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

Published online by Cambridge University Press:  18 June 2010

TEPPO FELIN  and
NICOLAI J. FOSS
TEPPO FELIN*
Affiliation:
Marriott School, Brigham Young University, Provo, UT, USA
NICOLAI J. FOSS*
Affiliation:
Center for Strategic Management and Globalization, Copenhagen Business School, Denmark and Department of Strategy and Management, Norwegian School of Economics and Business Administration, Norway
*
*Email: [email protected]
**Email: [email protected]
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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.

Type
Research Article
Information
Journal of Institutional Economics , Volume 7 , Special Issue 2: Business Routines , June 2011 , pp. 231 - 256
Copyright
Copyright © The JOIE Foundation 2010

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