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Organizational Design and the Acquisition of Rent-Producing Resources

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  • Michael Lenox
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    Abstract

    Within the resource-based view of the firm, a dynamic story has emerged in which the knowledge accumulated over the history of a firm and embedded in organizational routines and structures influences the firmÕs ability to recognize the value of new resources and capabilities. This paper explores the possibility of firms to select organizational designs that increase the likelihood that they will recognize and value rent-producing resources and capabilities. A computational model is developed to study the tension between an organizationÕs desire to explore its environment for new capabilities and the organizationÕs need to exploit existing capabilities.

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    Bibliographic Info

    Paper provided by Santa Fe Institute in its series Research in Economics with number 98-06-051e.

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    Date of creation: Jun 1998
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    Handle: RePEc:wop:safire:98-06-051e

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    1. S.A. Lippman & R.P. Rumelt, 1982. "Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 418-438, Autumn.
    2. Robert D. Dewar & Jane E. Dutton, 1986. "The Adoption of Radical and Incremental Innovations: An Empirical Analysis," Management Science, INFORMS, vol. 32(11), pages 1422-1433, November.
    3. Henderson, Rebecca., 1994. "The evolution of integrative capability : innovation in cardiovascular drug discovery," Working papers 3711-94., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    4. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
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