Cognitive Dynamics of Capability Development Paths

Abstract

Recent research on capability dynamics has increasingly turned its attention to the cognitive microfoundations of capability development. On the basis of a longitudinal case study of the evolution of three network security software firms, we find that the effects of managerial cognition can be detected at three distinct levels of capability development. At the level of operational capabilities, instrumental cognition affects the way in which capabilities are developed. At the level of a firm's capability portfolio, shifts in management's attention regarding capability development cause different evolutionary paths to emerge. Finally, at the extended enterprise level, managerial foresight influences the way in which a firm's capability constellation morphs over time. Our findings provide novel empirical evidence and contribute to an improved understanding of the role of managerial cognition in capability development. Copyright (c) Blackwell Publishing Ltd 2009.

How do Firms Adapt? A Fuzzy-Set Analysis of the Role of Cognition and Capabilities in U.S. Defense Firms’ Responses to 9/11

“…At the same time, new research on cognition has started to focus on the intersection between capabilities and asset reconfigurations. Laamanen and Wallin (2009), for instance, argue that managerial attention to capability bottlenecks will shape the adaptation process, while Kaplan (2008) examines the interaction effects between cognition and firm capabilities.…”

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“…Overall, the process dimension is often implied in these studies, but not studied in depth (e.g., Hertog et al, 2010). The dynamic capabilities literature (e.g., has recently argued that a life-cycle view and a process approach to capability development may enrich organization research Laamanen & Wallin, 2009). In this paper, we seek to link the insights gained from service innovation studies to a capabilities view of the firm.…”

“…Extant theory on capability development has emphasized how incremental, concurrent learning and managerial decisions influence the development of capabilities (Bingham et al, 2015). Researchers also argue that the development of new capabilities is related not only to the portfolio of existing capabilities but to the actions of competent individuals that enact organizational capabilities (Laamanen & Wallin, 2009). …”

Constructing M&A valuation: how do merger evaluation methods differ as uncertainty and controversy vary?

“…We circulated our reports to the key interviewees (Laamanen and Wallin 2009) and then asked them for further opinions. These processes can lessen ex post rationalization bias and help triangulate our analysis.…”