Strategic Reconfigurations

Strategic Reconfigurations

Building Dynamic Capabilities in Rapid Innovation-based Industries

Edited by Stuart Wall, Carsten Zimmermann, Ronald Klingebiel and Dieter Lange

This path-breaking book provides unique insights into the organisational realities of strategic reconfigurations in uncertain markets, thus advancing the dynamic capability perspective.

Chapter 4: The Knowledge-based Perspective on Dynamic Capabilities

Aino Kianto and Paavo Ritala

Subjects: business and management, organisational innovation, strategic management, economics and finance, industrial organisation, innovation and technology, organisational innovation

Extract

101 firm understood in a wide manner, and cannot be attributed solely to the top management. Third, knowledge is an issue that cannot be completely controlled, but can best be enabled through creating suitable and fruitful contexts for its emergence. The dynamic capability approach seems to exaggerate the extent of management control and to neglect the role of internal motivation in innovation and learning, as well as the unmanageable nature of tacit and complex knowledge. The perspective on dynamic capabilities presented in this chapter is based on the exploration of the organizational conditions that facilitate, encourage and enable the renewal of organizational knowledge. Thereby it can provide more realistic and tenable guidelines for managers, as they strive to build continuously renewing organizations. Limitations and Future Research Directions The main limitation of the discussion in this chapter is its purely theoretical nature. In future research, the three knowledge-based higher-order capabilities and their connection with organizational change should be illustrated with rich case study data. In addition, this chapter departs from the view that capabilities can be formulated along a hierarchy. Furthermore, there might obviously be more and different kinds of higher-order capabilities than those three outlined here. They could also be labeled or grouped differently. However, we believe that the labels are not important as such, but rather the reasoning behind them. Indeed, further understanding of organizational change and capability development is a challenge for future research, and this chapter has only touched the surface by providing complementary explanation for current...

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