A conceptual analysis of strategic capability development within product innovation projects

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Volume 32, Issue 2

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A conceptual analysis of strategic capability development within product innovation projects

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Author(s): Alireza Javanmardi Kashan , Kavoos Mohannak

Publication date (Print): 1 June 2014

Journal: Prometheus

Publisher: Pluto Journals

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Abstract

Strategic capability development refers to the renewal of the organisational capabilities which are sources of competitive advantage. The aim of this paper is to examine how strategic capability and competitive advantage build up over time. Recent literature points to the integration of dynamic capability and ambidexterity perspectives in explaining organisational capability development. Literature analysis reveals the role of knowledge integration and product innovation in integrating dynamic capability and ambidexterity. However, little attention has yet been paid to knowledge integration within innovation projects as a context for capability development. Accordingly, this paper aims to develop a conceptual framework for strategic capability development focusing on the role of knowledge integration within product innovation projects. This framework contributes to identifying and emphasising the role of micro processes in capability renewal which in turn enhances our understanding of strategic capability development.

Content

Author and article information

Contributors

Alireza Javanmardi Kashan

Journal

Journal ID (doi): 10.2307/j50022063

Journal ID (jcode): prometheus

Title: Prometheus

Publisher: Pluto Journals

ISSN: 0810-9028

ISSN: 1470-1030

Publication date (Print): 1 June 2014

Volume: 32

Issue: 2 ( doiID: 10.1080/prometheus.32.issue-2 )

Pages: 161-180

Affiliations

School of Management, QUT Business School, Queensland University of Technology, Brisbane, Australia

Article

Publisher ID: 08109028.2014.957911

DOI: 10.1080/08109028.2014.957911

SO-VID: 8ac94e13-2b99-4aad-a9b1-b3977e628058

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ScienceOpen disciplines: Computer science,Arts,Social & Behavioral Sciences,Law,History,Economics

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Comment on this article

[1] Abernathy, W. and Clark, K. (1985) ‘Innovation: mapping the winds of creative destruction’, Research Policy, 14, 1, pp.3–22.

[2] Ambrosini, V. and Bowman, C. (2009) ‘What are dynamic capabilities and are they a useful construct in strategic management?‘, International Journal of Management Reviews, 11, 1, pp.29–49.

[3] Andriopoulos, C. and Lewis, M. (2009) ‘Exploitation-exploration tensions and organizational ambidexterity: managing paradoxes of innovation’, Organization Science, 4, pp.696–717.

[4] Baghai, M., Coley, S. and White, D. (1999) The Alchemy of Growth: Practical Insights for Building the Enduring Enterprise, Basic Books, New York, NY.

[5] Barney, J., Wright, M. and Ketchen, D. (2001) ‘The resource-based view of the firm: ten years after 1991‘, Journal of Management, 27, 6, pp.625–42.

[6] Becerra-Fernandez, I. and Sabherwal, R. (2001) ‘Organizational knowledge management: a contingency perspective’, Journal of Management Information Systems, 18, 1, pp.23–55.

[7] Becker, M. and Zirpoli, F. (2003) ‘Organizing new product development: knowledge hollowing-out and knowledge integration – the FIAT auto case’, International Journal of Operations & Production Management, 23, 9, pp.1033–61.

[8] Benner, M. and Tushman, M. (2003) ‘Exploitation, exploration, and process management: the productivity dilemma revisited’, Academy of Management Review, 28, 2, pp.238–56.

[9] Bradach, J. (1997) ‘Using the plural form in the management of restaurant chains’, Administrative Science Quarterly, 42, 2, pp.276–303.

[10] Brown, S. and Eisenhardt, K. (1995) ‘Product development: past research, present findings, and future directions’, Academy of Management Review, 20, 2, pp.343–78.

[11] Brusoni, S., Jacobides, M. and Prencipe, A. (2009) ‘Strategic dynamics in industry architectures and the challenges of knowledge integration’, European Management Review, 6, 4, pp.209–16.

[12] Cacciatori, E. and Jacobides, M. (2005) ‘The dynamic limits of specialization: vertical integration reconsidered’, Organization Studies, 26, 12, pp.1851–84.

[13] Cao, Q., Gedajlovic, E. and Zhang, H. (2009) ‘Unpacking organizational ambidexterity: dimensions, contingencies, and synergistic effects’, Organization Science, 20, 4, pp.781–96.

[14] Cepeda, G. and Vera, D. (2007) ‘Dynamic capabilities and operational capabilities: a knowledge management perspective’, Journal of Business Research, 60, 5, pp.426–37.

[15] Christensen, C. (1997) The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail, Harvard Business Press, Boston MA.

[16] Coase, R. (1937) ‘The nature of the firm’, Economica, 4, 16, pp.386–405.

[17] Cohen, W. and Levinthal, D. (1990) ‘Absorptive capacity: a new perspective on learning and innovation’, Administrative Science Quarterly, 35, 1, pp.128–52.

[18] Daft, R. and Lengel, R. (1986) ‘Organizational information requirements, media richness and structural design’, Management Science, 32, 5, pp.554–71.

[19] Damanpour, F. (1991) ‘Organizational innovation: a meta-analysis of effects of determinants and moderators’, Academy of Management Journal, 34, 3, pp.555–90.

[20] Danneels, E. (2002) ‘The dynamics of product innovation and firm competences’, Strategic Management Journal, 23, 12, pp.1095–121.

[21] Danneels, E. (2007) ‘The process of technological competence leveraging’, Strategic Management Journal, 28, 5, pp.511–33.

[22] De Boer, M., Van Den Bosch, F. and Volberda, H. (1999) ‘Managing organizational knowledge integration in the emerging multimedia complex’, Journal of Management Studies, 36, 3, pp.379–98.

[23] Deeds, D. (2001) ‘The role of R&D intensity, technical development and absorptive capacity in creating entrepreneurial wealth in high technology start-ups’, Journal of Engineering and Technology Management, 18, 1, pp.29–47.

[24] Dibiaggio, L. (2007) ‘Design complexity, vertical disintegration and knowledge organization in the semiconductor industry’, Industrial and Corporate Change, 16, 2, pp.239–68.

[25] Dosi, G., Nelson, R. and Winter, S. (2000) The Nature and Dynamics of Organizational Capabilities, Oxford University Press, Melbourne.

[26] Eisenhardt, K. and Martin, J. (2000) ‘Dynamic capabilities: what are they?‘, Strategic Management Journal, 21, 10, pp.1105–21.

[27] Eisenhardt, K. and Tabrizi, B. (1995) ‘Accelerating adaptive processes: product innovation in the global computer industry’, Administrative Science Quarterly, 40, 1, pp.239–68.

[28] Fixson, S. and Park, J. (2008) ‘The power of integrality: linkages between product architecture, innovation, and industry structure’, Research Policy, 37, 8, pp.1296–316.

[29] Floyd, S. and Lane, P. (2000) ‘Strategizing throughout the organization: managing role conflict in strategic renewal’, Academy of Management Review, 25, 1, pp.154–77.

[30] Francis, D. and Bessant, J. (2005) ‘Targeting innovation and implications for capability development’, Technovation, 25, 3, pp.171–83.

[31] Galbraith, J. (1974) ‘Organization design: an information processing view’, Interfaces, 4, 3, pp.28–36.

[32] Gibson, C. and Birkinshaw, J. (2004) ‘The antecedents, consequences, and mediating role of organizational ambidexterity’, Academy of Management Journal, 47, 2, pp.209–26.

[33] Grandori, A. (2001) ‘Neither hierarchy nor identity: knowledge-governance mechanisms and the theory of the firm’, Journal of Management and Governance, 5, 3, pp.381–99.

[34] Grant, R. (1996a) ‘Prospering in dynamically-competitive environments: organizational capability as knowledge integration’, Organization Science, 7, 4, pp.375–87.

[35] Grant, R. (1996b) ‘Toward a knowledge-based theory of the firm’, Strategic Management Journal, 17, 10, pp.109–22.

[36] Gupta, A. and Govindarajan, V. (2000) ‘Knowledge flows within multinational corporations’, Strategic Management Journal, 21, 4, pp.473–96.

[37] Gupta, A., Smith, K. and Shalley, C. (2006) ‘The interplay between exploration and exploitation’, Academy of Management Journal, 49, 4, pp.693–706.

[38] Hansen, M., Nohria, N. and Tierney, T. (1999) ‘What's your strategy for managing knowledge?‘, Harvard Business Review, 77, 2, pp.106–18.

[39] He, Z. and Wong, P. (2004) ‘Exploration vs. exploitation: an empirical test of the ambidexterity hypothesis’, Organization Science, 15, 4, pp.481–94.

[40] Helfat, C. and Raubitschek, R. (2000) ‘Product sequencing: co-evolution of knowledge, capabilities and products’, Strategic Management Journal, 21, 10/11, pp.961–79.

[41] Henderson, J. and Venkatraman, N. (1993) ‘Strategic alignment: leveraging information technology for transforming organizations’, IBM Systems Journal, 32, 1, pp.4–16.

[42] Henderson, R. and Clark, K. (1990) ‘Architectural innovation: the reconfiguration of existing product technologies and the failure of established firms’, Administrative Science Quarterly, 35, 1, pp.9–30.

[43] Iansiti, M. and Clark, K. (1994) ‘Integration and dynamic capability: evidence from product development in automobiles and mainframe computers’, Industrial and Corporate Change, 3, 3, pp.557–605.

[44] Jacobides, M. (2006) ‘The architecture and design of organizational capabilities’, Industrial and Corporate Change, 15, 1, pp.151–71.

[45] Jacobides, M., Knudsen, T. and Augier, M. (2006) ‘Benefiting from innovation: value creation, value appropriation and the role of industry architectures’, Research Policy, 35, 8, pp.1200–21.

[46] Jacobides, M. and Winter, S. (2005) ‘Capabilities, transaction costs and evolution: understanding the institutional structure of production’, Strategic Management Journal, 26, 5, pp.395–413.

[47] Jansen, J., Tempelaar, M., Van den Bosch, F. and Volberda, H. (2009) ‘Structural differentiation and ambidexterity: the mediating role of integration mechanisms’, Organization Science, 20, 4, pp.797–811.

[48] Jansen, J., Van Den Bosch, F. and Volberda, H. (2005) ‘Managing potential and realized absorptive capacity: how do organizational antecedents matter?‘, Academy of Management Journal, 48, 6, pp.999–1015.

[49] Katila, R. and Ahuja, G. (2002) ‘Something old, something new: a longitudinal study of search behavior and new product introduction’, Academy of Management Journal, 45, 6, pp.1183–94.

[50] Kodama, M. (2005) ‘Knowledge creation through networked strategic communities: case studies on new product development in Japanese companies’, Long Range Planning, 38, 1, pp.27–49.

[51] Kogut, B. and Zander, U. (1992) ‘Knowledge of the firm, combinative capabilities, and the replication of technology’, Organization Science, 3, 3, pp.383–97.

[52] Krishnan, V. and Ulrich, K. (2001) ‘Product development decisions: a review of the literature’, Management Science, 47, 1, pp.1–21.

[53] Lawrence, P.R. and Lorsch, J.W. (1967) ‘Differentiation and integration in complex organizations’, Administrative Science Quarterly, 12, 1, pp.1–47.

[54] Leonard-Barton, D. (1992) ‘Core capabilities and core rigidities: a paradox in managing new product development’, Strategic Management Journal, 13, S1, pp.111–25.

[55] Levinthal, D. and March, J. (1993) ‘The myopia of learning’, Strategic Management Journal, 14, S2, pp.95–112.

[56] Lewin, A. and Volberda, H. (1999) ‘Prolegomena on coevolution: a framework for research on strategy and new organizational forms’, Organization Science, 10, 5, pp.519–34.

[57] March, J. (1991) ‘Exploration and exploitation in organizational learning’, Organization Science, 2, 1, pp.71–87.

[58] McGrath, R. (1999) ‘Falling forward: real options reasoning and entrepreneurial failure’, Academy of Management Review, 24, 1, pp.13–30.

[59] Mom, T., Van Den Bosch, F. and Volberda, H. (2009) ‘Understanding variation in managers’ ambidexterity: investigating direct and interaction effects of formal structural and personal coordination mechanisms', Organization Science, 20, 4, pp.812–28.

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