This study addresses how individuals combine their diverse skills during the process of forming organizational routines. Our explanation centers on the development of transactive memory, which forms during the initial performances of a routine, as actors search for (and subsequently remember) other actors with the capabilities needed to complete a routine. We present an agent-based model to analyze how the distribution and availability of individual capabilities influence the set of actors involved in performing routines, initially and over time. The model shows that even when the pattern of actions stays the same, the pattern of actors involved in performing an organizational routine can change continuously. Variations in the efficiency of routine formation that are inexplicable in terms of action sequences may be readily explained when we examine actor sequences. Transactive memory contributes to the theory of organizational routines by serving as a bridge between individuals’ skills and collective capabilities.

Focusing on competitive dynamics, this study examines the strategic issues Boeing has faced in seeking to maintain its leading position in the airline industry. Boeing’s status as a first mover in the aerospace industry has made it a world-leading company; however, the external environment and various pressures have allowed Airbus to emerge as a strong competitor. By conducting a descriptive case analysis, this paper identifies the competitive issues between these two giants, analyzing continuous action and reaction processes throughout the whole history of the airline industry. Finally, by examining Boeing’s main strengths, business diversification options, and risk-taking culture, this paper suggests ways Boeing can retake its place as the industry leader.

This study analyzed the firm’s actual case in an environment where the financial industry’s paradigm changes due to technological development. It focused on Deutsche Bank’s competitive action at the heart of the digitalizing European banking industry. This study presents the competitive dynamics among firms and the effects of such dynamics on firm performance. Based on the competitive dynamics between Deutsche Bank and other banks competing in the European banking industry, the Red Queen theory was applied. This study has shown that Deutsche Bank’s innovative actions in the digitalizing European banking industry are necessary and are a factor that can lead to successful firm performance in a hyper-competitive environment. Firms need to develop a capability to quickly capture the opportunities to innovate and take advantage of them to stay ahead of their competitors.

Localization, the process of establishing the most adequate system in the target market according to the given environment to produce the most viable product in the market, can help multinational enterprises (MNE) to better understand the market, and take the most appropriate actions needed. Business strategies in emerging markets must account for the environment’s distinctive characteristics because emerging markets are characterized by underdeveloped institutions, also known as institutional voids. What would be the best strategy to respond to these voids? The primary focus of this article is to investigate how multinational businesses deal with the institutional voids of emerging markets such as the Indian automobile market, and how the different strategies affect the players’ performances. By comparing Hyundai Motors Company and Volkswagen Auto Group’s different strategical approaches, this research demonstrates that better creation of a local value chain and ecosystem leads to better performance in emerging markets. Survival within emerging markets requires thorough market analysis in an institutional context, and rapid response to environmental shifts resulting from institutional voids. Localization can help in both aspects.