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Strategic Management Journal· 2014Q1

Managerial cognitive capabilities and the microfoundations of dynamic capabilities

Constance E. Helfat, Margaret A. Peteraf

Short summary

Managerial cognitive capabilities, involving mental activities like sensing, seizing, and reconfiguring, are proposed as the microfoundations for an organization's dynamic capabilities, explaining differential strategic change and performance.

AI-generated from the title and abstract; the full text is not read.

Key points

  • Introduces 'managerial cognitive capability' as the microfoundations for dynamic capabilities.
  • Identifies sensing, seizing, and reconfiguring as key mental activities underlying dynamic capabilities.
  • Explains how cognitive capability heterogeneity among managers leads to differential organizational performance.
  • Highlights the role of mental activities in strategic change and organizational adaptation.

AI-generated from the title and abstract; the full text is not read.

Abstract

The microfoundations of dynamic capabilities have assumed greater importance in the search for factors that facilitate strategic change. Here, we focus on microfoundations at the level of the individual manager. We introduce the concept of “managerial cognitive capability,” which highlights the fact that capabilities involve the capacity to perform not only physical but also mental activities. We identify specific types of cognitive capabilities that are likely to underpin dynamic managerial capabilities for sensing, seizing, and reconfiguring, and explain their potential impact on strategic change of organizations. In addition, we discuss how heterogeneity of these cognitive capabilities may produce heterogeneity of dynamic managerial capabilities among top executives, which may contribute to differential performance of organizations under conditions of change. Finally, we propose possible directions for future research . Copyright © 2014 John Wiley & Sons, Ltd.

The authors' abstract, as published at the source. Strategic Management Journal, 2014 · DOI ↗

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Field: Strategy and Management

Strategy and ManagementBusiness, Management and Accounting