Exploring the complexity of managerial capability: Insights from the competence-capability debate

Abstract

This paper explores the notion of managerial capability. The aim of this paper is three-fold. Firstly, we have utilised the literature to clarify an understanding and conceptualisation of 'capability' contrasted with the often related term 'competence', at the level of the individual. Then, with these understandings and conceptualisations in mind, we explain why managerial capability is worthy of further theoretical exploration and how best to approach that exploration with the aim of generating useful theory about the phenomenon. Finally, we discuss selected findings of a pilot study of top managers from the Australian health care sector. The pilot study illustrates fruitful research methodology and directions regarding theory development of the concept 'managerial capability' in this limited context. This paper serves as a clarifying departure point for a larger exploratory study centred on the development of theory concerning managerial capability of SME managers in the Australian health care sector.