Romme, AGL; Zollo, M; Berends, P. 2010. Dynamic capabilities, deliberate learning and environmental dynamism: a simulation model. INDUSTRIAL AND CORPORATE CHANGE 19 (4): 1271-1299

[Eugene Garfield]

Romme, AGL; Zollo, M; Berends, P. 2010. Dynamic capabilities, deliberate 
learning and environmental dynamism: a simulation model. INDUSTRIAL AND 
CORPORATE CHANGE 19 (4): 1271-1299.

Author Full Name(s): Romme, A. Georges L.; Zollo, Maurizio; Berends, Peter
Language: English
Document Type: Article

KeyWords Plus: KNOWLEDGE; EMBEDDEDNESS; ACCUMULATION; 
PERFORMANCE; PARADOX; FIRMS

Abstract: This article presents a simulation model of the development of 
knowledge, operating routines and dynamic capability in organizations at 
varying levels of environmental dynamism. We draw on system dynamics 
modeling to explore trade-offs and ambiguities in the decision to invest in 
deliberate learning processes to enhance the development of dynamic 
capabilities. The model incorporates mindfulness and tool utility (positive) 
effects as well as experience and inertia (negative) effects on dynamic 
capability. The simulation experiments conducted with the model suggest that 
the impact of deliberate learning on dynamic capability is non-linear, complex, 
and in some instances counter-intuitive. This is evident from the thresholds 
(tipping points) that arise from the differential effects of articulated knowledge, 
codified knowledge and operating routines on dynamic capability at different 
levels of environmental dynamism.

Addresses: [Romme, A. Georges L.] Eindhoven Univ Technol, Sch Ind Engn, NL-
5600 MB Eindhoven, Netherlands; [Zollo, Maurizio] Bocconi Univ, Dept 
Management, I-20136 Milan, Italy; [Berends, Peter] Maastricht Univ, Sch 
Business & Econ, NL-6200 MD Maastricht, Netherlands

Reprint Address: Romme, AGL, Eindhoven Univ Technol, Sch Ind Engn, POB 513, 
NL-5600 MB Eindhoven, Netherlands.

E-mail Address: a.g.l.romme at tue.nl; maurizio.zollo at unibocconi.it; 
p.berends at os.unimaas.nl
ISSN: 0960-6491
DOI: 10.1093/icc/dtq031
Fulltext: http://icc.oxfordjournals.org/content/19/4/1271.full