The organizational choice between evolutionary and revolutionary capability regimes: theory and evidence from European air transport

Abstract

Resource- and capability-based models of firm strategy gain in analytical power by incorporating some of the organizational trade-offs that firms face in choosing between alternative building strategies. Based on the well-documented trade-off between flexibility and commitment inherent in social systems, this paper argues that firms must choose between evolutionary and revolutionary capability Empirical evidence drawn from the race of European airlines to develop critical revenue management capabilities is cited to illustrate the theory and practical relevance of regimes. Copyright 2000 by Oxford University Press.