competitive marketplace the act of integrating disparate sources of knowledge within the bounds
of the organization becomes a source of advantage (Grant, 1996). Indeed, one of the basic premises
of internationalization research is that in order to succeed internationally a firm has to possess some
highly advantageous, but intangible, knowledge-based asset.
Ghoshal and Bartlett (1988), Bartlett and Ghoshal (1997), and Nohria and Ghoshal (1997) argue
that it is the utilization of organizational capabilities worldwide that provides MNCs with an important
source of competitive advantage. The term organizational capability has been developed by
both Ulrich (1987) in the HR field and Prahalad and Doz (1987) in the strategy field. As a concept
it combines ideas from the fields of management of change, organizational design, and leadership.
Ulrich and Lake (1990) argued that organizational capability was about competing "from the inside
out." Organizational capability therefore focuses on the ability of a firm's internal processes, systems,
and management practices to meet customer needs and to direct both the skills and efforts of
employees towards achieving the goals of the organization.
This collection of capabilities reflects things such as a firm's "key success factors," "culture,"
"brand," "shared-mindset," or "processes" (Ulrich & Lake, 1990; Lawler, 1997) and they reflect " ...
competitive marketplace the act of integrating disparate sources of knowledge within the boundsof the organization becomes a source of advantage (Grant, 1996). Indeed, one of the basic premisesof internationalization research is that in order to succeed internationally a firm has to possess somehighly advantageous, but intangible, knowledge-based asset.Ghoshal and Bartlett (1988), Bartlett and Ghoshal (1997), and Nohria and Ghoshal (1997) arguethat it is the utilization of organizational capabilities worldwide that provides MNCs with an importantsource of competitive advantage. The term organizational capability has been developed byboth Ulrich (1987) in the HR field and Prahalad and Doz (1987) in the strategy field. As a conceptit combines ideas from the fields of management of change, organizational design, and leadership.Ulrich and Lake (1990) argued that organizational capability was about competing "from the insideout." Organizational capability therefore focuses on the ability of a firm's internal processes, systems,and management practices to meet customer needs and to direct both the skills and efforts ofemployees towards achieving the goals of the organization.This collection of capabilities reflects things such as a firm's "key success factors," "culture,""brand," "shared-mindset," or "processes" (Ulrich & Lake, 1990; Lawler, 1997) and they reflect " ...
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