Match!

Designing Organizations for Dynamic Capabilities

Published on Aug 1, 2016in California Management Review5
· DOI :10.1525/cmr.2016.58.4.78
Teppo Felin23
Estimated H-index: 23
(University of Oxford),
Thomas C. Powell17
Estimated H-index: 17
(University of Oxford)
Sources
Abstract
How can organizations put dynamic capabilities into practice? We focus on the power of organizational design, showing how managers can harness new organizational forms to build a capacity for sensing, shaping and seizing opportunities. Fast-moving environments favor open organization and self-organizing processes that quickly convert individual capabilities into actionable collective intellect. We argue that self-organizing processes do not organize themselves but require managers to design and execute them. We examine new design principles – such as polyarchy, social proofs, and new forms of open organization – that allow organizations to build dynamic capabilities for sustained innovation in dynamic environments.
Figures & Tables
  • References (50)
  • Citations (25)
📖 Papers frequently viewed together
4,618 Citations
18k Citations
8,241 Citations
78% of Scinapse members use related papers. After signing in, all features are FREE.
References50
Newest
#1Jerker DenrellH-Index: 19
#2Thomas C. PowellH-Index: 17
Dynamic capability is a theory of competitive advantage in rapidly-changing global environments. We reconcile this explanation with previous theories of competitive advantage, showing how it informs and complements explanations based on market positions, firm resources and Schumpeterian creative destruction. We examine the scope conditions of dynamic capability; that is, when the theory has more and less explanatory power. We find that dynamic capability has greatest explanatory power when a par...
2 Citations
#1Markus Reitzig (University of Vienna)H-Index: 19
#2Boris Maciejovsky (UCR: University of California, Riverside)H-Index: 17
Little is known about how corporate hierarchies influence managers' propensity to pass information upward within the firm. Two streams of literature arrive at seemingly conflicting and untested predictions. Information economists maintain that middle managers pass more suggestions up the firm's line of command as the corporate hierarchy increases in order to avoid corporate omission errors. In contrast, scholars of organizational psychology suggest that hierarchies lead to evaluation apprehensio...
20 CitationsSource
#1David V. Budescu (Fordham University)H-Index: 47
#2Eva Chen (UPenn: University of Pennsylvania)H-Index: 5
Statistical aggregation is often used to combine multiple opinions within a group. Such aggregates outperform individuals, including experts, in various prediction and estimation tasks. This result is attributed to the “wisdom of crowds.” We seek to improve the quality of such aggregates by eliminating poorly performing individuals from the crowd. We propose a new measure of contribution to assess the judges' performance relative to the group and use positive contributors to build a weighting mo...
79 CitationsSource
#1Eric SchmidtH-Index: 1
#2Jonathan RosenbergH-Index: 1
Google Executive Chairman and ex-CEO Eric Schmidt and former SVP of Products Jonathan Rosenberg came to Google over a decade ago as proven technology executives. At the time, the company was already well-known for doing things differently, reflecting the visionary--and frequently contrarian--principles of founders Larry Page and Sergey Brin. If Eric and Jonathan were going to succeed, they realized they would have to relearn everything they thought they knew about management and business. Today,...
79 Citations
#1Paul Belleflamme (UCL: Université catholique de Louvain)H-Index: 19
#2Thomas Lambert (UCL: Université catholique de Louvain)H-Index: 7
Last. Armin Schwienbacher (university of lille)H-Index: 24
view all 3 authors...
The basic idea of crowdfunding is to raise external finance from a large audience (the “crowd”), where each individual provides a very small amount, instead of soliciting a small group of sophisticated investors. The paper develops a model that associates crowdfunding with pre-ordering and price discrimination, and studies the conditions under which crowdfunding is preferred to traditional forms of external funding. Compared to traditional funding, crowdfunding has the advantage of offering an e...
882 CitationsSource
The empirical world of strategy and organization is populated by living, thinking, feeling persons, but the intellectual history of strategic management theory is one of creeping impersonalism, both in the questions we ask and our answers to them. The past 30 years have seen the field drift steadily away from human-scale problems like goal-setting, problem solving, and decision making, to mass abstractions like strategic factor markets and dynamic capabilities. This essay explores the causes and...
15 CitationsSource
#1Linus Dahlander (European School of Management and Technology)H-Index: 21
#2Henning Piezunka (Stanford University)H-Index: 5
This paper analyzes organizations’ attempts to entice external contributors to submit suggestions for future organizational action. While earlier work has elaborated on the advantages of leveraging the knowledge of external contributors, our findings show that organizational attempts to attract such involvement are likely to wither and die. We develop arguments about what increases the likelihood of getting suggestions from externals in the future, namely through (1) proactive attention (submitt...
81 CitationsSource
#1Teppo Felin (University of Oxford)H-Index: 23
#2Todd R. Zenger (UW: University of Washington)H-Index: 32
Scholars have recently highlighted the promise of open innovation. In this paper, we treat open innovation—in it's different forms and manifestations—as well as internal or closed innovation, as unique governance forms with different benefits and costs. We discuss how each governance form, whether open or closed, is composed of a set of instruments that access (a) different types of communication channels for knowledge sharing, (b) different types of incentives, and (c) different types of proper...
172 CitationsSource
#1Margaret A. Peteraf (Dartmouth College)H-Index: 21
#2Giada Di Stefano (HEC Paris)H-Index: 9
Last. Gianmario Verona (Bocconi University)H-Index: 19
view all 3 authors...
A critical issue has been absent from the conversation on dynamic capabilities: the two seminal papers represent not only different but contradictory understandings of the construct’s core elements. Here, we explore the reasons for this, using author co-citation analysis to inform our analysis. Our findings suggest that the field is being socially constructed on the basis of two separate domains of knowledge and that underlying structural impediments have impeded dialog across the domains. In li...
216 CitationsSource
#1Felipe A. Csaszar (UM: University of Michigan)H-Index: 8
#2J. P. Eggers (NYU: New York University)H-Index: 10
We study four information aggregation structures commonly used by organizations to evaluate opportunities: individual decision making, delegation to experts, majority voting, and averaging of opinions. Using a formal mathematical model, we investigate how the performance of each of these structures is contingent upon the breadth of knowledge within the firm and changes in the environment. Our model builds on work in the Carnegie tradition and in the group and behavioral decision-making literatur...
33 CitationsSource
Cited By25
Newest
Abstract This article aims to systematise and provide a structure for research into the Future of Work (FoW). We used SciMAT to conduct a science mapping analysis based on co-word bibliographic networks. The Web of Science (WoS) database was used for article retrieval, and a total of 2,286 documents were identified from 1959 to 2019. Our results are counterintuitive, as concerns over satisfaction, leadership values or corporate social responsibility (CSR) appear alongside traditional human resou...
Source
Source
Source
Abstract This study proposes and tests a model of information technology outsourcing (ITO) capabilities as antecedents of ITO success. Building on the dynamic capabilities perspective (DCP), the model posits that ITO sensing, ITO seizing, and ITO orchestrating capabilities will influence ITO success by way of both successful reconfiguration of IT solutions and successful delivery of IT services. Building on extant ITO research, the model also hypothesizes that contract management capabilities an...
Source
#1Myropi GarriH-Index: 2
#2Lee Spicer (University of Portsmouth)
Last. Ashish Malik (University of Newcastle)H-Index: 10
view all 6 authors...
#1Rajagopal (Tec: Monterrey Institute of Technology and Higher Education)
This chapter discusses the journey of companies in making marketing decisions across the generations of marketing scholarships. An effective marketing-mix actively pushes the innovative and unfamiliar brands in the market by making clear passages through the competition to serve the target markets. Marketers had been aggressive to launch innovation-led products as effective consumer solutions in linking elements of marketing-mix. This chapter discusses the journey of companies in making marketin...
Source
Die gegenwartige Diskussion um Selbstorganisation ist in den Betriebs- und Sozialwissenschaften haufig gekennzeichnet durch eine normative Aufladung eines eigentlich wertfreien Ordnungsgeschehens. Das gilt besonders fur die Verknupfung von Selbstorganisation und Sinn. Fur eine sachliche Betrachtung des Zusammenhangs ist zum einen klarzustellen, in welcher kontextuellen Einbettung Selbstorganisation betrachtet wird. Zum anderen soll geklart werden, mit welchem Konzept von „Sinn“ argumentiert wird...
1 CitationsSource
#1Andrew Barron (Toulouse Business School)H-Index: 5
#2Asier Pereda (Ramon Llull University)H-Index: 1
Abstract Through a case study of the government affairs (GA) activities of a large UK-based manufacturing firm, we explore how the differentiation and integration of boundary-spanning GA units may affect their ability to capture external political information and share it with the rest of the business. Mobilising insights from organisational design theory, we demonstrate that changes in the autonomy, specialisation and formal coordination of the firm's UK-based GA unit have over time positively ...
Source
#1Meeta Dasgupta (Management Development Institute)H-Index: 3
ABSTRACTAccording to the dynamic capabilities view, a volatile business environment requires organizations to constantly adjust to changes, and be dynamic with respect to the value they create for ...
Source
#1Vinicius Picanco Rodrigues (Insper)H-Index: 4
#2Daniela Cristina Antelmi Pigosso (DTU: Technical University of Denmark)H-Index: 12
Last. Tim C. McAloone (DTU: Technical University of Denmark)H-Index: 21
view all 3 authors...
Abstract The lack of quantitative mechanisms aimed at evaluating the potential business benefits of ecodesign prior to implementation is a major barrier to wider adoption in manufacturing companies. Ecodesign is defined as the consistent integration of environmental aspects into product development processes. Within this frame, there is a need to understand how the development of ecodesign capabilities affect overall business performance over time. Drawing upon the Ecodesign Maturity Model (EcoM...
Source