Capability Building Through Dynamic Capabilities and Organizational Learning
Depending on the field of research, capability has various meanings. In this entry, capability is defined as organization’s ability to achieve specific goals. Capabilities form from combinations of skills, knowledge, technology, routines, and organizational culture. Capability building means renewal of organization’s capability base by developing, remodifying, and even eliminating individual capabilities.
As the world changes on a fast pace, firms need to develop new capabilities, not just to cope with the changes but also to prosper in the changing business circumstances. Yet, also sustainability sets new requirements for firms to look beyond the present moment or short-term development. Sustainability theory offers simple and practical framework to approach the subject. Sustainability is typically considered to have three dimensions through which sustainability can be evaluated: social, environmental, and economic. Changes occur in all dimensions and may have...
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