Renewal, Reuse and Reinforcement: Building capability to enter, grow and shape the nascent market for integrated sustainable urban solutions
As global market turbulence increases, firms rely on their capabilities to innovate their products, processes, and perhaps most importantly their organisations to address the external changing market. Past studies point their focus to enterprises developing capabilities in dynamic environment (Teece et al., 1997, Eisenhardt and Martin, 2000, Helfat and Peteraf, 2009, Zollo and Winter, 2002), but the process of capability transformation in entering, growing and shaping anascent market remains poorly understood. We employ an inductive, longitudinal process study to understand how a firm strategically over a five year period (2005-2010) manage a revolutionary project to enter, grow and shape an emerging sustainable urban development market. Our study uncovers how the organisation undertook three mutually enabling set of activities: renewal, reuse and reinforcement, as an outcome of the execution of dynamic capabilities, to assemble the process of capability building in emerging markets. The three sets of activities are correlated, but conceptually distinct. Based on our study we produced a conceptual model within which the three ‘R’ activities dynamically combine and interact at different phases over time.