Abstract
Capabilities are crucial to firms and their performance, but there is a lack of in-depth understanding of how they are created. I examine how new capabilities emerge in an ethnographic assessment of cooperations between a leading biopharmaceutical enterprise and its public partners over the course of three years. I develop a comprehensive model of capability creation comprising different generative mechanisms and supporting constructs. I label these mechanisms asymmetries, overflows, and redeployments, and show how each implies different origins of organizational capabilities and different paces of development over time. Efforts to lay out this model contribute to understanding the inner workings of capability creation and generate actionable insights on how to strengthen the development of capabilities.
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