An Institutional View of Organizational Capabilities
Reinert do Nascimento, Mauricio; Bandeira-de-Mello, Rodrigo (2008), An Institutional View of Organizational Capabilities, 5e EnEO Organizational Studies and Management Practices in Brazil: reflections and building the knowledge - ANPAD, 2008-06, Belo Horizonte, Brésil
TypeCommunication / Conférence
Conference title5e EnEO Organizational Studies and Management Practices in Brazil: reflections and building the knowledge - ANPAD
Conference cityBelo Horizonte
MetadataShow full item record
Abstract (EN)The literature of organizational capabilities has overlooked the role of values. We present an institutionalist view of the capability phenomenon accounting for the values occurring in three levels: in the action at routine level, at the organization level and at the institutional environment level. The mutual influences among these three levels are needed to analyze capability dynamics in its entirety. Central to our argument is the Weberian notion of social action and rationality, and the concept of institutional fields. Taking routines as a social action, we allow for the possibility of a two-directional transition between the formal and the substantive rationality in routine performance. When routine is value-oriented and it is aligned with the two other levels, a hardcore capability is formed. We show that in stable environments, operational hardcore capabilities are more efficient, and in turbulent environments, they are more preferred at the dynamic level. The transition to an efficiency-orientation destabilizes the routine and facilitates capability change. We conclude by arguing that if one does not take into account the encompassing role of values, dynamic capabilities may loose efficacy. Implications to future research and to practice are also discussed.
Subjects / KeywordsInstitutionalist View; Organizational Capabilities; Values
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