Exploring the link between managerial knowledge and capability development

Interest from a capabilities perspective in knowledge assets is on the process of knowledge creation and transformation given that the value of any knowledge asset is ultimately to its productive uses. The process through which capabilities are developed provides a useful empirical lens to assess the creation of organisational knowledge. A key assumption from this perspective is the critical role of individuals’ knowledge in the creation of knowledge at the organisational level, where the capability development process implicitly embodies this process of transformation. The focus of an empirical study is the role of individuals’ knowledge in relation to the creation of capabilities in new, on-line markets. The findings of the study provide support for the role of prior organisational experience in the development of new capabilities. The study distinguishes the role of individuals’ knowledge across the managerial hierarchy, and suggests further that managerial knowledge be considered in architectural and component terms.