Abstract

Corporate entrepreneurs and managers shape the evolutionary fitness of their firm by orchestrating firm assets to positively affect their firm’s dynamic capabilities. The extant literature emphasizes the important role of managerial cognitions to a firm’s dynamic capabilities but little attention is given to the linkages. This study explores the role of managerial cognition in dynamic capability development by investigating eleven of the world’s largest firms as they attempt to develop dynamic capabilities to support their radical innovation efforts. Our findings show that dynamic capabilities are not based upon a single cognitive antecedent but instead three distinct cognitive scripts. We also argue that firms developing dynamic capabilities need to have cognitive alignment in order to drive new innovative initiatives. Finally, we introduce the concept of dynamic capability cognitions.

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