The analysis of dynamic capabilities in a competence-oriented organization

The crucial determinants of innovation reside in the interaction between technological and organizational processes. The former influence the creation, shape and renewal of a firm's skills and capabilities, thus representing the basic foundation for the latter which, in turn, can be a powerful driver for reshaping a firm's competence base. In this paper, first a general framework of competence analysis is presented and applied to a case study from the healthcare industry. In order to better understand and explore the nature of mutual interactions between component and architectural dynamic competences, the focus is then shifted to the new product development domain. A description of the organizational dimensions of integration (both internal and external) is provided, which represents the basic foundation for-the renewal of the organization's dynamic capabilities. Finally, the implications of adopting a competence-oriented organizational scheme for R&D management are briefly discussed. (C) 1998 Elsevier Science Ltd. All rights reserved.