Abstract

AbstractSpanish fashion retailer ZARA has been the prototype for a new kind of competitive strategy by beating its rivals through superior flexibility and speed to market new products. We define this organizational ability to learn from the market and respond to it with superior speed as a response capability. We explore its origins conceptually by drawing arguments from the the capability based view of the firm. Based on a sample of 3,360 German companies our empirical results show that rapid response capabilities are either built around exploiting existing absorptive capacities or exploring options given strong environmental pressures from the technological or demand side, but not a combination of both.

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