sys tematic cl lu ng term proc ess of develpment that int eg rat es th e fo ur

Sys tematic cl lu ng term proc ess of develpment that

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sys tematic ' '."cl lu ng-term proc ess of devel?pment that int eg rat es th e fo ur co mp o- ne nt s de sc rib ed ab ov e. Fo r mo st or ga 111 zat1ons, th e k ey challe nge is not ob taining ih c underl y ing ""u ur ces -111deed, many exa mpl es of o utsiand ing ca p ab iliti es h ave r es ulted fr orn _ 1h e pressur es of r eso ur ce shortage. Toyota's le an pr od uct io n ca pability ,vas bo rn dunn g a _ peno ~ ~f acute. re so urce shortage in Japan . If th e k ev cha ll en ge is mt e gra1111g r eso ur ces thr oug l1 es t ab l "s l . d cl I . . . . . 1 11n g an e ve op- . ,g process L"s 1hro ugh ro utmI za tt on and l ear nin g bti"ld' . . . 11 . , 1 . . . , 1 111g struc tur e. mot1vatmg 1he o ple 1n vo l v"d. ,inc ahgn111g the n ew capabil"ty · th 1 pe . <l . 1 w1 01 1er as peCls of th e o r ga niza- tio n. th e d enwn s up on managem ent are co nsider1bl H - . . . . I . . I . . ' e. en ce, , 111 or ga 111 zat1on must limit th e mu n ' :r_ .tnc scope of the capab iliti es that it is alte mptin g to . . . . po int in ti me. 1 h,s unphes tha1 capabiliti es n ee d to be de velop ed seq ~r;,1;~ a'. t y th an all ~ ll on ce. · uen 1a y rat 1er '1J\ CHAPI'ER 8 INDUSTRY EVOLUTION AND ST RA TEG IC C HANGE 2 29 Th e wsk is furth e r co mplic at ed by the fac1 !hat we hav e limi ted kn ow l edge ab o ut h oW to ma nage cap ability develo pm ent. Hence, it m ay be helpful to focus no t on ih e o r ganiz ational ca pabilities them se lves but o n dev elo pin g a nd s uppl y ing 1h e pr od ucts that u se th ose capabilities. A traject ory th roug h time of relat ed, inc re as in gly so phi sti ca i ed pr o du cts allow s a firm to devel op the '" int eg rative kn ow l edge .. th at is at th e h ea r! of orga nizatio nal ca p ab ili ty. 6 ' Cons ider Pana so nic·s a pproa ch lO deve lo pin g manu fac turing c apabilitie s in n ew mark ets : Jn ever y co untr y batteri es are a necessity, so th ey se ll we ll . As l ong as we bring a f ew a dva n ce d automat ed pieces of eq uipmem for 1 he pr ocesses vi ral to fi nal prod uci qua lit y. e ven uns kill ed labor can produ ce good produ clS. As 1hey wo rk on this ra the r simple produc1. !he wo rk ers gel train ed , and !his in crease d skill l ev el th en perm ilS us to gradua ll y expand produc1ion to it ems wilh incr easi ngly high er 1 ec hn ology l eve ls, first radios. then televisions. •• Th e k ey lO such a seq u entia l a pp roach is for eac h sta ge of de ve lo pm e nt to be link ed no t just lO a specific product (o r part of a produ ct) b ut al so to a clearl y defined se t of ca pabiliti es . S1rat egy Capsule 8.4 outlines H yun d ai"s se qu ential approa ch lO capab ili ty de ve l op ment . Dyna m ic Ca pabilities The abili ty of so me firms (e .g., IBM. General El ec tric, 3M, T oyo ia, and Tata Group) to re pe at e dly adapt 10 n ew circ um stan ces wh il e mh ers st ag nat e a nd di e suggesLs that th e ca pa city for change is it se lf an organizatio nal ca pabilit y. David Te ece : :md hi s coll e agu es introduced !h e term dyna m ic capabi li ties to r efe r 10 a ·• firm 's ab ili ty to integrate, build , and r eco nfigure internal and e xi e rn al co mpei en ces
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