achieve sustainable competitive advantages by using them. In this vein, ICT investments are relevant per se, because of the operative advantages related to ICT use, and due to complementarities with intangible assets such as human capital, expertise and organizational capital (Taher, 2012;Rivard et al., 2006). In particular, electronic commerce (e-commerce) becomes a competitive strategy and tool to remain competitive among SME (Yang et al., 2015;Abebe, 2014;Raymond et al., 2011;Wirtz et al., 2010;Kapurubandara, 2009). ...
Article
Full-text available
p>The role Information and Communication Technologies (ICT) play in achieving a better organizational performance still needs further analysis among small and medium sized enterprises (SME) from developing countries. This study aims to extend the empirical literature on the relationship between ICT, electronic commerce and SME performance in developing countries. To achieve this goal, we employ a sample of 87 manufacturing firms from the city of Bahía Blanca, Argentina in the year 2015. By estimating a structural equation model, we obtain that electronic commerce adoption has a positive and significant influence on SME sales which is reinforced by the level of ICT use. Other organizational factors such as firm size and public programs explain performance, but are not significant predictors of the electronic commerce adoption. </p
... The internet enables users to install the software and use the application regardless of time and geographical constraints, with only requirement of internet access (Yang 2012). It also provides a nimble updating for applications seemingly without any scheduled downtime, and help with the removal of legacy systems which helps organizations to broaden their software application without geographical limitations (Wade 2009). ...
Article
Full-text available
Cloud computing is becoming a leading trend worldwide, due to its enhanced reliability, scalability, flexibility, availability and processing throughput. However, the decision related to adoption of the cloud computing model is often complicated by challenges and uncertainties about the expected business value and its overall impact on the organisation. Till date, different contemporary technology acceptance theories and models have been used to test and validate adoption chances of cloud computing at organisational and individual levels. However, no experimental study has been conducted to provide a holistic evaluation of the determinants of cloud computing in the Asian world particularly in the context of the Indian school education system. Due to lack of such studies, we propose a theoretical model based on the TOE framework to explain the role of technological, organisational and environmental factors on the adoption of cloud computing in the Indian school education system. The data was collected from fifty-six 56 randomly selected secondary schools through questionnaire based survey to examine the relationship between the variables employing 5-points Likert scale. Reliability and validity measures were used to establish the quality and the usefulness of the collected data. In addition multi co-linearity test was also conducted. In order to test the research hypothesis, multiple regression analysis was conducted. The results indicate that relative advantage, compatibility, and complexity representing technological factors; top management support representing organisational factors; and competitive pressure, external expertise and attitude towards change representing environmental factors were found to have an positive and significant influence on the adoption of cloud computing services in the Indian school education system. The findings have a great significance since they can provide knowledge about cloud computing factors as well as insights and directions to the education policy planners and decision makers for successful adoption of cloud computing technology in India.
... Secondly, resource based theory (RBT) focuses on the awareness of available resources and their capabilities to achieve competitive advantage reaching strategic goals (Grant 1991;Taher 2012). Thus RBT is used to explore the availability of resources of SMEs to achieve competitive advantage in the Australian business context such as human resources, physical assets as well as external resources such as cloud service providers. ...
Conference Paper
Full-text available
The literature is scant around the take up rates of cloud computing by Small and Medium Enterprises (SMEs). This is important because Small and Medium Enterprises (SMEs) play a significant role in increasing national productivity. In Australia, SMEs employed around 70% of the total numbers of employees in 2011. This paper proposes a research program to examine how cloud computing can provide SMEs with the potential to achieve competitive advantage, increase efficiency and lift national productivity. The research will use both quantitative and qualitative measures to establish the take up rate of cloud computing and identify the critical success factors (CSF) for SMEs when adopting cloud computing technologies.
... This study used Resource Based Theory (RBT) or the Resource Based View (RBV) of the firm, whereby an organizations' awareness of available resources and capabilities is used to achieve competitive advantage in reaching strategic goals (Grant 1991;Taher 2012;Wernerfelt 1984). The reason for selecting RBT as a base to this research is that it covers the aspects of this study from the successful adoption and utilisation of cloud services as critical resources towards achieving competitive advantage that would help in improving the national economy, which is assumed after the discussed analysis above. ...
Conference Paper
Full-text available
Small and Medium sized Enterprises (SMEs) play an important role in national economies and global competitiveness. SMEs contribute to job creation and improve the socioeconomic status of workers by providing work and supply goods and services for the economy. SMEs therefore directly contribute to increasing national Gross Domestic Product (GDP. Cloud computing has the potential to increase SMEs' productivity and outcomes by providing affordable and up to date access to information and communications technology (ICT). In addition, utilising cloud-based services improves business innovation in SMEs and opens a channel to the global market that gives firms more opportunities to compete and be successful. This study consists of three main sections: a national economy section to highlight the significance of SMEs and how cloud computing can boost business outcomes that could result in improving the local economy. The second part is an overview of the technologies for SME cloud adoption. The third section discusses a study of adopting cloud computing by Australian SMEs in the period (2014-2015). The significance of this paper is twofold. Firstly, the paper provides a literature analysis to show how cloud computing contributes to the national economy. Secondly, the paper quantifies the adoption rate of cloud computing by SMEs in the Australian context. Future research will establish the critical success factors and challenges for SMEs utilising cloud services. The Australian context is used because Australia has characteristics such as a large geographical footprint, small population and in a different time zone to many markets. The paper concludes by suggesting future research directions.
... Assim, "a área de pesquisa em TI estratégica é uma rica fonte de evidência que pode ser usada para ilustrar a importância da questão da complementaridade de recursos" (Wade & Hulland, 2004, p. 123). Também analisando os impactos dos recursos de TI e não-TI na vantagem competitiva, Taher (2012) propõe uma "orquestração de recursos" para explicar o resultado de todos os recursos como uma unidade concebida, bem como para investigar impressionabilidade dos mesmos dentro dessa orquestração. Adegbesan (2009) sugere que a complementaridade oferece um valor excedente à soma do valor dos recursos apropriados individualmente. ...
Conference Paper
Full-text available
Resumo As organizações têm aumentado os investimentos para lidar com as mudanças no ambiente informacional (novas tecnologias, big data, etc.). Desenvolver capacidades para explorar esses dados é imperativo nesse novo ambiente competitivo. O objetivo desse trabalho é construir e avaliar um modelo de pesquisa que especifique o caminho para a Capacidade de Gestão da Informação (CGI) tornar-se fonte de Vantagem Competitiva Sustentável (VCS). Fundamentado na Resource-Based View (RBV) e em duas de suas extensões (Capacidades Dinâmicas e Complementaridade), o modelo foi desenvolvido em articulação com outras capacidades organizacionais (integração, flexibilidade, reconfiguração e agilidade). Para avaliar a coerência do modelo na prática das organizações, optou-se por fazê-lo qualitativamente, através de entrevistas em profundidade com executivos de quatro empresas que têm a gestão da informação como peça central de suas operações. Também foram avaliadas as dimensões de cada uma das variáveis envolvidas no modelo. O resultado fornece uma proposta de pesquisa futura para testar empiricamente a potencialidade da CGI para se tornar fonte de VCS. Palavras-chave: Capacidade de Gestão da Informação, Vantagem Competitiva Sustentável, Capacidades Organizacionais 1. Introdução A discussão sobre a relevância estratégica dos recursos de TI (Tecnologia da Informação) ainda encontra controvérsia na literatura de Sistema de Informação-SI (Chae, 2014; Luse & Mennecke, 2014). Esse tema volta a ganhar atenção a partir das mudanças no ambiente competitivo impostas pelas novas tecnologias digitais. Uma das características relacionadas a essas mudanças é o crescimento exponencial no fluxo de dados com o qual as organizações têm que lidar, denominado Big Data. O desafio de explorar esses dados vem sendo tratado por diversos autores como uma oportunidade de criar valor estratégico para as organizações (Brown Brynjolfsson, 2012). Levantamentos de mercado evidenciam o interesse contínuo e crescente das firmas em investir em soluções para ganhar competitividade com a gestão desses dados (Gartner, 2014). Mesmo com esses esforços, segundo o Gartner (2013), 85% das organizações não conseguirão diferenciar-se competitivamente através dessas novas fontes de informação em 2015. A busca por vantagem competitiva é um dos principais tópicos de concentração dos trabalhos em estratégia de SI (Chen, Mocker, Preston, & Teubner, 2010). Nas últimas décadas, esses estudos têm concentrado-se mais em investigar a tecnologia do que a gestão da informação. Entretanto, não é a tecnologia que fornece o maior potencial de retorno às firmas, mas é a informação que está na base da competição (McGee & Prusak, 1994). Além disso, são
... Therefore, " the strategic information technology (SIT) area of research is a rich source of evidence that can be used to illustrate the importance of the resource complementarity issue" (Wade and Hulland, 2004, p. 123). Complementarity is also evoked by Taher (2012) in his proposed orchestration of resources. Based on a discussion of RBV in the field of IS and analyzing the impacts of IT and non-IT resources on competitive advantage, he proposes the term resource orchestration to explain the result of all resources as a conceptual unit, and also to investigate the impressionability of resources within this orchestration. ...
Conference Paper
Full-text available
With organizations immersed in data (Davenport et al., 2012), developing the organizational capabilities to take advantage of this huge flow of heterogeneous data (Bharadwaj et al., 2013) has become essential for creating strategic value. This paper specifically analyzes the antecedents and consequences of IMC - Information Management Capabilities (Carmichael et al.,2010; Mihtas et al.,2011; Phadtare, 2011). To this end, we sought to identify the works that proposed to develop the construct, mapping the theoretical assumptions on which it’s founded. We found 98 citations of such works through different types of searches. We selected those publications that contributed or analyzed IMC in some way as a fundamental part of the work. By synthesizing these searches, it was possible to analyze their contributions to IMC and to point out suggestions for future advances on this subject.
Article
Full-text available
The study reports findings of an investigation on the effect of emergent capability derived from an organization development (OD) program on the effect of the OD on realized performance in a National Police Service public sector reform program in Kenya. The study considered how four components of the OD process were realized from the reform program and determined the level of emergent capability that resulted from the OD components. Primary data was obtained from a sample of 294 senior officers in job groups PG5-PG11. The study finds that the level of OD realized from the reform program was rated at a moderate level and contributed to an equivalent level of emergent capability of the form of organization health. OD has a significant positive effect on the emergent capability and performance while the emergent capability has a positive effect on performance and partially mediates the effect of OD on performance. The study calls on practicing managers to consider integrating the OD process with the strategic management process from initiation to the end of the process. Future research is called upon to consider expanding both the conceptual and methodological scopes adopted in this study to enhance the generalizability of the findings.
Article
The question of how information technology-both as an operand resource and as an operant resource-impacts on innovation processes and innovation outcomes remains largely uninvestigated in the manufacturing enterprises. Building on an in-depth case study of a manufacturing enterprise in China, we present a resource orchestration for innovation model and examine the dual role of IT in three distinct innovation processes. The model highlights the multilevel nature of the computerisation process, showing that it entails different IT role and be associated with a particular innovation outcome at each process. This study synthesises resource orchestration framework and IT concepts to elaborate the synergistic relationships between various resources at all levels both inside and between enterprises. Our study not only contributes to broadening the theoretical perspectives by exploring the dual role of IT in managerial issues but also provides some practical suggestions for business leaders to facilitate innovation processes.
Article
Purpose The purpose of this paper is to improve the existing model developed by Hsu and Sabherwal (2012) by developing a new dimension of the relationships between a group of constructs (knowledge elements, mediating constructs, and FM organisational performance) in the model of FM organisational performance. Design/methodology/approach The paper reviews the theoretical and studies empirically to all of the knowledge elements (learning culture, intellectual capital and knowledge management) literature, mediating constructs (customer performance, efficiency, innovation and dynamic capabilities) and the organisational performance that relates to Facility Management (FM). Findings The paper identifies the relationships between the knowledge elements, mediating constructs and the FM organisational performance. Subsequently, a proposal of relationships was made in order to develop the FM organisational performance model. Research limitations/implications The model provides a possible explanation of relationships between the knowledge elements, mediating constructs and the FM organisational performance. Thus, the understanding of the identified relationships will provide a new direction in improving the FM organisational performance. Originality/value Addressing lack of research in identifying the importance of relationships between knowledge and the FM organisational performance, the paper conceptualises the potential relationships into a proposed model. The proposed model integrates with a new mediating construct into the existing research model, which is customer performance. Moreover, knowing that the nature of FM organisation is more towards the non-financial aspects, the paper investigates the nature of the efficiency and organisational performance that is not based on the financial performance, but rather the ability to optimise organisational resources, to achieve organisational goals and customer needs.
Conference Paper
Full-text available
Resumo Gestão da Informação e Integração de SI (Sistemas de Informação) são duas preocupações das organizações com emergência de tecnologias que aumentaram consideravelmente o fluxo informacional. Desenvolver capacidades organizacionais para lidar com fluxo informacional é um imperativo competitivo nesse contexto. A Capacidade de Gestão da Informação (CGI) demonstrou impactar positivamente a performance das firmas. Por outro lado, estudos indicam a necessidade das organizações de integrar os seus recursos de SI para extrair valor da multiplicidade corrente de fontes de informação, na qual reside a relevância da Capacidade de Integração de SI (CISI). Poucos estudos, porém, focam na interação entre as capacidades de SI. Esse estudo se vale das lentes teóricas da Complementaridade de Recursos para analisar – por meio de um estudo de casos múltiplos em três organizações líderes de seus segmentos de mercado e com diferentes níveis de uso de informação – a interação da CGI e a da CISI interna e externa. Os resultados da análise de conteúdo indicam que não há uma direção única na relação entre as variáveis observadas, mas uma variação nessa direção em função das categorias intermediárias relacionadas. Uma vez que uma variável tem seu valor aumentado em função da presença da outra evidencia-se a complementaridade.
Article
Full-text available
There has been considerable debate about the role of enterprise resource planning (ERP) in driving competitive advantage. However, little is established empirically on the antecedent factors that could facilitate achievement of such an advantage of adopting ERP. Therefore, this study examines the role of antecedent factors in the organisational adoption of ERP projects for the achievement of competitive advantage. We draw on information system success and information system implementation theories to build a conceptual model to examine the role of antecedent factors in influencing the achievement of competitive advantage. We use the structural equation modelling (SEM) technique to analyse the survey data of 217 Australian companies and test the model. We find that organisations that understand the importance of certain antecedent factors and manage them appropriately can achieve competitive advantage with ERP projects. These factors include consideration of the system quality and organisational readiness at the planning stage for an ERP project. We have extended knowledge on the role of antecedent factors to successful organisational adoption of ERP by providing evidence that they are also significant predictors for the achievement of competitive advantage. Our study's findings indicate that establishing a clear understanding of necessary system attributes in the organisational context at the adoption stage of ERP is important for helping organisations achieve subsequent competitive advantage. Their understanding of potential system quality attributes, the business environment within which their organisation may operate, the internal organisational capabilities and desired strategic benefits, can help managers and ERP system developers implement strategies, leadership, resources, and commitment to achieve their desired benefits from ERP projects.
Article
Full-text available
T his article identifies gaps in the microfoundations of capabilities research, particularly in work that is based on the framework of evolutionary economics. It argues that such research has focused excessively on the quasi-automatic, routine-based aspects of capability development, and largely neglected the roles played by cognition and organizational hierarchy. By deriving a model of search that jointly considers how routine-based and cognitive logics of action coexist within an organizational hierarchy to affect capability development, this article offers three contributions. First, it delineates the traits of a microfoundational structure for research on capabilities that begins to address these gaps. Second, based on this structure, it highlights previously neglected causal mechanisms that contribute to our understanding of how capabilities develop. The model shows that managers' cognitive representations of their strategic decision problem fundamentally drive organizational search, and therefore the accumulation of capabilities. Furthermore, it shows that the accuracy of the representations a manager chooses might vary according to where she is situated in the organizational hierarchy. This more refined perspective leads to a set of propositions regarding how different hierarchical arrangements influence capability development and organizational performance. Finally, the paper sets an agenda for future research in this area.
Article
This book discusses the development of a theory on the growth of the firm. It is shown that the resources with which a particular firm is accustomed to working will shape the productive services its management is capable of rendering. The experience of management will affect the productive services that all its other resources are capable of rendering. As management tries to make the best use of the resources available, a ‘dynamic’ interacting process occurs which encourages growth but limits the rate of growth.
Book
How do firms compete? How do firms earn above normal returns? What's needed to sustain superior performance long term? An increasingly powerful answer to these fundamental questions of business strategy lies in the concept of dynamic capabilities. These are the skills, processes, routines, organizational structures, and disciplines that enable firms to build, employ, and orchestrate intangible assets relevant to satisfying customer needs, and which cannot be readily replicated by competitors. Enterprises with strong dynamic capabilities are intensely entrepreneurial. They not only adapt to business ecosystems; they also shape them through innovation, collaboration, learning, and involvement. David Teece was the pioneer of the dynamic capabilities perspective. It is grounded in 25 years of his research, teaching, and consultancy. His ideas have been influential in business strategy, management, and economics, and are relevant to innovation, technology management, and competition policy. Through his consultancy and advisory work he has also brought these ideas to bear in business and policy making around the world. This book is the clearest and most succinct statement of the core ideas of dynamic capabilities. Teece explains their genesis, application, and how they offer an alternative approach to much conventional strategic thinking grounded in simplistic and outdated understandings of industrial organizations and the foundations of competitive advantage. Accessibly written and presented, it will be an invaluable and stimulating tool for all those who want to understand this important contribution to strategic thinking, be they MBA students, academics, managers, or consultants.
The net-enabled business innovation cycle: A dynamic capabilities theory for harnessing it to create customer value
  • B Wheeler
The resource-based view of the firm: Ten years after 1991
  • J Barney
  • M Wright
  • D J Ketchen
The dynamic capabilities school: Strategy as a collective learning process to develop distinctive competences
  • R Sanchez
Dynamic capabilities: What are they? Strategic Management Journal
  • K M Eisenhardt
  • J A Martin