Definitions

Question 1

Routines

Answer 1

patterns of repetitive actin that firms use in a specific context.

Firms rely on routines because they have bounded rationality.

An executable capability for repeated performance in a context that has been learned by an organisation.

• Have a tacit component
• Represent procedural knowledge

Question 2

Search

Answer 2

Contingent, Local (isoquant) and Cumulative process through which firms learn and innovate.

It faces two main types of uncertainty: Technological and Economic.

Question 3

Isoquant

Answer 3

Different combinations of capital and labour that give the same output.

Question 4

Capabilities

Answer 4

the purposeful combination of resources that enable an organisation to perform functional activities, such as -logistics, marketing and sales, manufacturing (capabilities)
- and to deal with change (dynamic capabilities)

The know-HOW, the bridge between intentions and outcomes.

Question 5

Origin, resourced-based and evolutionary views on Capabilities

Answer 5

1) Origin of concept: Edith Penrose, firms differ in their performance because of their intangible assets (capabilities) and the production resources.
2) “Resource based” view of the firm; firms different resources: financial, human, technical… Capabilities are the way these firms manage these inputs.

3) Evolutionary view
Firms are organisations that learn with idiosyncratic/unique capabilities.