Building Micro-foundations for the Routines, Capabilities and, Performance Links

Peter Abell, Teppo Felin, Nicolai J. Foss

    Research output: Working paperResearch

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    Micro-foundations have become an important emerging theme in strategic management. This paper addresses micro-foundations in two related ways. First, we argue that the kind of macro (or “collectivist”) explanation that is utilized in the capabilities view in strategic management ⎯ which implies a neglect of micro-foundations ⎯ is incomplete. There are no mechanisms that work solely
    on the macro-level, directly connecting routines and capabilities to firm-level outcomes. While routines and capabilities are useful shorthand for complicated patterns of individual action and interaction, ultimately they are best understood at the micro-level. Second, we provide a formal model that shows precisely why macro explanation is incomplete and which exemplifies how explicit micro-foundations may be built for notions of routines and capabilities and for how these impact firm performance.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherDRUID - Danish Research Unit for Industrial Dynamics
    Number of pages30
    ISBN (Print)9788778732309
    Publication statusPublished - 2007
    SeriesDRUID Working Paper

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