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Organization, Evolution, Cognition and Dynamic Capabilities

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  • Nooteboom, B.

    (Tilburg University, Center for Economic Research)

Abstract

Using insights from 'embodied cognition' and a resulting 'cognitive theory of the firm', I aim 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'.Especially, I analyze how, if at all, 'dynamic capabilities' can be fitted into evolutionary theory.I propose 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 judgements.I analyse how this yields organizations as cohesive wholes, and differences within and between industries.I propose 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 yield a proposal for dynamic capabilities.I discuss in what sense, and to what extent these sources of variation are 'blind' , as postulated in evolutionary theory.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2006-41.

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Date of creation: 2006
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Handle: RePEc:dgr:kubcen:200641

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Web page: http://center.uvt.nl

Related research

Keywords: organization; evolution; cognition; dynamic capabilities; learning; invention;

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References

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  1. Nooteboom, B. & Vanhaverbeke, W.P.M. & Duijsters, G.M. & Gilsing, V.A. & Oord, A., 2006. "Optimal Cognitive Distance and Absorptive Capacity," Discussion Paper 2006-33, Tilburg University, Center for Economic Research.
  2. Ulrich Witt, 2006. "Evolutionary Economics," Papers on Economics and Evolution 2006-05, Max Planck Institute of Economics, Evolutionary Economics Group.
  3. 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.
  4. 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.
  5. Wuyts, S.H.K. & Colombo, M. & Dutta, S. & Nooteboom, B., 2005. "Empirical Tests of Optimal Cognitive Distance," Discussion Paper 2005-45, Tilburg University, Center for Economic Research.
    • Wuyts, S.H.K. & Colombo, M.G. & Dutta, S. & Nooteboom, B., 2004. "Empirical Tests Of Optimal Cognitive Distance," Research Paper ERS-2004-007-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
  6. Geoffrey M. Hodgson, 2002. "Darwinism in economics: from analogy to ontology," Journal of Evolutionary Economics, Springer, vol. 12(3), pages 259-281.
  7. Geoffrey 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.
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Citations

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Cited by:
  1. Alessandra Colombelli & Jackie Krafft & Francesco Quatraro, 2012. "The emergence of new technology-based sectors at the regional level: a proximity-based analysis of nanotechnology," Papers in Evolutionary Economic Geography (PEEG) 1211, Utrecht University, Section of Economic Geography, revised Jun 2012.
  2. Slowak, André P., 2009. "Market fields structure & dynamics in industrial automation," FZID Discussion Papers 02-2009, University of Hohenheim, Center for Research on Innovation and Services (FZID).

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