Measuring Dynamic Capabilities: Practices and Performance in Semiconductor Manufacturing

22 Pages Posted: 27 Apr 2009

See all articles by Jeffrey Thomas Macher

Jeffrey Thomas Macher

Georgetown University - McDonough School of Business - Strategy, Economics and Policy

David C. Mowery

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

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.

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: https://ssrn.com/abstract=1375869 or http://dx.doi.org/10.1111/j.1467-8551.2008.00612.x

Jeffrey Thomas Macher (Contact Author)

Georgetown University - McDonough School of Business - Strategy, Economics and Policy ( email )

335 Hariri Building
Washington, DC 20057
United States
202-687-4793 (Phone)

David C. Mowery

University of California, Berkeley - Haas School of Business ( email )

545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
3
Abstract Views
1,194
PlumX Metrics