
Contents
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1. The Concept of Organizational Capability 1. The Concept of Organizational Capability
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2. A Note on Terminology 2. A Note on Terminology
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3. The Role of the Organization 3. The Role of the Organization
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4. Capabilities and Decisions 4. Capabilities and Decisions
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5. Capabilities Research: Areas of Inquiry and Application 5. Capabilities Research: Areas of Inquiry and Application
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5.1. Evolutionary Economics and Firm Capabilities 5.1. Evolutionary Economics and Firm Capabilities
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5.2. Firm Capabilities and Strategic Management 5.2. Firm Capabilities and Strategic Management
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5.3. Technology and Organization 5.3. Technology and Organization
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5.4. Firm Capabilities in Business History 5.4. Firm Capabilities in Business History
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5.5. Organizational Capabilities and Economic Growth 5.5. Organizational Capabilities and Economic Growth
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References References
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Introduction: The Nature and Dynamics of Organizational Capabilities
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Published:November 2001
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Extract
It is familiar enough that business firms and other organizations ‘know how to do things’—things like building automobiles or computers, or flying us from one continent to another. On second thoughts, what does this mean? Is there not a sense in which only a human mind can possess knowledge? If so, can this proposition somehow be squared with the idea that organizations know how to do things? And if organizational knowledge is a real phenomenon, what are the principles that govern how it is acquired, maintained, extended, and sometimes lost?
Our focus here is on the particular forms of organizational knowledge that account for the organization's ability to perform and extend its characteristic ‘output’ actions—particularly, the creation of a tangible product or the provision of a service, and the development of new products and services. The range of activities we have in mind is broad, embracing for example automobile manufacturing, brain surgery, identifying and developing new pharmaceuticals, putting on an effective art exhibition, and shipping a package across a continent. Pending a more thorough discussion of terminology, we identify the term ‘organizational capabilities’ with the know‐how that enables organizations to perform these sorts of activities.
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