Creation of Managerial Capabilities
cialize, and thereby to build upon the competences available to a firm (Sanchez and
Heene 1996). Since knowledge and mental models are to some extent irreducibly individual
and thus heterogeneous (Mahoney 1995), changes in the managers who make
up an organization's management teams may lead to reconfiguring and reintegrating
managerial knowledge in ways that give rise to new combinations of knowledge—and
therefore to new managerial capabilities at the firm level.
Thus, to sum up the above analysis, integration of various identifiable forms of individual
managerial knowledge is a prerequisite for the creation of organizational managerial
capabilities. Moreover, the managerial capabilities of an organization will
depend on the composition and the degree of integration of the knowledge of individual
managers and the stability of the management team.