Dynamic Capability Seen Through a Duality-Paradox Lens: A Case of Radical Innovation at Microsoft

Abstract

This article brings a new, broad conceptual framework to the quest for understanding dynamic capability in organizations (i.e." managing on the edge of chaos"). This approach rests on two major pillars: (i) a duality-paradox perspective and (ii) new typologies of organizational learning (OL) and individual action/thinking. A case of radical innovation at Microsoft provides a multi-level illustration; interpreting it requires a focus on two dualistic challenges. For use in future ODC research and practical assessment the broad new conceptual framework includes: (i) collaboration as a central concept; (ii) duality-paradox as a key source of conflicts that can threaten collaboration; (iii) five types of organizational learning, (iv) four types of individual action/thinking, including paradoxical thinking, and (v) the proposition that "golden dualities" can be created from once-troubling duality situations (where critical collaboration was in danger) which have been transformed from the (metaphorical) "odd (contentious) couple" into a "productive (collaborative) partnership".