ICS , Graduate School of International Corporate Strategy
[Term 2] Organizational Capability (K. Kusunoki) (2008/Term 1&2 (Fall&Winter))
Organizational Capability is positioned as an extension of the Competitive Strategy course with an aim to provide students with an integrative understanding of how to gain and sustain competitive advantage. Organizational Capability is well paired with Competitive Strategy as they are two sides of the same coin. Both courses are concerned with gaining and sustaining competitive advantage. The two courses, however, differ in perspective. Competitive Strategy is fundamentally a matter of effective positioning that differentiates a firm from competitors, and is based on a sophisticated understanding of external factors, such as industrial structure.
On the other hand, the perspective of Organizational Capability focuses on internal contexts of competitive advantage. Effective positioning alone is not sufficient to gain and sustain competitive advantage. There are two main routes to competitive advantage: SP (Strategic Positioning) and OC (Organizational Capability), and this course focuses on the latter route.
With these issues in mind, the course will push you to understand how a firm can fully exploit the potential advantage of differentiated strategic positioning. Theoretical aspects of the course are based on recent developments in the capability- (or resource)-based view of the firm. Since knowledge is the crucial ingredient for firm-specific, costly-to-imitate organizational capabilities, the course has substantial linkage to Knowledge Management.
Students who will take this elective course should recognize that this course is not about specific skills and tools for strategy formulation and implementation, but about a perspective to deepen understanding of strategy and competitive advantage. The capability side of competitive strategy is a new and emerging arena of strategy thinking, relative to the positioning-based strategy taught in Competitive Strategy. Different from positioning-based strategy, there are no common, well-developed concepts and frameworks for analyzing organizational capability like Five Force, Value Chain, and so forth. Furthermore, the idea of organizational capability mainly focuses on intangible aspects of competitive advantage, which are difficult to express as fully explicit knowledge. Nevertheless, I believe that Organizational Capability will provide tangible power as a useful heuristic to cultivate more comprehensive understanding of how and why a company can gain and sustain competitive advantage.
Teaching Method
The sessions are primarily case-based. Some cases will be discussed in the traditional manner of case discussion. Given the emerging nature of capability-based strategy, however, some sessions will use cases as supplements or illustrations for interactive lectures. The course will include one presentation session from groups of students.
Since there are no “standard” textbooks on capability-based strategy, this course will not use a particular textbook. Instead, the course uses some chapters from the following book as reading materials:
Saloner, G., Shepard A., & Podolny, J. (2001). Strategic management. New York: John Wiley
& Sons.
Since the course will directly touch only some chapters from the book, copies of the selected chapters to be used in the class will be included in the course binder. However, I strongly recommend that students buy this book because it is very good at creating a bridge between the capability view and positioning view of strategy. In addition, I will deliver some readings in the classroom that will be helpful as supplements to the topics and issues covered in this course.