Organizational Capability Model: Toward Improving Organizational Performance

Abstract

Organizational capability is of particular importance to organizational performance. Existing research in the literature identified a wide range of factors that would contribute to organizational capability. This paper aims to establish a theoretical model that addresses the fundamental elements contributed to organizational capability. We develop an organizational capability model based on a model of individual capability proposed by Nguyen and Zeng. Organizational knowledge, skills and emotion are identified as the three elements determining the organizational capability. In the proposed model, organization is abstracted as a work-centric construct highlighting work, goal and people as the contextual factors influencing emergence of the organizational elements. These elements are explained in details focusing on their characteristics as organizational phenomena. Finally, it is briefly discussed how the proposed organizational capability model can be used for effective organization management.