Abstract

This paper examines the nature of the core capabilities of a firm, focusing in particular on their interaction with new product and process development projects. Two new concepts about core capabilities are explored here. First, while core capabilities are traditionally treated as clusters of distinct technical systems, skills, and managerial systems, these dimensions of capabilities are deeply rooted in values, which constitute an often overlooked but critical fourth dimension. Second, traditional core capabilities have a down side that inhibits innovation, here called core rigidities. Managers of new product and process development projects thus face a paradox: how to take advantage of core capabilities without being hampered by their dysfunctional flip side. Such projects play an important role in emerging strategies by highlighting the need for change and leading the way. Twenty case studies of new product and process development projects in five firms provide illustrative data.

Keywords

Core (optical fiber)New product developmentCore productProcess (computing)Product (mathematics)Dimension (graph theory)Process managementBusinessComputer scienceIndustrial organizationKnowledge managementMarketingTelecommunications

Affiliated Institutions

Related Publications

A resource‐based view of the firm

Abstract The paper explores the usefulness of analysing firms from the resource side rather than from the product side. In analogy to entry barriers and growth‐share matrices, t...

1984 Strategic Management Journal 24025 citations

Publication Info

Year
1992
Type
article
Volume
13
Issue
S1
Pages
111-125
Citations
6303
Access
Closed

External Links

Social Impact

Social media, news, blog, policy document mentions

Citation Metrics

6303
OpenAlex

Cite This

Dorothy Leonard‐Barton (1992). Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management Journal , 13 (S1) , 111-125. https://doi.org/10.1002/smj.4250131009

Identifiers

DOI
10.1002/smj.4250131009