Formation and Evolution of Basic Design Capability in Mapna-boiler as a Latecomer System Integrator

Capability is one of the core concepts in strategy literature. Moreover, it is widely used to explain why latecomer firms can’t succeed in design and development of complex systems. There has been many efforts and significant progress in regard of capability but it is conceptualization and usage in empirical researches are problematic yet. In this paper a framework for operationalization of capability concept has been developed. Using the proposed framework, the process of formation and evolution of design capability in a latecomer system integrator has been investigated through a case study. For this purpose, acquisition and improvement of knowledge, tools and skills as micro-foundations of design capability and their integration has been under focus. In addition to show usability of our proposed framework, this case study provides a better understanding of how a firm's context and motivation affects on formation and evolution of its capabilities. Results of this research, are also a good guide for managers in regard of their plans for acquisition and improvement of required micro-foundations and the way they are integrated as a capability.