Classifying organisational capabilities by their nature and role for technological capability

Based on critical literature review this research highlights a number of gaps in the existing treatment of technological and organisational capabilities. It has been recognised that organisational capabilities have an important role to play in development of technological capabilities both in latecomer and advanced companies. However, different studies focus on different organisational capabilities and prescribe them different importance. Further, despite the extensive research on organisational capabilities and a number of taxonomies of organisational capabilities, the literature review in this paper reveals that a classification highlighting different types of organisational capabilities by their nature and their role in development of technological capability is still absent. Further, studies often conflate technological and organisational capabilities, and adopt different units and levels of analysis and disaggregation. This study examines the above issues and develops a classification of organisational capabilities by their nature and their role in development of technological capability. In refining the interface between technological and organisational capabilities, this research disentangles the notion of organisational capabilities and introduces the notion of organisational capacity. Keywords:Innovation SystemsTechnology, Policy and Managemen