Does deliberate learning lead to dynamic capability? The role of organizational schema for Kodak, 1993-2011

Abstract

Purpose The process of building dynamic capabilities remains understudied, although deliberate learning is posited to be the key to developing and maintaining dynamic capabilities in turbulent environments. Based on the case study of Kodak’s responses to the shift from traditional to digital technology in the imaging industry (1993-2011), the purpose of this paper is to examine the role of managerial cognition in building dynamic capabilities. Design/methodology/approach The paper employs case study and qualitative method approach. Findings The results reveal that, when facing environmental turbulence, deliberate learning is subject to routine disruptions through entrepreneurial activities, and these organizational routines and activities are determined by organizational schema. Organizational schema itself is updated as a result of managers’ ongoing interpretation of the organization’s fit with the environment. The study findings contribute to the organizational studies and management literature by highlighting the role of managerial cognition into the microfoundation of dynamic capabilities. Originality/value The results demonstrate managerial cognition, and organizational schema in particular, as a microfoundation of dynamic capability.