Title: The interlink between resources and capabilities: towards a theoretical frame for the development of dynamic capabilities

Authors: Paola Cillo, Gianmario Verona, Salvio Vicari

Addresses: SDA-Bocconi School of Management and IEGI, Bocconi University, Via Bocconi 8, 20136, Milano, Italy. ' SDA-Bocconi School of Management and IEGI, Bocconi University, Via Bocconi 8, 20136, Milano, Italy. ' SDA-Bocconi School of Management and IEGI, Bocconi University, Via Bocconi 8, 20136, Milano, Italy

Abstract: In order to untangle the sources of heterogeneity among firms, this study reviews the last 20 years| works related to the resource-based view of the firm, the knowledge-based perspectives on competitive advantage sustainability, and the dynamic capability view. We reach three important conclusions that provide a more granular understanding of resource heterogeneity and its development. First, dynamic capabilities leading to competitive advantage are knowledge-based processes characterised by functional specialisation. Second, their design is based on a weighted organisational mix, made up of skilled actors, incentive systems, dedicated organisational structure and idiosyncratic culture. Third, their development and management require a specific division of labour between senior and middle managers. We conclude our work by addressing future research on the topic and by highlighting core implications for practitioners.

Keywords: resources; dynamic capabilities; knowledge-based processes; senior managers; middle managers; resource-based view; RBV; competitive advantage; resource-based theory.

DOI: 10.1504/IJLIC.2007.013826

International Journal of Learning and Intellectual Capital, 2007 Vol.4 No.1/2, pp.111 - 131

Published online: 30 May 2007 *

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