Does deliberate learning lead to dynamic capability? The role of organizational schema for Kodak, 1993-2011

Abstract

Purpose The process of building dynamic capabilities remains understudied, although deliberate learning is posited to be the key to developing and maintaining dynamic capabilities in turbulent environments. Based on the case study of Kodak’s responses to the shift from traditional to digital technology in the imaging industry (1993-2011), the purpose of this paper is to examine the role of managerial cognition in building dynamic capabilities. Design/methodology/approach The paper employs case study and qualitative method approach. Findings The results reveal that, when facing environmental turbulence, deliberate learning is subject to routine disruptions through entrepreneurial activities, and these organizational routines and activities are determined by organizational schema. Organizational schema itself is updated as a result of managers’ ongoing interpretation of the organization’s fit with the environment. The study findings contribute to the organizational studies and management literature by highlighting the role of managerial cognition into the microfoundation of dynamic capabilities. Originality/value The results demonstrate managerial cognition, and organizational schema in particular, as a microfoundation of dynamic capability.

The process of developing dynamic capabilities: The conceptualization attempt and the results of empirical studies

“…intellectual property management, ensuring an adequate level of protection for an organization’s property rights [ 70 ];…”

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“…Many terms have been used to indicate this construct, for example, manager's mental models (Manral, 2011, Yang et al, 2019; actors' beliefs derived from mental models (Degravel, 2011, Gavetti and Levinthal, 2000, Kor and Mesko, 2013, Laamanen and Wallin, 2009, Maitland and Sammartino, 2015, Mandal et al, 2009; knowledge structures (Combe et al, 2012, Mannor et al, 2015, Mitchell et al, 2002, Mostafiz et al, 2019b; subjective representations (Nadkarni and Barr, 2008); and noticing, encoding, interpreting, and focusing (Ocasio, 1997). These cognitive processes have been used to reflect the ability to: link the choice of actions and their subsequent impact on outcomes (Gavetti andLevinthal, 2000, Martin andBachrach, 2018); achieve performance consequences (Autio et al, 2011, Combe et al, 2012, Mostafiz et al, 2019b; and for evaluation, venture creation, and growth (Mitchell et al, 2002, Wang et al, 2018. As Table 2 indicates, there is no agreement on the dimensionality of managerial cognition.…”

“…Ocasio (1997) identifies that the cognition process includes: making sense of the environmental problems, opportunities, and threats; and the available alternatives for firms, such as proposals, routines, projects, programs, and procedures. Further, managerial cognition has been conceptualised as managers' interpretations of environmental events, and managers' interpretations of organisational resources and capabilities (Barr, 1998, Eggers and Kaplan, 2013, Wang et al, 2018. Although some scholars have used similar definitions for managerial cognition, they have different conceptualisations of this construct's dimensions.…”

“…This article proposes a reconceptualisation of managerial cognition as a dynamic capability concerning to capabilities creation, and to achieve co-specialisation among capabilities that can enhance a firm's competitive advantage. Research on capabilities development (Eggers and Kaplan, 2013;Helfat and Martin, 2015;Wang et al, 2018) offers new insights into the study of managerial cognition. Researchers have argued that managerial cognition is central to capabilities creation.…”

Dynamic Capabilities for Accreditation: Evidence in the Healthcare Sector

“…Although there is no consensus about capability sources, in consonance with Helfat et al (2007), Romme, Zollo and Berends (2010) and Schilke, Hu and Helfat (2018), they are believed to generate from the following sources: Deliberate Learning, Relationships and Acquisitions. Examples of each may be found in recent works: Li and Liu (2014), Bingham, Heimeriks, Schijven and Gates (2015), Wilden and Gudergan (2015) and Wang, Hung Li and Ding (2018). Zollo and Winter (2002) especially value Deliberate Learning and its respective mechanisms: Experience Accumulation, Knowledge Articulation and Knowledge Codification.…”