Session 7

Orchestrating Dynamic Capabilities

Track D

Date: Friday, March 19, 2010


Time: 10:15 – 11:45


Room: Kokoustila 4

Session Chair:

Title: Communities: The Gears of War for Agile Firms. Theory and Practice in the Video-Game Industry


  • Thierry Burger-Helmchen, University of Strasbourg

Abstract: Few works tackle the problem of the size and diversity of the communities in relation with the absorption capabilities of the firm and with the managerial resources allocated to their coping. Successful firms structure their communities’ portfolio more efficiently, see these communities as resources, transform these resources into capabilities and leverage these capabilities to enhance existing products or create new generations of products. We develop a model linking strategies and communities based on this remark and illustrate this model by case studies in the video-game industry. We examine different development modes of communities by firms, as consumers of an internally developed product, as a resource acquisition, as a capability, and finally as a leveraged capability that brings a better performance to the firm.

Title: Disorganizing and Synchronization as Dynamic Capabilities When Creativty Matter


  • Chahira Mehouachi, Paris-Dauphine University
  • Patrick Cohendet, HEC-Montreal

Abstract: This paper investigates the dynamic capabilities of firms in the video game industry, where these firms are at the intersections of different markets, each with its own degree of dynamism which varies also in time, and its imperatives and pace of change. In this industry, firms are required not only to have technical and evolutionary fitness but also to achieve a creative one. On the basis of 36 semi-structured interviews aimed at the development of grounded theory, temporary findings of this study, highlights how firms achieve creative fitness through an adequate use of disorganizing and synchronization capabilities, allowing them to orchestrate latent processes embodied in multiple levels in and outside of the firm.

Title: Towards Dynamic Capabilities in the Project-Based Industrial Firm


  • Richard Windischhofer, PBI Research Institute
  • Inkeri Ruuska, Helsinki University of Technology
  • Magnus Gustafsson, Åbo Akademi University

Abstract: The industrial project-based firm executes most of its value creation through projects. Single projects and entire project portfolios are exposed to degrees of uncertainty and complexity uncommon in operations-based business, for example when considering the fluctuations in demand. The key objective of this investigation has been to better understand value creation in the project-based firm and to develop a new way of managing dynamic capability on the strategic level in order to increase the firms’ adaptiveness. We report a comparison of a multinational firm’s project portfolio in the Marine industry where a project portfolio management method was developed and tested.

Title: Unique Demand Complementarities: The Role of Existing Customers in Diversification


  • Jens Schmidt, Aalto University

Abstract: Traditional diversification research has emphasized supply-side resources and capabilities that give firms competitive advantage across product markets due to economies of scope. Another, much smaller literature has explored diversification into markets that share the same customers with the original market, effectively applying bundling strategies. In this study we explore the question under what circumstances diversification leads to superior performance by explicitly taking into account market connectedness. In particular we model the demand side with heterogeneous customers. Furthermore we develop a typology of resources that form the basis for diversification. Through analytical modeling and simulation we show how and under what circumstance a firm is able to appropriate the value stemming from different types of unique resources and thereby create superior performance through diversification.

All Sessions in Track D...

Thu: 13:15 – 14:45
Session 2: Capability Dynamics in MNCs
Thu: 15:15 – 16:45
Session 6: Processes and Practices of Decision Making
Thu: 17:00 – 18:30
Session 4: Processes and Practices of Building Dynamic Capabilities
Fri: 10:15 – 11:45
Session 7: Orchestrating Dynamic Capabilities
Fri: 13:15 – 14:45
Session 8: Operationalizing the Concept of Dynamic Capabilities

Strategic Management Society