Organization capacity

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1、01/10/2013OrganisationalcapabilitiesRoineLeiringerWhatwemightlearntoday•Tounderstandandapplytheconceptoforganisationalcapability.•(Tohavepatiencewithdefinitions)Background–theResourceBasedViewofthefirm(i)•Wernerfelt,Barneyandothers–Marketequilibrium,firmresourcesandcompetitiveadvantage.–Ifaf

2、irmistoachievesustainedcompetitiveadvantageithastoacquireandcontrol‘VRIN’resources.–VRIN:valuedamongstcustomers,rareamongstcompetitors,inimitablebycompetitors,non‐substitutablebypotentialmarketentrants.–Exampleofsuchresources:•Physical(specialisedequipment,geographiclocation);•human(expertis

3、eincoding);•organisational(superiorsalesteam)101/10/2013Background–theResourceBasedViewofthefirm(ii)•Penrose(1960)–concernedwithunderstandingtheconstraintsontherateofgrowthoffirms.–Intheabsenceofcapitalconstraints,thefundamentalconstraintismanagerialcapacitytomobilizetheresourcesavailabletot

4、hefirmproductively.•BuildingonthisworkChandler(1990)arguedthatthefirmisacollectionoforganisationalcapabilities(thephysicalfacilitiesandhumanresourcesrequiredtosupplygoodsandservices).Settingthescene•Aformalorganisationisa‘plannedcoordinationofactivitiesofanumberofpeoplefortheachievementofsom

5、ecommonexplicitpurposeorgoal,throughdivisionoflabourandfunction,andthroughahierarchyofauthorityandresponsibility’(E.Schein)•Wetakeforgrantedthatbusinessfirmsandotherformalorganisationsknowhowtodothings.•Butwhataretheprinciplesthatgovernhowthis‘knowledge’isacquired,maintained,extendedanddeplo

6、yed?Capability•“Tobecapableofsomethingistohaveagenerallyreliablecapacitytobringthatthingaboutasaresultofintendedaction.Capabilitiesfillthegapbetweenintentionandoutcome,andtheyfillitinsuchawaythattheoutcomebearsadefiniteresemblancetowhatwasintended”.Dosietal.(2000)TheNatureandDynamicsofOrgani

7、zationalCapabilities.OxfordUniversityPress201/10/2013Organisationalcapabilities•Organisationalcapabilitiesarecommonlydefinedastheparticularcombinationofskills,competences,resources,routines,andbehaviourswhichenableeffectiveperformance(andgenerateco