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Designing Organizations for Dynamic Capabilities
Felin, Teppo , and Thomas C. Powell
58/4  (Summer 2016): 78-96

How can organizations put dynamic capabilities into practice? This article focuses on the power of organizational design, showing how managers can harness new organizational forms to build a capacity for sensing, shaping and seizing opportunities. Fast-moving environments favor open organization and self-organizing processes that quickly convert individual capabilities into actionable collective intellect. However, such self-organizing processes require managers to design and execute them. Using Valve Corporation as a case example, this article shows how new design principles- such as polyarchy, social proofs, and new forms of open organization- allow organizations to build dynamic capabilities for sustained innovation in dynamic environments.

 

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