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)
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.
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