
Contents
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1 Preface 1 Preface
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2 The New Business Landscape and the Centrality of Dynamic Capabilities 2 The New Business Landscape and the Centrality of Dynamic Capabilities
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3 What is a Values-based Organizational Guidance System? 3 What is a Values-based Organizational Guidance System?
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3.1 A Definitional Example 3.1 A Definitional Example
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4 The Micromechanisms of Values-based Organizational Guidance Systems 4 The Micromechanisms of Values-based Organizational Guidance Systems
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4.1 Micromechanism 1: Decision Heuristics 4.1 Micromechanism 1: Decision Heuristics
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4.2 Micromechanism 2: Intrinsic Motivation 4.2 Micromechanism 2: Intrinsic Motivation
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4.3 Micromechanism 3: Organizational Control System Based on Entrepreneurial Self-organization, Self-management, and Peer Regulation 4.3 Micromechanism 3: Organizational Control System Based on Entrepreneurial Self-organization, Self-management, and Peer Regulation
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4.4 Micromechanism 4: Organizational Identity 4.4 Micromechanism 4: Organizational Identity
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4.5 Micromechanism 5: Ecosystem Creation 4.5 Micromechanism 5: Ecosystem Creation
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5 Contributions 5 Contributions
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References References
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Case References (alphabetical by organization) Case References (alphabetical by organization)
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How Leaders Use Values-based Guidance Systems to Create Dynamic Capabilities
Get accessRosabeth Moss Kanter holds the Ernest L. Arbuckle Professorship at Harvard Business School, where she specializes in strategy, innovation, and leadership for change. The former editor of Harvard Business Review (1989–1992), Professor Kanter is the author or co‐author of seventeen books, which have been translated into seventeen languages. Among her best‐known are: Men & Women of the Corporation, When Giants Learn to Dance, and The Change Masters. She chairs a Harvard University group creating an innovative initiative on advanced leadership, to help successful leaders at the top of their professions apply their skills to addressing challenging national and global problems.
Matthew Bird is a Professor at the Universidad del Pacífico Graduate School in Lima, Peru. His research examines cultural influences on economic and organizational decision making with the goal of developing action tools that will help policy makers, managers, and social entrepreneurs better harvest local cultural solutions to common social challenges. Previously, he worked as a Research Director for the Advanced Leadership Initiative at Harvard University and as a Research Associate at Harvard Business School. His research has been funded by grants from the National Science Foundation, Fulbright-Hays, the National Institute of Mental Health, and Innovations for Poverty Action.
Harvard Buiness School
Harvard Business School
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Published:10 September 2015
Cite
Abstract
How do strategic leaders create change-adept organizations? Based on qualitative field research, this chapter argues that well-defined institutionalized purpose, values, and principles act as an organizational guidance system that integrates and strengthens the micromechanisms which enable leaders to build dynamic capabilities and, therefore, change-adept organizations. From empirical case studies, we distill micromechanisms through which organizational guidance systems create fertile soil for dynamic capabilities. The five micromechanisms are values-based decision heuristics; intrinsic motivation with positive emotions; an organizational control system based on entrepreneurial self-organization, self-management, and peer regulation; an organizational identity that (a) fosters a longer-term perspective and (b) widens the firm’s scope; and ecosystem creation. While much of the dynamic capabilities literature has focused on testing causal relationships between key performance variables and constructs, our goal here is to “open up” the regression model, provide a closer qualitative inspection of the “how-to” micromechanisms, and thereby advance a multidisciplinary research agenda.
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