Learning mechanisms and the development of dynamic capabilities within firms

The concept of dynamic capability is frequently discussed within the strategic management literature, and relates to the extent to which firms have the capacity to improve performance in the face of rapid changes in their operating environment. A growing awareness of the importance of accumulated and shared knowledge in contributing to a firm's capacity for sustained success has led to a broader understanding that specific organizational learning mechanisms are responsible for the development of dynamic capabilities. These dynamic capabilities, in turn, result in the evolution of new and improved operating routines. Building upon the work of Zollo and Winter (2002), this dissertation presents and empirically tests a conceptual framework linking four specific learning mechanisms - knowledge accumulation, knowledge articulation, knowledge codification, and knowledge internalization to a firm's generic dynamic capability to create new knowledge, hence its ability to generate new and improved operating routines. In addition, four factors are identified at the firm's operating level - internal learning, leadership support, focal connectedness, and intraunit connectedness - that potentially moderate the relationship between the dynamic knowledge creation capability and the performance of operational units within the firm.