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Dynamic capabilities, deliberate learning and environmental dynamism: a simulation model

Author

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  • A. Georges L. Romme
  • Maurizio Zollo
  • Peter Berends

Abstract

This article presents a simulation model of the development of knowledge, operating routines and dynamic capability in organizations at varying levels of environmental dynamism. We draw on system dynamics modeling to explore trade-offs and ambiguities in the decision to invest in deliberate learning processes to enhance the development of dynamic capabilities. The model incorporates mindfulness and tool utility (positive) effects as well as experience and inertia (negative) effects on dynamic capability. The simulation experiments conducted with the model suggest that the impact of deliberate learning on dynamic capability is non-linear, complex, and in some instances counter-intuitive. This is evident from the thresholds (tipping points) that arise from the differential effects of articulated knowledge, codified knowledge and operating routines on dynamic capability at different levels of environmental dynamism. Copyright 2010 The Author 2010. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Suggested Citation

  • A. Georges L. Romme & Maurizio Zollo & Peter Berends, 2010. "Dynamic capabilities, deliberate learning and environmental dynamism: a simulation model," Industrial and Corporate Change, Oxford University Press, vol. 19(4), pages 1271-1299, August.
  • Handle: RePEc:oup:indcch:v:19:y:2010:i:4:p:1271-1299
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    File URL: http://hdl.handle.net/10.1093/icc/dtq031
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    Citations

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    Cited by:

    1. Christos N. Pitelis & David J. Teece, 2010. "Cross-border market co-creation, dynamic capabilities and the entrepreneurial theory of the multinational enterprise," Industrial and Corporate Change, Oxford University Press, vol. 19(4), pages 1247-1270, August.
    2. Makkonen, Hannu & Pohjola, Mikko & Olkkonen, Rami & Koponen, Aki, 2014. "Dynamic capabilities and firm performance in a financial crisis," Journal of Business Research, Elsevier, vol. 67(1), pages 2707-2719.
    3. Li, Da-yuan & Liu, Juan, 2014. "Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China," Journal of Business Research, Elsevier, vol. 67(1), pages 2793-2799.
    4. repec:eee:tefoso:v:120:y:2017:i:c:p:163-175 is not listed on IDEAS
    5. repec:eee:touman:v:40:y:2014:i:c:p:224-232 is not listed on IDEAS
    6. Kuo, Szu-Yu & Lin, Pei-Chun & Lu, Chin-Shan, 2017. "The effects of dynamic capabilities, service capabilities, competitive advantage, and organizational performance in container shipping," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 356-371.
    7. repec:bla:sysdyn:v:32:y:2016:i:3-4:p:261-278 is not listed on IDEAS
    8. Yao, Yuan & Meurier, Beatrice, 2012. "Understanding the supply chain resilience: a Dynamic Capabilities approach," MPRA Paper 58124, University Library of Munich, Germany.
    9. Stav Fainshmidt & Amir Pezeshkan & M. Lance Frazier & Anil Nair & Edward Markowski, 2016. "Dynamic Capabilities and Organizational Performance: A Meta-Analytic Evaluation and Extension," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1348-1380, December.
    10. Wohlgemuth, Veit & Wenzel, Matthias, 2016. "Dynamic capabilities and routinization," Journal of Business Research, Elsevier, vol. 69(5), pages 1944-1948.

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