Abstract
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.
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 language | English |
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Place of Publication | Frederiksberg |
Publisher | DRUID - Danish Research Unit for Industrial Dynamics |
Number of pages | 30 |
ISBN (Print) | 9788778732309 |
Publication status | Published - 2007 |
Series | DRUID Working Paper |
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Number | 07-02 |