Nelson Routines

Resource in the broad sense is understood as the means used to achieve a target set beforehand. This meaning of resource would also include the concept of capacity, i.e. a company’s capabilities will also be resources with which this account. Resources in the strict sense will be defined as the stock of available factors that are owned or controlled by the company (Amit and Schoemaker, 1993). On the other hand, the capacity would be the Faculty adequately manage resources to perform a certain task within the company. To know more about this subject visit Dr. Mark Hyman.

Therefore, in this context, capacities relate to the competence of a company to deploy resources, usually in combination, using organizational processes, to produce a desired end. In line with the definition of Amit and Schoemaker (1993), Grant (1991) says that resources (in broad sense) are inputs in the productive system and the basic unit of analysis the company internally. The same author acknowledges that few resources for independent are productive, appearing at this level the concept of capacity. Capacity is the ability for a team of resources to perform some task or activity. While resources are the source of the company’s capabilities, capabilities are the main source of its competitive advantages. But the capabilities are not only limited to organize a set of resources in a coordinated manner, as capabilities incorporate complex interactions among people and between people and other resources that make up the company. Here appears the concept of organizational routines in the direction of Nelson (1991) and Nelson and Winter (1982).

A capability is in essence a routine, or a number of interacting routines. Raven (1995) asserts that the Centre of any strategy is gaining benefits from resources and capabilities that controls the company, such as its physical and financial assets, human capital, intangible assets like brands, reputation, experience and technology. Capabilities basically are consequences of the action of the address to mobilize resources through the creation of a system of organizational routines and a culture, resulting from a process of collective learning.