engleski

Building organizational identity through development of organizational capabilities

Organizations are finding new ways of creating value by turning to internal organizational strengths and creation of organizational capabilities that make them unique and recognizable at the market. As the resource based theory argues organizations posses unique set of resources and ownership on these resources, together with the benefits that organizations can achieve by their transformation defines the difference in organizational performance among companies. The essence of strategy, in today’s highly competitive environment, is not the structure of a company's products and markets but the dynamics of its behavior and creation of organizational capabilities. One of the central emphases in modern environment is the process of constant change, where development and implementation of capabilities provides organizations with and additional mechanism that emphasizes the key role of strategic management in appropriately adapting, integrating, and reconfiguring internal and external organizational skills, resources, and functional competencies within a changing environment. The goal is to recognize, create and develop hard-to-imitate organizational capabilities that distinguish a company from its competitors in the eyes of customers. In that sense, capabilities represent a special part of organizational identity. However, understanding capabilities and their development inside organizations is not simple and easy. It is a long term process under the influence of various factors that have numerous interactions. The purpose of this paper is to provide a theoretical and practical overview on the importance of organizational capabilities inside organizations, with special emphasis on their role in building organizational identity.

organization identity; organizational capabilities; competitive dynamics

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