Resource title

Building Micro-Foundations for the Routines, Capabilities, and Performance Links

Resource image

image for OpenScout resource :: Building Micro-Foundations for the Routines, Capabilities, and Performance Links

Resource description

Version: February 3, 2007 ; Micro-foundations have become an important emerging theme in strategic management. This paper addresses micro-foundations in two related ways. First, we argue that the kind of macro (or "collectivist”) explanation that is utilized in the capabilities view in strategic management - which implies a neglect of micro-foundations - is incomplete. There are no mechanisms that work solely on the macro-level, directly connecting routines and capabilities to firm-level outcomes. While routines and capabilities are useful shorthand for complicated patterns of individual action and interaction, ultimately they are best understood at the micro-level. Second, we provide a formal model that shows precisely why macro explanation is incomplete and which exemplifies how explicit micro-foundations may be built for notions of routines and capabilities and for how these impact firm performance.Keywords: Routines, capabilities, micro-foundations, production function.JEL Code: L2, M1

Resource author

Peter Abell, Teppo Felin, Nicolai Foss

Resource publisher

Resource publish date

Resource language

eng

Resource content type

application/pdf

Resource resource URL

http://hdl.handle.net/10398/7474

Resource license

Check the according license before adaptation. When adapting give credits to the original author.