An ability‐based view of the organization : Strategic‐resource and contingency domains

Purpose – This paper extends the corporation‐based metaphor of the tree by proposing that cognition is the core ability that nourishes the development of core competencies. From such an extension, this paper aims to take a step forward to answer the question: what is the role of cognition in the organization that is in pursuit of core competencies and sustainable competitive advantage? Design/methodology/approach – The paper answers this problem by presenting two complementary perspectives, which contribute to introduce the field of organizational cognition into the strategic‐resource and contingency domains. First, it proposes precepts of an ability‐based view of the organization through analogies that are most associated to concepts of the resource‐based view and dynamic capabilities of the firm. Second, it introduces a contingency‐based view of organizational cognition which is most developed through causal relations, and also deductive and inductive reasoning. Findings – Conclusions reinforce the thesis that cognition is the core ability which supports individuals, groups and organizations with other complementary abilities such as intelligence, autonomy, learning, and knowledge management; whereas these abilities, all together, are sources of reduction of environmental uncertainty, and, complementarily, they nourish the development of the organization's core competencies and competitive advantage. Originality/value – The uniqueness and distinction of this research lies in the authors' efforts to explain the strategic dynamic behavior of the organization in the pursuit of high degrees of cognition in order to manage high levels of environmental uncertainty, to nourish the development of core competencies, and to sustain the organization's competitive advantage.