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The endogenous origins of experience, routines, and organizational capabilities: the poverty of stimulus

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  • FELIN, TEPPO
  • FOSS, NICOLAI J.

Abstract

In this paper we discuss the origins and emergence of organizational routines and capabilities. We first argue that there are theoretical and endogeneity-related concerns associated with the key antecedents and mechanisms specified by the extant routines and capabilities literature. Specifically, we explicate the behaviorist and empiricist foundations of the organizational routines and capabilities literature and the extant emphasis placed on experience, repetition, and observation as the key antecedents and mechanisms of routines and capabilities. Based on this discussion we highlight several, endogeneity-related concerns, namely: (1) the problem of origins and causation, (2) the problem of extremes, (3) the problem of intentionality, (4) the problem of new knowledge, and (5) the problem of the environment. We introduce the ‘poverty of stimulus’ argument and discuss how an internalist or rationalist, choice-based approach can provide a more fruitful (though preliminary) foundation for understanding organizational behavior and capabilities.

Suggested Citation

  • Felin, Teppo & Foss, Nicolai J., 2011. "The endogenous origins of experience, routines, and organizational capabilities: the poverty of stimulus," Journal of Institutional Economics, Cambridge University Press, vol. 7(2), pages 231-256, June.
    • Handle: RePEc:cup:jinsec:v:7:y:2011:i:02:p:231-256_00
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    Cited by:

    1. Willem Smit, 2023. "Top Manager Heuristics Under Knightian Uncertainty: Control Versus Prediction and the Moderating Impact of Framing," Journal of Management Studies, Wiley Blackwell, vol. 60(5), pages 1302-1340, July.
    2. Giada Baldessarelli & Nathalie Lazaric & Michele Pezzoni, 2022. "Organizational routines: Evolution in the research landscape of two core communities," Post-Print halshs-03718851, HAL.
    3. Jaideep Anand & Louis Mulotte & Charlotte R. Ren, 2016. "Does experience imply learning?," Strategic Management Journal, Wiley Blackwell, vol. 37(7), pages 1395-1412, July.
    4. Lazaric, Nathalie, 2011. "Organizational routines and cognition: an introduction to empirical and analytical contributions," Journal of Institutional Economics, Cambridge University Press, vol. 7(2), pages 147-156, June.
    5. Nicolai J. Foss & Torben Pedersen, 2019. "Microfoundations in international management research: The case of knowledge sharing in multinational corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1594-1621, December.
    6. Mulotte, L., 2013. "Do experience effects vary across governance modes? Evidence from new product introduction in the global aerospace industry, 1948–2000," Other publications TiSEM 2c79d4d6-2b71-4160-9781-f, Tilburg University, School of Economics and Management.
    7. Teppo Felin & Stuart Kauffman & Roger Koppl & Giuseppe Longo, 2014. "Economic Opportunity and Evolution: Beyond Landscapes and Bounded Rationality," Post-Print hal-01415115, HAL.
    8. Martinkenaite, Ieva & Breunig, Karl Joachim, 2016. "The emergence of absorptive capacity through micro–macro level interactions," Journal of Business Research, Elsevier, vol. 69(2), pages 700-708.
    9. Nicholas S. Argyres & Teppo Felin & Nicolai Foss & Todd Zenger, 2012. "Organizational Economics of Capability and Heterogeneity," Organization Science, INFORMS, vol. 23(5), pages 1213-1226, October.
    10. Khalil, Elias L., 2013. "Lock-in institutions and efficiency," Journal of Economic Behavior & Organization, Elsevier, vol. 88(C), pages 27-36.
    11. Elisa Conz & Stefano Denicolai & Alfredo Massis, 2024. "Preserving the longevity of long-lasting family businesses: a multilevel model," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(3), pages 707-744, September.
    12. Mircea Epure, 2016. "Benchmarking for routines and organizational knowledge: a managerial accounting approach with performance feedback," Journal of Productivity Analysis, Springer, vol. 46(1), pages 87-107, August.
    13. Roger Koppl & Stuart Kauffman & Giuseppe Longo & Teppo ­­­felin, 2015. "Economics for a creative world," Post-Print hal-01415131, HAL.
    14. Aura Parmentier Cajaiba & Giovany Cajaiba Santana, 2014. "Routines and Networks: Strengthening a Missed Link," GREDEG Working Papers 2014-41, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    15. Möller Ulrich & McCaffrey Matthew, 2023. "Entrepreneurship and Firm Strategy: Integrating Resources, Capabilities, and Judgment through an Austrian Framework," Entrepreneurship Research Journal, De Gruyter, vol. 13(4), pages 997-1031, October.
    16. Rouslan Koumakhov & Adel Daoud, 2017. "Routine and reflexivity: Simonian cognitivism vs practice approach," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(4), pages 727-743.
    17. Teppo Felin & Todd R. Zenger, 2016. "CROSSROADS—Strategy, Problems, and a Theory for the Firm," Organization Science, INFORMS, vol. 27(1), pages 222-231, February.
    18. Teppo Felin & Teppo Felin, 2012. "Cosmologies of Capability, Markets and Wisdom of Crowds: Introduction and Comparative Agenda," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 33(5-6), pages 283-294, July.
    19. Bağış, Mehmet & Kryeziu, Liridon & Akbaba, Yılmaz & Ramadani, Veland & Karagüzel, Ensar Selman & Krasniqi, Besnik A., 2022. "The micro-foundations of a dynamic technological capability in the automotive industry," Technology in Society, Elsevier, vol. 70(C).
    20. Giada Baldessarelli & Nathalie Lazaric & Michele Pezzoni, 2022. "Organizational routines: Evolution in the research landscape of two core communities," Journal of Evolutionary Economics, Springer, vol. 32(4), pages 1119-1154, September.
    21. Louis Mulotte, 2014. "Do Experience Effects Vary Across Governance Modes? Evidence from New Product Introduction in the Global Aircraft Industry, 1948–2000," Organization Science, INFORMS, vol. 25(3), pages 757-775, June.
    22. Mariasole Bannò & Emilia Filippi, 2024. "Women in top echelon positions and firm internationalisation strategies: What do we know? How do we know? Where should we be heading?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(4), pages 1257-1302, December.
    23. Verreynne, Martie-Louise & Hine, Damian & Coote, Len & Parker, Rachel, 2016. "Building a scale for dynamic learning capabilities: The role of resources, learning, competitive intent and routine patterning," Journal of Business Research, Elsevier, vol. 69(10), pages 4287-4303.
    24. Robert Charles Sheldon & Eric Michael Laviolette & Fabien Geuser, 2020. "Explaining the process and effects of new routine introduction with a notion of micro-level entrepreneurship," Journal of Evolutionary Economics, Springer, vol. 30(3), pages 609-642, July.
    25. Sidney G. Winter, 2012. "Purpose and Progress in the Theory of Strategy: Comments on Gavetti," Organization Science, INFORMS, vol. 23(1), pages 288-297, February.

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