Promoting Dynamic Capabilities with Excellent Organizational Routines in Fast Changing Environment

The evolution of organizational routine has a close relationship with firm's dynamic capabilities, between which organizational learning is an intermediary factor. Organizational routine has two aspects that influent its evolution:the ostensive aspect and the performative aspect. The former embodies what we typically think of as the structure. The latter embodies the specific actions, by specific people, at specific times and places, that bring the routine to life(Feldman&Pentland,2003). In this paper, a circular model is made, which shows the interrelationship between organizational routine evolution and organizational learning that can give rise to firm's dynamic capabilities. With a case study to the model proposed, this paper argues that the performative aspect of organizational routine contributes new knowledge to organizational learning, and the products of organizational learning are stored in the ostensive aspect of organizational routine. Pressure from environment and performing of subjective initiative which influencing the performative aspect of organizational routine can enhance the evolution of organizational routine.