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The Organizational Choice between Evolutionary and Revolutionary Capability Regimes: Theory and Evidence from European Air Transport

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  • Lehrer, Mark

Abstract

Resource- and capability-based models of firm strategy gain in analytical power by incorporating some of the organizational trade-offs that firms face in choosing between alternative capability building strategies. Based on the well-documented trade-off between flexibility and commitment inherent in social systems, this paper argues that firms must choose between evolutionary and revolutionary "capability regimes". Empirical evidence drawn from the race of European airlines to develop critical revenue management capabilities is cited to illustrate the theory and practical relevance of capability regimes. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Lehrer, Mark, 2000. "The Organizational Choice between Evolutionary and Revolutionary Capability Regimes: Theory and Evidence from European Air Transport," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(3), pages 489-520, September.
    • Handle: RePEc:oup:indcch:v:9:y:2000:i:3:p:489-520
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    Cited by:

    1. Lechevalier, Sébastien & Nishimura, Junichi & Storz, Cornelia, 2014. "Diversity in patterns of industry evolution: How an intrapreneurial regime contributed to the emergence of the service robot industry," Research Policy, Elsevier, vol. 43(10), pages 1716-1729.
    2. Storz, Cornelia & Riboldazzi, Federico & John, Moritz, 2015. "Mobility and innovation: A cross-country comparison in the video games industry," Research Policy, Elsevier, vol. 44(1), pages 121-137.
    3. Daniel Fürstenau & Catherine Cleophas & Natalia Kliewer, 2020. "How Do Market Standards Inhibit the Enactment of Digital Capabilities?," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 62(4), pages 279-287, August.
    4. Gordon Redding & Michael Witt, 2009. "China’s business system and its future trajectory," Asia Pacific Journal of Management, Springer, vol. 26(3), pages 381-399, September.
    5. Christensen, Jens Froslev, 2002. "Incongruities as a source of organizational renewal in corporate management of R&D," Research Policy, Elsevier, vol. 31(8-9), pages 1317-1332, December.
    6. Vahlne, Jan-Erik & Jonsson, Anna, 2017. "Ambidexterity as a dynamic capability in the globalization of the multinational business enterprise (MBE): Case studies of AB Volvo and IKEA," International Business Review, Elsevier, vol. 26(1), pages 57-70.

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