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The interlink between resources and capabilities: towards a theoretical frame for the development of dynamic capabilities

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  • Paola Cillo
  • Gianmario Verona
  • Salvio Vicari

Abstract

In order to untangle the sources of heterogeneity among firms, this study reviews the last 20 years' works related to the resource-based view of the firm, the knowledge-based perspectives on competitive advantage sustainability, and the dynamic capability view. We reach three important conclusions that provide a more granular understanding of resource heterogeneity and its development. First, dynamic capabilities leading to competitive advantage are knowledge-based processes characterised by functional specialisation. Second, their design is based on a weighted organisational mix, made up of skilled actors, incentive systems, dedicated organisational structure and idiosyncratic culture. Third, their development and management require a specific division of labour between senior and middle managers. We conclude our work by addressing future research on the topic and by highlighting core implications for practitioners.

Suggested Citation

  • Paola Cillo & Gianmario Verona & Salvio Vicari, 2007. "The interlink between resources and capabilities: towards a theoretical frame for the development of dynamic capabilities," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 4(1/2), pages 111-131.
    • Handle: RePEc:ids:ijlica:v:4:y:2007:i:1/2:p:111-131
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