Organisational capabilities in American industry: the rise and decline of managerial capitalism
Organisational capabilities represent the power of planned and coordinated specialised divisions of labour to achieve organisational goals. Through planned coordination, the specialised productive activities of masses of individuals can coalesce into a coherent collective force. Through planned coordination, organisations can integrate the various types of knowledge needed to develop new products and processes. Through planned coordination, organisations can speed the flow of work from purchased inputs to sold outputs, enabling the enterprise to achieve lower unit costs.