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Organization, Evolution, Cognition and Dynamic Capabilities

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Author Info
Bart Nooteboom

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Abstract

Using insights from ‘embodied cognition’ and a resulting ‘cognitive theory of the firm’, The paper aims to contribute to the further development of evolutionary theory of organizations, in the specification of organizations as ‘interactors’ that carry organizational competencies as ‘replicators’, within industries as ‘populations’. The paper, in particular, analyzes how, if at all, ‘dynamic capabilities’ can be fitted into evolutionary theory, and proposes that the prime purpose of an organization is to serve as a cognitive ‘focusing device’. Here, cognition has a wide meaning, including perception, interpretation, sense making, and value judgments. The paper examines how cognition integrates organizations on the one hand, and creates differences within and between industries on the other, and proposes the following sources of ‘variation’ replication in communication, novel combinations of existing knowledge, and a path of discovery by which exploitation leads to exploration. These sources yield a proposal for dynamic capabilities. The paper also discusses in what sense, and to what extent these sources of variation are ‘blind’, as postulated in evolutionary theory.

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Publisher Info
Article provided by Icfai Press in its journal The Icfai University Journal of Managerial Economics.

Volume (Year): V (2007)
Issue (Month): 4 (November)
Pages: 31-55
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Handle: RePEc:icf:icfjme:v:05:y:2007:i:4:p:31-55

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. U. Witt, 2006. "Evolutionary Economics," Papers on Economics and Evolution 2006-05, Max Planck Institute of Economics, Evolutionary Economics Group.
  2. Ulrich Witt, 2004. "On the proper interpretation of 'evolution' in economics and its implications for production theory," Journal of Economic Methodology, Taylor and Francis Journals, vol. 11(2), pages 125-146, June. [Downloadable!] (restricted)
  3. Hodgson, Geoffrey M. & Knudsen, Thorbjorn, 2006. "Why we need a generalized Darwinism, and why generalized Darwinism is not enough," Journal of Economic Behavior & Organization, Elsevier, vol. 61(1), pages 1-19, September. [Downloadable!] (restricted)
  4. Wuyts, Stefan & Colombo, Massimo G. & Dutta, Shantanu & Nooteboom, Bart, 2005. "Empirical tests of optimal cognitive distance," Discussion Paper 45, Tilburg University, Center for Economic Research. [Downloadable!]
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  5. Geoffrey M. Hodgson, 2002. "Darwinism in economics: from analogy to ontology," Journal of Evolutionary Economics, Springer, vol. 12(3), pages 259-281. [Downloadable!] (restricted)
  6. Geoffrey M. Hodgson, 2002. "The Legal Nature of the Firm and the Myth of the Firm-Market Hybrid," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 9(1), pages 37-60, February. [Downloadable!] (restricted)
  7. Nooteboom, B. & Vanheverbeke, W.P.M. & Duysters, G.M. & Gilsing, V.A. & Oord van den, A,J,, 2005. "Optimal cognitive distance and absorptive capacity," ECIS Working Papers 05.05, Eindhoven Centre for Innovation Studies, Eindhoven University of Technology. [Downloadable!]
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