Towards an Organizational Economics of Heterogeneous Capabilities
7 Pages Posted: 19 Sep 2013
Date Written: September 19, 2013
The notion of “capability” has long been influential in management research as an approach to address firm-level heterogeneity and heterogeneity in competitive outcomes. I discuss how recent advances in economics may allow for a more rigorous understanding and measurement of capability that take organizational practices into account. However, economists may also learn from work on capabilities in management research.
Keywords: Organizational capability, productivity, internal organization, organizational economics
JEL Classification: D23, D24, L25, M12
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