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Building micro-foundations for the routines, capabilities, and performance links

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Author Info
Peter Abell (London School of Economics, London, UK)
Teppo Felin (Marriott School of Management, Brigham Young University, Provo, UT, USA)
Nicolai Foss (Copenhagen Business School, Center for Strategic Management and Globalization, Porcelainshaven 24, Frederiksberg, Denmark)

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Abstract

Micro-foundations have become an important emerging theme in strategic management. This paper addresses micro-foundations in two related ways. First, we argue that the kind of macro (or 'collectivist') explanation that is presently utilized in the capabilities view in strategic management-which implies a neglect of micro-foundations-is incomplete. There are no mechanisms that work solely on the macro-level, directly connecting routines and capabilities to firm-level outcomes. While routines and capabilities are useful shorthand for complicated patterns of individual action and interaction, ultimately they are best understood at the micro-level. Second, we provide a formal model that shows precisely why macro-explanation is incomplete and which exemplifies how explicit micro-foundations may be built for notions of routines and capabilities and how these impact firm performance. Copyright © 2008 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/mde.1413
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

Volume (Year): 29 (2008)
Issue (Month): 6 ()
Pages: 489-502
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:wly:mgtdec:v:29:y:2008:i:6:p:489-502

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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  1. repec:att:wimass:199217 is not listed on IDEAS
  2. Hodgson, Geoffrey M. & Knudsen, Thorbjorn, 2004. "The complex evolution of a simple traffic convention: the functions and implications of habit," Journal of Economic Behavior & Organization, Elsevier, vol. 54(1), pages 19-47, May. [Downloadable!] (restricted)
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  5. Marco Valente & Andrea Bassanini & Luigi Marengo & Giovanni Dosi, 1999. "Norms as emergent properties of adaptive learning: The case of economic routines," Journal of Evolutionary Economics, Springer, vol. 9(1), pages 5-26. [Downloadable!] (restricted)
  6. Nicolai J. Foss, 2003. "Bounded rationality and tacit knowledge in the organizational capabilities approach: an assessment and a re-evaluation," Industrial and Corporate Change, Oxford University Press, vol. 12(2), pages 185-201, April.
  7. Lucas, Robert E., 1977. "Understanding business cycles," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 5(1), pages 7-29, January. [Downloadable!] (restricted)
  8. Markus C. Becker, 2004. "Organizational routines: a review of the literature," Industrial and Corporate Change, Oxford University Press, vol. 13(4), pages 643-678, August.
  9. Teppo Felin & Nicolai Foss, 2006. "Individuals and Organizations Thoughts on a Micro-Foundations Project for Strategic Management and Organizational Analysis," DRUID Working Papers 06-01, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  10. Michael D. Cohen & Roger Burkhart & Giovanni Dosi & Massimo Egidi & Luigi Marengo & Massimo Warglien & Sidney Winter & with comments by Benjamin Coriat, 1995. "Routines and Other Recurring Action Patterns of Organizations: Contemporary Research Issues," Working Papers 95-11-101, Santa Fe Institute.
  11. Argote, Linda & Ingram, Paul, 2000. "Knowledge Transfer: A Basis for Competitive Advantage in Firms," Organizational Behavior and Human Decision Processes, Elsevier, vol. 82(1), pages 150-169, May. [Downloadable!] (restricted)
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  1. Nathalie Lazaric, 2007. "Are Routines Reducible or Mere Cognitive Automatisms? Some contributions from cognitive science to help shed light on change in routines," DRUID Working Papers 07-13, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
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