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Decision-making as a microfondation of dynamic capabilities : The case of rational and intuitive process

Author

Listed:
  • Gulsun Altintas

    (LARSH - Laboratoire de Recherche Sociétés & Humanités - UPHF - Université Polytechnique Hauts-de-France - INSA Hauts-De-France - INSA Institut National des Sciences Appliquées Hauts-de-France - INSA - Institut National des Sciences Appliquées)

  • Thomas Loilier

Abstract

Prior literature defines two broad decision-making modes, rational and intuitive, and recommends establishing leadership teams staffed by leaders with both capacities, in support of firm efforts to develop dynamic capabilities. But can one single leader combine these two modes? To investigate decisions leaders make in the process of developing dynamic capabilities, the current longitudinal, retrospective, qualitative case study focuses on Steve Jobs in his leadership roles at Apple and Pixar and two dynamic capabilities, related to firm restructuring (Apple and Pixar) and new product development (the iPhone and Toy Story). With this in-depth assessment, the current study proposes a new view on dynamic capabilities, which might be common across firms managed by a single leader who has the ability to combine rational and intuitive decisions, such that it is possible for that leader to deal with the unique context of each firm. This study identifies some microfoundations linked to managerial characteristics that favor the development of dynamic capabilities, as well as combined rational and intuitive decisions, such as human managerial capital and managerial cognition. Other characteristics specifically favor intuitive decisions (e.g., emotional personality, emotional state, high self-esteem). Finally, this article integrates dynamic capabilities theory with insights from decision-making, intuition, and emotion literature.

Suggested Citation

  • Gulsun Altintas & Thomas Loilier, 2023. "Decision-making as a microfondation of dynamic capabilities : The case of rational and intuitive process," Post-Print hal-04273925, HAL.
    • Handle: RePEc:hal:journl:hal-04273925
    as

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