Title: DYNAMIC CAPABILITIES AND COMPETENCE OBSOLESCENCE: EMPIRICAL DATA FROM RESEARCH-INTENSIVE FIMRS
Abstract: The dynamic capabilities approach focuses on a firm’s ability to develop its resource base in order to meet environmental expectations. Therefore, it is closely interrelated to issues of balancing exploration and exploitation in organizational learning. Scholars argue that organizations can combine both learning modes by adapting ambidextrous organizational designs. Yet, owing to strategic contradictions, ambidextrous organizations are faced with perpetual tensions. This paper investigates dynamic capabilities in ambidextrous organizations that enable these organizations to cope with contradictory environmental demands and to preserve their ability to reconcile exploration and exploitation simultaneously. We use empirical data from research-intensive organizations to show which mechanisms organizations develop in order to enable ambidextrous learning and to prevent competence obsolescence. High order dynamic capabilities balance contradicting learning directions. They can be perceived as balancing routines and, thereby, they fulfill functions of conflict regulation, reflection and integration.
Publication Year: 2007
Publication Date: 2007-01-01
Language: en
Type: article
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Cited By Count: 7
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