Abstract

http://ssrn.com/abstract=1375869
 
 

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Measuring Dynamic Capabilities: Practices and Performance in Semiconductor Manufacturing


Jeffrey Thomas Macher


Georgetown University - Department of Strategy/Economics/Ethics/Public Policy

David C. Mowery


University of California, Berkeley - Haas School of Business; National Bureau of Economic Research (NBER)


British Journal of Management, Vol. 20, Issue s1, pp. S41-S62, March 2009

Abstract:     
Research on dynamic capabilities emphasizes the importance and role of organizational routines in explaining interfirm differences in performance. While performance differences are well documented, few empirical analyses explore the processes inside organizations that lead to dynamic capabilities or attempt to define and measure their performance effects. This paper examines one type of dynamic capability the development and introduction of new process technologies in semiconductor manufacturing. This dynamic capability is an important source of competitiveness in the semiconductor industry, given the short product lifecycles, rapid price declines, and rapid technological advances that define the industry. Because much of the knowledge that underpins semiconductor manufacturing is idiosyncratic, firm-level R&D organization and information technology practices that facilitate problem solving and learning-based improvement provide important and enduring advantages. We derive models of the rate of improvement in manufacturing yield (i.e. the quality of production) and cycle time (i.e. the speed of production) following the development and introduction of new process technologies in manufacturing facilities, and test the empirical specifications of these models. The ways in which semiconductor manufacturers accumulate experience and articulate and codify knowledge within the manufacturing environment build new process development and introduction dynamic capabilities that improve performance.

Number of Pages in PDF File: 22

Accepted Paper Series


Date posted: April 27, 2009  

Suggested Citation

Macher, Jeffrey Thomas and Mowery, David C., Measuring Dynamic Capabilities: Practices and Performance in Semiconductor Manufacturing. British Journal of Management, Vol. 20, Issue s1, pp. S41-S62, March 2009. Available at SSRN: http://ssrn.com/abstract=1375869 or http://dx.doi.org/10.1111/j.1467-8551.2008.00612.x

Contact Information

Jeffrey Thomas Macher (Contact Author)
Georgetown University - Department of Strategy/Economics/Ethics/Public Policy ( email )
Washington, DC 20057
United States

David C. Mowery
University of California, Berkeley - Haas School of Business ( email )
545 Student Services Building
Berkeley, CA 94720
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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