Where Do Capabilities Come From and How Do They Matter ? A Study in The Software Services Industry  

Oleh:

Ethiraj, Sendil K. ; Kale, Prashant ; Krishnan, M. S. ; Singh, Jitendra V.

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Strategic Management Journal vol. 26 no. 1 (Jan. 2005), page 25-46.
Topik: software; organizational capabilities; firm performance; software services

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: SS30.18 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

Recent years have witnessed a surge of interest in the notion of capabilities as an important source of competitive advantage. This recognition has, in turn, placed emphasis on the question of where and how these capabilities emerge and how they influence firm performance. The present paper os an attempt to address this question. Using a large sample of detailed project - level data from a leading firm in the global software services industry. We attempt to empirically study the imporatnce of capabiltiies. We find that two board classes of capabilities are significant. The first class, which we label client - specific capabilties, is a function of repeated interactions with a given client reduces project execution costs and helps improve projects contribution. The second class, termed project mangement capabilities, is acquired through deliberate and persistent investments infrastructure and systems to improve the firm's software development process. Our empirical results suggest that the marginal returns to acquiring different capabilities may be acquire such capabilities. We discuss the key contributions of our paper and the implications for future research on capabilities.

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