ABSTRACT

Recently academic researchers and management consultants have denoted an increased interest in understanding how firms can build, nurture and sustain strategic capabilities. 2 The strategic management literature considers that knowledge allows the creation of capabilities; therefore the process of building up the knowledge base is at the centre of attention. Through learning processes the firms build their knowledge base. There is increasing consensus that the capability building process takes time and is a costly process that requires a deliberate and sustained learning strategy. 3