Capability Dynamics and Organizational Innovation in Changing Technological Environments: The Case of ITRI

摘要

This paper explores the impact of capability dynamics on organizational innovation in changing technological environments. We illustrate this by analyzing the linkages of ITRI's capability dynamics with its product and process development projects of integrated circuits, desktop PCs, notebook PCs, hard disk drives, optical storages and flat panel displays during the 1970s and early 2000s. We demonstrate that organizational innovations in a changing environment are considerably interconnected to the way organizations utilize their pre-existing capabilities and continually expand their capability path from the interaction with technological change. Capability dynamization involves not just the process of changing that leads the organization to develop new capabilities over time, but also continuity that reflects the inner logic of routines and local processes of search.