Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts Show Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles Update Table of ContentsWhat are Internal Resources and Capabilities?Firms create value by exploiting internal resources and capabilities to meet market demands. What constitutes a resource can be varied and diverse. Back to: STRATEGY & PLANNING Tangible resources include:
Intangible resources include:
Resources along, generally, do not result in competitive advantage. Competitive advantage results from how resources are employed. The value of the resources is measured by the extent to which it contributes to the development of a competitive advantage. CapabilitiesA company’s capabilities concerns it ability to deploy resources. They generally materialize through the development and exchange of information, knowledge, and processes. competency strategic management competency dynamic capability resource view of strategy competitive advantage routine frame-breaking approach organizational inertia ability resource sustainable competitive advantage VRIN Framework DefinitionResource-based view of capability --
Discussion -- Particular organizational capabilities required -
Helfat et al's definition of capability -- Schreyögg's and Kliesch-Eberl's definition of capability -- The authors address a key strategic management issue. In the resource-based view organizational capabilities have been identified as one major source for the generation and development of sustainable competitive advantages (emphasis added). With the consideration of volatile markets, environmental uncertainty, and change, the reliance on a specific set of nurturing capabilities has been called into question. This question has been answered with some form of dynamic capabilities, where the capability itself is dynamic, adapting to take advantage of the changing environment, thereby renewing organizational capabilities. Capabilities described -- the primary characteristics of capabilities are --
The meaning of organizational capabilities -- There seems to be a consensus that a capability does not represent a single resource in the concert of other resources such as financial assets, technology, or manpower, but rather a distinctive and superior way of allocating resources. 'Capability' addresses complex processes across the organization such as product development, customer relationship, or supply chain management. In contrast to rational choice theory and its focus on single actor decisions, organizational capabilities are conceived as collective and socially embedded in nature. They are brought about by social interaction and represent a collectively shared 'way of problem solving' (Cyert and March, 1963). Accordingly, organizational capabilities can be built in different fields and on different levels of organizational activity, for instance at departmental, divisional, or corporate level. What are the resources and capabilities of a firm?Resources are the organization's assets, knowledge and skills. Capabilities can be defined as the organization's ability to effectively make use of its resources.
What are the types of capabilities?There are three types of capabilities – strategic, core and foundational. Sustainable competitive advantage cannot be obtained by focussing on foundational or core capabilities. Strategic capabilities are where the key is, the basis for strategic advantage.
What are capabilities?A capability is defined as a set of tasks that a system is potentially able to perform (acquired skills) at a certain performance level (available capacity). Often only with the use of external resources. A capability can become an ability (acquired skills) if it is done frequently.
What is a capability in an organization?Simply put, organization capabilities are the collective skills, expertise, and alignment of the people in your company. Competencies tend to be at an individual level while capabilities span across an organization. Organization capabilities are critical yet intangible assets that cannot be duplicated.
|
