Routines Revisited: Exploring the Capabilities and Practice Perspectives

Abstract

Organizational routines, repetitive patterns of interdependent organizational actions, have been investigated through the lens of capabilities, rooted in organizational economics, and the lens of practice, grounded in organization theory. The former approach emphasizes the “what” or “why,” while the latter emphasizes the “how.” In this review, we summarize both of these literatures and explore recent empirical studies in each stream, identifying common themes. In particular, we compare and contrast how each perspective incorporates the effects of individual actors, tacit knowledge, ambidexterity, and context specificity. We find that the two streams of work have distinct trajectories and strengths, but elements of each can be complementary to developing a more holistic understanding of organizational routines.