Definition: is a company’s capacity, ability to manage its resources effectively enough to gain advantage and superiority over its competitors. The resources that form a company’s organizational capability oftentimes include material aspects (equipment, property, buildings, land), human resources (number of employees, their skills, experience, and the quality of their performance), financial resources (credit and assets), intellectual property (patents, copyrights, projects, designs), and informational resources (databases, research results, evaluations). Organizational capabilities include everything a business does that can help it differentiate itself in the market. They are typically focused on a company’s ability to meet and satisfy customer demand. Successful organizational capabilities are usually unique and hard to be replicated by the competitors.
In a Sentence:
Improving and developing organizational capabilities may help your small business stand out from the competitors.
One of the key factors of developing your company’s organizational capabilities is focusing on the aspects and the areas, in which your business excels.
Organizational capabilities are able to provide your company with a competitive advantage in the market.
Synonyms and related words: competitive advantage, business management, financial management, management principles, organizational politics, maintenance capability, strategic capability