This Small Grant for Exploratory Research (SGER) is a 12 months study to develop new theoretical ideas about the processes through which firms evolve their dynamic capabilities. The study will contribute to the emerging body of work on the dynamic capabilities in two ways: a) by examining the role of managerial knowledge structures in shaping a firm's dynamic capabilities and their development: and b) by comparing the effects of differential environmental change (e.g., rate and predictability) on the process of capability development.
In conducting the proposed research the teams will take advantage of a naturally occurring experiment created by the terrorists attacks of September 2001. The large-scale dramatic change created by the events of September 11th will enable the research team to determine the impact of such change on the evolution of firms' capabilities. The study focuses on two industries - defense and biotechnology--that were both dramatically affected by the events of September 11th , yet have been characterized traditionally by different rates and types of change. The team will utilize a qualitative approach and rely primarily on an interview methodology to assess the processes of capability development in participating divisions of defense companies and biotechnology firms. The results of the study will be communicated through a series of company briefings, as well as publications in academic journals.
