HEC Research Papers Series,
HEC Paris

Abstract: Limited attention has been paid to the crucial role of individuals’ motivation and social interactions in capability development. Building on literature in social psychology and behavioral economics that links heterogeneity in individual social motives to social interactions, we explain how the variation, selection, and retention processes underlying a group’s deliberate capability development are affected by the composition of the group in terms of individuals’ social motives in interplay with the organizational-level motivational levers designed by managers. Our multilevel theoretical model suggests that individual-level heterogeneity leads to the development of capabilities along different paths. For practice, this implies that, according to the composition of the group in terms of social motives, capabilities are more or less technically and evolutionary adequate and source of business process performance.

Keywords: Deliberate Capability Development; Motivational Microfoundations; Social Interactions; Business Process Performance; Multilevel

JEL-codes: L10

38 pages, October 25, 2016

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