The article "Microfoundations of Routines and Capabilities: Individuals, Processes, and Structure" by Teppo Felin, Nicolai J. Foss, Koen Heimeriks, and Tammy L. Madsen explores the microfoundations of routines and capabilities, emphasizing the importance of understanding the underlying micro-level components that contribute to these constructs. The authors identify three primary categories of micro-level components: individuals, social processes, and structure and design. They discuss how these components and their interactions affect routines and capabilities, providing a research agenda for advancing the field's understanding of these microfoundations. The article begins by defining microfoundations as theoretical explanations supported by empirical evidence of phenomena at a lower level of analysis, which influence higher-level phenomena. It highlights the need for a microfoundations approach to understand the origins, creation, development, reproduction, and management of collective constructs like routines and capabilities. The authors argue that a microfoundations perspective can provide deeper insights into the behavior and performance of firms and contribute to heterogeneity among firms. The article then delves into the definitions of routines and capabilities, emphasizing their collective nature and the importance of interactions between individuals. It discusses the hierarchical nature of capabilities, distinguishing between zero-order, operational routines and higher-order dynamic capabilities. The authors also explore the differences between rigid and flexible routines and capabilities, and the role of individual cognition, characteristics, and abilities in shaping these constructs. The role of individuals is highlighted as crucial, with their choices, agency, and cognitive processes influencing routines and capabilities. The authors discuss the importance of individual heterogeneity, including cognitive and psychological factors, and how these aggregate in social settings. They also examine the impact of individual characteristics and abilities on routines and capabilities, noting that employee mobility can significantly affect organizational outcomes. The article concludes by emphasizing the need for a multi-level approach that considers both microfoundations and macro-level structures, and suggests future research directions to further explore the microfoundations of routines and capabilities.The article "Microfoundations of Routines and Capabilities: Individuals, Processes, and Structure" by Teppo Felin, Nicolai J. Foss, Koen Heimeriks, and Tammy L. Madsen explores the microfoundations of routines and capabilities, emphasizing the importance of understanding the underlying micro-level components that contribute to these constructs. The authors identify three primary categories of micro-level components: individuals, social processes, and structure and design. They discuss how these components and their interactions affect routines and capabilities, providing a research agenda for advancing the field's understanding of these microfoundations. The article begins by defining microfoundations as theoretical explanations supported by empirical evidence of phenomena at a lower level of analysis, which influence higher-level phenomena. It highlights the need for a microfoundations approach to understand the origins, creation, development, reproduction, and management of collective constructs like routines and capabilities. The authors argue that a microfoundations perspective can provide deeper insights into the behavior and performance of firms and contribute to heterogeneity among firms. The article then delves into the definitions of routines and capabilities, emphasizing their collective nature and the importance of interactions between individuals. It discusses the hierarchical nature of capabilities, distinguishing between zero-order, operational routines and higher-order dynamic capabilities. The authors also explore the differences between rigid and flexible routines and capabilities, and the role of individual cognition, characteristics, and abilities in shaping these constructs. The role of individuals is highlighted as crucial, with their choices, agency, and cognitive processes influencing routines and capabilities. The authors discuss the importance of individual heterogeneity, including cognitive and psychological factors, and how these aggregate in social settings. They also examine the impact of individual characteristics and abilities on routines and capabilities, noting that employee mobility can significantly affect organizational outcomes. The article concludes by emphasizing the need for a multi-level approach that considers both microfoundations and macro-level structures, and suggests future research directions to further explore the microfoundations of routines and capabilities.