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Organization, Evolution, Cognition and Dynamic Capabilities

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Author Info
Nooteboom, B. (Tilburg University, Center for Economic Research)

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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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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2007-2.

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Date of creation: 2007
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Handle: RePEc:dgr:kubcen:20072

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

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Find related papers by JEL classification:
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Institutional; Evolutionary

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  1. 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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  2. Geoffrey M. Hodgson, 2002. "Darwinism in economics: from analogy to ontology," Journal of Evolutionary Economics, Springer, vol. 12(3), pages 259-281. [Downloadable!] (restricted)
  3. 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)
  4. U. Witt, 2006. "Evolutionary Economics," Papers on Econonmics and Evolution 2006-05, Max Planck Institute of Economics, Evolutionary Economics Group.
  5. 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)
  6. 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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  7. 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)
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