Organizational Design and the Acquisition of Rent-Producing Resources

Michael Lenox

Research in Economics from Santa Fe Institute

Abstract: Within the resource-based view of the firm, a dynamic story has emerged in which the knowledge accumulated over the history of a firm and embedded in organizational routines and structures influences the firmÕs ability to recognize the value of new resources and capabilities. This paper explores the possibility of firms to select organizational designs that increase the likelihood that they will recognize and value rent-producing resources and capabilities. A computational model is developed to study the tension between an organizationÕs desire to explore its environment for new capabilities and the organizationÕs need to exploit existing capabilities.