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Companies must be able to have multiple quantitative and qualitative mechanisms to access, import, prioritise and analyse key external information.


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They must then apply that information to developing innovative products and services that will quickly reposition themselves in their markets. Accomplishing all of this requires a shift in the cultural mindset from being internally focused to being externally focused.

Organizational change capability a competitive advantage

These guidelines apply to firms in virtually every business sector. By so doing, GE can identify needed repairs so that when a plane lands, the repair materials are ready. On the other end of the industrial spectrum are Disney Theme parks. They are brought about by social interaction and represent a collectively shared 'way of problem solving' Cyert and March, Accordingly, organizational capabilities can be built in different fields and on different levels of organizational activity, for instance at departmental, divisional, or corporate level.

Conceptual view of the primary characteristics of capabilities Capabilities result from Organizational capabilities apply to various problem situations, but not to all situations. They have been formed through successful responses to specific historical challenges and are thus bound to specific types of constellations Winter, Problem-solving is embedded in organizational design, information procedures, micropolitics and communication channels as well as other organizational characteristics culture, control regimes, etc.

Enterprise Resource Management (ERM)

All these features shape organizational capabilities and thus define their distinctiveness. Resources and capabilities -- Capabilities do not actually represent a resource; they focus rather on the combination and linking of resources. Although there are interactions between them, resources and capabilities represent two conceptual levels with their own commitment dynamics.

The commitment to resources resulting from specific investment should be clearly differentiated from commitments evolving when practicing capabilities. This differentiation accordingly implies a separation of resource-based inertia and capability-based rigidity Gilbert, See organizational inertia.

Organizational change capability a competitive advantage

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  • The Multiverse Lexicon Bibliography. Lexicon Home About Us See Also 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.

    Journal of Innovation & Knowledge

    Definition Resource-based view of capability -- Capabilities are a firm's capacity to deploy resources Amit and Schoemaker, , p Particular organizational capabilities required - Systems thinking, synthesis, to understand complex wholes, needed to form strategy. Particular capabilities include iterative inquiry and modeling of non-linear systems. Further, performance is the culminating result of interactions of the organisational management systems with both the internal and external environmental factors.

    What is Competitive Advantage?

    In the recent past, an extraordinarily predominant socio-economic-political phenomenon has changed the structural configuration of the business world, and operational paradigms of the manufacturing industries. Historically, financial performance indicators, such as return on investment, return on assets, operating profit margin, profit after tax.

    It is with this regard that productivity is gaining ground as an indicator of organizational performance. It is important to note that productivity is affected by both internal and external factors. Culture within an organization is one of the internal factors that may affect productivity. K'Obonyo and Dimba indeed acknowledged in their research that culture is a very potent factor which affects strategic resource management and productivity. The cultural context in which an organization operates will thus have an effect on the strategic resources that are available and how they can bring optimal utility to the organization.

    The resource-based view is a way of viewing performance of a firm and in turn of approaching strategy.


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    • capability;
    • Prahalad and Hamel viewed and conceptualized the firm as a bundle of resources. These resources, and the way they are combined, are what differentiates one firm from another. While it might seem somewhat obvious that firms are different because they tire comprised of different resources, this perspective is a significant departure from the long dominant market based view held by Porter.