Applying organizational routines in analyzing the behavior of organizations

Abstract

The concept of organizational routine can foster our understanding of the behavior of organizations and of organizational change [Nelson, R.R., Winter, S.G., 1982. An Evolutionary Theory of Economic Change. Belknap Press/Harvard University Press, Cambridge; March, J.G., Simon, H.A., 1958. Organizations. Blackwell, Oxford (1993); Cyert, R.M., March, J.G., 1963. A Behavioral Theory of the Firm. Blackwell, Oxford (1992)], but since empirical studies employing organizational routines as analytical perspective are still relatively rare, how to conduct such an analysis and what are its benefits is not yet fully evident. We wish to shed light on how employing routines contributes to understanding the behavior of organizations and to demonstrate the potential of such analysis. The empirical analysis of the product development process at an engineering centre shows that using organizational routines presents advantages over alternative analytical approaches. The paper also contributes to shed light on how to fruitfully employ an organizational routines perspective in analyzing the behavior of organizations, providing the foundation for further empirical work.