Combining institutional theory with resource based theory to understand processes of organizational knowing and dynamic capabilities

Abstract

Purpose/ Research question. A promising way to understand the development of the dynamic capabilities and the knowing process is to build a bridge between the Institutional Theory and the Resource-Based Theory (RBT). Although being needed, this approach is missing in the extant literature. So we have a research question: It possible to construct a bridge between two dimensions basing on two theoretical bodies (Institutional Theory and RBT) using an "inverted binocular" to look at knowing process enacted in a process of organizational learning, for formation of competences and dynamic capabilities? Design/Method/Approach. This paper analyses two different theoretical frameworks in a theoretic way and proposes an interface between those. Findings. The exploration and explication of micro-institutional processes (organizational or individual) can be connected to the macro level (societal or field level) by combining Institutional Theory with Resource Based Theory (RBT) in a multiparadigmatic view between visions and levels (cross-level). Theoretical implications. The bridge between these two theories would enable to strengthen the comprehension of the organizational changes in the various levels of analysis, considering their mutual dependence, and the knowing process and dynamic capabilities. Originality/Value. One of the differentials of this paper is the attention given to knowledge as the main piece for the construction of the bridge between these theories. Research limitations/Future research. An interface between the RBT and Institutional theory is necessary for a further development and understanding of concepts such as dynamic capabilities. Paper type - conceptual.