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Core capabilities and core rigidities: A paradox in managing new product development[J]

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Abstract

This paper examines the nature of the core capabilities of a firm, focusing in particular on their interaction with new product and process development projects. Two new concepts about core capabilities are explored here. First, while core capabilities are traditionally treated as clusters of distinct technical systems, skills, and managerial systems, these dimensions of capabilities are deeply rooted in values, which constitute an often overlooked but critical fourth dimension. Second, traditional core capabilities have a down side that inhibits innovation, here called core rigidities. Managers of new product and process development projects thus face a paradox: how to take advantage of core capabilities without being hampered by their dysfunctional flip side. Such projects play an important role in emerging strategies by highlighting the need for change and leading the way. Twenty case studies of new product and process development projects in five firms provide illustrative data.

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... Such acquisitions provide scope, scale, and recombination benefits by expanding the acquirer's knowledge base (Henderson & Cockburn, 1996;Sears, 2017). Exploratory and exploitative knowledge creation is more likely for technological acquisitions than for nontechnological acquisitions 1 (Agarwal & Helfat, 2009;Ahuja & Katila, 2001;Birkinshaw et al., 2000;Graebner, 2004;Leonard-Barton, 1992;Vermeulen & Barkema, 2001). Digital firms that intend to servitize by orchestrating their existing digital resources, IT resources, digital capabilities, and digital assets can expand their combinative array by acquiring other firms for their valuable resources, such as specific digital resources or capabilities developed by the target firm (Birkinshaw et al., 2000;Graebner, 2004). ...
... 2017) has found that many high-technology firms named obtaining product, innovation, and engineering capabilities as their primary motivation for technological acquisitions. Pursuing technology and knowledge through M&As can help the acquirer to achieve strategic renewal, i.e., enacting a significant and disruptive change in the acquirer's approach to achieve superior performance by unshackling themselves from core rigidities (Agarwal & Helfat, 2009;Leonard-Barton, 1992). Leonard-Barton (1992) describes core rigidity as a phenomenon in which firms become increasingly dependent on limited knowledge and rigid managerial practices, resulting in restricted adaptation to new environmental challenges. ...
... Pursuing technology and knowledge through M&As can help the acquirer to achieve strategic renewal, i.e., enacting a significant and disruptive change in the acquirer's approach to achieve superior performance by unshackling themselves from core rigidities (Agarwal & Helfat, 2009;Leonard-Barton, 1992). Leonard-Barton (1992) describes core rigidity as a phenomenon in which firms become increasingly dependent on limited knowledge and rigid managerial practices, resulting in restricted adaptation to new environmental challenges. Core rigidities for digital technology firms can be catastrophic. ...
... Optimal distinctiveness has usually been studied at the industry level (Zhao et al., 2017), but we show that the concept can also be applied to a within-organizational context, which is an important driver for the company to renew its business models and value propositions. In particular, our study unbundles capability development through four dimensions that create a core capability (Leonard-Barton, 1992). It shows what kinds of capabilities are needed in a context in which an incumbent creates a within-organization sub-brand and from which elements they constitute. ...
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... However, to create something genuinely new and distinctive, organizations must critically assess their existing capabilities and practices. Incumbent organizations can, on the other hand, utilize their existing capabilities in developing new ones (Cohen & Levinthal, 1990;Zahra & George, 2002), but the cumulated asset base may also be a source of organizational inertia (Gilbert, 2005;Leonard-Barton, 1992;Tripsas & Gavetti, 2000), hindering the development of capabilities that differ significantly from existing ones. Hence, when developing distinctive products and corresponding distinctive capabilities within an organization, incumbents meet the need to leverage their existing resources and capabilities while coping with the organizational rigidities and path dependencies involved in existing capabilities. ...
Article
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... Traditionally, research about the connection between organizational inertia including insight inertia, action inertia, and psychological inertia and performance has been drawn from two main perspectives: the resource-based view and the organizational inertia perspective. The organizational inertia perspective views inertia as a hindrance, leading to resistance to change, and ultimately reduced performance (Leonard-Barton, 1992). ...
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This research aims to study the impact of organizational inertia dimensions (insight inertia, action inertia, and psychological inertia) on the organizational performance of travel agencies and hotels in Egypt. In addition, the research explores the moderating role of organizational agility in addressing organizational inertia to obtain the best performance. The research relies on the quantitative approach in collecting data through a questionnaire. Total valid forms 331 were obtained from employees working in travel agencies category (A) and five-star hotels in Greater Cairo. The WarpPLS 7.0 was used to analyze the received data to reach the research results. The research found that insight inertia and psychological inertia have a negative effect on organizational performance. In contrast, action inertia has a positive effect on organizational performance. The findings also indicated that organizational agility has no moderate role in the relationship between organizational inertia dimensions and organizational performance. The research results have important implications for the tourism and hospitality industry theoretically and practically. The present research contributes to reducing organizational inertia to improve organizational performance for travel agencies and hotels by introducing some recommendations and suggestions for hotels and travel agencies.
... Estas competencias se asocian con habilidades y tecnología acumulada a través del aprendizaje y contribuye a la ventaja competitiva de la empresa (Prahalad y Hamel, 1990); por ejemplo, la habilidad de coordinar recursos, usualmente a través de una combinación de procedimientos organizacionales, para alcanzar un resultado deseado (Amit y Schoemaker, 1993). Para Leonard (1992) las competencias o capacidades son consideradas centrales si diferencian a la empresa en un sentido estratégico; son una combinación de diferentes recursos organizacionales que posibilitan que la empresa obtenga una ventaja competitiva sustentable. Markides y Williamson (1994) las considera como un conjunto de experiencias, conocimiento y sistemas que trabajan simultáneamente como catalizadores para crear nuevos activos estratégicos. ...
... Aún más, para Vanhaverbeke (2001) este tipo de competencias pueden emplearse en diferentes mercados y productos, por lo que tienen un alto potencial de mercado. Leonard (1992) distingue cuatro dimensiones de las capacidades centrales de la empresa: sistemas físicos o técnicos, habilidades y conocimiento en los individuos, sistemas gerenciales y valores organizacionales. Las cuatro dimensiones representan una red que construye las competencias núcleo ( figura 1). ...
Chapter
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Desde la perspectiva de la competitividad regional cada localidad tiende a fomentar o limitar su desarrollo en términos de distribución y armonización. Por ende, las ventajas competitivas de las regiones se centran en sus potencialidades. Una alternativa para promover las ventajas competitivas de una localidad es el desarrollo de competencias centrales del sistema productivo local (core competences, en inglés). Este término se refiere a que las empresas pueden desarrollar áreas clave de conocimiento o habilidades especiales (expertise) que las distinguan de sus competidores y se vuelvan críticas para el crecimiento a largo plazo (Prahalad y Hamel, 1990). Para Agha et al. (2012) las core competences son un conjunto integrado de especialización y tecnología que se acumula a través del aprendizaje y que lleva a la empresa a obtener una ventaja competitiva en el mercado.
... Traditionally, research about the connection between organizational inertia including insight inertia, action inertia, and psychological inertia and performance has been drawn from two main perspectives: the resource-based view and the organizational inertia perspective. The organizational inertia perspective views inertia as a hindrance, leading to resistance to change, and ultimately reduced performance (Leonard-Barton, 1992). ...
... The research found that insight inertia and psychological inertia have a negative effect on organizational performance. These results are consistent with Leonard-Barton (1992), who emphasized that organizational inertia leads to resistance to change and thus negatively affects and reduces performance. In the same vein, Greve (2011) and Nedzinskas et al. (2013) stated that organizational inertia can hinder the organization from adapting to surrounding changes and developments, which may reduce performance. ...
... As a radically new platform distributor, Netflix extracted significant revenues from incumbent movie producers that vertically allied with Netflix, causing them to change their adaptation strategy, as we will discuss later. Another not ideal option is the attempt by incumbents to develop the new complementary assets alone in-house because incumbents are usually late movers lacking the competencies, culture, and incentives to develop radical technologies (Leonard- Barton, 1992;Tripsas & Gavetti, 2000). A better adaptation strategy after complementaryasset discontinuities is the cooperation with other incumbents (and potentially also with a controlled third-party entrant) to quickly develop joint downstream assets, pull together upstream resources, and confront the downstream entrants. ...
... Relevant causes of company failure are, among the others: competence obsolescence and rigidity (e.g.,Leonard-Barton, 1992), fixed cognitive mindsets towards the core business (e.g.,Tripsas & Gavetti, 2000), and overinvestments on core customers(Christensen & Bower, 1996). ...
Article
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We developed a decision tree that integrates relevant organizational adaptation theories to respond to radical changes. The understanding of organizational adaptation often requires a combination of multiple theoretical lenses, especially considering today’s radical changes in technologies, markets, and regulations. However, the research streams on adaptation and change are often disconnected and we lack a unifying adaptation framework that might reveal the synergistic contribution of each theoretical perspective to the problem. To fill this important lacuna, we integrate four relevant scholarly perspectives on the topic: dynamic capabilities, ambidexterity, vertical alliances, and horizontal strategic alliances. Our main contribution is an integrative decision tree that unveils when and why each perspective is most appropriate to respond to radical changes. Our research also unpacks dynamic capabilities theory by suggesting when ambidexterity, vertical, and horizontal alliances are appropriate to integrate the upper-level theory of dynamic capabilities, and how they can overcome some of its limitations. The paper also clarifies that, in order to adapt ambidextrously after radical changes destroying core and/or complementary assets, companies need specific alliance strategies.
... In strategic management theory, core competency is defined as a harmonized combination of multiple capabilities, resources, and skills that distinguish a firm from its competitors in the marketplace [9] (pp.79-91) [19] (pp.111-125). Contrary to approach of Porter's five competitive forces, which takes external environment as key factor to influence firms, the concept of core competency focuses on firms' internal capabilities. ...
... (www.preprints.org) | NOT PEER-REVIEWED | Posted: 8 May 2024 doi:10.20944/preprints202405.0502.v119 ...
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China’s leading development of a complete battery value chain for Electric Vehicles (EV) is restructuring the global automotive sector. The competitive advantage of China's EV battery industry lies on its firms’ core competency and political economic geography. Based on first-hand empirical material and data obtained from years of fieldwork in an EV battery cluster in South China, this paper identifies what the Chinese EV battery industry’s core competency is and details how it is built up from below. The current core competency of Chinese battery firms is their mass manufacturing capability to supply lithium-ion batteries vehicle manufacturers (OEMs) with stable and consistent quality as well as competitive prices. This competency is acquired by firms through technological learning at workshop level while taking use of their experiences accumulated in mass production of batteries for consumer electronics sectors. Furthermore, the rapid learning and accumulation of knowledge on battery manufacturing at large scale is also facilitated by the industrial cluster environment where firms are embedded. Supported and promoted by local government policies, Chinese EV battery clusters are composed of firms from different segments of a complete battery value chain. The findings illuminate the likely strategic strengths, weaknesses, and futures of the Chinese EV battery industry in global competition.
... Eine wichtige Herausforderung moderner Organisationen besteht darin, die jeweiligen Vorteile des exploitativen und explorativen "Betriebssystems" zu nutzen und unvermeidbare Nachteile bzw. blinde Flecken jedes Systems durch das andere auszugleichen, auftretende Paradoxien zu erkennen und zu gestalten, so dass beide Systeme sich nicht "feindlich" gegenüberstehen (Govindarajan und Levinthal und March 1993;Leonard-Barton 1992). ...
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Zusammenfassung Dieser konzeptionelle Beitrag in der Zeitschrift „Gruppe.Interaktion.Organisation. (GIO)“ hat ein doppeltes integratives Anliegen. Einerseits soll durch die interdisziplinäre Zusammenführung bekannter Konzepte im Kontext von Exploitation und Exploration ein vertieftes Verständnis über die Hintergründe beider Denk‑, Handlungs- und Lernmuster erlangt werden, deren Zusammenspiel als grundlegendes organisationsdynamisches Spannungsfeld begriffen wird; andererseits erfolgt eine Zusammenschau organisationaler Modelle, die aufzeigen, wie sich dieses Spannungsfeld in der betrieblichen Praxis bewältigen lässt. Durch die institutionelle Verankerung und die Ermöglichung der Interaktion von mehr der Exploration und mehr der Exploitation verpflichteter Organisationsprozesse wird sichergestellt, dass zum einen zukunftsträchtige Ideen hervorgebracht, zum anderen erfolgreiche Zugänge der Gegenwart effizient umgesetzt werden und im Idealfall beide Handlungsmodi voneinander profitieren können. Eine seit den 1970er-Jahren offene Frage bleibt, welche Personen(gruppen) und Mechanismen eine effektive Integration, Vernetzung und Übersetzung zwischen beiden Lernwelten leisten können, wer oder was also an die Stelle des Top Managements tritt, das durch die Umweltkomplexität und -dynamik als zentrale integrative Instanz an Bedeutung eingebüßt hat. Hierzu braucht es durch ihr fachliches, zwischenmenschliches oder koordinatives Talent herausragende Personen, die diese verbindende Aufgabe zu übernehmen imstande sind und sie nicht als Neben-, sondern als Hauptaktivität begreifen.
... Although experiential and interactive learning is the basis of capability development (Jansen et al. 2006;Lavie et al. 2010), an organization seeking to improve its innovative performance is expected to manage the transition from local/exploitative search to distant/explorative search, a radical shift in the direction of organizational learning (Andriopoulos and Lewis 2009;Raisch et al. 2009;Schreyögg and Kliesch-Eberl 2007). Failure to improve turns core competencies into core rigidities (Leonard-Barton 1992;Tripsas and Gavetti 2000) or routine rigidities (Gilbert 2005). Cohen and Levinthal (1990) point out that investment in R&D activity can be a vehicle for novel organizational learning, helping organizations to develop absorptive capacity, and preventing strategic inertia and competency traps. ...
Article
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This paper explores the evolution of innovative organizational capabilities. Using a longitudinal, embedded case study, we analyze how the Industrial Technology Research Institute (ITRI), a Taiwan-based public research institute, developed and advanced its capability over time through a series of technology development projects from the 1970s to the early 2010s. Our study reveals that capability development is linked to the way organizations exploit and utilize their capabilities and continually renew, develop, and transform their capability paths by exploring and interacting with new technology.
... When current dynamic capabilities built are perceived to be insufficient to appropriately impact firm's resources and capabilities, the firm would need to move away from previous change practices as managers' preference for familiarity, constancy, and predictability involved in repeating past behaviors, may lead to the development of core rigidities (Leonard-Barton, 1992). Inability to overcome this internal organizational inertia explains why some firms find success in developing organization-level dynamic capabilities while others do not. ...
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Purpose Change lies at the heart of the dynamic capability theory; however, the essence of concept of change is antithetical to the brain's predominant mode of operation i.e. maintenance of internal homeostasis. Since very little is known about the connection between neurology and dynamic capabilities, the present study aims to open this black box and propose a novel brain-based view of developing dynamic capabilities. Design/methodology/approach This study draws on the insights from neuroscience to offer propositions that not only provide realistic approaches for building dynamic capabilities, but also explain what would cause the brain to enter a state of plasticity to facilitate the development of managerial dynamic capabilities. Findings This study explains that dynamic capabilities are shaped by both lower-level neural processes and higher-level organizational processes, and that both these levels must be brought together to provide a holistic explanation about the complex phenomena of dynamic capabilities. Originality/value This study proposes a novel brain-based view of dynamic capabilities that provides neuroscientific explanations regarding how managerial capabilities can be leveraged to form organization-level capabilities without holding a priori assumptions about the application of the aggregation principle.
... A stable TMT is more likely to accumulate and maintain such knowledge, and the stability of such internal resources helps firms to better understand the business environment, regulations and cultures of different countries and to establish organizational structures and decision-making mechanisms that are compatible with these complex regimes (Puthusserry et al., 2021). Although there are certain risks of core rigidity (Leonard-Barton, 1992), the team cohesion formed by team members over a long period helps firms to cope more efficiently with the challenges of different regimes, improve their adaptability and competitiveness in the international market, and thus enhance the operational capability of their OFDI. Second, the OFDI usually involves complex negotiations and contractual relationships with external partners, government agencies and other stakeholders (Sauvant, 2021). ...
Article
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Purpose This study aims to investigate the effect of top management team (TMT) stability on outward foreign direct investment (OFDI) of Chinese firms and the moderating effects of state ownership and managerial ownership on this relationship. Design/methodology/approach An empirical analysis based on the ordinary least square regression model is conducted using Chinese A-share listed firms that engaged in OFDI from 2008 to 2021. Findings TMT stability has a positive effect on firms’ OFDI. Moreover, state ownership significantly strengthens the positive relationship between TMT stability and OFDI, while managerial ownership weakens this positive relationship. Practical implications The findings help firms to effectively retain TMT talents and promote the smooth internationalization of firms, thereby enhancing their long-term development capabilities and competitive advantages. Originality/value This study expands the investigation of the factors influencing OFDI at the micro level of the TMT, providing valuable decision-making insights for firms.
... According to Leonard-Barton (1992), a company's competitive advantages and profitability are fueled by new goods [1]. Researchers in the field of new product creation have looked at a variety of factors, including human characteristics, levels of perceived creativity and identity, and organizational factors, competencies, culture, and routines (Gupta & Wilemon, 1990) [2]. ...
Article
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This study aimed to investigate the impact of collective intelligence on new product development (NPD) and user inventive behavior in organizational settings. The Study decisions were made using the nomothetic approach, survey conducted among 60 product development managers from 10 organizations in the industry revealed that there is a positive relationship between innovative behavior and performance (both outcomes and efficiency). However, this relationship is mediated by the positive effect of collective intelligence within new product development projects. The study has three significant contributions. Firstly, it is the first of its type to examine the connections between creative behavior and performance. Secondly, it empirically and quantitatively investigates the function of bricolage in established organizations. Lastly, it provides information on the individual perspective of new product development processes. This study demonstrates the critical importance of inventive behavior and collective intelligence in enhancing performance within organizations during the creative processes of new product development (NPD). The findings underscore the significance of integrating the behavioral viewpoint with the resource-based viewpoint in the context of new product development (NPD), as well as the relevance of carefully choosing and effectively using the resources available to a firm.
... The exact nature of a firm's resources, and the firm's knowledge and experience in using those resources for new projects, determine whether the assets induce disadvantageous inertia (Leonard-Barton, 1992). Unabsorbed slack resources (readily deployable to support innovation efforts) can enhance a firm's proactive learning efforts in creating novel innovations (Zuo et al., 2019). ...
Article
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Strategies of incumbent firms have received considerable attention in marketing and across business disciplines, but findings regarding performance (dis)advantages and innovativeness are mixed. Prior studies on supply-side sources (factors internal to the firm) of incumbent inertia disadvantages are more prevalent than those on demand-side factors, which relate to a firm’s customers and may explain potential incumbent advantages. We introduce an integrated demand-side framework to incumbent inertia, recognizing how the supply- and demand-side factors interrelate through learning mechanisms. On the one hand, incumbent firms learn and develop various routines and assets that influence their product strategies, typically reflecting inertia and incremental innovation. At the same time, customers learn about products in the market, forming preferences that reflect switching costs and network externalities (demand-side factors). Although an incumbent can gain advantages from demand-side effects, this could accelerate the onset of supply-side disadvantages. We present a set of research propositions that specify critical effects, and examine implications for incumbent strategies.
... This poses the challenge of preserving core competences while adapting to environmental shifts. Formerly useful competences may turn into rigidities [29]. Therefore, public administrations must navigate between conserving existing competences and pursuing innovation [7]. ...
Conference Paper
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Digital Government Competences are vital for digital transformation in public administration. However, research has mostly focused on the acquisition of new competences, neglecting prevailing ones that contradict transformation efforts. We address this shortcoming by adopting an unlearning perspective, which depicts the process of discarding obsolete competences that hinder rather than foster change. Consequently, we present the results of a focus group study with 34 public servants and subsequent in-depth qualitative analysis. We apply the lens of an established competence framework that defines competence dimensions as individual and organizational as well as visible (observable behavior) and hidden (cognitive mechanisms). The results identify both individual and organizational competences in 24 categories that must be unlearned to unlock the potential of digital transformation in public administration without legacy burdens. We contribute to digital government research by complementing the competence discourse with an unlearning perspective and offer practitioners a new angle on continuous education.
... Dynamic capability theory, first proposed by Teece et al. in 1997, considers dynamic capability as the ability to integrate, construct, and reconfigure the organization's various resources as well as the ability to adapt to rapid changes in the external environment (Teece et al. 1997). Dynamic capabilities reflect an organization's ability to achieve new competitive advantages through innovation, given its path dependence and market position (Leonard-Barton, 1992). Dynamic capabilities can play a role in a company's operations, changing the allocation of primary resources and conventional capabilities within the enterprise to capture new opportunities in the external market (Winter, 2003). ...
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The drivers of corporate digital transformation have been the focus of industry and academic attention. To deeply explore the driving factors and influencing mechanisms of corporate digital transformation (CDT), this paper takes Chinese listed manufacturing companies from 2007–2021 as the research object, based on imprinting theory, adopts the Driscoll-Kraay standard error method, examines the impact of CEO overseas experience on CDT, analyzes the moderating mechanisms of market competition and organizational resources, as well as the mediating effect of dynamic capabilities. The study shows that CEO overseas experience significantly promotes CDT, while market competition intensity and organizational slack resources strengthen the above relationship. Dynamic capabilities play a mediating role in the relationship between CEO overseas experience and CDT. The above findings still hold after considering robustness tests and endogeneity treatments. Further research finds that the overseas working experience of a CEO outweighs the learning experience when it comes to CDT; a CEO with overseas experience has a more significant influence on CDT in the company with a low growth rate; when the CEO is also the chair of the board in the executive team of a company, the overseas experience matters more to CDT; the overseas experience of CEOs with deep academic backgrounds has a more significant impact on CDT. This paper states the driving mechanism of corporate digital transformation from the imprinting theory perspective, and the findings are proven to be substantial and offer practical value for the in-depth development of corporate digital transformation.
... Nelson and Winter (1982) emphasized organizational routines as creating organizational inertia, while Hannan and Freeman (1984) pointed to the firm's accountability to society as a source of such inertia. Porter (1985) highlighted the complexity of changing a firm's activity system to reposition successfully, while Henderson and Clark (1990) and Leonard-Barton (1992) emphasized other kinds of organizational rigidities. Dierickx and Cool (1989) introduced the notion of time compression diseconomies as a cause of delayed adjustment by firms, and contributions to transaction cost economics highlighted the role of contractual constraints and sunk costs in slowing firms' efforts to increase their efficiency (Argyres & Liebeskind 1999;Nickerson & Silverman 2003). ...
Preprint
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The strategy and innovation literatures emphasize that incumbent firms often fail to respond to shocks, yet also point out that some firms can survive by repositioning. The Comparative Adjustment, Transaction and Opportunity Cost (CATO) framework addresses this critical issue by predicting which firms will and will not reposition in response to a shock, when, and to which positions. This paper applies the CATO framework to predict which complementors in the videogame industry repositioned in response to the introduction of the Generation 6 consoles, a major innovation shock, and with which strategy. We find that proxies for comparative adjustment and opportunity costs successfully predict complementors' homing strategies in response to the shock: i.e., the choice of whether to develop games for a single console, multiple consoles sequentially, or multiple consoles simultaneously.
... Örgütsel bilgi, bir işletmenin onu rakiplerinden farklılaştıracak ve rekabet avantajı sağlayacak şekilde hareket etme kapasitesini yansıtmaktadır (Leonard-Barton, 1992). Bir işletmenin rekabet avantajını elinde tutabilmesi için öz yeteneklerine odaklanmasını önceleyen kaynak temelli yaklaşımda işletmenin sahip olduğu değerli, nadir, taklit edilemez ve ikamesi olmayan kaynakların rekabet avantajının merkezinde yer aldığı ileri sürülmektedir (Seviçin, 2006). ...
... Örgütsel bilgi, bir işletmenin onu rakiplerinden farklılaştıracak ve rekabet avantajı sağlayacak şekilde hareket etme kapasitesini yansıtmaktadır (Leonard-Barton, 1992). Bir işletmenin rekabet avantajını elinde tutabilmesi için öz yeteneklerine odaklanmasını önceleyen kaynak temelli yaklaşımda işletmenin sahip olduğu değerli, nadir, taklit edilemez ve ikamesi olmayan kaynakların rekabet avantajının merkezinde yer aldığı ileri sürülmektedir (Seviçin, 2006). ...
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Bilgi, örgütler için oynadığı kritik rol nedeniyle yöneticilerin odağındaki yerini almıştır. Bilginin, paylaşılarak çoğaltılabilir ve tekrar kullanılabilir olması nedeniyle kesintisiz bir rekabet avantajı sağladığı bilinmektedir. Bilgi paylaşımı, çalışanların örgüt genelinde deneyimlerini, becerilerini ve bilgilerini paylaştıkları sosyal bir etkileşim olarak kabul edilmektedir. Paylaşılan bilgi, yaratıcılık ve öğrenmenin gelişmesi yoluyla inovasyonda ve birey ve örgütün performansında artış sağlar. Ayrıca açık ve örtük bilgi paylaşımı ile çalışanların neyin nasıl yapılacağına dair yetkinliklerinin artmasıyla iş süreçlerinin verimliliğinde artışlar görülür. Bilginin paylaşılarak örgütler için değerli hale gelmesi için etkin bilgi yönetimi önem taşır. Buradan hareketle, çalışanların ve yöneticilerin sahip olduğu bilginin gücünden yararlanmasına olanak tanıyacak yolları aydınlatmak ve bilgi paylaşımının örgütler için önemini vurgulamak amacıyla bu çalışma yapılmıştır. Bu doğrultuda çalışmada öncelikle bilgi ve bilgi yönetimi konularına değinilmiş ardından bilgi paylaşımı kavramı tanıtılmıştır. Bilgi paylaşımını kolaylaştıran faktörler ve bilgi paylaşımını ölçmek için kullanılan ölçekler tartışılmış, bilgi paylaşımını engelleyen faktörler ile bilgi paylaşımının sonuçları ele alınmıştır.
... Dynamic capability reflects an organization's ability to achieve new and innovative forms of competitive advantage [21]. ...
Conference Paper
The aim of this study is to provide new insights for companies that want to achieve digital transformation to gain a competitive advantage. More and more companies are embarking on digital transformation to save time and increase the reliability of their business processes. Sometimes the initiative for this type of approach comes from an intermediate level of decision-making, affecting a single process, department or area of activity within a company. At both the corporate and supply chain levels, this article aims to adopt a global vision of digital transformation. This paper aims to identify the dynamic capabilities that influence digital transformation. We then present an approach that helps decision-makers in the company/supply chain to define digital transformation strategies based on knowledge and capabilities.
... However, the tensions surrounding the capabilities-rigidities paradox or the core competency trap (Leonard- Barton, 1992) have become more complex and multi-layered. As discussed above, organisations no longer operate within their own boundaries, but rather across ecosystems and modular, layered technologies. ...
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In this paper, we mobilise new frontiers in digital transformation (DT) research by deconstructing the literature's underlying assumptions and analysing their correspondence with current theory. To do so, we conduct a problematization review across the fields of IS, strategy and entrepreneurship, organisation theory and management studies, to capture the multidimensionality of DT research. Unlike systematic literature reviews commonly found in DT research, a problematization review critically questions how theoretical contributions have been constructed in past research to develop novel theoretical questions. Our findings offer three contributions. First, we uncover five research trajectories, each with its own in‐house assumptions about the nature of digital technologies and how organisations, groups and individuals interact with those technologies and the data they generate. Second, we show how individual studies within the identified research trajectories position themselves against prior research, pointing at six distinct processes of constructing theoretical contributions. Finally, we mobilise new frontiers of research by questioning DT research field assumptions that cut across the five research trajectories. We conclude by discussing the theoretical implications of our problematization review for further DT research.
... However, considering the process of internal strategy modification, government innovation policies that restrict diversity and creativity can hinder the creation of innovation paths (Leonard-Barton, 1992). In addition, a mission-oriented top-down R&D policy may pose a fatal risk if the technology development path differs from what the government expects. ...
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Two major approaches in national research and development (R&D) planning, top-down and bottom-up, have been compared in academic research, and their differences and respective advantages have been ascertained. However, studies on which planning method is best for improving R&D efficiency are insufficient. South Korea, a country that spends a high portion of its budget on R&D, has changed the direction of its R&D planning from top-down to bottom-up to improve R&D efficiency. However, few studies have analyzed the impact of this change on R&D efficiency in an empirical way. This study analyzed the efficiency of the R&D planning method, which has yet to be evaluated ex post facto, using a two-stage data envelopment analysis with a focus on the South Korea’s information and communication technology sector. The results showed that government-led planning projects in the research stage, which requires systematic planning due to high uncertainty, can be more efficient than in the development stage, where uncertainty is low. This implies that systematic planning support for research subjects is required to effectively promote the bottom-up R&D method, while the prerequisites of the bottom-up approach must be ensured for it to have its advantages over the top-down approach.
... First, it is difficult to anticipate the exact timing of environmental change (Martignoni and Keil 2021) to initiate the process of organizational unlearning. Second, organizations might find it difficult to find and adopt new operating methods because they have become firmly dependent on past methods (Starbuck 2017;Snihur 2018) and might be stuck in competence traps due to inertia arising from prior success (Leonard-Barton 1992). Third, it is not easy to tell whether companies render an old belief obsolete (Nguyen 2017), because it can often only be known retrospectively if an organization's belief has become obsolete and, therefore, should have been discarded (Martignoni and Keil 2021). ...
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Although the field of organizational unlearning has recently gained increased interest , its conceptual foundations and raison d'être are still debated. In this review, we aim to revisit various discourses and arguments to advance the understanding of organizational unlearning in management and organization studies. Using an inte-grative literature review approach with systematic elements, we examine the existing body of research on organizational unlearning. We review the literature from different perspectives, focusing on a process-based understanding in terms of why and how organizations intentionally discard knowledge. Based on our review, we develop an integrative framework that portrays organizational unlearning as a dynamically unfolding process over time. We propose implications and offer research directions that will allow future researchers to develop a more profound understanding of the concept.
... Thus, the comparative information on As-Is and To-Be becomes clearer through externalization. Since overcoming organizational inertia by constantly challenging the status quo is crucial to successful organizational learning (Hannan and Freeman, 1984;Lee and Lee, 2018;Leonard-Barton, 1992;Levitt and March 1988;March, 1999;Nonaka et al., 2001;Peteraf, 1993), a systemized or institutionalized stimulus aimed at organization through externalization may be another ingredient for effective proactiveness. ...
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Purpose This study attempts to answer the question: “how are the two drivers, accountability focus and organizational learning, independently and interactively associated with public agencies’ proactive policy orientation?” The first driver is the multiple accountabilities that public agencies pursue: (1) bureaucratic, (2) legal, (3) professional and (4) political. The second driver is the organizational learning activities of public agencies: (1) socialization, (2) externalization, (3) combination and (4) internalization. Design/methodology/approach For data, 800 respondents from the public agencies in South Korea were surveyed. Findings The analysis provided several findings: (1) the discretionary accountabilities (professional and political) have a greater positive influence on the proactive policy orientation; (2) the conventional accountabilities (legal and bureaucratic) tend to have negative impacts on the proactive policy orientation and (3) among the four types of accountability, legal accountability can be more significantly complemented by organizational learning activities, which can enable both visionary and realistic administration in a balanced manner. Originality/value This study provides a unique insight on how organizational proactivity can be ensured through the interactions of organizational accountabilities and organizational learning.
... 38 Somit könnte man solche Routinen als "schlechte organisationale Gewohnheiten" bezeichnen.Gepunktete Linien: potenzielle Interaktion; durchgezogene Linien: aktuelle Interaktion; Strichpunktlinien: etablierte Routine/organisationale Gewohnheit.Abbildung 1: Routinisierung in Unternehmen aus der Interaktionsperspektive 38 Vgl. Leonard-Barton (1992). ...
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... El sensemaking Comienza como respuesta a la incertidumbre cuando la interpretación de las señales del entorno no coincide con la modelización que el sujeto tiene de la realidad (Djaballah et al. 2017;Godden 2022;Seiling & Hinrichs 2005;Weick 1995). La capacidad de operar con información ambigua, disponibilidad al cambio, reflexiones impulsadas por la crisis, libertad de actuación, entendimiento del entorno, ambiente de confianza, participación con información necesaria e influencias, dan lugar a experimentaciones para construir y adoptar nuevos conceptos y comportamientos; los cuales contribuyen a reducir discrepancias con el entorno y construir sentido (Whetten & Cameron 2005) permitiendo considerar cambios en las rigideces básicas (Frankl 1987;Leonard-Barton 1992). ...
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Esta revista oferece acesso livre imediato ao seu conteúdo, seguindo o princípio de que disponibilizar gratuitamente o conhecimento científico ao público proporciona maior democratização mundial do conhecimento. Este manuscrito é distribuído nos termos da licença Creative Commons-Atribuição-NãoComercial 4.0 Internacional (https://creativecommons.org/licenses/by-nc/4.0/legalcode), que permite reproduzir e compartilhar o material licenciado, no todo ou em parte, somente para fim não comercial; e produzir, reproduzir, e compartilhar material adaptado somente para fim não comercial. RESUMEN Los mercados actuales tienden a exigir cada vez más que las empresas se alineen a los Objetivos de Desarrollo Sostenible, por lo que, las organizaciones deben aprender a responder a las demandas de sus stakeholders para ser competitivas. Por otro lado, la literatura existente entiende la metanoia como un proceso de aprendizaje que realiza tránsitos entre perspectivas mentales en los individuos, la cual facilita cambios significativos del comportamiento. Como la teoría disponible aborda el tema principalmente desde la perspectiva individual y no de grupos de trabajo, la investigación explora la metanoia como dimensión del aprendizaje organizacional (AO) y posteriormente analiza su utilidad para adoptar los ODS y dar respuesta a las demandas de los stakeholders. Para esto, se utilizó la teoría fundamentada, aplicando observación no participante y entrevistas semiestructuradas a líderes del AO y gestión del conocimiento (GC), en siete organizaciones del sector privado con distintos niveles de formalidad en GC. El análisis de los datos se apoyó en los softwares Atlas.ti® y Cmaptools. Los resultados sugieren que la metanoia optimiza el aprendizaje organizacional; además, que las categorías autorreconocimiento, efectiva comunicación, asignar sentido al cambio, objetivos organizacionales, trabajo de los líderes, treguas entre coaliciones y apoyo en las TIC, facilitan el proceso metanoico, mientras que el apego a los valores, historia y dependencia al camino tienen efecto contrario. Se concluye que la metanoia es una capacidad organizacional que contribuye a trasformaciones organizacionales útiles e inimitables para enfrentar las exigencias de sus stakeholders; sin embargo, su proceso se da de forma distinta a lo que se expresa en la teoría, menos ordenada y un tanto caótica. Los resultados contribuyen a la literatura existente describiendo la forma cómo se da la metanoia en las empresas y su utilidad para aprender a adoptar los ODS. Palabras clave: objetivos de desarrollo sostenible; metanoia; aprendizaje organizacional; organización; entornos turbulentos. ABSTRACT Current markets tend to increasingly demand that companies align with the Sustainable Development Goals, so organizations must learn to respond to the demands of their stakeholders to be competitive. On the other hand, the existing literature understands metanoia as a learning process that transitions between mental perspectives in individuals, which facilitates significant changes in behavior. As the available theory addresses the issue mainly from the individual perspective and not from work groups, the research explores metanoia as a dimension of organizational learning (OA) and later analyzes its usefulness in adopting SDGs and responding to stakeholder demands. For this, the grounded theory was used, applying non-participant observation and semi-structured interviews to AO and knowledge management (KM) leaders in seven private sector organizations with different levels of KM formality. Data analysis was supported by Atlas.ti® and Cmaptools software. The results suggest that metanoia optimizes organizational learning; In addition, that the categories self-recognition, effective communication, assigning meaning to change, organizational objectives, work of leaders, truces between coalitions and support in ICTs, facilitate the metanoic process, while attachment to values, history and dependence on the path they have the opposite effect. It is concluded that metanoia is an organizational capability that contributes to useful and inimitable organizational transformations to face the demands of its stakeholders; however, its process occurs in a different way from what is expressed in theory, less orderly and somewhat chaotic. The results contribute to the existing literature describing how the metanoia occurs in companies and its usefulness in learning to adopt the SDGs.
... An organisation is so involved with and simply used to what they are good in (core competencies), they become trapped in it. When the environment changes for example the changing consumer needs, changing regulation, the organisations are not able to adapt (Leonard-Barton, 1992;Benner and Tushman, 2000). ...
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The objectives of an integrated CRM (iCRM) is to help organisations in their marketing, service and support function by integrating strategy, relationship, process and management systems of the Indian SMEs. With this paper we attempt to explore the relationship between Indian SMEs and integrated CRM concept. We suggest that Indian SMEs employ a multi-layer strategic approach in an integrated CRM process with the help of a proposed CRM magic quadrant and readiness matrix model that may help to increase involvement and ownership by stakeholders in their decision making processes. The proposed model can help Indian SMEs to check where they stand and where they can go as far as CRM readiness is concerned. This readiness will be checked at four level/criteria: process innovation level, strategic management level, relationship marketing level, and last but not the least, at integrated management system process level. There are five phase of readiness maximum, optimum, developing, neutral and unaware with differ...
... Vision Builders recognize the importance of KM and determine vision, strategies, and goals for the organization by making sense of the context to determine the knowledge gap of the organization, giving a direction for acquiring the knowledge that the organization needs. Many studies emphasized the importance of leaders in establishing vision, strategies, and goals for the organization that can justify the knowledge vision of a leader in this study (Prahalad and Hamel 1990;Senge 1990b;Leonard-Barton 1992;Long and Vickers-Koch 1995;Sanches and Heene 1997;Sveiby 1997;Ellinger and Bostrom 1999;Senge 2000). They all mention the importance of vision in leadership in organizations. ...
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The paper is to share the experience of the author in leading Knowledge Management in a secondary school in Hong Kong.
... That includes applying modern management techniques, such as agile management (Giacosa et al., 2022), and others that have proved their relevance over time, such as lean practices (Buer et al., 2018). Finally, organizational culture is essential to the response to technological change, fostering openness to new technologies and processes and tolerance to failure (Leonard-Barton, 1992;Tripsas & Gavetti, 2000). Ensuring employee commitment to the new ways of working and aligning the leadership style are also part of these efforts (AlNuaimi et al., 2022;Weber et al., 2022). ...
... This rigidity can hinder an organization's ability to adapt to discontinuous changes, such as drastic shifts in the competitive environment (Gilbert, 2005;Teece, Pisano, and Shuen, 1997). The concept of "core rigidity" postulates that what was once a firm-specific advantage can become a disadvantage when faced with environmental changes (Leonard-Barton, 1992). ...
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The current study examines the competitive implications of geographical proximity between properties managed by the same entity in the hospitality industry. Using a knowledge-based perspective, we find that shorter distances between properties managed by the same hotel management company or short-term lease host enhance their competitive advantage. Interestingly, a larger number of short-term lease properties, managed by the same host within a cluster, strengthens competitiveness, but this pattern is not observed for hotels. The research also highlights the role of digital platforms, showing that an increased number of short-term leases listed on the same platform enhances the competitive advantage. These insights underscore the criticality of both physical proximity and effective knowledge management in the hospitality industry. It also emphasizes the differing dynamics between traditional hotels and short-term leases, suggesting that strategies should be tailored to the unique characteristics of each accommodation type.
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This study aims to examine the relationship between organizational memory and intellectual capital within the National Electricity and Gas Company in El Oued, Algeria. The research investigates the impact of adopting an organizational memory philosophy on the development of intellectual capital. The study employs a dual-method approach: a documentary (descriptive) method, which reviews relevant literature to establish the theoretical framework for organizational memory, and a survey (analytical) method, which uses a questionnaire as the primary tool for data collection. The validity and reliability of the sample, comprising 40 participants, were confirmed, achieving a high-reliability score of 95%. Data analysis was conducted using the Statistical Package for the Social Sciences (SPSS 21) and various descriptive statistical tools. The findings indicate that the company exhibits a moderate level of organizational memory and intellectual capital. Moreover, a statistically significant relationship exists between organizational memory and intellectual capital within the company at a significance level of 0.05, based on the dimensions and types outlined in the study model.
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Facial recognition technology has made significant strides in recent years, becoming an increasingly important tool in various fields such as security, law enforcement, and retail. This technology utilizes biometric data, specifically facial features, to identify individuals. The article provides an overview of the diverse applications of facial recognition technology, delving into state-of-the-art methods including deep learning-based approaches. Various face databases utilized to evaluate these algorithms are discussed, highlighting their strengths and weaknesses. A significant study, the Face Recognition Vendor Test (FRVT) 2002, is reviewed, illustrating improvements in the technology and the need for further research to address issues such as bias and variability. The potential benefits of facial recognition technology in counterterrorism are discussed, emphasizing the importance of proper regulation to balance security and civil liberties. The article concludes that while facial recognition technology can significantly enhance state authority, it must be used responsibly to ensure it does not infringe upon civil rights. Keywords: Facial recognition, biometric data, deep learning, face databases, Face Recognition Vendor Test (FRVT), security, civil liberties
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Incumbent advantages have prevented most latecomer firms from being successful in the automotive industry. The industry to this day is dominated by the first mover firms from North America and the fast followers from Western Europe and Japan. Many developing and emerging countries have significant automotive industries, but they are dominated by these incumbent foreign firms. Some of them have tried to prop up indigenous carmakers, but largely failed. In those few cases where firms managed to pursue some degree of catch-up with the US first mover automotive firms, government industrial policy played an important role, but this paper argues that the developmental state framework, emphasizing industrial policy, is insufficient in explaining catch-up by automotive firms. It presents what we call the Barriers to Entry approach, which focuses on the barriers to entry that latecomer firms face when trying to catch up in a given industry. These barriers to entry are constituted by the advantages of incumbent firms with accumulated knowledge, capabilities and a supporting nexus. The paper demonstrates these advantages but also how some firms successfully overcame them through firm cases in Japan, South Korea and China. It highlights the striking parallels between these cases and summarizes them in terms of our barriers to entry categories: closing the knowledge gap, closing the capabilities gap, building a supporting nexus, and commercializing new technologies. The evolutionary economics literature on latecomer catch-up has emphasized the importance of firm-level efforts in technological capability building as opposed to passively expecting technology transfer through foreign direct investment. Our Barriers to Entry approach builds on but extends this literature by specifying the nature of capabilities that latecomer firms needed to build in the automotive industry as well as the origins of their absorptive capacity (prior knowledge and intensity of effort) that drove them to indigenize automotive technology (scientific and tacit knowledge). In this context, we stress the importance of migratory knowledge through transnational networks as well as of role models for both industrial policymaking and firm strategies. The opportunities afforded to latecomer firms depend on the situation in a global industry at a certain moment in time, which is conditioned by foreign firms’ business strategies and incumbent countries’ government policies.
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The problem in the capability of the village government is that the village fund allocation has not been used for the reporting and accountability process. This research uses theories from Leonard-Barton (1992:4-5). This research uses a qualitative approach with a descriptive type of approach. The data collection techniques used are observation, interviews and documentation. Research results (1) In the indicators of knowledge and skills capability, the Advanced village government already has knowledge and skills, by implementing several actions in the process of managing village fund allocation. (2) In the technical system capability, the village government has been able to manage the allocation of village funds, due to its management techniques that are consistent with regent regulations and also regulations related to the allocation of village funds. (3) In the capability of the managerial system, the village government continues to manage the allocation of village funds, starting from planning to accountability, which has been transparent to the community by providing billboards and information boards regarding management information. (4) On capability values and norms, the village government continues to apply the values and norms obtained from training and education in managing the allocation of village funds and in providing services to the community. The conclusion of the study is that the capability of the village government in managing the allocation of village funds has not run optimally because there are still obstacles that have not been implemented digital systems or information technology in the process. The village government is expected to immediately apply information technology or digital systems in the process of managing the allocation of village funds to make it more transparent, accountable and accountable.
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This study presents a bibliometric analysis of the literature on sustainable software development and its contribution to green technology. By analyzing data from Google Scholar, this research identifies key trends, influential authors, and significant publications that have shaped the field from 1971 to 2024. The analysis reveals the increasing integration of sustainability principles within software engineering practices, emphasizing the critical role of green technologies in reducing the environmental impact of software systems. The study highlights the evolution of research focus towards energy-efficient coding, green data centers, and sustainable software frameworks, reflecting the growing importance of technology in achieving global sustainability goals. The findings also underscore the value of interdisciplinary collaboration in advancing the field, as evidenced by the diverse connections between technological, environmental, and economic themes. This research provides a comprehensive overview of the current state of sustainable software development and offers insights into future research directions that can further enhance the contribution of software engineering to environmental sustainability.
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Chapter
The contents of the chapter refer to innovations in organizations and particularly as their perception processes are implemented. At this point, the role and importance of academic institutions is more likely to be discussed as the internal initiatives for academia are concerned. The main objective of the work was to obtain the systematic approach to the issues of university transformation to such a point that the need of innovativeness at universities is discussed. This is compared against the requirements of stakeholders. The need for solutions is a normative issue, as expected by stakeholders. However, the issue of implementing innovative solutions is a topic of scientific discussion that is closely related to innovation, and which at the same time outlines a new dimension of perception of innovation in both business units and scientific units. Considerations can be made that implementation is the internal function of innovation that verifies in proportion to the radicalism of innovation the possibilities of their practical application.
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Diese Dissertation verfolgt die Beantwortung zweier Forschungsfragen. Einerseits soll herausgefunden werden, wie Maschinenbauunternehmen das Portfolio ihrer angebotenen Dienstleistungen gestalten. Anderseits sollen die Entscheidungen aufgedeckt werden, die die Unternehmen hinsichtlich ihres Dienstleistungsportfolios treffen. Hierzu wurden 40 Unternehmensrepräsentierende von deutschen und schwedischen Unternehmen in einer qualitativ-empirischen Interviewstudie befragt. Auf Basis des Grounded-Theory-Ansatzes von Gioia et al. (2013) wurde ein integriertes Modell erstellt, das Modell der Strategiewahl im Service Portfolio Management. Das Modell beinhaltet zum einen eine Darstellung von grundsätzlichen Aktivitäten, die für die Pflege des Dienstleistungsportfolios essenziell sind. Zum anderen finden sich in dem Modell zwei praktizierte Portfoliostrategien für das Management industrieller Dienstleistungen. Die Wahl der jeweiligen Strategie wird durch Kontextfaktoren beeinflusst.
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