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Organizational Routines A Sceptical Look

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  • Teppo Felin
  • Nicolai J. Foss

Abstract

Organizational routines and capabilities have become key constructs not only in evolutionary economics, but more recently also in business administration, specifically strategic management. In this chapter we explicate some of the underlying theoretical problems of these concepts, and discuss the need for micro-foundations. Specifically, we focus on some of the explanatory problems of collective-level theorizing, and what we think are tenuous assumptions about human beings. We argue that individual-level considerations deserve significantly more consideration, and that evolutionary economics and strategic management would be well served by building on methodological individualism.

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Bibliographic Info

Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 04-13.

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Date of creation: 2004
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Handle: RePEc:aal:abbswp:04-13

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  1. Richard R. Nelson & Sidney G. Winter, 2002. "Evolutionary Theorizing in Economics," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 16(2), pages 23-46, Spring.
  2. Foss, Nicolai J, 1998. "The Competence-Based Approach: Veblenian Ideas in the Modern Theory of the Firm," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 22(4), pages 479-95, July.
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  7. Massimo Egidi, 1995. "Routines, Hierarchies of Problems, Procedural Behaviour: Some Evidence fom Experiments," CEEL Working Papers, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia 9503, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
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  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, Santa Fe Institute 95-11-101, Santa Fe Institute.
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  14. Knott, Anne Marie & McKelvey, Bill, 1999. "Nirvana efficiency: a comparative test of residual claims and routines," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 38(4), pages 365-383, April.
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Cited by:
  1. Teppo Felin & Nicolai Foss, 2006. "Individuals and Organizations Thoughts on a Micro-Foundations Project for Strategic Management and Organizational Analysis," DRUID Working Papers, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies 06-01, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  2. Patrick Cohendet & Patrick Llerena & Laurent Simon, 2012. "THE ROUTINIZATION OF CREATIVITY: Lessons from the Case of a video-game Creative Powerhouse," Working Papers of BETA 2012-05, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  3. Arturo Lara Rivero, 2012. "Agente adaptable, aprendizaje y estructura del ambiente: un enfoque alternativo," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, Universidad Externado de Colombia - Facultad de Economía, vol. 14(26), pages 95-120, January-J.
  4. Patrick Cohendet & Patrick Llerena & Laurent Simon, 2014. "The Routinization of Creativity, Lessons from the Case of a Video-game Creative Powerhouse," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 234(2-3), pages 120-141, April.
  5. Agnès Festré & Nathalie Lazaric, 2007. "Routines and leadership in Schumpeter and von Mises' analysis of economic change," Post-Print halshs-00271338, HAL.
  6. Jiatao Li & Rajiv Kozhikode, 2008. "Knowledge management and innovation strategy: The challenge for latecomers in emerging economies," Asia Pacific Journal of Management, Springer, Springer, vol. 25(3), pages 429-450, September.
  7. Martine Séville, 2008. "Habitude, cognition et actions des dirigeants," Revue Finance Contrôle Stratégie, revues.org, revues.org, vol. 11(2), pages 51-78, June.
  8. Reuter, Ute, 2011. "Der ressourcenbasierte Ansatz als theoretischer Bezugsrahmen: Grundlagen, Theoriebausteine und Prozessorientierung," Research Papers on Innovation, Services and Technology 3/2011, University of Stuttgart, Institute of Business Administration, Department I - Institute of Research & Development and Innovation Management.

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