Selection Capability: How Capability Gaps and Internal Social Frictions Affect Internal and External Strategic Renewal

Organization Science, Forthcoming

INSEAD Business School Research Paper No. 2007/61/ST

42 Pages Posted: 18 Oct 2007 Last revised: 15 Jan 2011

See all articles by Laurence Capron

Laurence Capron

INSEAD - Strategy

Will Mitchell

Duke University - Fuqua School of Business; University of Toronto - Rotman School of Management

Date Written: January 13, 2011

Abstract

The dynamic capabilities literature suggests that firms need to use both internal development and external sourcing in order to thrive over time, but we have a limited understanding of the conditions that best suit different sourcing choices. This study examines how constraints that arise from firms' existing stocks of capabilities and from their internal social contexts shape their choices of capability sourcing modes and, in turn, their ability to obtain new capabilities. Thus, the research focuses on an under-emphasized form of dynamic capability: the ability to select appropriate modes of capability sourcing. We test the arguments with a survey and longitudinal survival study of the international telecommunications industry. We find intriguing variations in the way that firms' selection capability influences their ability to renew their capabilities and, ultimately, to survive.

Keywords: professional service firms, embeddedness, clients, careers

Suggested Citation

Capron, Laurence and Mitchell, Will, Selection Capability: How Capability Gaps and Internal Social Frictions Affect Internal and External Strategic Renewal (January 13, 2011). Organization Science, Forthcoming, INSEAD Business School Research Paper No. 2007/61/ST, Available at SSRN: https://ssrn.com/abstract=1021176

Laurence Capron (Contact Author)

INSEAD - Strategy ( email )

Boulevard de Constance
77305 Fontainebleau
France
+33 1 60 74 55 08 (Phone)

Will Mitchell

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States

University of Toronto - Rotman School of Management

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

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