Summary of Kogut & Zander (1992): Knowledge of the firm, combinative capabilities and Replication...

Full text: https://sciencetheory.net/review-knowledge-of-the-firm-combinative-capabilities-and-the-replication-of-technology-by-kogut-and-zander-1992/
This review focuses on summarizing the main contents of the article "Knowledge of the firm, combinative capabilities, and the Replication of Technology" published by Kogut and Zander in 1992 on the Organization Science. In the literature, this article is considered as fundamental one for the knowledge-based view – a branch of Resource-Based Theory of the Firm approach, that explains why firms exist and differ in performance in knowledge-based view.
In this article, Kogut and Zander adopted “the view that firms are a repository of capabilities, as determined by the social knowledge embedded in enduring individual relationships structured by organizing principles. Switching to new capabilities is difficult, as neither the knowledge embedded in the current relationships and principles is well understood, nor the social fabric required to support the new learning known. It is the stability of these relationships that generates the characteristics of inertia in a firm's capabilities” (p.396).

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