Leadership Capabilities and HRM Systems as Micro-foundations for Dynamic Capability and Innovation

Abstract

Prior research has highlighted the critical role of dynamic capabilities–that is, an organization’s ability to sense changes and opportunities in its markets, seize these opportunities, and continuously reconfigure its assets to changing market conditions–for innovation outcomes. This work has identified the micro-foundations for the development of such capabilities, with an increasing focus placed on the role of senior managers and leaders in influencing the development and deployment of dynamic capabilities. In this study, we examine the conditions under which organizational routines and leadership action provide the foundation for organization-level dynamic capabilities associated with in..