In organization's success and prosperity there is a major role played by routine and compatibility. The large and challanging variety of processes along which the company develops its routine is also affected by the firm's capabilities in turn. There are cases in which routines are preceded by capabilities. Non-routine behavior together with improvisational actions could grant practicalities for capabilities. The propositions advance theories of organizational learning and entrepreneurship. First, this research has uncovered a rich set of patterns through firms succeeded or failed to learn from their own experience in developing new routines andÂ capabilities. Secondly a pattern of absorptive inertia has also been found. Some new companies developed the capacity to absorb knowledge from outside the firm but simultaneously developed an unwillingness to absorb external knowledge.
Routine is termed as a distinct manner or approach of organizational actions in organizational and strategic research literature. The individual behaviours in an organization may differ in patterns but not at the cost of company's goal. Therefore the routine may be subject to change when there are changes in the external environment because organizations cannot be expected to be change resistant. The research by Cohen, (2012) also states about the micro level origins that help to examine the fundamental day to day tasks performed or carried out by individuals in the organization, this in turn forms the routine.
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Two theories are claimed to be affected by the routine actions. These are Observation theory and Theory based intervention. There is integration between organizational routine and individual processes which are broadly termed as habits. Habits may be difficult to change and business environments cannot be the same due to changes in the external environment which demands flexibility. It also states that individual habits can be changed and thus the overall organizational routine. The research that has been conducted shows that there are multiple systems with distinct properties and these systems are of perception and memory. The actions performed are based on the procedural memory that plays a central role in the retention of those actions. The tactic of doing something is referred to the actions carried out through the power of retention. The study states that conscious verbal access to our know-how has been reduced to a great extent. And it is triggered unsuitably by conditions that apparently bear a resemblance to prior experience.
Recent work on visual perception distinguished parallel set of systems known as ventral and dorsal. Ventral pathway is a crucial element in humans that play a main role in speech. Under procedural memory system, the ability to articulate the workings of dorsal perceptual apparatus has reduced. However what triggers the steps taken in skilled or habitual activity are still unknown.
There are important implications for research on organizational routine in the habit system. General properties of organizational routines replicate those of the memory and perceptual systems which are used when individuals bear in mind and produce their actions as participants in routines. Anticipation allows a greater response of actions and rapid activities.
An understanding of the dorsal perceptual system gave researchers precious insights into foremost aspects of organizational routine, such as collective affordances of artefacts, the role of anticipation in practiced teams, and the understanding of collective purpose.
Innovative results on dorsal perception and the earlier work connecting memory for routine action to non-declarative memory for habits and skills demonstrate that routine action is heavily dependent on the habit system within human individuals. Psychology has been progressively revealing interlinked mechanisms of memory for, and creation of, action that do not depend on deliberation over possible consequences. Action is rather generated and is based on insight of situational features and memory from preceding action. The advancement of this perspective restores for us an understanding of action that complements but does not substitute the perspective of purposeful choice.
A large amount of literature has been produced on the origins of organizational routines and capabilities at micro level by (Anon, 2009). The role of routines, resources and capabilities has a significant impact on the organizational workings and develops an understanding of the behaviours expected at firm level. This entirely affects the structure of the organization and its overall performance. Whether the activities take place in a group form or individual processes, the result varies in terms of the development of the routines and capabilities. The role of deliberate learning and cognitive knowledge automates the routine behaviour in a firm's learning processes and marks the initial attempts in the understanding of the micro level origins of college knowledge. Relevant to this is the managerial attention that is a driving force that appears to be relevant for uncovering the micro foundations of organizational development. Moreover, motivation plays an integral role in the development of the organization's interest alignment that benefits the firm with an increase in individual performance making the organization more competent. It is often difficult to explore the interdependence of the various levels of analysis in the organizational outcomes of learning are uncommon. However, efforts are made to explore the interdependence of routines and capabilities development in the different micro and macro levels within an organization. The entire behaviour observed in an organization is the outcome of the actions and roles of the individuals in the organization. There is need for a detailed research and understanding of the micro level routines and capabilities in order to understand the behaviours in an organizational setting.
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To understand the micro-level origins of organizational routines and capabilities the research seeks to encourage fresh concern in the topic of micro-foundations by examining and interpreting papers from various branches of relevant studies such as management sciences, economics, neuroscience, psychology, philosophy, linguistics and sociology. The contributions particularly addressing the questions that ascended above or in either a careful conceptual form or experimental setting are welcomed. All experiential methods that include qualitative, quantitative, field, meta-analytical, and multi-method approaches are considered.
It has been claimed that organizational routines have an immense potential for change due to the external dynamic environment. Even though they are often seemed and even defined as unchanging. Descriptions of routines have been presented showing the change due to the participants responding to outcomes of previous experiences and knowledge of routines. On the basis of such changes in the routines a performative model of organizational routines has been proposed. It has been suggested that in order to promote continuous change there is an internal dynamic to routines because internal individual performance and strategies also affect the workings of routine.This internal dynamic is based on the addition of routine participants as agents. Routines can be seen as a richer phenomenon when the people who are doing the routines are not separated from the routines. Variations occur as a result of participants' reflections on and reactions to a range of outcomes of previous examples of the routine. This perspective initiates organization into the conception and formation of routine. Organization is important for understanding the role of organizational routines in processes and learning of institutionalization.
The research by Felin & Foss, (2004) states that in this research some of the underlying theoretical issues have been explained and the need for micro foundations pertaining to the chainging environment has also been explained. There have been some troubles encountered due to the theories that have been collected. In this research it has also been argued that considerations at individual level contributions deserve significantly more thoughtful. Routines have been explained in many different ways but the one that best explains the existing understanding is defined as promising factor for organizations to gain competence and enhance performance in response to the dynamic environment. Routines are seen as collective organizational level constructs that portrays processes and strategies.
Despite the fact that references flourish to notions of organizational routines and capabilities, in the contemporary world where economic changes are so rapid there is no clear definition, measurement or lucid understanding of how exactly they contribute as a competitive advantage to the firm. Altogether it has been noted that routines and organizational capabilities are significant in the development of an organization. Fundamentally, it has been argued that the problem is to a substantial extent routines and capabilities based work that are hard to change, making the individual secondary, and barely leaves space for improvisation at individual level. Ironically, it turns out that much of the routines and capabilities approach is susceptible to the same analysis that is forcefully and justifiably commenced against the neoclassical theory of the firm. Exclusively, it deviates from the tasks carried out at individual level that influence routines to a much greater extent. It however, provides no basis for explaining economic organization because the concept of routines and capabilities cannot be carried out if it lacks practicality because of the unrealistic decision-making. Emphasis has been placed on the neglegence of attention that is given to the individual performance in current modern economic and strategic management research. This has proven to be problematic. Individuals have the knack and know how of solving several issues that arise, and before routines can be shaped according to the changing needs. The fundamental assumptions about the humans under this study are absolutely essential. The hope is that this research will serve as a clear call of sorts for evolutionary and capabilities-based scholars to give more vigilant attention to underlying assumptions, and to develop theoretical arguments. This may give individuals dominance and micro-foundations. In addition, more research and concepts need to be applied by the individuals for the smooth operation of routines and capabilities. There has been no problem with the influence organizational structures have on the behaviour of individuals. It enhances individual performance according to the changing needs of the environment. Nevertheless it is argued that it is prohibited to begin analysis with structures and routines because their starting point should be of interest and of crucial focus.
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In the fields related to organizational studies, international business, technology and strategic management, the use and implementation of organizational routines and capabilities have become major contributing factors as stated by (Felin & Foss, 2009). Thi research has been mainly focusing on the inception of routines and capabilities that reflect the theories based on organizational performances in regard to changing externalities over a period of time. Collective performances are crucial to the current work routines. It forms the basis of organizational performance. The behaviours adopted could be intentional or unintentional and by the degree of effect it has on organizational operations it reveals whether it is noticeable or unnoticeable. In comparison, the theoritical problems pertinent to the concept of routine and capabilities of an organization lack the clearity of how these routines are formed and affected by its very micro foundations. It has been argued that the fundamental individual level micro components and interactional dynamics deserve extra attention in present work calling in effect for a course-correction in work on organizational routines and capabilities. It is highlighted how the importance of the origins of routines, the degree of intention and exceptions, and aggregation and appearance, provide opportunities to make corrections in future research on organizational routines and capabilities.
The key findings pertaining to this research tells about the major areas which have been focused in the study of organizational routines and capabilities. It revolves around
Organizational routines and capabilities, which is the main purpose of this research.
Strategy, that is interlinked with the processes carried out by routines and capabilities.
Micro foundations, that lies within an organization.
Aggregation, which integrates the entire procedure.
Intentionality, which can be related to the habits which are intentional.