Capability erosion dynamics
The notion of capability is widely invoked to explain differences in organizational performance, and research shows that strategically relevant capabilities can be both built and lost. However, while capability development is widely studied, capability erosion has not been integrated into our unders...
| Hlavní autoři: | , |
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| Médium: | Článek |
| Jazyk: | en_US |
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Wiley Blackwell
2017
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| On-line přístup: | http://hdl.handle.net/1721.1/111119 https://orcid.org/0000-0002-2784-9042 https://orcid.org/0000-0001-9832-131X |
| _version_ | 1826205961359982592 |
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| author | Rahmandad, Hazhir Repenning, Nelson |
| author2 | Sloan School of Management |
| author_facet | Sloan School of Management Rahmandad, Hazhir Repenning, Nelson |
| author_sort | Rahmandad, Hazhir |
| collection | MIT |
| description | The notion of capability is widely invoked to explain differences in organizational performance, and research shows that strategically relevant capabilities can be both built and lost. However, while capability development is widely studied, capability erosion has not been integrated into our understanding of performance heterogeneity. To understand erosion, we study two software development organizations that experienced diverging capability trajectories despite similar organizational and technological settings. Building a simulation-based theory, we identify the adaptation trap, a mechanism through which managerial learning can lead to capability erosion: well-intentioned efforts by managers to search locally for the optimal workload balance lead them to systematically overload their organization and, thereby, cause capabilities to erode. The analysis of our model informs when capability erosion is likely and strategically relevant. |
| first_indexed | 2024-09-23T13:21:48Z |
| format | Article |
| id | mit-1721.1/111119 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T13:21:48Z |
| publishDate | 2017 |
| publisher | Wiley Blackwell |
| record_format | dspace |
| spelling | mit-1721.1/1111192024-02-21T21:13:26Z Capability erosion dynamics Rahmandad, Hazhir Repenning, Nelson Sloan School of Management Rahmandad, Hazhir Repenning, Nelson The notion of capability is widely invoked to explain differences in organizational performance, and research shows that strategically relevant capabilities can be both built and lost. However, while capability development is widely studied, capability erosion has not been integrated into our understanding of performance heterogeneity. To understand erosion, we study two software development organizations that experienced diverging capability trajectories despite similar organizational and technological settings. Building a simulation-based theory, we identify the adaptation trap, a mechanism through which managerial learning can lead to capability erosion: well-intentioned efforts by managers to search locally for the optimal workload balance lead them to systematically overload their organization and, thereby, cause capabilities to erode. The analysis of our model informs when capability erosion is likely and strategically relevant. 2017-09-05T15:22:35Z 2017-09-05T15:22:35Z 2016-03 2014-09 Article http://purl.org/eprint/type/JournalArticle 0143-2095 1097-0266 http://hdl.handle.net/1721.1/111119 Rahmandad, Hazhir, and Nelson Repenning. “Capability Erosion Dynamics.” Strategic Management Journal 37, 4 (January 2015): 649–672 © 2014 John Wiley & Sons, Ltd https://orcid.org/0000-0002-2784-9042 https://orcid.org/0000-0001-9832-131X en_US http://dx.doi.org/10.1002/smj.2354 Strategic Management Journal Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf Wiley Blackwell Prof. Rahmandad via Shikha Sharma |
| spellingShingle | Rahmandad, Hazhir Repenning, Nelson Capability erosion dynamics |
| title | Capability erosion dynamics |
| title_full | Capability erosion dynamics |
| title_fullStr | Capability erosion dynamics |
| title_full_unstemmed | Capability erosion dynamics |
| title_short | Capability erosion dynamics |
| title_sort | capability erosion dynamics |
| url | http://hdl.handle.net/1721.1/111119 https://orcid.org/0000-0002-2784-9042 https://orcid.org/0000-0001-9832-131X |
| work_keys_str_mv | AT rahmandadhazhir capabilityerosiondynamics AT repenningnelson capabilityerosiondynamics |