A Case Analyses of the Origin of Organizational Capability: Amgen Corporation’s Innovation Capabilities

To strategy scholars and managers, the origin of organizational capabilities is elusive. A scholar wonders “where [do] capabilities come from [and] what kinds of investment in money, time, and managerial efforts is required in building them” Ethiraj, et al. (2005, Strategic Management Journal, 26, 25-45). This study traced the trajectory of strategic asset deployment by Amgen’s top echelon to capture the origin of Amgen’s drug innovation capabilities. Sequentially, Amgen’s top echelon strategically acquired star scientists, who in turn, developed Amgen’s drug innovation capabilities. This finding is consistent with the upper-echelon and resource-based theories about the strategic roles of top managers in developing organizational capabilities. We hope, managers should learn from this insightful case.