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

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 presently 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 how these impact firm performance.

Resource author

Resource publisher

Resource publish date

Resource language

en

Resource content type

Resource resource URL

http://eprints.lse.ac.uk/31560/

Resource license