Session 203

Dynamic Capabilities

Track I

Date: Tuesday, October 13, 2009


Time: 11:30 – 12:45


Room: Meeting Room 4

Session Chair:
Xavier Martin, Tilburg University

Title: Bibliometric Analysis of the Dynamic Capabilities-Perspective: Convergent Traditions, Divergent Trends


  • Rick Vogel, Zeppelin University
  • Wolfgang H Guettel, Johannes Kepler University Linz

Abstract: 15 years after the dynamic capabilities (DC) approach entered the scientific stage, addressing a firm’s ability to alter its resource base, we provide a review by means of a bibliometric analysis. We both look backward in order to identify the traditions in which the approach is anchored and forward in order to identify present and future trends of application. The results of a co-citation analysis indicate the roots of DC in RbV and related fields such as learning, knowledge and marketing. By using bibliometric coupling, we demonstrate that DC research currently also addresses ICT, firm boundary decisions, and alliancing. However, the DC approach is only loosely coupled to change management and innovation despite the fact that change and innovation are main arguments for the necessity of DC.

Title: Capability Dynamics and Latent Networks: The Case of Creative Project-Based Industries


  • Erik Aadland, BI Norwegian Business School

Abstract: This paper develops an alternative conceptualization of capability dynamization by incorporating the theory of latent organization in the context of creative project-based industries. A theoretical explanation for inter-firm performance differentials is developed relying on an evolutionary mechanism. The locus of advantage in the explanation transcends firm boundaries and challenges the resource based logic isolating the source of advantages within the firm. Introducing latent networks, it is shown how firms may navigate the capability-rigidity paradox generated by path dependence and incrementally developed asset positions in current capabilities. It is also shown how firms may achieve reliability in quality levels and cost structures in an uncertain, unpredictable environment.

Title: Recombination Experience: A Study of Organizational Learning and Its Innovation Impact


  • Anindya Ghosh, Indian School of Business
  • Xavier Martin, Tilburg University
  • Johannes Pennings, University of Pennsylvania
  • Filippo Carlo Wezel, emlyon

Abstract: This paper develops an evolutionary theory of the innovation process through the lens of organizational learning. We consider the firm’s experience with recombining within and across disparate domains of technological knowledge, to capture the complexity of knowledge search, and attempt to determine the impact of its innovative output as revealed by the acknowledgment of peer firms. We distinguish between specific and other types of experience, depending on whether past experience is directly related to the focal recombination. Using a longitudinal dataset of patents in the photographic imaging industry, we test that: a) the stock of specific recombination has an inverted U-shaped relationship with the value of an innovation; and b) recombining across knowledge domains has a larger effect on that value than recombining within domain.

Title: The Restructuring of Dynamic Capabilities Through Corporate Expansion


  • Grazia Santangelo, University of Catania
  • John Cantwell, Rutgers University

Abstract: This paper analyses the restructuring of dynamic capabilities following M&A-based growth in large industrial firms with a substantial technological knowledge base. We focus on the restructuring of general purpose (i.e. ICT) and related to the core technological capabilities of a firm. We develop and test a conceptual framework grounded on a co-evolutionary view that relates the motivations and environment for corporate expansion to the firm-specific pattern of restructuring in the composition of corporate technological capabilities. We find that inter-industry environments reduce technological relatedness in market-motivated expansions, while relatedness has also declined in more recent technology-motivated growth in general. The acquisition of ICT is common as well to both technology-motivated inter-industry deals and more recent market-motivated deals. We speculate that any similarities in the outcomes of these alternative motives for firm growth arise for quite different purposes.

All Sessions in Track I...

Sun: 10:00 – 11:30
Session 264: Strategy in an Uncertain World: “Black Swan” Implications for K&I Scholars
Sun: 13:00 – 14:30
Session 265: The Changing Governance Landscape: Implications for Knowledge and Innovation Scholars
Sun: 15:00 – 16:30
Session 266: Integrating Theories of Problem Formation
Sun: 16:30 – 17:30
Session 313: Knowledge & Innovation, IG Meeting
Mon: 12:45 – 14:00
Session 201: 50th Anniversary of Penrose's (1959) The Theory of the Growth of the Firm
Session 212: Technological Innovation
Mon: 15:45 – 17:00
Session 218: Let the Knowledge Flow...
Session 223: Exploration and Novelty
Mon: 17:15 – 18:30
Session 209: Learning and Collaboration
Session 221: Innovation and Management Practice
Tue: 10:00 – 11:15
Session 202: Microfoundations of Knowledge and Learning
Session 235: Regulating the Market for Ideas: The Role of Communities, Norms, and Networks
Tue: 11:30 – 12:45
Session 203: Dynamic Capabilities
Session 224: Governing Knowledge
Tue: 14:30 – 15:45
Session 207: How Do Capabilities Develop?
Session 210: The Complex Roles of Experience
Wed: 10:00 – 11:15
Session 211: Knowledge Transfer
Session 215: Knowledge-Based Strategic Interaction
Wed: 11:30 – 12:45
Session 213: The Human Factor in Knowledge and Innovation
Session 219: Ambidexterity

Strategic Management Society

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