Dynamic capabilities, deliberate learning and environmental dynamism: a simulation model
AbstractThis article presents a simulation model of the development of knowledge, operating routines and dynamic capability in organizations at varying levels of environmental dynamism. We draw on system dynamics modeling to explore trade-offs and ambiguities in the decision to invest in deliberate learning processes to enhance the development of dynamic capabilities. The model incorporates mindfulness and tool utility (positive) effects as well as experience and inertia (negative) effects on dynamic capability. The simulation experiments conducted with the model suggest that the impact of deliberate learning on dynamic capability is non-linear, complex, and in some instances counter-intuitive. This is evident from the thresholds (tipping points) that arise from the differential effects of articulated knowledge, codified knowledge and operating routines on dynamic capability at different levels of environmental dynamism. Copyright 2010 The Author 2010. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Industrial and Corporate Change.
Volume (Year): 19 (2010)
Issue (Month): 4 (August)
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- Makkonen, Hannu & Pohjola, Mikko & Olkkonen, Rami & Koponen, Aki, 2014. "Dynamic capabilities and firm performance in a financial crisis," Journal of Business Research, Elsevier, vol. 67(1), pages 2707-2719.
- Pitelis, Christos & Teece, David, 2010.
"Cross-border Market Co-creation, Dynamic Capabilities and the Entrepreneurial Theory of the Multinational Enterprise,"
23301, University Library of Munich, Germany.
- Christos N. Pitelis & David J. Teece, 2010. "Cross-border market co-creation, dynamic capabilities and the entrepreneurial theory of the multinational enterprise," Industrial and Corporate Change, Oxford University Press, vol. 19(4), pages 1247-1270, August.
- Li, Da-yuan & Liu, Juan, 2014. "Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China," Journal of Business Research, Elsevier, vol. 67(1), pages 2793-2799.
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